ESG and portfolio diversification

A leading producer of coal and other primary raw materials, was looking to design and implement a growth and diversification strategy, more closely aligned to the energy transition.

Demand for coal is set to decline as renewables gather momentum and low carbon steel technologies are deployed. In this context, we helped develop an actionable diversification plan, targeting markets and segments that are both resilient to the energy transition, and assets wand strategically aligned to the client’s capabilities and ambitions. 

CRU recommended the development of a growth strategy targeting three key commodities fundamental to the manufacture of green technologies. We identified particular segments of these markets which were most likely to benefit from these structural changes and also well aligned to the client's broader capabilities and aspirations. We subsequently identified and prioritised a list of target assets within each segment to focus growth planning on.

We developed a ranking and prioritisation methodology which reflected the goals and aspirations of key internal stakeholders.  This methodology identified a short list of priority markets and value segments which were aligned to market fundamentals and accessible to the client. We long-listed target assets against these priority segments, and then conducted preliminary investment appraisal analysis in order to short list the most prospective acquisitions.