Pressure was mounting. With a $40 billion capital program reliant on fossil fuels, one North American energy company knew they had to tackle carbon emissions. As their long-time advisor in sustainability for more than nine years, they turned to Deloitte for help.
The risk was very real. Securities and exchanges were beginning to implement ESG screening and decarbonization has emerged as a global priority for institutional investors. Blackrock, the world’s largest investment firm, announced they would no longer allocate capital to companies without plans to lower emissions. Investors were pressing harder with questions about the increasing price of carbon and the impact on dividends. They wanted more than just a statement. They wanted action.
It wasn’t going to be easy. Making carbon a strategic priority means significant changes to operations, reallocation of capital to “green assets” and the potential for added costs to their customers. It would mean overcoming hesitancy by balancing urgency with credibility.