DECARBONIZATION STRATEGY 2024-2027

Towards
net-zero

Sustainability is our businessKey milestones in the decarbonization of our operations

2007

ERM began collecting greenhouse gas (GHG) data and implemented emissions reductions measures that remain ongoing.

2012

We reported our data and our emissions targets in 2012 as part of our external Sustainability Report, reflecting theimportance of decarbonization to our corporate strategy.

2018

ERM became one of the first professional services firms to commit to the Science Based Target initiative (SBTi), with
our targets formally approved in 2019.

2021

We announced our own net-zero commitment with emissions reductions aligned to an updated 1.5 degrees Celsius
SBTi target, to be delivered across our operations by 2025. We began having market instruments in place for 100% of
our office energy portfolios and published our first Task Force on Climate-related Financial Disclosures (TCFD) report.

2022

We submitted our Scopes 1, 2 and 3 GHG emissions data for third-party assurance.

2023

We conducted a Scope 3 review and rebaselined our Scopes 1, 2 and 3 targets. We remained on track to meet our 2025
emissions reductions targets and commenced voluntary compensation of our Scopes 1, 2 and a portion of Scope 3
emissions, as part of our decarbonization approach.

2024

SBTi approves ERM’s science-based emission reduction targets in alignment with the SBTi Net-Zero Corporate
Standard, including near-term and long-term GHG emission reduction targets by 2040 across our operations andvalue chain. We launch our new Decarbonization Strategy and voluntarily compensate our residual emissions in linewith the Voluntary Carbon Markets Initiative.

DECARBONIZATION STRATEGY

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Introduction

Contents

ERM is the world’s largest specialist sustainability consultancy.
Our impact & objectives

5

We partner with the world’s leading organizations to create

Our governance

8commercial opportunities that meet the needs of today while

Our operations

11

Our client services

21

Our collaborations

26

Our key targets

30

innovative solutions to sustainability challenges that unlock
preserving opportunity for future generations.
ERM’s established operational climate program has seen us incrementally reduce our
GHG emissions in pursuit of our net-zero targets. We have undertaken an extensive
rebaselining and assessment process to establish our new emissions reductions targets
in alignment with the SBTi Net-Zero Standard.
In this strategy we set out our updated targets and the program of actions which will
support our delivery of net-zero by 2040 across our operations. In line with our purpose
we also set out our approach to maximizing our impact through our work with clients,
our collaborations with partners and our thought leadership in supporting a net-zero
future.  
We are a company that is committed to stepping up to accelerate the transition to a
net-zero economy. This Strategy sets out our program of action as we develop ourtransition planning approach. We will report our progress against the targets set out inthis strategy in our annual Sustainability Report with further details of our approachfound in our Climate Supplement.

Special thanks to the ERM employees who kindly contributed their photographic
imagery for use in this Strategy.
Front cover photo credit: Uswah Aziz, Canada

DECARBONIZATION STRATEGY

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Managing climate-related impacts across ourvalue chain
We adopt a value chain approach to our management of material climate-related risks,
opportunities and impacts. Upstream our value chain includes employees, partners
and investors who are shareholders in the business, our offices and the materials
required to support them. ERM has 149 offices in over 40 countries and territories andemploys 8,000 people globally. For further information please refer to erm.com.

Our value chain

Direct operations

Supply chain

Our supply chain is diverse, spanning the breadth of our global offices and countries
within which we deliver our services. For further information on our supply chain,refer to ERM’s Sustainable Supply Chain Management Strategy.
Downstream, are our clients, the communities they operate in and their own supply
chains, alongside our partner organizations, global society and environment.  Acrossour value chain, we seek to work with organizations who share our purpose and values
in working towards a net-zero future.
ERM’s climate-related risks, opportunities and impacts across our value chain areassessed annually to support the publication of our Non-Financial and Sustainability
Information Statement under the Companies (Strategic Report) (Climate-related
Financial Disclosure) Regulations 2022.

GOVERNANCEDISCLOSURE

POLICIESAND
PROCESSESPERFORMANCE

Clients

DECARBONIZATION STRATEGY

Partnerships

4

Our impact& objectives
A material issue for our business

6

Our vision & objectives

7

Photo credit: Uswah Aziz, Canada

DECARBONIZATION STRATEGY5

A material issue for our businessOur key climate-related risks, opportunities and impacts

Climate represents one of ERM’s key material topics, as we look to further identify, manage and mitigate those risks andimpacts we cannot avoid through the delivery of our operations and across our wider value chain. We seek to manage these
impacts in accordance with our purpose and commitments, and in support of the UN Sustainable Development Goals (SDGs).
Risks

Risks and opportunities• Scope 1 and 2 emissions from our offices and vehicular
use to support the delivery of our services• Enhancing accuracy of the emissions associated withthe delivery of our services

Direct operations• Scope 3 emissions from business travel and employee
commuting• Managing impact of acute physical climate risks on
our operations

Supply chain• Promoting decarbonization in the delivery of our services• Supporting our suppliers to drive decarbonization
throughout their wider operations and value chain

GOVERNANCE
GOVERNANC EDISCLOSURE

Opportunities• Our services in support of decarbonization and theenergy transition from strategic advice through tofacilitation of renewable energy provision

POLICIES
POLICIESAND
PROCESSE
PROCESSESS• Partnerships promoting the transition to a low-carbon
economy, decarbonization, renewable energy and a justtransition.

