The carbon market continues to evolve, with commercial implications for all businesses. Many governments have set ambitious targets to reduce emissions, and the move towards mandatory emissions reporting and accounting is gathering pace. There is also evidence of growing pressure on the suppliers of goods and services to help consumers live in a more carbon-friendly way.

Despite this, the appropriate business response to climate change remains unclear. Uncertainty about the right approach, or even where to start, is certainly a factor, with initial studies often providing counter-intuitive insights and a number of unforeseen opportunities. There is no ‘one’ answer and companies need to be cautious and analytical in their approach. Assessing both the risks and opportunities presented by climate change and integrating carbon management into overall corporate strategy will be critical for success.

L.E.K. is at the leading edge of thinking on climate change policy and regulation issues, the economics of carbon friendly investments and the development of low carbon business strategies. We advise clients across a variety of industries, having pioneered an approach to carbon management that enables organizations to identify and set carbon reduction initiatives in line with wider business objectives, and develop a clear understanding of their commercial implications. Specifically, we provide:

Carbon measurement and reporting frameworks
The starting point of any corporate carbon management strategy is an understanding of the company’s total carbon footprint. Using international protocols and standards, L.E.K. works with clients to accurately measure and monitor their carbon emissions through a credible reporting structure. The data generated can then be analyzed to inform the trajectory and strategy for carbon reduction.

L.E.K. worked with a global facilities management company to complete a detailed carbon footprinting exercise...more

Commercial climate change strategies
Organizations developing a carbon management strategy need to link it closely with core business strategy, identifying the competitive advantage that can be gained from reducing carbon emissions and costs, and from repositioning products and services to be more attractive to environmentally sensitive customers. L.E.K. works with clients to understand key product markets and identify new opportunities based on low carbon and sustainability. We also help to develop positioning and communication programs to relay credible carbon information to their customer base.

L.E.K. created an industry changing strategy for a leading global transport company based on a technology shift that would transform the level of carbon emissions in the sector.

A major global food and facilities management company had recently re-launched its corporate vision to include an overarching commitment to care for the environment. To support this new vision, L.E.K. was engaged to develop a range of service propositions for its key markets based around low carbon and sustainability...more

Supply chain carbon management
Significantly reducing carbon emissions from products and services requires a comprehensive view of the full supply chain. This is a complex and wide-ranging task, and a balance must be struck between seeing the ‘big picture’ and providing enough detail for a meaningful analysis. Not all carbon reduction opportunities are viable and can conflict with brand propositions and consumer demands, or they may be economically unsound. L.E.K. has developed a three-step approach to mapping an organization’s carbon footprint and prioritizing reduction initiatives. We work with clients to determine the scope of the carbon reduction initiative, evaluate, at a high level, carbon emissions across the supply chain and determine the cost and benefits of each carbon reduction opportunity.

L.E.K. helped a leading UK food retailer (with over 6,000 unique products) develop an aggregation methodology to estimate the carbon footprint of all its food products and develop a reduction strategy...more

Climate change policy and regulation
As climate change policies and legislation become increasingly complex, L.E.K. helps public and private sector organizations to develop the appropriate strategic response to enable them to operate safely and profitably within these frameworks, as well as to anticipate future changes. We also work closely with public sector bodies to support policy development in the move towards a low carbon economy.

L.E.K. has been a long-term strategic advisor to the Carbon Trust, an independent company set up by the Government to help the UK meet its climate change obligations through business-focused solutions to carbon reduction. In 2006, L.E.K. carried out a study into renewable energy on behalf of the Carbon Trust...more

L.E.K. was appointed by industry associations for two major energy-intensive import-competing industry groups to help them evaluate the impact of the Emissions Trading Scheme (ETS) on their businesses and to formulate a response to the Australian Government's proposal scheme that will cover all major Australian greenhouse gas emitters, with some carveout for emission-intensive (EI) and trade-exposed (TE) industries...more

Our commitment to tackling climate change extends beyond our client work. L.E.K. became carbon neutral on January 1, 2008, making us the first major management consultancy to go carbon neutral throughout its global operations. To find out more please read the L.E.K. Environmental Policy.