Why Ernst & Young?
Cleantech sector
September 2012
What is ‘Why EY?’
‘Why EY?’ decks were developed by our Global Industry
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growth platform, Winning New Audits. ‘Why EY?’ is
intended to be a sector-focused toolkit to help our
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Contents
1
2
3
4
5
Ernst & Young’s
leadership in
cleantech
Ernst & Young’s
Global Cleantech
Center
Services
Market facing initiatives
Appendix: cleantech
account considerations
Ernst & Young cleantech definition
4
Cleantech: new energy ad resource efficiency
5
Leading service provider to cleantech companies
6
Key cleantech supply (resource) and demand clients
7
Key supply and demand clients by cleantech vertical
8
Key cleantech investors
9
Multinational corporations
10
Ernst & Young's Global Cleantech Center
12
Global Cleantech Center Team
13
Global Cleantech Center leadership network
14
Identifying future growth opportunities
15
Coordinated sustainability and cleantech services
17
Cleantech market segmentation
18
Services to innovators and developers
19
Cleantech service continuum to innovators
20
Services to investors, corporates and governments
21
Thought leadership publications
23
Thought leadership – cleantech emerging market analyses
24
Thought leadership - cleantech value chains
25
Global cleantech events
26
Cleantech becomes a competitive advantage
28
Competitiveness drives the capital agenda
29
Corporate focus on resource and energy agenda
30
Section 1
Ernst & Young’s leadership
in cleantech
Section 1
Ernst & Young’s leadership
in cleantech
Ernst & Young’s cleantech definition
Cleantech represents the technology and business model innovation that enables the transformation to a more resource efficient and low carbon
economy. The stakeholders, investors and benefactors of this new industry consist of both new pure-play innovators and companies from the
traditional sectors such as technology, power & utilities, automotive and consumer products, etc.
The cleantech transformation represents a new industrial revolution that will proceed over many years. Cleantech is both a group of vertical standalone industries, as outlined below, and a transformational wave that cuts across every industry as corporations are driven to become resource
efficient and low-carbon.
Definition: A diverse range of innovative
products and services that optimize the
use of natural resources or reduce the
negative environmental impact of their
use while creating value by lowering
costs, improving efficiency, or providing
superior performance.
Supply (resources)
Demand
►
►
►
►
►
Government
Energy