PERFORMANCEPERFORMANCE• Increased client demand for carbon trading andbeyond value chain mitigation• Impact of natural climate solutions support to clients

DECARBONIZATION STRATEGY

Opportunities• Thought leadership and advocacy in support ofdecarbonization and the transition to a lower-carbon economy
Clients

Partnerships• The work of the ERM Foundation in supporting lowcarbon technologies and sustainable livelihoods

6Our vision & objectives
Our vision is to work in partnership with our stakeholders towards a net-zero future. We will deliver our vision through our key
objectives, which focus on our material risks, opportunities and impacts. Our key objectives include:

Photo credit: Riccardo Boniardi, Italy

Photo credit: Celine Nio, Singapore

Photo credit: Hanh Nguyen, Vietnam

Photo credit: Edward Huang, Taiwan

Our governanceOur operations

Our supply chain

Our clients services

Our collaborations

To continue to evolve ourgovernance, performance anddisclosure around climate
impacts in accordance with ourcommitments and approach
outlined within this strategy.

To reduce our Scope 1, 2 and 3
emissions associated with ourdirect operations, in line with our
SBTi targets.

To evolve governance and reduce
Scope 3 emissions associated with
our supply chain in line with
ERM’s Sustainable Supply Chain
Management Strategy and ourcommitment to work towards a
net-zero future.

To deliver our services consistent
with our commitments outlinedin this strategy and to support
our clients in working towards a
net-zero future across their own
operations and supply chain.

To collaborate with stakeholders
and contribute to thought
leadership which promotes wider
societal transformation towards a
net-zero future.

DECARBONIZATION STRATEGY

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Our governance
Board oversight 	

9Leadership & accountability 	

9Due diligence

10

Photo credit: ERM

DECARBONIZATION STRATEGY

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Our governance
Board oversight
The Board of Directors and Executive Committee are
ERM’s ultimate governing bodies. The Board is thehighest authority and ultimately responsible for the
strategic direction, governance, and oversight of The
ERM International Group Limited (as parent company of
the ERM “Group”) on behalf of its stakeholders. The
Board meets seven times per year to review performanceand consider key strategic growth plans.
Supporting the consideration of the delivery of our ERM
Decarbonization Strategy is the Environmental, Socialand Governance (ESG) Risk and Sustainability Steering

Board

ESG Risk &Sustainability
Steering Group

Executive
Committee

ExComWorking
Group

Subject matter
expert (SME)
WorkingGroup

DECARBONIZATION STRATEGYGroup, which serves as an advisory committee to theBoard. It works with the Board to identify and manage
risks relating to ESG and reputation, including horizon
scanning across evolving regulatory and client
requirements in support of climate and wider
sustainability risk and opportunities.

Leadership & accountability
The Executive Committee (ExCom) has accountability for
managing business operations and meets regularly to
discuss operational performance and plans in support ofthis. The ExCom is supported by the ExCom
Sustainability Working Group, which advises on all
aspects of operationalizing sustainability across our value
chain, including our decarbonization program throughour own operations and value chain.
The Working Group also has oversight of ERM’s
Decarbonization Strategy. This is undertaken as part ofour wider approach to operationalizing sustainability andinvolves the identification of relevant KPIs/metrics
which support our ability to drive performance in linewith our stated commitments and strengthen our
positioning as a credible leader in sustainability advisory
services. ERM has an established Taskforce for Climaterelated Financial Disclosures (TCFD) Working Group to
support the business assess its climate-related risks,
opportunities and impacts and inform our strategic
approach and operational planning in response.

