Strategic Focus: Planning For ESG, Climate & Biodiversity Risks With AIP Software

Executive Summary

Aging assets and infrastructure pose a significant challenge to planning investments that will achieve productivity, availability and cost reduction goals simultaneously. To add to this equation, firms must now consider the effect on their operations of burgeoning climate risks, as well as a greater focus on operationalizing net zero targets, and stricter ESG regulations. This report is aimed at senior executives across operations, engineering, sustainability and finance teams in heavy asset industries who are responsible for long-term capital planning at their firms. The report discusses the drivers for the uptake of asset investment planning (AIP) software to address ESG, climate and biodiversity risks and details how prominent AIP software providers have developed capabilities to combat these challenges. Thus far, industrial firms’ sustainability efforts have been concentrated on reporting; development of a strategy to lower emissions and reduce environmental risks to operations is still a new activity for many.