ERM operationalizes the roadmap to achieve sustainability goals

Most enterprises have sustainability ambitions, but the crux everyone is grappling with is operationalizing them. Leaders need to expand the sustainability conversation beyond the boardroom and put the right people in place to execute their roadmap, especially as investors are interested in companies that score high on ESG metrics.

Exhibit 1 defines and illustrates the global sustainability framework across ecosystems and throughout organizations. Talent and technologies at scale are needed to deliver on goals and seize opportunities. Only a handful of firms can shape transition plans, deliver technology, and execute day-to-day implementation. These firms engage in ecosystem partnerships, consult and build solutions, and engage with industry bodies and policymakers to address sustainability challenges.

The call for action is to collaborate across the ecosystem and align sustainability roadmaps under the global sustainability context, then to respond on how to achieve the roadmap underpinning the 17 United Nations Sustainable Development Goals (SDGs).

Exhibit 1: The global sustainability context throughout the ecosystem and organization

Source: HFS Research, 2023

ERM integrated services suite addresses sustainability priorities

Sustainability advisory firm ERM has pieced together an integrated services suite to address sustainability priorities by enabling people, processes, and technology. It helps clients develop strategies for sustainability, finance sustainability initiatives, develop sustainable products and services, transition to low-carbon strategies, invest in new infrastructure, repurpose existing infrastructure, and operationalize performance improvement.

Strategic acquisitions and partnerships build capabilities and double ERM’s impact

ERM has acquired companies to add capabilities, scale, pace, and expertise in its sustainability and ESG ecosystems. It is also interested in growth areas such as nature, water, and climate markets. The acquisitions have helped ERM address gaps in capabilities and geography, expanding the length and breadth of its service delivery in the sustainability space. Additionally, ERM is continuously expanding its ecosystem partnerships in every area of the sustainability value chain to ensure it can continue to meet clients’ evolving objectives.

The acquisitions and partnerships have fortified ERM’s building blocks around business resilience with risks and transparency.

Solutions combine strategic transformation, technical delivery, and deep industry knowledge

ESG considerations are now being considered much earlier in the decision-making process rather than at the end of the pipeline. Opportunities to integrate sustainability, such as decarbonization, environmental, social, or governance, may be at different levels for different enterprises. However, bringing the sustainability conversation to day-to-day implementation requires strong delivery capabilities to develop actionable strategies and accelerate the journey.

ERM has a combination of strategic and technical solutions, and has experience implementing them at all levels, including decarbonization of supply chains, circular business models, and human rights. ERM’s approach helps it deliver on advanced objectives in transforming sustainability, driving performance improvement enterprises seek today.

In addition to its advisory and technical delivery capability, ERM’s deep industry knowledge is a market differentiator, enabling it to provide end-to-end sustainability services to address industry challenges in the sustainability space.

Continuous investment in tech-enabled solutions and PoCs

In the past couple of years, ERM has focused on digital enablement, including building joint tools and solutions with clients. ERM’s ability to innovate comes from its Innovation Incubator and Analytics Lab’s developed platforms:

• ERM Connected Safety: A human-centered, AI-powered approach to improve safety performance
• ERM Climate Impact Platform: A platform enabling screening of long-term and short-term climate risks and their impact on operations
• ERM ESG Fusion: A platform with due diligence capabilities to help investment professionals make better decisions
• ERM Emissions AI: A platform enabling optimization of facilities for lower carbon emissions

Additionally, ERM’s SustainAbility Institute is a platform for thought leadership on sustainability. Its purpose is to define, accelerate, and scale sustainability performance by developing actionable insights for business. The Institute identifies innovative solutions to global sustainability challenges built on ERM’s expertise, experience, and commitment to transformational changes.

The Bottom Line: Addressing the “how” of delivering sustainability services will mean engaging in ecosystem partnerships, consulting and building solutions, and engaging with industry bodies and policymakers.

With its deep industry expertise, ERM has been working with financial institutions in low-carbon transportation and circular business models and with infrastructure funds and other sectors. Most of ERM’s acquisitions in the renewables space are driven by megatrends such as decarbonization and ESG disclosures. These examples showcase ERM’s focus on clients’ ambitions and operationalizing them throughout their organizations.

Firms that bring a combination of strategic transformation and a deep understanding of technical delivery, including replicating best practices and success stories globally, will be the game changers in the sustainability space.