Low carbon economy transition

Climate change is dramatically changing how we interact with the world and each other. As we transition to a low carbon economy, society is evolving to manage the risks and seize the opportunities. ERM helps clients through the low carbon transition, turning boardroom strategy into on-the-ground actions.

Climate change is now recognized as a systemic risk to the global economy, and the Paris Agreement put the world on a pathway to limiting its warming. Already capital is flowing, both due to pure economics (e.g., wind and solar becoming more cost effective) as well as national and international policy shifts. LCET presents material market implications for our clients from both policy and technology disruptions.

The G20 Financial Stability Board concluded that these dynamics present a material financial stability risk on a scale equivalent to the financial crisis in 2008/09. The framework created by its Taskforce on Climate Related Financial Disclosure (TCFD) is now helping shape the responses of financiers and CEOs worldwide. ERM was engaged by the TCFD to prepare the technical supplement on The Use of Scenario Analysis in Disclosure of Climate-related Risks and Opportunities. Our appointment was based upon our deep experience in evaluating transition and physical risk for many industries across a range of geographies. 

ERM has a strong history of LCET-related services to clients through our work on liquid natural gas; renewables; electricity networks; hydrogen; carbon capture, utilization and storage; natural climate solutions; and decommissioning and repurposing high-carbon assets – as well as climate advisory assignments at corporate and asset levels that are helping clients reduce carbon emissions and climate-related financial risk. We continue to bolster our LCET capabilities and experience through strategic acquisitions of specialized firms, such as M.J. Bradley & Associates and Critical Resource.