A Multinational EPC Company Embeds Sustainability into its Operating Model
A four-year plan weaves the engineering, procurement, and construction company’s green ambitions into its operations at the business-line level.
At the behest of its investors, employees, and, most importantly, its strategic shareholders and clients, EP&C Co* set its sights on creating a four-year sustainability plan. Already recognized as a leader in the health and safety sectors, the company knew that a focus on sustainability was a natural next step. One key requirement distinguished EP&C Co’s green ambitions from many of its competitors: The sustainability plan must blend seamlessly into the strategic plan, to align with and support its operational priorities.
EP&C Co’s sustainability plan began as a holistic exercise within its strategic plan development process. To identify goals and areas of improvement, the organization relied on sustainability ratings agencies. It also looked to ratings from financial institutions, since banks and insurance companies are increasingly adopting their own criteria to assess the sustainability profile of other companies. Looking ahead, EP&C Co analyzed technology, regulatory issues, and sustainable macrotrends that could influence future standards.
The company also conducted a materiality analysis, with EP&C Co’s management and stakeholders ranking specific sustainability issues by level of importance. They chose 12 areas of focus and prepared scorecards for each target and level of achievement:
To manage the sustainability program and track its progress, we helped EP&C Co identify five enablers critical to the plan’s success:
EP&C Co has taken key first steps to becoming a sustainability leader, and its efforts are already paying off. The company is on track to reach net zero for Scope 1, 2, and 3 carbon emissions by 2050. In support of this goal, it decreased greenhouse gas emissions by 33,000 tons in 2022. It is on target to achieve carbon neutrality for Scope 2 emissions by 2025 and to reduce Scope 1 and 2 emissions by 50% by 2035.
Internally, the sustainability plan has become an important pillar to increase trust during a period of restructuring. Externally, it has been an effective way to meet clients’ challenging requirements and has increased the company’s reach to potential new customers. While the plan is an ongoing journey, EP&C Co recognizes that its collective benefits extend beyond corporate performance and will have important sustainability implications for the global community.
* We take our clients' confidentiality seriously. While we've changed their names, the results are real.