Photo credit: Melissa Arteaga, Colombia

9Due diligence
ERM is committed to identifying and addressing climate-related impacts throughout
our client services and wider operations. We undertake a range of due diligence to assess
potential negative impacts arising from the delivery of our work and have remedial
measures in place to address behaviors and practices which we consider inconsistent
with our Decarbonization Strategy.
Customer Relationship Management (CRM): Due diligence of our commercial
opportunities
Our CRM tool includes pre-screening of clients to identify potential issues with thesustainability performance of prospective clients. A due diligence risk assessment is part ofthe pre-screening process. All opportunities must be recorded on the system which
includes screening questions on the type of work to be undertaken and it’s compatibility
with our decarbonization strategy and targets. If the screening identifies the potential forelevated risk of inconsistency with our strategy, the opportunity must then be taken
through the ERM Sustainably Transparent Assessment of Risk and Reward (STARR) process.
STARR: Additional assessment of commercial opportunities with potential
heightened risk
The STARR process provides a framework for further due diligence of those projects
identified as potentially having a higher sustainability risk, including from a climate
perspective. The opportunity lead must provide further information which is thenconsidered by our Global Leader for Sustainability and Risk and our Global Head of Risk
who will escalate the issue to the ESG Risk and Sustainability Steering Group as
appropriate, and further information or mitigation measures may be required.
Project Management Model: Supporting the delivery of our project work
Our Project Management model ensures that all ERM work is led by a Partner in Charge(PiC) with the support of a Project Manager (PM). It is the responsibility of the PiC and
PM to ensure that all projects are conducted in accordance with ERM’s policies andprocesses, and pursuant to ERM’s purpose of being a sustainability leader. Should the
Project Management Team have any concerns about the current or future direction of
the project, they are required to report these to the client relationship manager,
Business Unit and Legal Counsel, as appropriate.
DECARBONIZATION STRATEGY

Photo credit: Yohei Suzuki, Japan

10

Our operations
SBTi Net-Zero Standard

12

Scope 1 and 2 emissions

15

Scope 3 emissions

17

Our supply chain

20

Beyond value chain mitigation

20

Photo credit: Matthew Loethen, United States

DECARBONIZATION STRATEGY

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SBTi Net-Zero Standard
Consistent with our position to demonstrate our leadership within the field andreflecting evolving scientific and technical guidance, ERM’s targets are aligned to the
Science Based Targets Initiative (SBTi) Corporate Net-Zero Standard.
The SBTi Net-Zero Standard is the world’s first certification that recognises companies’
science-based efforts towards achieving net-zero. The certification is awarded tobusinesses if their decarbonization strategies are scientifically proven to be inalignment with the Paris Agreement’s goal of keeping planetary warming to 1.5°C. SBTi
has become the globally accepted protocol for setting meaningful carbon reduction
targets and ERM has been following its criteria and standards since 2018.    
In January 2024, ERM’s Net-Zero Standard aligned targets were approved by SBTi,
making ERM one of the first consultancies to set a near-term as well as a long-term target
to reach net-zero. This is the highest level of ambition per the current climate science.

Net-zerotargets
approved
Proud to be aligned with the SBTi Net-Zero Standard.
Overall net-zero target:
ERM commits to reach net-zerogreenhouse gas emissions across thevalue chain by FY40.
Our near-term targets:
By 2028: ensure that 45% of suppliers byemissions covering purchased goods andservices will have science-based targets.

Long-term targets:
By 2040, we will:• Reduce absolute Scope 1 and 2 GHG
emissions by 90%.

• Reduce absolute Scope 1 and 2 GHG
emissions by 50%.

• Reduce absolute Scope 3 GHG
emissions from purchased goods andservices, business travel and employee
commuting by 90%.

• Achieve 100% annual sourcing of
renewable electricity (currently at 99%).

Both near-term and long-term targets
are set against a FY20 base year.

By 2030, we will:

DECARBONIZATION STRATEGY• Reduce absolute Scope 3 GHG
emissions from business travel
and employee commuting by 42%.

12

ERM’s Net-Zero Standard aligned decarbonisation pathway to net-zero by 2040

Scope 3 emissions

Scope 1&2 emissions

Net-Zero standard trajectorytCO2e30,000By FY30
Scope 1& 2: -50%
Scope 3 (Cat 6&7): -42%

25,000By FY40a 90%
reduction
Scope 1, 2 & 3
is required

20,00015,00010,0005,000

Neutralization

0

FY20

FY21

FY22

FY23

FY24

FY25

FY26

FY27

FY28

FY29

FY30

FY31

FY32

FY33

FY34

FY35

FY36

FY37

FY38

FY39

FY40

ERM’s beyond value chain strategy
voluntary neutralization of residual emissions
In addition to reducing our absolute emissions acrossbusiness travel and employee commuting, we also havea Scope 3 target on supplier engagement.

DECARBONIZATION STRATEGY

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Our greenhouse gas inventory
Our science-led approach to decarbonization is grounded in data, including data
surrounding our greenhouse gas (GHG) emissions, the reduction of which plays a crucialrole in our decarbonization strategy.
We report on our GHG emissions annually. Our data is independently assured toensure that it aligns with the GHG Protocol and best measurement practices. A full
breakdown of our climate data can be accessed in the Climate Supplement of ERM’s
Sustainability Report.

ERM’s greenhouse gas emissions inventory

Scope 1

Emissions fromcompany vehicles,
fugitive emissions ofrefrigerants from air
conditioning units
and natural gas.

Scope 2Emissions frompurchased electricity
and heat.

