The economic consequences of global warming and of the transition to a net zero economy will be huge. The issues are complex and not always well understood, yet it has never been more important for businesses, investors and policymakers to understand them. Fathom brings clarity and provides tailor-made solutions to clients from a range of different organisations and sectors.
Fathom’s climate-specific products and services are designed to help our clients manage climate-related risks, take advantage of opportunities and make well-informed decisions. Details on these products and services can be found below.
For more information or to discuss your specific needs and how we can help, get in touch with Brian Davidson, Head of Climate Economics.
Net zero strategy
Many of the world’s largest organisations have committed to cutting their greenhouse gas emissions to zero by the middle of the century, yet so far lack a credible plan to achieve this. Many investors would like to pursue ESG goals, decarbonise their portfolios and make a positive climate impact. But they lack the data and need guidance on how to do this effectively. Fathom can help.
Our climate data, models and tools have been built to help clients from a range of different organisations to manage their net zero strategies, from design to implementation. We work with investors, corporates, governments and local authorities, helping them to find solutions to reducing emissions and meeting their objectives in the most efficient way possible. We enable them to save money, manage risks, identify investment opportunities and tackle global warming.
Data, models, tools
We are in the final stages of creating a suite of products which will give users the ability to do three things:
- Measure companies’ greenness
- Measure companies’ exposure to transition risks
- Identify Paris-aligned decarbonisation pathways for companies in all sectors
These are important for various stakeholders, especially investors. Investors need to manage climate risk, consider how climate-related issues affect asset prices, comply with climate regulation and decarbonise their portfolios in line with the Paris objective.
Regulations and TCFD
A range of new climate-related regulations are being introduced across the world. We can help clients navigate these regulations in several different ways. From a top-down perspective, we can assess the macroeconomic effect of regulations, such as carbon taxes; or we can take a bottom-up approach, assessing their effect on individual companies, including how to comply with climate-related financial reporting rules.
The TCFD recommendations recently became a mandatory reporting requirement for the largest UK-based asset managers and listed corporates. We have subsequently worked with asset managers and local authority pension schemes to help them to understand their obligations under these new regulations, and to develop the processes and structures necessary for compliance. We also help with scenario analysis, using metrics and setting targets. We offer these services to asset managers, asset owners and corporates. Compliance is key, but we also help clients to identify investment opportunities.
Different organisations have different needs when it comes to incorporating climate-related considerations into their operations. Fathom can answer any specific climate-related questions that relate to economics, finance or politics. We can offer quantitative analysis, such as financial modelling, or qualitative analysis, such as policy assessments or literature reviews. Projects are typically delivered in the form of a presentation, written report or data files, within a time span that can range from many months’ to just a few days. For an example, see the case study below.
This chart shows the emissions intensity of economic activity and export dependence on the EU for the biggest exporters to the EU
We offer training solutions for local authorities and other organisations. There are numerous ways that climate change and the net zero transition will significantly affect public finances, although many of these are poorly understood. Our training focuses on issues around the transition to net zero – what it means, the options for achieving it, the status of new technologies, the cost and availability of low-carbon solutions and how these are expected to evolve over time. We also consider practical factors such as political considerations, distributional issues (of costs and rewards relating to climate change), logistics and infrastructure. We also offer bespoke training on other climate related issues, including regulations and TCFD.
Our consideration of the global economy, financial markets and geopolitics informs our thinking on climate issues. Likewise, we assess how climate-related issues affect those three areas. Our Global Outlook service incorporates climate-related written research and climate-related material in our quarterly presentations. Subscribers to this service also receive invitations to roundtables, and events, hosted by Fathom.
Get in touch
For more information about our climate economics services or to discuss your needs and how we can help, please fill out the form below.