M&A: Sustainability Consultancy ERM Acquires Climate Risk, Energy Transition Firm Energetics

Sustainability consultancy ERM, backed by private equity firm KKR, has acquired Energetics, a climate risk and energy transition consultancy in Australia. Financial terms of the deal were not disclosed.

This is M&A deal number 206 that Sustainable Tech Partner has covered so far in 2024. See all M&A deals involving sustainability, climate tech and green IT services listed here.

ERM Acquires Energetics: Business Backgrounds, Focus

Energetics, founded in 1984, is based in North Sydney, Australia. The climate change consultancy assists Australia's largest businesses, investors, and governments with net zero emissions strategies, clean energy transitions and more. Energetics will tuck into ERM’s climate change and corporate sustainability practice.

ERM, based in London, United Kingdom, had more than 8,000 employees across more than 150 offices in 40 countries and territories as of March 2024. KKR acquired ERM at a $3 billion valuation in 2021.

ERM helps customers to develop sustainable products and supply chains that ultimately align with sustainable economy strategies. The company advises on:

• Corporate sustainability and climate change
• Mergers and acquisitions (M&A)
• Capital project delivery
• Low carbon economy transitions
• Operational performance
• EHS management and compliance
• Liability portfolio management and remediation
• Safety services
• Digital services
• Product stewardship

ERM Acquires Energetics: Executive Perspectives

In a prepared statement about the deal, Matt Klein, global co-head of corporate sustainability and climate change, said: “Bringing together Energetics and ERM 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."

Klein continued: “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. For the people at Energetics, becoming part of ERM means they can access and become part of our unparalleled network of sustainability experts worldwide.”

Added Energetics CEO Mary Stewart: “Energetics first opened its doors for business 40 years ago. Since then, 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."

Concluded Stewart: “Throughout this sale process, we were determined to find a buyer whose ambitions for sustainability, addressing climate risks and supporting the clean energy transition align with our own. In ERM, we have a great match.”

ERM: Extensive M&A Expertise

ERM has been an active buyer in the sustainability and ESG software consulting market. Earlier deals include acquiring The Big Middle and The Big Zero in 2024, and  Nint and Coho in 2023. And in Australia, ERM acquired Point Advisory in 2022.