ERM inks deal with Energetics

The world's largest pure play sustainability consultancy has signed up to buy an Aussie climate risk and energy transition consultancy for an undisclosed sum.

The world's largest pure play sustainability consultancy has signed on the dotted line to purchase an Aussie climate risk and energy transition outfit for an undisclosed sum.

The deal is currently awaiting FIRB approval.

Energetics will join ERM's climate change and corporate sustainability practice, enhancing its decarbonisation strategy and reporting, climate risk assessment and adaptation planning, energy and carbon markets, and accounting services.

The deal hinges on obtaining Foreign Investment Review Board (FIRB) approval.

The takeover ensures a competitive advantage in the APAC region for Energetics and ERM, which will cumulatively employ more than 150 staff in Australia and New Zealand.

At the conclusion of the transaction general manager Andrew Tipping, general manager strategy Bahador Tari, general manager energy accounting Michael Bosnich, general manager energy and carbon markets Gilles Walgenwitz, head of renewable energy investments Anita Stadler, and CEO Mary Stewart will become ERM Partners.

Mary Stewart will continue to lead the Energetics' team.

This follows the acquisition of Point Advisory in 2022, which bolstered ERM's Australian presence across sustainability economics, energy, procurement, strategy and human rights.

ERM global co-head of corporate sustainability and climate change, Matt Klein, said the acquisition creates Australia's "most comprehensive" sustainability and climate change advisory firm.

"This acquisition is critical to the growth of ERM in the region and is in direct response to Australia's plan to achieve net zero carbon emissions by 2050.

"In addition to the services already offered by ERM, the acquisition of Energetics enables us to offer a broader suite of services to our clients, and more expertise to address key sustainability challenges."

He said the deal gave Energetics access to a wider network of sustainability experts worldwide.

Energetics CEO Mary Stewart said it was the next step in the firm's 40-year history.

She said ERM was chosen as a buyer because of its similar ambitions for sustainability, addressing climate risks and supporting the clean energy transition: "In ERM, we have a great match".

"We've worked across every sector of Australia's economy and developed long-standing relationships advising some of the country's largest businesses. Energetics' alumni can be found leading sustainability, climate and energy risk management teams here and overseas.

"We are proud of what we have achieved, and today, we are ready to scale our work."

Read more: ERMEnergeticsMary StewartAndrew TippingAnita StadlerBahador TariGilles WalgenwitzMatt KleinMichael BosnichPoint Advisory