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A leading global, multi-strategy private equity firm that has many of the world’s most progressive Limited Partners.

Private equity and debt

Costed decarbonisation within climate due diligence

Assisting a large, European-headquartered private equity firm with climate due diligence for a target acquisition

Scope 1&2

costed assessment

Scope 3

qualitative review

2 week

completion timeframe

What did the client need?

The client needed a comprehensive Costed Decarbonisation Assessment to support climate due diligence within a two-week timeline.

They required an assessment of their target acquisition’s decarbonisation potential, alignment with Science-Based Targets (SBTs) and ability to meet those targets. It needed to include costed insights such as CapEx, OpEx and Payback for implementing various decarbonisation levers and projects.

The client needed a clear understanding of the commercial benefits, regulatory exposure, and operational savings linked to decarbonisation.

How did Verco support the client?

Verco provided a structured Costed Decarbonisation Assessment, which included:

  • GHG Preparation: Reviewing the target company's existing emissions inventory and estimating Scope 1, 2, and 3 emissions.
  • SBT Feasibility Modelling: Projecting the target company's GHG emissions against SBT reduction pathways and identifying decarbonisation levers.
  • Maturity Assessment: Evaluating the current energy and carbon management maturity of the target company.
  • Benchmarking: Comparing the target company's ESG maturity against its peers.
  • Recommendations: Outlining steps for setting and achieving SBTs.

What was the result?

The assessment delivered rapid insights that assisted investment decisions related to decarbonisation for the target company. It provided the client with a high-level understanding of the target company's decarbonisation potential and alignment with SBTs. It also offered an overview of the costs, benefits, and challenges associated with meeting SBTs, enabling the client to make informed decisions during the due diligence process.

Verco was able to support the private equity firm’s deal team with capital allocation pre-acquisition and prioritising decarbonisation recommendations for the 100-day plan post-acquisition.

Verco now provides the service for new due diligence exercises conducted by the client.

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