Bioenergy

Geothermal

Hydro energy

Marine energy

Solar energy

Wind energy
Water
Waste to energy
Other supply
►
►
►
►
Technology
►
Cleantech
Oil & gas
Consumer Products
Automotive
Industrials
Selected companies
Power and
utilities
Real
estate
►
Energy efficiency
 Industrial applications
 Residential applications
 LED
Energy storage
Electric vehicles
Smart grid / smart meters
Water
 Monitoring and management systems
 Prevention and detection
Advanced materials
Other demand technologies
Bioenergy: BP, Verenium, Cosan,
CropEnergies, POET, Royal Dutch Shell
Energy efficiency: Johnson Controls, Cree,
EnerNOC, Honeywell, Bridgelux
Solar: First Solar, JA Solar, Suntech, Q-Cells,
Sunpower, GCL-Poly Energy, Brightsource
Energy storage : Xtreme Power, Bloom Energy,
Saft, Johnson Controls, Boston-Power
Wind: China Longyuan, GE, Siemens, Vestas,
Gamesa, Suzlon, Enel Green Power
Electric vehicles: GM, Tesla, Fisker, Better Place,
Nissan, Ford, Smith Electric Vehicles, Daimler
Geothermal: Ormat Technologies
Smart grid/smart meters: GE, Itron, Tendril, Cisco,
IBM, Gridpoint, Silver Spring Networks
Water: Veolia, IDE, Seven Seas Water
Waste to energy: Harvest Power, Covanta
Energy
Water management: IBM, Hyflux, Takadu, Miya
Water
Advanced materials: Dupont, Dow, BASF,
Rennovia
Why Ernst & Young? Global Cleantech Industry Center
Page 4
Section 1
Ernst & Young’s leadership
in cleantech
Resource and low carbon transformation:
sustainability and cleantech are driving change and creating opportunities
The transformation has generated reactions, activity and initiatives by
corporations, governments and corporate stakeholders that are
significantly linked and have critical dependencies
Powerful drivers have caused
a transformational change
This has created change and generated
opportunities but also raised new risks
Finance
• >$260b in global investments in 2011– record
year!
• Growing number of IPOs – mainly China wind
and solar (e.g., Sinovel - $1.4B, Huaneng $850M); also US biofuels (e.g., Solazyme $227M, Gevo - $123M)
•Corporate
Continuous
progress on cost reduction
activity
Stakeholders
Risks
Grow revenues
►
Improve operational
efficiency to reduce cost
Energy security
concerns
Resource-efficient
and low carbon
economy
A global transformation
in the way natural
resources, including
energy and water, are
produced, distributed,
stored, managed and
consumed
Natural resource
scarcity
Optimize energy mix
Meet consumer demand for
greener products
Achieve internal
sustainability objectives
Enhance innovation
Enter new markets
Corporate
Government
Leverage cleantech as part of the national strategy
Create jobs
Acceleration of
urbanization
Increasing middle
class consuming
power in BRICs
External
Internal
Business
response to
climate change
Opportunities
Rising energy and
commodity prices
►
Growing world
population
Investors
Reduce risk
Increase value
Consumers
Greener products
Cost
Performance
Change
Increase
awareness for
sustainability
strategy
Employees
Growth
Stability
Community
Environmental
Drive innovation
Develop local industries
Ensure energy security
Optimize energy mix
Improve the enviroment
• Increased M&A activity
• >227 M&A deals in 2011.
• Increased acquisitions by Japanese and
Korean corporations
• R&D / Business development by Chinese
companies in developed and developing
markets
• New partnerships models
• EY’s Corporate Cleantech study
• Cleantech investments in 2011:
• 34%: 2%-3% of annual revenue
• 21%: 3%-5% of annual revenue
• 74% will increase
cleantech investments in
Government
involvement
the wave
next 5ofyears
• Next
increased cleantech allocations in
• Corporations
anticipate
to doplans
moreand
“leading
selected
government
stimulus
5-year
edge” cleantech acquisitions
plans
• Global cleantech “arms race” to capture
innovation, ensure energy security and create
competitive advantage
• Austerity-based policies in certain countries
have resulted in withdrawal of government
commitments
► ► ► Capital ► Innovation ► Transparent Information ► ► ►
Cleantech has become a growing strategic imperative.
Why Ernst & Young? Global Cleantech Industry Center
The outcome is significant and those
that will not take action, can find
themselves at disadvantage
Outcomes
Megatrends
• Evolving energy mix
• Clean energy as a national competitive
advantage
• Corporate growth strategies based on
cleantech
• Corporate energy mix strategy development
• Cleantech growth in emerging markets
• Global electric vehicle (EV) adoption
• Energy-water-food nexus
Market indicators
• $1T invested in cleantech since 2004 (BNEF)
• 435 pure-play public cleantech companies
(BNEF)
• US market for prof. services in wind and
solar is $91m-$156m / year through 2016
(BNEF)
• Robust IPO pipeline -25% of US IPO pipeline
• $1.7T - $2.3T investment in clean power
assets by 2020 (Pew)
• Accelerated corporate activity (drivers:
innovation, new markets, consolidation)
• New multi-billion market cap industry leaders
• Capital: new players (e.g. SWFs), new
business models, new roles (e.g. Chief
Capital Officer)
Current dynamics
• Falling solar prices are accelerating
competitiveness and deployment—record
$137b invested in solar in 2011 (BNEF)
• With austerity in the US and Europe,
emerging markets are the growth
opportunity; companies must grow beyond.
• China’s 12th 5-Year Plan: 5 of 7 strategic
industries are cleantech related
• Strong growth in smart energy—$298b
global revenues projected for 2012 (Pike
Research)
• Ramp-up in EV production; enabling business
models
• Cleantech stakeholder strategy formulation
in water
Page 5
Section 1
Ernst & Young’s leadership
in cleantech
Leading provider of professional services to cleantech companies
