Climate Change and Carbon Risk

Significant and far-reaching consequences

'Be the first mover.  Use smart due diligence.  Rethink what fiduciary responsibility means in this changing world.  It's simple self-interest.  Every company, investor, and bank that screens new and existing investments for climate risk is simply being pragmatic.'
Dr Jim Yong Kim - President of the World Bank


The physical impacts of climate change are real. The December 2015 United Nations Paris climate agreement has set the world on a trajectory to decarbonising the global economy.  Institutional investors are pushing for increased carbon risk disclosure. Companies are seeking to differentiate themselves from their competitors through their sustainability credentials.

Collectively, these  developments have far-reaching consequences for companies around the world. The impacts will be significant and disruptive.

How companies choose to prepare and respond to the challenges ahead will shape their competitive position, and therefore value in a carbon-constrained world.

E3's track record

E3 has assisted major global and national companies to:

  • understand the implications of climate change and emissions trading 
  • develop strategies to respond to the challenges and opportunities 
  • implement those strategies. 

Our work in this sector has included:

  • quantifying the impacts of climate-change policy on company operations
  • reviewing draft climate change/carbon legislation, assessing implications and preparing submissions to policymakers
  • preparing documentation to secure assistance for emissions intensive trade exposed (EITE) firms (carbon units and partial exemption certificates)
  • preparing energy and emission inventories and reduction programs, and preparing compliance reports under the NGER Act. See NGER Reporting
  • developing Voluntary Carbon Neutrality propositions
  • advising on the creation, sale, purchase, application of offsets
  • advising on greenhouse and climate-change implications during the environmental consenting process for new projects
  • analysing supply, demand and price to support market and trading strategies, emission allowance/carbon credit procurement and value maximisation
  • helping to devise strategy responses to policy and market developments including regulatory compliance, abatement project investment and carbon market strategies
  • facilitating industry dialogue on soil carbon sequestration.

Case Studies

Global generation company: preparing for climate-change regulation
Steel company: preparing for a carbon-constrained environment
European electricity generator: managing carbon price risk

Note: client names have not been disclosed due to confidentiality arrangements.

Secondary Nav
The low-carbon economy will redefine the nature of competition in many industries.