Sustainable investments; Sustainable investments;

Sustainable investments

We can help your organisation invest wisely in a complex financial environment.

We can help your organisation invest wisely in a complex financial environment.

The environmental, sustainability and corporate governance (ESG) agenda, and the regulations that drive it, are changing the equation for investors in every sector. Customer and client expectations and behaviours are also evolving rapidly, while the physical impacts of climate change and resource depletion are sharpening decision making. Regulation and reporting requirements such as the EU Taxonomy, its Sustainable Finance Disclosure Regulation and the Taskforce on Climate-related Financial Disclosures (TCFD) are driving urgent need for action.

However, investors are also increasingly seeing the huge potential benefit and enhanced returns in managing financial exposure to stranded assets and climate risk, and unlocking value opportunities through enhancing resilience, managing resources more effectively and engaging with communities.

As a purpose-led organisation with a commitment to sustainable development, Arup is helping organisations and investors to navigate this changing landscape with confidence, achieving more sustainable outcomes using a combination of advisory insight and technical expertise drawn from every part of the built environment. Ultimately, we believe sustainable investments are a way of defining sound, innovation-focused business that will be good for people, the planet and economic prosperity.

Opportunities

We see huge opportunity to create value across the investment cycle. Here are just a few possibilities any organisation might take advantage of:

Accelerate climate action

  • implementing your organisation’s net zero transition

  • investing in climate change mitigation technologies

  • achieving climate resilience and adaptation measures

Make sustainable use of natural resources

Create socially valuable outcomes

  • invest inclusively – the net zero transition is an opportunity to address related social issues

  • engage with communities and create more liveable places

  • improve health, safety and wellbeing for all

Sustainable investment services

Our sustainable investment advisory team can help you recalibrate, to invest with purpose, either by innovating in an existing market or pivoting to new ones. Our services have four main elements:

  1. ESG governance and reporting: we help you establish, prioritise and embed ESG/TCFD strategies at portfolio and asset level focused on driving your desired outcomes.

  2. ESG due diligence and post-deal value realisation: we support you through transactions and acquisitions, going beyond environmental, health and safety compliance to identify and subsequently realise critical environmental and social benefits within any investment.

  3. ESG funding and finance: we build sustainability into the business case for new investments, unlocking policy support, and structuring projects to be compatible with emerging sustainable taxonomies, green loan principles and other sustainable finance products.

  4. ESG transition: we help you define and implement the process of asset or business transition, responding to global climate and sustainable development challenges, opportunities and rapidly changing regulatory requirements.

How we help you

A sustainable investment approach means different things to different stakeholders:

Executive leadership

Business leaders need to establish a clear purpose and define the top-level goals for their organisation, including identifying opportunities and setting ESG priorities. We help senior leaders to take a comprehensive and long-term view, aligning investment decision making to the wider purpose, before codifying the overall strategy.

We supported the Green Investment Group to review its policy for demonstrating value and screening investments against its Green Purpose across a number of key thematic areas.

Public sector project sponsors

In the public sector you need to make a clear sustainability-led business case for change, establish clear outcomes and navigate funding support mechanisms. For potential public/private partnerships that means structuring a project so that it meets policy objectives and is attractive to commercial green finance too.

We help project sponsors to build a pragmatic and robust business case for a more sustainable approach, one that will gain support in the internal decision-making environment, dovetail with wider government initiatives and be attractive to private partners.

We have advised Liverpool Region Combined Authority on developing the case for a major tidal energy project and we are supporting UK Atomic Energy Authority in developing its operating model, procurement and financial partner strategy.

Featured project

Supporting the UK's Atomic Energy Authority

We are supporting UK Atomic Energy Authority in developing its operating model, procurement and financial partner strategy for the development of STEP, the first of a kind nuclear fusion demonstrator plant and an element in the UK Government’s approach to energy transition.

Asset Operators/ Industrial

At COO/strategy director level, we move to ‘the how?’ phase: defining the actions and investment choices that are most pragmatic and effective. Sometimes it means moving to new, unfamiliar markets, or divesting from assets with diminishing future value. We help you to think through the plan and create new business models and partnerships that will move you forward.

Featured project

Entering new markets

We are working with Hitachi Europe to develop its market development strategies around sustainable energy and decarbonisation of transport, providing insights on key market drivers. Together, we’re exploring how their broad range of existing capabilities can be used and integrated, to deliver future value to customers while staying aligned to Hitachi’s corporate sustainability objectives.

Investors

Investors want commercial confidence in a proposed new investment. We help capture and realise the full potential value in the deal.

We recently provided vendor technical and ESG due diligence for our investor client Terra Firma for its recent sale of Parmaco, a Scandinavian schools-as-a-service company.

Featured project

Helping define the key ESG value drivers

In supporting Terra Firma in its recent sale of Parmaco, a Scandinavian schools-as-a-service company, we helped define the key ESG value drivers and context for their business, quantifying the value added from their core service’s production of sustainable, educational buildings, adopting a circular economy business model. This sustainability premium was featured as a key driver in the sales process and valuation methodology by the successful purchaser.

Asset managers

You’ve invested in an asset or real estate – the question now is, how to translate the promise of the newly invested-in asset into sustainable outcomes throughout its lifespan? We can benchmark the maturity of the business across all aspects of ESG and sustainability to identify performance opportunities and to define the operational strategy that will ensure value is realised.

We have supported a major chemical park operator acquired by an infrastructure investor to deliver an ESG maturity assessment and performance enhancement roadmap, implementing enhanced procedures across health and safety, climate risk assessment, environmental risk management and social value.


Discover how our team can help

You can access our Advisory Services through regional consultants around the world. Wherever you’re based, we can help you look beyond your sector to explore new sources of inspiration and identify opportunities for growth.

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