Your expert for questions
Dr Nicole Röttmer
Partner, Climate Leader at PwC Germany
Few things have changed as much in recent years as the way regulators, stakeholders and companies view sustainability. Back then it was all about "measuring, counting and weighing"; now the focus is on "effect". What was once a metric in investor decisions has now become a financial issue. Nowhere has this development made more headway than with the subject of climate change.
Climate change and climate protection are long since impacting economic developments. They harbour financial risks that even today are making themselves felt in the real and financial economy, from power plants that are never put into service to electrified private transport right through to increasing energy requirements for buildings. Business and organisations are increasingly focusing on the issue of climate change and its consequences – as a value driver, as a risk, and in the context of regulation, requests from regulators and other stakeholders.
According to the Global Green Growth Institute (GGGI), based on the International Energy Agency (IEA), among others, the transition to a CO2-neutral economy will require investments of USD 16.8 trillion by 2030. This is indicative of the massive transformation the economy is facing, but also the opportunities it brings with it. The EU Action Plan is already pointing the way today, indicating that investments of EUR 260 billion per year will be required in Europe over the next 10 years.
No matter what path we take, the risks are indisputable. If we fail to meet the climate targets, global warming will continue unabated, increasing the physical impacts on the climate, including extreme weather events in the form of storms, droughts, floods or heat waves. However, even if the climate targets are met and the transition to low-carbon energy sources succeeds, transitory risks will arise along the way, for example due to changing demand, energy and commodity prices, new regulation or technical progress.
"It is undisputed that climate change can have a massive impact on businesses. That's why it is critical to understand how material climate risks and opportunities can be, what drives them and how a company can benefit from these potential changes."
More and more companies are declaring their commitment to fight global warming. More than 880 companies worldwide have committed to massively reducing their emissions across their operations and value chains. All industries have to do their part to reduce CO2 emissions.
Are your stakeholders able to have confidence in your strategy because they can understand the growth potential of the positive contribution you are making to the climate? Do you have to reckon with losses if global warming increases or is limited? How do you stand to benefit in those two scenarios, including as against your competitors? Businesses along the entire value chain, from suppliers to manufacturers to consumers, have to re-position themselves. Meeting these challenges requires a cohesive climate strategy. PwC can provide companies and financial players alike with extensive support in this regard.
PwC's sustainability experts have the expertise and project experience necessary to design and implement successful climate strategies in both the financial sector and the real economy. We will assist you in developing comprehensive, economically sound climate strategies along the entire value chain.
Our portfolio ranges from analysing climate and energy-related changes, assessing opportunities and risks, to developing, implementing and communicating climate strategies, right through to monitoring, reporting and the audit-proof implementation of the findings.
PwC uses proprietary tools developed for quickly analysing opportunities, risks, corporate values, vulnerabilities and competitors. PwC's experts combine decades of climate change experience with in-depth expertise in a variety of industry sectors.
Climate strategies: we assist in formulating, developing and implementing climate strategies. This includes monitoring the findings and technical-economic assessments.
Scenario analysis: we analyse the impact of various climate scenarios on your company, the industry and market companions.
Portfolio analysis: we help identify climate risks in the portfolio and design mitigation strategies and new business models.
Reduction paths: we develop science-based paths towards the reduction of greenhouse gas emissions in compliance with the "Science-based Target Initiative" requirements.
Reporting, auditing and certifications: we assist in preparing sustainability reports and in analysing KPIs and dashboards.
Software development: we design, develop and program custom software and integrate it into your IT systems.
Support with appropriate tools: our Climate Excellence tool enables players in the real economy to assess their climate-related risks and opportunities. Financial institutions can also use scenario analysis for portfolio management, risk management and lending.
Proactive reductions in CO2 emissions pay off: They anticipate future regulation and reduce associated potential costs. They also allow the forward-looking realignment of business models and supply chains.
Those who want keep ahead of the competition in the future with a financially and ecologically sustainable business model need a clear understanding of the impact of their own activities, customer trends, opportunities and risks.
Sustainable action is becoming increasingly important for the real and financial economy. PwC helps businesses to operate not just profitably today and in the future, but also sustainably. We have advised clients from a wide range of sectors, running the gamut from insurance and finance to manufacturing, on their road to sustainability. Our experts not only cover climate-related risks, but also take into account tax, legal and technological developments to identify the most cost-efficient way through the transition.
"Climate strategies made real" – our sustainability experts help you to develop and implement future-proof and economically efficient climate strategies.
Dr Nicole Röttmer
Global Climate Clients and Industry Lead, PwC Germany
Tel: +49 40 6378-1191
Leader Energy, Utilities & Resources, PwC Germany
Tel: + 49 89 5790-5530
Dr Jens Dinkel
Partner, Sustainability Services, PwC Germany
Tel: +49 89 5790-6056
Partner, Lawyer, PwC Germany
Tel: +49 211 981-5396