Scope 3Emissions frombusiness travel,
employee commuting,purchased goods& services, capital
goods, fuel & energy
related activities.
Photo credit: Kevin Quah, Malaysia

DECARBONIZATION STRATEGY

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Scope 1 & 2 emissions

Our target

Source of emissions
Our Scope 1 and 2 emissions arise from the operation of
our offices and include emissions from electricity, naturalgas, steam and air conditioning that is used in thebuildings, as well as emissions from company owned orleased cars that we use for business purposes.

Scope 1

Scope 2

DIRECT

INDIRECT

Company
vehiclesPurchased
electricity

Fugitiveemissions ofrefrigerants

Purchased
heat

Natural gas

We are currently on track in our SBTi Net-Zero Standard
targets to achieve a 50% reduction in Scope 1 and 2
emissions by 2030 compared to our 2020 base year. As of
the time of publication of this strategy, we have achieved a
29% reduction in Scope 1 and 2 comparing to the base year
and we want to build upon this during the next three years.

We have significantly reduced our Scope 2 emissions
by switching to green energy contracts, purchasing
renewable energy and implementing other energy
efficiency measures. ERM buys renewable energy tocover the breadth of our office portfolio, 99% of which
is purchased from the market in which our offices are
based and 1% is sourced out of market, due to lack ofavailability.

Our key actions

Company fleet

Office optimization

Our most significant Scope 1 GHG emissions result
from company cars. Since FY20, we have increased our
percentage of hybrid and electric vehicles in our fleet
to 40%. We recognize that there is still more to do,and subsequently we will engage with regional fleet
managers to retire older fossil fuel combustion vehicles
and work towards a 100% electric vehicle fleet by FY40.

As a result of introducing new ways of working, since
FY20 we have been able to reduce our footprint fromoffices by 37%. By 2040, we are seeking to ensure thatall buildings within ERM’s office portfolio will be zeroemission buildings. A new green building policy will
support our strategy towards FY30 and FY40. ERM will
embed criteria for new office selection and lease renewal
that will mandate the choice for the low-carbon buildingsin line with our science-based target trajectory, also
working with acquisitions to facilitate rapid alignment of
new assets/offices with our green building policy.

ERM will continue to develop new vehicle policies in linewith country or regional laws on greening mobility.

Renewable energy
ERM is committed to 100% renewable electricity by FY30
and will continue to invest in renewable energy in linewith best industry standards. ERM’s renewable electricity
sourcing strategy prioritizes direct renewable energy
wherever possible, such as electricity at a green tariff andon-site renewable energy opportunities. ERM procure
energy attribute certificates (EACs) for offices where
direct purchase is not yet feasible.
Photo credit: Hannah Clerkin, Canada

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Our journey to net-zero
Scopes 1 &2 SBTi target

FY20
Base year

FY24
Most recent year

FY30
Near-term target

Already achieved 29%
reduction

FY40
Long-Term Target
Reduce absolute scope
1 and 2 GHG emissions
90% by FY40 from a
FY20 base year.

100%

Active annual sourcingof renewable electricity
to increase from 99% in
FY23 to 100% by FY30.

1,966 tCO2e
3,932 tCO2e2787 tCO2e

393 tCO2e

An average 6% reduction
required per annum

An average 15% reduction
required per annum
50%
reduction90%
reduction

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Scope 3 emissions

Our targets: business travel and employee
commutingSource of emissions

We are currently on track in our SBTi Net-Zero Standard
targets to achieve a 42% reduction in Scope 3 emissions
from business travel and employee commuting by 2030
compared to our 2020 base year.

Our material Scope 3 emissions are derived from businesstravel undertaken to support the delivery of our workwith clients and purchased goods and services procured
to support this and the operation of our offices. Widersources of emissions include capital goods and employee
commuting to and from our offices.
We have undertaken a detailed assessment of our Scope
3 emissions and identified the key categories which are amaterial source of emissions for us as a business.

Scope 3
INDIRECTBusiness travel
Employee commuting
Purchased goods and services
Capital goods
Fuel & energy related activities

DECARBONIZATION STRATEGY

While we have achieved 36% reduction to date inbusiness travel and employee commuting from a FY20
base year, we are seeing ongoing or new challenges indecarbonizing these categories.
ERM has experienced significant growth in recent years
as we respond to upon market demand and escalatingclient requirements. There remains an ongoing challenge
to decouple growth from emissions and to provide
geographical coverage for our clients without increasing
emissions associated with business-related travel.
Technological innovation and decarbonization of thetransport industry has a key role to play in supporting
our delivery of net-zero. Increasing emissions factors
associated with assorted modes of travel is also being
actively tracked. This is being proactively factored into
our incremental reduction targets with contingency for
ongoing changes.

