ERM: How to Shift Sustainability Plans into Action
Transition planning is the “missing link” for sustainable business according to sustainability consultant ERM (Environmental Resources Management).
Whilst many companies have sustainability goals, only a few are putting them into action.
A report from the ERM Sustainability Institute and World Council for Sustainable Business Development (WBCSD) provides guidance for companies to move from planning to action in sustainability.
It says that insufficiently engaging with transition planning carries risks that are rapidly expanding.
These can include conflicts with regulators, higher capital costs, reputational damage and shrinking access to credit.
Tom Reichert, Global CEO at ERM, says: “At the corporate level, companies increasingly use transition planning – which breaks broad sustainability goals down into a specific, resourced plan of action – to navigate the sustainability transformation.
“Investors and regulators are also demanding transition plans to help them gauge whether corporate plans are sufficient to let them navigate the energy transition and thrive on the other side.”
Meet ERM
Founded in 1987 through a merger, ERM is a multinational consultancy firm focussed on sustainability and the environment.
The company is headquartered in London and provides consulting services for areas including health, safety, risk and the environment.
“Every day, our teams deliver on our purpose through working with our clients to address sustainable business challenges,” says Linden Edgell, Global Sustainability Director at ERM.
“We also partner with leading organisations to drive change while ensuring we enhance our own operational performance.”
ERM has a diverse team of 8,000 employees and is the world’s largest consultancy solely focussed on sustainability.
The company works on a variety of innovative and high profile projects to improve sustainability around the world.
In 2019, ERM was awarded funding from the UK Government for Project Dolphyn which began trials in July 2024 to bring low-carbon hydrogen to the country.
The importance of transition planning
The UNFCCC reported that greenhouse gas emissions hit a new record in 2023, leaving the world far off track from global goals of limiting global warming below two degrees celsius.
ERM says that transition planning is no longer just “nice-to-have” but a “must do”.
Businesses around the world are continuing to commit to ambitious sustainability targets but the transition of these plans to actions is lagging behind.
The report says transition planning can offer significant business advantages including building competitor advantage and resilience, identifying cost management opportunities and improving access to capital.
ERM’s advice on implementing transition planning
ERM found four areas that companies find most challenging in transition planning:
- Prioritising and understanding climate-related risks and opportunities
- Starting industry and value chain engagement and collaboration
- Accelerating innovation on low-carbon products and services
- Transition plan resourcing and integration with financial planning.
Continuously using climate scenario analysis to inform strategic decisions around mitigation and product development can support businesses to understand the scale of impacts, risks and opportunities.
ERM recommends that businesses identify practical actions for the short and long term that align with strategic goals.
Defining metrics and targets can support businesses to monitor the performance of their transition plan actions.
Integrating information on the climate impacts of products into business practices can support the development of alternative products and services.
Life Cycle Assessments (LCAs) can be used in this way, calculating the environmental impact of products from raw material extraction to disposal at end of life.
Learn more about this topic in a panel on Corporate Net Zero Strategies at Sustainability LIVE Net Zero on 5 March 2025, tickets available here.
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