PwC buys sustainability finance specialist

PwC, which has grown its in-house sustainability and climate change team four fold in recent months, said the deal would help it respond to growing client needs as they adapt to climate change and move to a low carbon economy. In particular, it said it would provide it with specialist expertise in the financial sector.

Founded in 2003, SFL specialises in environmental and social risk solutions for the financial services sector. In 2003, the company helped develop the Equator Principles, the international industry standard for managing environmental and social risks in project finance, and more recently helped develop the Carbon Principles, the climate change guidelines for evaluating and addressing carbon risks in the financing of electric power projects in the US.

“We believe it is vital for us to accelerate our investment in sustainability services, particularly in the financial services sector as it seeks to rebuild trust and confidence,” said Ian Powell, UK chairman and senior partner, PwC.

Based in the UK, the US and Holland, SFL’s primary areas of expertise are sustainability strategy and policy development, training, management systems and transaction support. It will continue to sell training and risk management tools, as well as support PwC on other projects.

SFL co-founder Leo Johnson said the deal offered the right opportunities for SFL because of PwC’s scale and influence.

“PwC’s unique role and scale in the global economic system, in terms of its influence and ability to affect change across policy frameworks, regulation and best practice delivery provides a great fit and opportunity for our team’s skills and expertise,” he said.

SFL will come under PwC’s sustainability and climate change team led by Malcolm Preston, but in the UK will operate as a wholly owned subsidiary.

Johnson and SFL co-founder Matt Arnold will join the PwC partnership in the UK and US, respectively.

PwC has a 17-year track record of advising clients on sustainability and corporate responsibility issues across its assurance, tax and advisory practices.

In 2008, it was appointed the global advisor and report writer to the Carbon Disclosure Project, an independent not-for-profit organisation that holds the largest database of corporate climate change information in the world.