TC+ES's First Steps

Working closely with the company's staff, TC+ES went through a "foundation-building" process for a risk management strategy that could be proposed to senior management. Among the steps taken were:

Re-evaluation of the company's quantification of climate change risk, using a more comprehensive set of policy and market scenarios than the company previously had chosen to use. TC+ES was able to convincingly show that the potential liabilities facing the company were much higher than had been assumed.

Providing a technical critique of the company's thinking regarding development of a project-based mitigation strategy, including the company's sectoral and geographic focus. Combining this work with the development of an explicit set of project review criteria, and an assessment of the mitigation sectors likely to offer the greatest potential, the company chose to radically change the project track it previously had pursued.

Providing a comprehensive review and explanation of the GHG market, and a forecast of future GHG market prices. Working with company staff, TC+ES also prepared a customized GHG forward price curve for use in the company's strategic planning.

Providing an assessment of the appropriate role of forestry and other specific sectors in developing a mitigation portfolio, including through the delivery of TC+ES's Coalmine Methane Global Market Assessment.

Evaluating the likely outcomes of several approaches to mitigation portfolio development, TC+ES illustrated that close attention to the quality of emissions reductions targeted for portfolio development was most likely to lead to a favorable long-term outcome.

Using TC+ES's GHG Business Planning Model to calculate the potential returns to the company of a sophisticated pro-active market entry strategy, based on "real world" project investment opportunities.

Making a presentation with recommendations to members of the company's board of directors. TC+ES proposed a three-stage implementation plan, starting with pilot-scale activities and moving to a point where the company would be positioned to move rapidly and aggressively to manage its own unique circumstances and market risks.