Energy

Background

The client operated a diversified portfolio including solar, wind , and small-scale hydro assets. With increasing investor pressure and policy-driven decarbonization goals, the company risked stranded assets, regulatory penalties, and limited future cash flows.

Although it had explored solar and battery projects, these were pursued without a unified strategic framework. The existing capital structure favored short-term returns and lacked sustainability-aligned instruments to finance new energy technologies.

Additionally, the client had not yet implemented the TCFD framework or performed a structured climate risk assessment. This weakened its credibility with international investors and development finance institutions.

Case

The Problem

The energy company encountered a strategic inflection point, as transition risks were emerging more rapidly than expected. In the absence of a redefined business model and capital strategy, the firm risks losing both investor interest and market relevance.

The absence of proactive climate risk analysis, insufficient governance of green project pipelines, and the underdevelopment of sustainable finance mechanisms have impeded growth and restricted access to capital.

Our Solutions

Our advisory team have developed a comprehensive transition strategy that is grounded in our six core service areas. Our strategy team assisted the client in identifying both core and non-core assets, and in formulating a phased divestment and reinvestment plan that emphasizes renewable energy sources. We conducted a transition risk assessment aligned with the Task Force on Climate-related Financial Disclosures (TCFD) and mapped the portfolio's alignment with relevant taxonomies. Our Sustainable Finance and Debt Advisory teams collaborated with lenders to structure a green bond program and sustainability-linked loans, which are contingent upon targets for greenhouse gas (GHG) emissions reduction and renewable capacity enhancement. Through our valuation services, we evaluated the impact of various energy transition scenarios on asset valuations and the overall strength of the balance sheet. This integrated approach has positioned the company as a credible leader in the transition to sustainability, facilitated access to green capital, and mitigated exposure to regulatory and market risks.

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