Climate change and carbon management

Challenge: The state wanted to transition into a low-carbon economy by developing a Green Economy Policy and Carbon Trading Strategy framework.

Solution: We identified priority areas for the state’s green economy by analysing the existing policy framework and international case studies on crafting green growth policies for a low-carbon economy. Additionally, we developed a carbon trading scheme, which included an evaluation of current regulations surrounding carbon emissions and the necessary documentation to facilitate the implementation of carbon trading projects. We also identified key strategic policies and green growth initiatives for the state to foster a greener economy. 

Results: A committee was established to oversee the implementation of the selected green growth initiatives, alongside various carbon credit-generating projects. This created new potential revenue streams for the state and further supported the implementation of green growth initiatives. 

Challenge: As part of their net zero journey, the client’s management sought to formalise their decarbonisation commitments and identify potential nature-based solutions (NbS) that would act as levers in their endeavour. Concurrently, the client was preparing for compliance with the European Sustainability Reporting Standards, in line with the requirements under the Corporate Sustainability Reporting Directive (CSRD). To support these efforts, the client sought to evaluate and enhance their GHG emissions reduction strategies through detailed analysis and strategic planning, with NbS integrated as key components of their decarbonisation strategy. 

Solution: We carried out a GHG baseline and inventory gap analysis by examining Scope 1, Scope 2 and Scope 3 emissions in accordance with the ISO 14064 standard and the GHG Protocol’s Land Sector and Removal Guidance. We prepared a report outlining key findings and recommendations, while also enhancing the client’s carbon calculator to ensure compliance with the ESRS E1 standard. Additionally, we evaluated the client’s emissions reduction pathways and targets, exploring various mechanisms for emissions reduction and co-led a validation workshop with the Steering Committee to gather feedback and input. We also developed a strategic response plan that aligns with the Science-Based Targets initiative (SBTi). For NbS, we scoped activities following relevant guidelines and performed an initial assessment to identify potential climate solutions within the client’s landbank.

Challenge: To support the state’s ambition to achieve net zero by 2050, it sought to develop a comprehensive strategy focused on net zero objectives and the operationalisation of carbon markets.

Solution: We established a GHG emissions baseline and inventory aligned with the Intergovernmental Panel on Climate Change (IPCC)’s standards. This was accompanied by an operational manual and supporting Measurement, Reporting and Verification (MRV) mechanisms to enable continuous monitoring and timely updates of the state’s GHG inventory. 

Once the GHG emissions baseline and inventory are established, we identified potential decarbonisation pathways, including setting emissions reduction targets and action plans across key economic sectors such as energy, transportation, industrial, agriculture and forestry. Furthermore, we developed a mechanism—accompanied by robust guidelines—to enable the crediting, trading and retirement of carbon credits domestically. We also developed a strategic roadmap for the state’s participation in Article 6 of the Paris Agreement, laying the groundwork for the international trading of carbon credits. 

Challenge: The client’s ambition was to achieve net zero across their operations and the regions in which they operate, and needed to develop a net zero strategy and roadmap.

Solution: We began by assessing the client’s existing GHG emissions data and net zero commitments, taking into account both national and state-level obligations, peer targets and the methodologies outlined by the SBTi and the Science Based Targets Network (SBTN). This analysis enabled us to set interim targets across the client’s operations and service areas. 

We then developed net zero pathways that encompass five focus areas: energy, circularity, built environment, mobility and biodiversity. Additionally, we identified accompanying flagship initiatives to deliver significant impact and support the client’s net zero journey. Lastly, we crafted a net zero roadmap that extends to 2030 (mid-term) and 2050 (long-term), serving as a guide for the client’s decarbonisation journey.

Challenge: The client engaged us to conduct a climate risks and opportunities (CRO) assessment, using scenario analysis to determine the potential climate-induced financial impacts on their business, both qualitatively and quantitatively. The assessment required the inclusion of a methodology, framework and tool to ensure alignment with CRO reporting requirements under the IFRS S2, formerly TCFD.

Solution: We performed a refresh of the client’s existing CRO through a completeness and materiality assessment. In doing so, we identified potential CROs that had not been captured previously by assessing relevant global frameworks, national priorities based on the clients’ countries of operation and insights from industry peers. 

Following the assessment, we developed impact pathways to understand the potential financial impacts of the identified CROs on the client’s business units and critical assets. We then developed a Climate Risk Assessment Tool that utilised climate scenarios from the IPCC and NGFS to run scenario analysis to model financial impacts on the client’s assets. 

To facilitate capacity building and learning, we conducted engagement sessions with end-users to facilitate knowledge transfer on how to operationalise the tool and considerations for any necessary future adjustments.