Delivering insight on investment opportunities and risks

For well over a decade, Ricardo Energy & Environment has been supporting clients from the financial services industry as they confront a variety of operational challenges and risks.

Finance

Recent assignments include the development of sustainable investment strategies to provide pragmatic recommendations. The actions align to corporate strategy, property portfolio environmental performance improvement to save costs and reduce environmental impact while enhancing reputation among stakeholders. Advisory work also includes commercial and technical due diligence on cleantech investments to quantify business plans and corroborate forecasts, consultancy on international environmental legislation, emissions markets and climate finance that open up investment opportunities to the private sector. The organisations we work for include private equity providers, global investment banks, real estate asset managers and insurers.

Ricardo Energy & Environment provides expert insight and support to enable informed, evidence-based investment decisions in several key areas:
 
Commercial and technical due diligence:
We specialise in DD around technologies such as hydrogen, tidal stream, wave energy, offshore and onshore wind, biomass, solar PV, energy from waste and waste infrastructure. We can also conduct patent searches and reviews to confirm the differentiation of your offering. This expertise means that we can provide the technical inputs you require to de-risk your investment and provide the evidence to negotiate on valuations and pricing expectations.  Outputs typically include business-case evaluation, cash flow and financial modelling (including assessing the policy environment), costs, contracts and demand forecasts.

Sustainability strategy: Strategy development, implementation and evaluation, business-case definition and assessment; creation of financial models, projections and scenario development as well as evaluation of Sustainable Responsible Investments (SRI). As specialists in this area we have a diverse and deep technical understanding of the key sustainability issues affecting business, such as sustainability risk. Our input gives you the confidence to present a strategy to your stakeholders that improves your reputation and aligns your business’s capabilities, needs and aspirations while incorporating your financial and sustainability goals.

Climate finance: We support financial organisations so you can understand how to leverage innovative public funds, identify and track climate finance flows (monitoring, reporting and verification) and define available private investment opportunities. Where clients consider climate finance investments, we help them to understand the policy backdrop and to support them through the necessary processes. Our guidance helps to achieve successful outcomes with a minimum draw on your internal resources.

Risks and impacts evaluation:  Navigation and analysis of policy and environmental risks (such as climate change or resource scarcity) and how they impact portfolio valuations over differing time frames. Our familiarity in this area enables us to evaluate the extent and gravity of risks and equips you with the knowledge to make quick, informed decisions on investments.

Internal processes for compliance and disclosure
: Compliance with legal requirements such as the Mandatory Carbon Reporting and the CRC Energy Efficiency schemes limit the risk and costs of compliance and drive operational cost savings. Clients partner with Ricardo Energy & Environment to ensure they have the necessary inputs for Corporate Social Responsibility (CSR) and Environmental Social and Governance (ESG) reporting, minimising their administrative burden and facilitating accurate reporting of complex content. We also support clients responding to stakeholder pressure for voluntary disclosure on greenhouse gas emissions, water consumption or climate risk.

Project finance: With numerous policies that require us to change the ways in which we use energy and generate power, huge opportunities for investment in low carbon energy related projects exist. Our contact with policymakers means that we intimately understand the requirements and implications of these policies. Our advice is shaped to factor in evolving policy changes which allows you to make fully informed investment decisions and reduce your risk. Our services include detailed risk assessments, financial modelling and advisory work across the entire project spectrum from feasibility studies to plant implementation and management.

Portfolio re-evaluation: Policy changes that would reduce the permissible rate of extraction of natural resources, including fossil fuels look increasingly likely. We can develop and run complex models which demonstrate the revised values of common stocks and other assets in line with restrictive depletion rates of natural assets. These revisions would be fundamental in bottom-up valuation of companies, providing the essential data for growth projections, returns and relative performance.

Supply-chain analysis: To minimise your investment risk, we provide the detailed analysis of environmental and sustainability factors along a company’s supply chain. The forensic process identifies specific risks in this context and quantifies them in many cases. The approach is aligned to our technical due diligence and can be run in parallel or as a service in its own right and alerts you to potential risks stemming from your supply chain.

Reduction of waste production and resource use: Identification and quantification of ways to save you money by reducing expenditure on purchases, disposals and where possible finding sources of income from your waste. We also advise on energy efficiency drawing on extensive experience. Our prior work in this area allows us to give you the benefit of our knowledge in this field responsibly, quickly and incorporate diverse recommendations that make a substantial impact on your business.  The outcome is considerable cost savings to you and a minimisation of your environmental impact.