Of Forbes 2000 companies that have committed to achieving net zero emissions by 2030, a 2023 Net Zero Tracker study reports that 53% plan to use carbon credits, either to offset hard-to-eradicate emissions or to voluntarily advance their targets. However, the carbon offsetting market is still developing, and consumers, customers, and governments are scrutinizing the veracity of many claims. This Viewpoint provides guidance for companies that seek to incorporate carbon credits within their emissions strategies.
Achieving a global reduction in greenhouse emissions to net zero, by 2050, will require re-building the global infrastructure developed since the Industrial Revolution. Net-zero emissions can be achieved across all the energy, building, industry and transport sectors of the economy. Comprehensive clean electrification will be at the core of decarbonization pathways, combined with a range of complementary technologies, including clean hydrogen, low-carbon fuels, wind, solar, district heating and cooling, HVAC, heat pumps, etc. Carbon capture and storage, and carbon removal, offsetting solutions and flexibility management solutions will be critical considerations in this journey. Decarbonization of transport infrastructure for land, air and maritime will also be imperative to effectively support this transition. However, achieving this technologically feasible transition requires large-scale investment amounting to trillions of dollars per annum.
THE BUZZ ABOUT ENERGY DATA & WHERE TO FIND IT
Increased electrification across society to meet climate targets, paired with European and local legislation, has put pressure on every level of the grid, while creating opportunities for existing and new market players.
We support Infrastructure and Private Equity investors in understanding climate change solutions and platforms, identifying attractive companies, conducting commercial due diligence, and realizing the full value potential of a portfolio company through a successful exit.
Commercial Due Diligence
We provide independent, fact-based and thorough analysis of a target's primary commercial and operational aspects, including market and competitive landscape, regulation, customer base, product & portfolio evaluation, operational efficiency, management structure and business plan assessment . We specifically focus on the analysis of the target’s commercial prospects in the context of evolving green policies and regulations, as well as on a thorough assessment of the target’s technological competitiveness, considering emerging alternative decarbonization solutions. We identify value creation potential leveraging our industry knowledge but also our expertise in innovative solutions.
Vendor Commercial Due Diligence
In a competitive auction or dual-track process, when preparing a company for an initial public offering (IPO), a vendor due diligence report (VDD) can add substantial value for the seller. Our deep knowledge of energy transition and industrial decarbonization pathways, combined with in depth analyses, facilitates the assessment of a company’s positioning & prospects and the development of a compelling narrative that underpins an enhanced management business plan. We specifically focus on the company’s long-term positioning by considering various adaptation scenarios along the net-zero journey through 2050.
Portfolio company value creation
A successful exit and realization of the investment thesis hinges on a portfolio company achieving its full potential – by building its leadership team, driving profitable growth, and optimizing operations. By focusing on strategic planning, operational improvement, revenue growth, cost reduction, financial optimization, talent management, customer experience, innovation and sustainability we facilitate long term success and enhance the overall value of a company. We bring our operational and commercial expertise, and implementation skills to deliver rapid results . Our insight into green policies and available subsidies helps focus the company on the right commercial opportunities, considering various market and policy-driven mechanisms to promote climate solutions.
ESG Due diligence
Ensuring our clients identify Environmental, Social and Governance related risks and evaluate their impact and potential costs. Our ESG assessment framework includes an SDGs-based review, integrated with Equator Principles and IFC Performance Standards. Our ESG know-how combined with industry expertise enables us to translate ESG risks into its business impact.
Regulatory due diligence
We help clients analyze current and future regulatory frameworks to identify the impact of potential changes on the target’s business plan. Thanks to our global network we are able to anticipate and compare different regulatory regimes, evaluating the effects on the target. We provide our clients with risks and opportunities considerations for each potential scenario, embedding the outcomes in the evaluation of the target.
Independent business review
An Independent Business Review involves a thorough and objective assessment of a company's current state and performance. Independent Business Review is crucial for gaining a clear, objective, and comprehensive understanding of a company’s health and prospects. By conducting thorough financial, operational, market, strategic, management, and risk assessments, we provide the stakeholders with the insights needed to make informed decisions, mitigate risks, and drive performance improvements.
Commercial Due Diligence
We provide independent, fact-based and thorough analysis of a target's primary commercial and operational aspects, including market and competitive landscape, regulation, customer base, product & portfolio evaluation, operational efficiency, management structure and business plan assessment . We specifically focus on the analysis of the target’s commercial prospects in the context of evolving green policies and regulations, as well as on a thorough assessment of the target’s technological competitiveness, considering emerging alternative decarbonization solutions. We identify value creation potential leveraging our industry knowledge but also our expertise in innovative solutions.
Vendor Commercial Due Diligence
In a competitive auction or dual-track process, when preparing a company for an initial public offering (IPO), a vendor due diligence report (VDD) can add substantial value for the seller. Our deep knowledge of energy transition and industrial decarbonization pathways, combined with in depth analyses, facilitates the assessment of a company’s positioning & prospects and the development of a compelling narrative that underpins an enhanced management business plan. We specifically focus on the company’s long-term positioning by considering various adaptation scenarios along the net-zero journey through 2050.
Portfolio company value creation
A successful exit and realization of the investment thesis hinges on a portfolio company achieving its full potential – by building its leadership team, driving profitable growth, and optimizing operations. By focusing on strategic planning, operational improvement, revenue growth, cost reduction, financial optimization, talent management, customer experience, innovation and sustainability we facilitate long term success and enhance the overall value of a company. We bring our operational and commercial expertise, and implementation skills to deliver rapid results . Our insight into green policies and available subsidies helps focus the company on the right commercial opportunities, considering various market and policy-driven mechanisms to promote climate solutions.
ESG Due diligence
Ensuring our clients identify Environmental, Social and Governance related risks and evaluate their impact and potential costs. Our ESG assessment framework includes an SDGs-based review, integrated with Equator Principles and IFC Performance Standards. Our ESG know-how combined with industry expertise enables us to translate ESG risks into its business impact.
Regulatory due diligence
We help clients analyze current and future regulatory frameworks to identify the impact of potential changes on the target’s business plan. Thanks to our global network we are able to anticipate and compare different regulatory regimes, evaluating the effects on the target. We provide our clients with risks and opportunities considerations for each potential scenario, embedding the outcomes in the evaluation of the target.
Independent business review
An Independent Business Review involves a thorough and objective assessment of a company's current state and performance. Independent Business Review is crucial for gaining a clear, objective, and comprehensive understanding of a company’s health and prospects. By conducting thorough financial, operational, market, strategic, management, and risk assessments, we provide the stakeholders with the insights needed to make informed decisions, mitigate risks, and drive performance improvements.
MEET SOME OF OUR
TEAM MEMBERS
Our team is made up of a diverse group of individuals who bring a wealth of knowledge, experience, and expertise to the table, each and every one of our team members is committed to delivering the best possible service to our clients.
Partner
Andrea Romboli
Andrea Romboli’s profile: Andrea is a Partner in Arthur D. Little´s Rome office, and has been working with Arthur D. Little since 2006.
“Andrea advises companies operating in different contexts on growth strategy, organization design & process improvement"
Chiara Loreti
Principal, Rome
Karin de Sousa Nobre
Partner, Amsterdam
Amaury Klossa
Partner, Paris
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