Our key actions: business travel andemployee commuting

global operations and restrictions on the use of morecarbon intensive forms of travel globally. We have alsoenhanced our monitoring and enforcement of travel toreduce unnecessary travel and the selection of less carbon
intensive travel modes through this policy.
Internal carbon budgets and internal carbon priceWe will explore the use of internal carbon budgets to
support different aspects of our operations to monitor
the emissions associated with their activities. We will
also explore the use of a global internal carbon price on
operational travel to support the implementation of netzero projects and campaigns.
Employee commuting
There has been a shift in employee commuting trends,
as more employees choose hybrid working or full-time
remote working since FY20. As part of our long-term
strategy, we are working towards achieving absoluteemission reductions from commuting.
Our green guidelines will continue to promote officelocations which offer sustainable commuting options forour employees. We will continue to evolve our awarenesscampaign amongst employees and address barriers to
adopt more sustainable travel modes. We will continue
to invest in incentives for our employees to travel
sustainably such as bike grants and season train ticket
support in relevant locations.

A new global travel policy
To achieve our net-zero targets, a new Global Travel
Policy is being launched in FY25. We have introduced
mandatory travel by train for certain routes across our

17

Our targets: purchased goods & services
Purchased goods and services account for just over halfof our overall Scope 3 emissions and 90% of emissions
in this category derive from our use of subcontractors
to support the delivery of our projects. Addressing thissignificant source of our operational emissions is criticalto the delivery of net-zero for our business.
Our target is that by 2028, 45% of our suppliers byemissions covering purchased goods and services will
have science-based targets.
To achieve this, we have conducted a rigorous mapping
and analysis of the composition of our supply chain to
inform our understanding of the scope, scale and natureof services we contract, as well as the geographicallocation of our suppliers.
We are undertaking a detailed engagement program with
our top tier of suppliers to incrementally engage, enhanceawareness and build capacity to support alignment of
performance with our decarbonization approach and SBTitargets. This will support our ability to progress fromspend based calculation of emissions, to assessment basedon accurate GHG emissions data provided by suppliers.
Enhanced accuracy will also support our ability tofocus on key aspects of our supply chain where targetedinterventions will be most effective in incrementally
reducing emissions.

DECARBONIZATION STRATEGYStaged approach to decarbonizing our supply chain

Stage 1
Stakeholder mapping,data refinement andplanning

Stage 2

Stage 3

Stage 4

Supplier
communications

Data collection on
supplier governance

Enabling and tracking
supplier performance

Defining supplierexpectations andtimelines

Capacity building
amongst suppliers

Creating a supplierscorecard fordemonstrating
progress

Supporting resources
Supplier datacollection channel

Reviewing supplierscience-based targets
Progress monitoring
and reporting18

Our journey to net-zero
Scope 3 SBTi target for categories 6 & 7

FY20
Base year

Scope 3 SBTi target for category 1

FY24
Most recent year

FY30
Near-term target

FY40
Long-Term Target

Already achieved 36%
reduction

Reduce absolute scope
3 GHG emissions frombusiness travel andemployee commuting
42% by FY30 from a
FY20 base year.

Reduce absolute scope
3 GHG emissions frompurchased goods andservices, businesstravel and employee
commuting 90% by
FY40 from a FY20
base year.

17,940 tCO2e

16,136 tCO2e

2,782 tCO2e

27,821 tCO2e

An average 2% reduction
required per annum

45%of suppliers by emissions
covering purchased goods
and services will havescience-based targets
by FY28.

An average 16% reduction
required per annum
42%
reduction90%
reduction

DECARBONIZATION STRATEGY

19

Our supply chain

Beyond value chain mitigation

We are proactively engaging with a top tier of our suppliers to evolve governance andperformance across a range of sustainability-related issues, including climate.

ERM will continue to prioritize emission reductions within our Scope 1, 2 and 3
emissions as set out in this Strategy. In parallel, we believe it is our responsibility to
mitigate the residual emissions on our way to meeting our net-zero target. Residual
emissions are those GHG emissions that remain while we implement measures toachieve our net-zero commitment.

For a more detailed understanding of how ERM is engaging its supply chain strategy,please refer to the ERM Sustainable Supply Chain Management Strategy.

As a contribution to the mitigation of these residual emissions, we support climate
action beyond our value chain. This in no way diminishes our primary focus on
reducing our direct emissions. We believe that the voluntary carbon market can playa valuable role in contributing to global efforts to limit climate change and in scalingfinance flows for nature and emerging technologies. We have therefore engaged withthe voluntary carbon market by purchasing and retiring carbon credits.

GovernanceRemediation
mechanisms

Systems

Supply chain
management

Engagement
and capacity
building

Annualreporting andaudit

ERM is a member of the Beyond Value Chain Mitigation (BVCM) working group of
the World Business Council for Sustainable Development (WBCSD) and the Natural
Climate Solutions Alliance (NCSA). As part of our active engagement with these
entities, we have committed to a high integrity BVCM approach that includes
natural climate solutions and have followed the relevant guidance in our approach.
We started mitigating our residual emissions in FY23, for which we purchased andretired carbon credits for all of our Scope 1 and 2 emissions and Scope 3 emissions frominternal travel. From FY24, we have aligned our approach with the Claims Code ofPractice set out by the Voluntary Carbon Markets Integrity Initiative (VCMI). VCMI’s aim
is to “enable high-integrity voluntary carbon markets which contribute to the goal of theParis Agreement, bringing benefits for people and the planet”. Its Claims Code aims toaccelerate corporate engagement with the carbon markets as part of net-zero pathways,
and to bring confidence and credibility to claims that involve the use of carbon credits.

