Understanding the real risks that climate change poses to a business and developing implementable plans to manage those risks is one of the most complex issues businesses face today.
The world’s response to the challenges of climate change is creating a wide range of changes that businesses must understand and manage. Developing and executing a plan that not only manages risk but also identifies the new business opportunities created by these changes requires a unique combination of strategy, business acumen, and deep energy, climate and environmental policy expertise.
Assessing risks, identifying opportunities
ERM works with companies around the world to comprehensively assess the impact of climate change on their business and develop an integrated program that cost effectively mitigates the material risks, captures opportunities and tracks progress.
Our deep experience in climate policy, energy technology, transportation, carbon markets, economics, and risk management provides our clients with the broad range of insights required to build these plans. ERM has over 50 years of experience assessing and delivering broad environmental services, and our energy and climate change capabilities include:
- Comprehensive GHG inventory and management, from advice on policy and regulatory change to strategy and project planning, permitting and implementation
- Deep skills in lifecycle assessment, with which we help our clients to understand and manage environmental impacts throughout the product value chain
- A long track record in the policies, technologies, and economics of energy transition - covering topics such as hydrogen, carbon capture, industrial processes, energy networks & storage, building heating & cooling, future fuels & chemicals – so we can support clients to take well-informed positions
- Insight and tools to help transport operators to reduce emissions from road, rail, maritime and aviation
- A successful record helping clients to secure public funding for innovative demonstration projects and providing program management for such projects
- Effective energy management using our custom methodology (Quick Environmental Savings Technique (QUEST), which is focused on driving operational excellence and generating rapid energy savings
- Expertise in national and regional climate and clean energy regulations, which helps clients develop strategies to comply with requirements, anticipate future requirements, and understand the potential operational implications of litigation
- Local knowledge of regulatory requirements combined with global experts and multidisciplinary teams
- Information systems experience that helps companies make fact-based decisions, track progress, measure risks and report performance as required
- Economic and financial insights to help develop risk-based strategies for compliance and mitigation
- Development of quantitative risk assessments and response plans designed to protect businesses across their supply chains from the physical risks of climate change
Low Carbon Transition, Climate Change and the TCFD
The G20 Financial Stability Board’s Taskforce on Climate-related Financial Disclosures (TCFD) was set up to develop guidelines for analysis and disclosure of climate-related financial risk and opportunity for the benefit of investors, lenders, insurers, and other stakeholders. ERM wrote the technical supplement on the use of scenario analysis in relation to climate-related financial risks and opportunities to determine strategic response options.
Using our deep understanding of the TCFD requirements, we assist clients to assess financial risk from climate change and to deliver strategic responses to capture opportunities emerging from the low carbon transition.
We work with clients to comprehensively assess their operations and strategically evaluate options for achieving net-zero greenhouse gas emissions by a certain date. We assist clients to obtain input from other stakeholders, including investors and environmental organizations.
We provide strategic advice to clients on their net zero journey on the emerging options for transitioning to a lower carbon system, including electrification, renewable gas, biogas, energy storage, Carbon capture use and storage (CCUS) and hydrogen. Our domain expertise in the analysis, investment and deployment of cutting-edge low-carbon technologies supports market differentiation. We work with clients to consider company and consumer costs, feasibility, technological maturity, as well as other key factors for the client.
By proactively and pragmatically assessing climate change impact on a business, executives can make informed decisions about where and how to invest across their business.