Project/company overview
A leading global producer of distributed energy was seeking to understand, and are prepared for, the complexities associated with a decarbonising energy market. Their portfolio includes power stations across three continents that utilise a range of generation and fuel sources.
Problem
This organisation was seeking to establish a Net Zero strategy and supporting GHG targets. Developing the strategy included an understanding of the trade-offs between EBIT, risk and cost continuing the organisations EBIT growth trajectory whilst committing to an emissions reduction pathway.
Approach/ Outcome
Adaptus applied principles from the decision sciences to frame possible future scenarios for the business, established GHG reduction strategies, and developed a dynamic model integrated with the company’s production forecasting and financial models to identify the implications of each strategy from a GHG reduction and EBIT perspective for each identified scenario. The model was dynamically used as part of Executive engagements to stress test scenarios, strategies and assumptions, in order to engender buy-in to recommended 2035 and 2050 targets aligned to SBTi.
Value
The organisation’s board endorsed the recommended short, medium, and long term GHG reduction targets, and the recommended strategic actions to begin the journey. The transparency in the process enabled organisational buy-in to the rationale for reducing GHG emissions, the approach to do so, and the role of each function in enabling the targets to be achieved.