ESG
due diligence

DECARBONIZATION STRATEGY

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Our client
services
Delivery of our services

22

Our climate capabilities

23

Photo credit: Daniel Savage, Canada

DECARBONIZATION STRATEGY

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Our services supporting the low-carbon energy
transition
The primary way through which ERM can have a positive impact on accelerating
decarbonization is through the work we do with our clients.
ERM’s end-to-end decarbonization service is unique in the market due to our
combined strategy and delivery expertise, which is built on 50 years of experiencein sustainability consulting. ERM assists clients to drive profitable revenue growthin parallel with decarbonizing the business model. We bring hands on experience todecarbonization strategy and implementation, informed by a deep understanding ofclean technologies
Businesses today face two strategic challenges: driving profitable revenue growth while
simultaneously accelerating the integration of sustainability into their strategy andoperations. ERM is distinctly positioned to help our clients in the corporate, financial
and government sectors to navigate the transition towards a low-carbon economy. We
offer services ranging from strategic advice to practical on-the-ground implementation.
We provide guidance to understand markets, technologies, policies, economics,
regulations, and financing aspects to enable the selection of options and deployment ofreal projects.
ERM’s experience in helping clients navigate changes across sectors enables us to bringextensive technical and strategic capability to help organizations act at the scale andspeed necessary to successfully decarbonize and remain competitive. Our far-reachingexperience provides our clients with the broad range of insights required to remaincompetitive whilst managing the transition to a low-carbon economy.

Photo credit: Phuong Uyen Nguyen, Vietnam

DECARBONIZATION STRATEGY22

ERM’s unrivalled end-to-end decarbonization capabilities
With a focus on driving profitable commercial outcomes through practical, deliverable strategy and on-the-ground project execution

ERM’s unrivalled end-to-end decarbonization capabilities
Strategy,planning &disclosure:

1. Framing of risk &opportunity

2. Setting ambition, goal &target3. Designing detailed
strategy

4. Enabling compelling
disclosures

Delivery:Using acombination ofopportunities

5. Decarbonizing youroperations & value chain

6. Rethinking yourproducts & services

7. Addressing major capitalprojects

8. Adjusting the portfolio• Digital solutions and AI• Product/ service development• Low carbon technologies• Demonstrating & verifying• Market solutions (renewable• Low carbon technology• Accessing finance• Mergers & acquisitions

project development &operation

credentials• Asset repurposing or

energy procurement, offsets)

retirement
Supported by:

Data & Digital Optimization

Business Transformation

Fully informed by technology expertise across all the key low carbon technology options:

Renewable
Electricity

Energy systems
and networks

Hydrogen andfuel cells

DECARBONIZATION STRATEGY

Low carbon
transportation

CCUS

Industrial
decarbonization

Low carbon
fuels

Low carbon
chemicals

Building
energysystems

Energy storage

Nature-based
solutions

Engineered
GHG removals

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Our natural climate solutions
Companies with ambitious climate and nature goals are financing natural climate
solutions to mitigate and remove greenhouse gas emissions. Our climate and natureexperts offer a holistic and interdisciplinary approach to natural climate solutions
throughout all stages of the carbon credit lifecycle. From due diligence through toproject development, including feasibility, design, and implementation, we aim toenhance carbon credit integrity and beyond-carbon benefits, such as positive impacts tobiodiversity and communities.
Our approach includes:• Assess and advise: Develop corporate goals to align with climate, biodiversity, ESG,
and sustainability objectives; identify nature-driven opportunities; and collect andassess a baseline to understand nature-related risks and dependencies.
• Commit: Set science-based targets for climate and conduct interdisciplinary due
diligence on partnership and investment opportunities and make meaningful andinformed commitments.
• Transport and deliver: Avoid and reduce negative impacts to nature across the value
chain; protect, sustainably manage, and restore natural and modified environments
within and beyond the value chain; ensure projects adhere to market standards forhigh-quality; and leverage advanced technologies to design, deliver, and monitor
natural climate solutions.
• Communicate and disclose: Monitor and adaptively manage socio-ecologicallandscapes at an appropriate scale and frequency; report progress; validate and verify
the benefits of natural climate solution project implementation; and align reportingwith major global and regional standards.

