Management Consultancy
Automotive
Background
The client, a Tier-1 supplier to global automotive OEMs, was under mounting pressure to align with decarbonization targets across its value chain. While demand remained steady, regulatory shifts, particularly in the EU and export markets, introduced compliance risks related to emissions, energy use, and materials sourcing. The company lacked a structured sustainability strategy and had no systematic ESG risk management framework in place.
Financially, the capital structure was suboptimal—debt maturities clustered in the near term, interest costs were increasing, and the firm had limited visibility on the value impact of its investment decisions. The management team recognized that without strategic repositioning and access to ESG-aligned financing, the firm risked losing major clients and falling behind in the transition to a low-carbon economy.
Case Study
The Problem
The core challenge was twofold: strategic misalignment with emerging industry and regulatory trends, and a capital structure that hindered long-term flexibility.
The company was reactive, rather than proactive, in its sustainability positioning, resulting in missed opportunities for differentiation and value creation. Its financing approach was fragmented, failing to integrate sustainability metrics into discussions with lenders and investors.
This constrained the firm’s ability to invest in green innovation, energy efficiency, and process upgrades—further widening the gap between client expectations and internal capabilities.