EY Carbon and Sustainability

The course is set and there’s no turning back: Europe will be climate-neutral by 2050. After digitalization, decarbonization will be the driving force behind the next big transformation. Markets and companies will change fundamentally. We see great opportunities for our customers, for Europe, and for our children. In order to make the most of these opportunities, we have established EYCarbon.

EY Carbon

Recommended action

  • Define your climate strategy and set clear climate goals as a matter of urgency to stay competitive past 2030
  • Ensure that sustainability and decarbonization are on the CEO agenda, whatever industry you operate in
  • Engage in dialogue with stakeholders in your sector and beyond to support the transition to net zero
  • Make decarbonization a focus in investor relations and report consistently on its contribution to long-term value

How EY can support you

The reality of the climate crisis is perceptible. A broad social and political consensus is driving legally binding climate policy goals and the regulatory structure needed to achieve them. Europe is far ahead of the rest of the world in the implementation and is laying the groundwork for successful transformation. Decarbonization will fundamentally change markets, industries, and companies. We will be happy to answer your questions on the way there.

We are at your side, from developing the strategy all the way through to the technological and operational transformation. We explain the opportunities for creating transparency in all relevant control variables and help you manage your risks. We observe and analyze regulatory trends and develop strategies for your company and your sector. At the same time, we consider decarbonization to be a comprehensive transformation process, which affects your entire company and requires a cross-sector perspective. Solutions require new alliances and new ecosystems.

We are convinced that this is the correct way.

Watch the interview on decarbonization with Benjamin Teufel and a snapshot of one of our panel discussions on sustainability.
Just click on the arrow that appears on the left and right frame on the video to skip to the next video.

(Watch full screen to see the English subtitles)

        Individual CO2 reduction goals, methods, and strategies

        • Comprehensive understanding of the regulation.

          A broad social and political consensus is driving legally binding climate policy goals and the regulatory structure. Markets, sectors, and corporate framework conditions are changing fundamentally. EYCarbon explains the opportunities and risks, and helps to develop the appropriate courses of action.

        • Clear target vision for corporate decarbonization.

          We develop custom-tailored decarbonization strategies and roadmaps that help you make the right decisions about technology and business models. Maintaining (Zero Emission Strategy), growing (Carbon Business Growth Strategy), and differentiating (Low-Carbon Strategy) are all equally valid in our view.

        • Focused determination of the product, process, and business model portfolio.

          EY Carbon evaluates the existing portfolio in the context of the opportunities and risks from decarbonization. We develop the right strategy based on a clear classification into “Transform or Die,” “Transform to Win,” or “Transform to Transform.” We break these down into products, processes, and business models, which we implement as sell, buy, build, and partner. And we help you in the process, from verifying feasibility to branding, pricing, and finding the right sales concept.

        • Orchestrated implementation with ecosystem partners.

          EYCarbon designs the right ecosystem with venture, start-up, competitors, suppliers, and customers. In doing so, we rely on our experience in transaction consulting as well as our colleagues from the digital consulting agency etventure or our networks from the EY start-up initiative. This makes it possible to reduce implementation risks and effectively develop new technologies, models, and products.

        Climate-neutral operations, supply chain, value creation networks

        • Custom-tailored concepts to reuse, reduce, replace, and resource.

          EYCarbon supports you with innovative formats like Wavespace/Design Thinking in the development of new business models regarding raw material consumption and opening up recycling markets (closed-loop economy). In addition, we help you use instruments that provide incentives for a reduction (e.g., internal carbon trading, technical pilot projects). With our established program management tools, we make progress visible and measurable.

        • Specific offsetting in short-term and mid-term horizon.

          EYCarbon places the reduction goals on a timeline and helps with implementation in all horizons: short-term in selecting the right offsetting provider, mid-term in planning and completing projects for using renewable energies and new technical processes (like carbon storage), as well as alternative power sources and raw materials like green hydrogen.

        • Comprehensive Scope 3 optimization.

          EYCarbon provides you with a cost-efficient overview of your CO2 footprint and your CO2 inventory in all relevant scopes. In doing so, we look at the emissions in your entire value creation network. On this basis, we work with you, your customers, your suppliers, and even your competitors to develop approaches to mutually optimize the balance of individual products and processes, or even completely decarbonize them.

        • Long-term robustness of the value creation networks.

          EYCarbon works together closely with our Business Resilience Practice. In the result, we provide strategic scenario analyses for the long-term conversion of the individual value creation toward more robustness. This way, we reduce the stress as well as the actual operational risk.

        • Optimized CO2 (certificate) trading/ETS compliance.

          EYCarbon makes current and future costs from the European emissions trading system (ETS Compliance Cost) and other CO2 pricing systems transparent. With the appropriate models, we continually optimize the balance between trading, fines, and conversion investments. For the latter, we advise you on the procurement of financing and funding, as well as investment hedging.

        Stakeholder-oriented communication, argumentation, dialogue

        • Validated empirical arguments

          EYCarbon maintains partnerships with all essential institutes and research facilities, and thus provides well-founded analyses. We evaluate risks and opportunities on the basis of comprehensive models and thereby provide the security that investors, companies, employees, and all relevant interest groups need.

        • Precise stakeholder mapping.

          Whether investors, political decision makers, customers, suppliers, or other stakeholder groups, the EYCarbon team offers an extensive network in politics, business, and science in order to quickly and efficiently identify and locate the right stakeholders.

        • User-focused positioning and communication.

          EYCarbon relies on EY’s wealth of experience when it comes to correctly positioning, communicating, and incorporating topics. We provide the strategic view through the EY Parthenon as well as new working methods together with our people-advisory-services teams. This is bundled together through our purpose-led transformation approach, which makes change explainable even under uncertain framework conditions.

        • High-quality reporting and report auditing.

          EYCarbon provides analytically sound, scenario-based, and TCFD-compliant disclosure for financial data. We do not have to rely on third parties to do this, but instead we use our leading EY reporting framework, which also forms the basis of the current EPIC discussion.

        • Specific financing and funding consulting.

          EYCarbon provides its own funding consulting specialists, and works with the relevant government agencies to shape the future funding and compensation environment. We help to identify the right partners and parties early in the process and structure the business plans so that current as well as future investors can establish the trust needed to accompany the transformation.

        Switzerland’s CO2 emissions

        50 Mio.

        tons of carbon dioxide emissions are being generated yearly.

        We need new business models that place sustainability at the center of business activity: it is not just about having an economic strategy that works from a sustainability perspective, it’s about having a sustainability strategy that works from an economic perspective.

        Benjamin Teufel 

        Head of Sustainability, Leader EYCarbon and Sector Leader Energy & Resources  | Switzerland

         

         

         

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