Photo credit: Patrick Ross, United States

DECARBONIZATION STRATEGY24

ERM Climate Markets

The six steps of ERM Climate Markets carbon credit portfolio curation services

Helping support credible carbon credit projects

ERM brings a unique blend of trust, expertise and integrity tocarbon markets in alignment with international standards andguidelines.
ERM has launched ERM Climate Markets, a new business line designed to help companies
mitigate unabated greenhouse gas emissions by investing in impactful carbon creditsthat complement their decarbonization action, offer social, biodiversity, and economic
benefits and accelerate the global transition to net-zero.
The voluntary carbon market allows organizations to mitigate their unavoidable
emissions by purchasing carbon credits. Creating an enduring and credible approachmeans a strong focus on integrity, complementing an organization’s compressive
approach to measuring and reducing Scope 1, 2, and 3 emissions in line with science.
ERM Climate Markets has the capabilities and experience to help clients on this journey.
ERM Climate Market’s carbon credit portfolio curation services are designed to:• Present high impact, credible projects which complement business goals and wider
decarbonization journeys• Help to combine projects into portfolios• Reduce exposure to project risk through a variety of processes designed to screen
projects

1

Identify requirements across preferred projecttypes, target geographies, and any otherconsiderations

2

Use our databases of 8,500+ registered carbon
credit projects and identify where these alignwith requirements

3Pre-screen projects and remove those which
are unlikely to meet ERM Climate Markets
integrity principles

4

Present and discuss qualifying shortlist of
projects and confirm target portfolio

5

Carry out enhanced project screening on
confirmed target portfolio to scrutinize project
specific risks

6

Contracting and retirement of carbon credits

The process we go through to deliver these outcomes is shown on the right.

DECARBONIZATION STRATEGY

25

Our
collaborations
Our partnerships

27

The ERM Sustainability Institute 28

The ERM Foundation

29

Photo credit: Alma Chen, Hong Kong

DECARBONIZATION STRATEGY

26

Our partnerships
In addition to our ongoing internal program of operational decarbonization andadvisory work for clients, ERM works with leading organizations across the world,
focused on working towards a net-zero future. Our subject-matter experts support thedevelopment of emergent best practice, technological innovation, and the developmentof reporting and mitigation amongst many other aspects.

Examples of our partnerships include:• Taskforce for Climate-related Financial Disclosures• Science Based Targets Network• Nature Climate Solutions Alliance• Capitals Coalition• Clean Energy Buyers Alliance• Global Wind Energy Council• Global Renewables Alliance• IETA• Race to Zero
• Alliance for Industrial Decabonization• Climate Pledge• WBCSD• World Environment Center• Circular Electronics Partnership

More information on our partnerships can be found in our Sustainability Report.

Photo credit: Jonathan Ung, United States

DECARBONIZATION STRATEGY

27

The ERM Sustainability Institute
The ERM Sustainability Institute is one of our key
platforms by which we deliver thought leadershipon nature and the broader sustainability agenda. The
purpose of the Institute is to define, accelerate and scale
sustainability performance by delivering actionableinsights for business. Publications, blogs and podcasts onnature can be accessed at: ERM Sustainability Institute.
Selected publications:• Renewables Conundrums - Unlocking Net Zero: Why
Renewables Conundrums are Key to Corporate Action• A Clear Path to Decarbonizing your Company: 5 steps tocomply with CBAM and add strategic value
Selected podcasts:• How to scale the hydrogen economy featuring the Clean
Hydrogen Partnership• Tripling renewable energy by 2030 featuring the Global
Renewable Alliance

DECARBONIZATION STRATEGY28

Creating meaningful
impact through the
ERM Foundation and
Future Fund

The ERM Foundation and its Future
Fund program work in partnershipwith nonprofit organizations and social
enterprises across the globe on a rangeof projects that are aligned to the UN
Sustainable Development Goals (SGDs). It
does this through a blend of grant funding
and professional pro bono support. The
Foundation has a dedicated annual target
that commits it each year to engaging
people through low-carbon initiatives,
helping communities across the world
work towards a low-carbon future.
Our three-year funding initiative, theFuture Fund program, is currently
supporting SolarAid to bring solar light tovillages in rural Malawi through their Mayi
Walas (women solar entrepreneurs) scheme.

DECARBONIZATION STRATEGY

SolarAidwww.solar-aid.org
Millions of people in sub-Saharan Africa rely on expensive, toxic and dangerous
lighting sources, such as candles and kerosene lamps. SolarAid’s mission is to lightup every home, school and clinic in Africa by 2030 using clean, safe solar power. It
does so by innovative programs to reach the poorest communities with clean, safe
light and by supporting entrepreneurs to run their own solar businesses which
accelerates access to clean energy.
The ERM Foundation is supporting SolarAid’s Mayi Walas (women solar
entrepreneurs) program in rural Malawi, to help establish and support 60 new groups
over the next three years. These women will be upskilled and provided with theresources needed to start and maintain successful solar energy businesses, helping
to accelerate clean energy access. ERM employees are assisting SolarAid with project
management and have raised awareness of this project throughout the ERM region.
During its first year as part of the Future Fund program, SolarAid has recruited,trained and provided loans to 60 Mayi Walas groups. In the next phase of the Future
Fund, SolarAid plans to further leverage this support by providing ongoing training
and helping the women become members of FEBCO (a savings and credit cooperative
established by SolarAid) to access larger loans and long-term business support. By
the end of year three, SolarAid will have supported 1,320 women to become selfsufficient entrepreneurs and provided up to 70,000 people with access to clean, safe
and affordable solar light.

“The 1,320 individuals who make up the Mayi Walas groups
have blossomed into accomplished entrepreneurs, all thanks tothe empowering initiatives of the ERM Foundation.”
SolarAid

Photo credit: SolarAid/Chris Gagnon

Year one figures

60

Mayi Wala groups havereceived initial training

3,281
Solar lamps sold

2,852

Children can now study
after dark

16,720People now have access to clean,safe and affordable lighting

29

Our keytargets
Key targets for 2024-2027

31Transparent & accessible reporting 

33

Photo credit: Kenneth Miller, United States

DECARBONIZATION STRATEGY30

Key targets for 2024-2027

Our operations

As we progress our transition planning and longer-term
objective of reaching net-zero across our operations
by 2040, we have set key targets which support thedevelopment of our governance, operational planningand delivery of our short to medium term SBTi emissions
reductions targets.

Our governance and approach

Moving toPhase out of heating

Electrifying all

sustainable

solutions powered by

Switching tocompany owned

office spaces

fossil fuels

renewables

vehiclesElectrifying

More offices in LEED

Smart & digital

A full portfolio

company-owned

or equivalent certified

workspaces and powerof net-zero

vehiclesbuildings

management solutions

carbon offices• Review and evolve climate-related policies as required• Continue to evolve our monitoring and financial
quantification of climate-related risk andopportunity• Continue to evolve governance of our supply chain in
respect of climate

FY21

FY30

FY25

FY40

Our path to
Net-Zero• Conduct an annual review and update this Strategy
as appropriate• Progress our transition planning in line with key
frameworks

Our supply chain• Further embed climate as part of our sustainability
requirements in procurement criteria• Implement supplier engagement program on
decarbonization• Require supplier self-assessment and reporting on
climate• Progress towards emission reduction targets in top
tier of suppliers

DECARBONIZATION STRATEGY

New global

Engaging suppliers

travel policy

Explore internal

Investing in

carbon pricesustainableaviation fuel(SAF) and

Direct renewable

Internal carbon

energy contracts

budgets forInternal awarenesscarbon removal& energy attributebusiness travel

and campaigns

technologies

certificates
Leveraging our

Incentives for our
Beyond value

employees to travel

Beyond value chain

consulting skills

chain mitigation:

sustainably

mitigation: Platinum

to help solve

Gold integrity

integrity claim

the air travel

claim throughthrough VCMI

decarbonization

VCMI

challenge

31Key targets for 2024-2027

Our clients

Our stakeholders

Our data & disclosure• Work with clients to deliver innovative solutions
and industry leading expertise on decarbonization• Continue to support leading organisations
through the participation of our technical experts
and leaders• Drive further quantified data collection to
support understanding our impacts• Further develop our assessment of climate-related
impacts created through the delivery of our work,
across our client service lines• Continue to provide thought leadership throughthe Sustainability Institute and other channels• Collate expanded scope of supply chain data
• Undertake external audit and assurance of data
• Provide updates to SBTi on progress made against
our reduction targets• Report to wider stakeholders on ourdecarbonization progress, including regulators,
investors and the public amongst others, throughour Sustainability Report

DECARBONIZATION STRATEGY32

Data and reporting
Data and assurance
We recognize the importance of accuracy in data
disclosure and transparency in our reporting process andwill continue to undertake assurance of our reporting
consistent with stakeholder expectations and evolving
best practice.
Reporting on our progress towards net-zero
ERM reports annually on our progress against ourscience-based targets in our Sustainability Report. As
part of our alignment to the SBTi Net-Zero Standard, we
will also submit out progress to SBTi and updated actions
proposed at each stage of delivery against our near-term,
medium and longer-term targets.

Taskforce for Climate-related Financial Disclosure(TCFD) & Climate-related Financial (CFD) Disclosure
We report annually using the TCFD framework and in
fulfilment of the requirements for The Non-Financial andSustainability Information Statement, as prescribed under
The Companies (Climate-related Financial Disclosure)
Regulations 2022.
We will continue to evolve our reporting in fulfilmentof the regulatory requirements within the jurisdictions
within which we operate but more broadly in fulfilmentof our commitment to demonstrate sustainability
leadership.

Photo credit: Lorien Perchard, Australia

DECARBONIZATION STRATEGY33

Sustainability is our business© Copyright 2024 by the ERM International Group Limited and/or its affiliates (‘ERM’). All rights reserved.
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