Global venture-backed companies
Big Four-only auditor market share
42;
14%
57;
19%
Ernst & Young
119;
41%
Ernst & Young is the auditor of choice
to cleantech companies
PwC
Deloitte
76;
26%
► Ernst
& Young is the leading Big
Four firm to venture backed
cleantech companies
KPMG
Based on 294 private VC-backed companies designated as cleantech by Dow
Jones VentureSource; 28 September 2012.
► Ernst
& Young also audits the
greatest percentage of the Global
Cleantech 100 companies.
Guardian Global Cleantech 100
Big 4 auditor market share
23%
12%
12%
6%
Ernst & Young
Deloitte
PwC
KPMG
Cleantech 100 list published November 2011.
Why Ernst & Young? Global Cleantech Industry Center
Page 6
Section 1
Ernst & Young’s leadership
in cleantech
Key cleantech supply (resource) and demand clients
Selected Channel 1 clients
Selected Channel 2 clients
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►
►
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►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
Active Power, Inc.
BPL Global
China Hydroelectric Corporation
Codexis
Conergy AG
Cosan S/A. Indústria e Comércio
Covanta Energy
Cree, Inc.
Enel Green Power
EnerNoc, Inc.
Enersys
First Wind
GridPoint
Hanwha SolarOne
Iberdrola Renovables
Itron
Johnson Controls Inc
LS9
Magnatek
Rennovia
Sensata Technologies
Sensus Metering
SGL Carbon AG
Silver Spring Networks
Solarwatt AG
Sud-Chemie AG
Sunpower
Suzlon
Takadu
Veolia Environnement
Verenium
Xinjiang Goldwind
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
►
A123 Systems
American Water
Amyris
Better Place
Bloom Energy
Canadian Solar
Centrotherm Photovoltaics AG
CropEnergies AG
Elster SA
First Solar Inc.
Hyflux
Meyer Burger AG
MiaSolé
Microsemi
Ormat Industries
Renewable Energy Corp (REC)
Saft Groupe
Sapphire Energy
Satcon Technology
SMA Solar Technology AG
SolarWorld AG
Sydney Desalination
Tendril Inc.
Tetra Tech
Vestas Wind Systems
Wacker Chemie AG
Westport Innovations
Why Ernst & Young? Global Cleantech Industry Center
Note about use and company selection
►
This is a working list of key global Ernst & Young clients
and may not be all-inclusive.
►
The clients listed in this document are often used by
business development and client service teams to assist
in credentializing the firm in various channel 1 and
channel 2 situations/opportunities. If a client should not be
listed for confidentiality or other reasons, please let us
know so we can remove the client’s name from this list.
►
If you wish to use client names in external materials,
please first check with your geography’s general counsel
guidelines on using client names and then seek GCSP
approval.
►
Area and country leaders are encouraged to supplement
these lists with local clients for customized use in your
respective geographies.
Please email Scott Sarazen, John de
Yonge, or Lily Donge with the following:
►
Recommended additions, corrections/changes, or
deletions to the respective lists (please provide channel 1
audit or channel 2 non-audit designations).
►
Any comments or recommendations for improvement.
Page 7
Section 1
Ernst & Young’s leadership
in cleantech
Key supply and demand clients by cleantech vertical
Supply side
Bioenergy
Geothermal
Hydro
Solar
Wind
Water
Waste to
Energy
Other
Amyris
Ormat
China
Hydroelectric
First Solar
Enel Green Power
American Water
Covanta
Energy
Meyer Burger
CropEnergies
Canadian Solar
First Wind
Sydney Desalination
SGL Carbon
Cosan
Hanwha SolarOne
Ibedrola Renovables
Veolia Environnement
Sud-Chemie
LS9
MiaSolé
Renewable Energy Corp (REC)
Verenium
Solarwatt
Suzlon
Sunpower
Vestas
Wacker Chemie
Xinjiang Goldwind
Demand side
Energy Efficiency
Energy Storage
Electric Vehicles
Smart grid/ Smart
Meters
Water Management
Other
Cree
A123 Systems
Better Place
Elster
Hyflux
Tetra Tech
EnerNOC
Active Power
Johnson Controls
Gridpoint
Takadu
Westport Innovations
Magnatek
Bloom Energy
Itron
Microsemi
Enersys
Tendril
Sensata Technologies
Saft Groupe
Silver Spring
Networks
Rennovia
Blue font indicates Chanel 1 client
Why Ernst & Young? Global Cleantech Industry Center
Page 8
Section 1
Ernst & Young’s leadership
in cleantech
Key cleantech investors
►
DBL Investors
►
Chrysalix Venture
►
Draper Fisher Jurvetson
►
Nth Power (1)
►
Ben Franklin Technology Ptrs (1)
►
VantagePoint
►
Foundation Capital
►
Kleiner Perkins Caufield & Byers (2)
►
GE Energy Financial Services (1)
►
Silverlake Partners
►
NGEN Partners
►
►
Rho Ventures
Black Coral Capital and McNally
Capital (Cleantech-Syndicate)
►
Chevron Technology Ventures (1)
►
Macquarie (1)
►
CMEA Capital
►
Keating Capital
►
Connecticut Innovations
►
Khosla Ventures
►
Element Partners (2)
►
Enertech Capital
►
Madrone Capital Partners
►
Emerald Technology Ventures
►
Hudson Clean Energy (2)
►
Braemar Energy Ventures (2)
►
Virgin Green Fund
►
Novus Energy Partners
Please email Scott Sarazen, John de
Yonge, or Lily Donge with the following:
►
Mohr Davidow
►
North Bridge Venture Partners (1)
►
►
Harris & Harris
►
Rockport Capital Partners
Recommended additions, corrections/changes, or
deletions to the respective lists (please provide channel 1
audit or channel 2 non-audit designations).
►
Flagship ventures (1)
►
Any comments or recommendations for improvement.
Note about use and company selection
►
This is a working list of key global Ernst & Young clients
and investors in our network, and may not be all-inclusive.
►
The investors listed in this document are often used by
business development and client service teams to assist
in credentializing the firm in various channel 1 and
channel 2 situations/opportunities. If a client should not be
listed for confidentiality or other reasons, please let us
know so we can remove the client’s name from this list.
►
If you wish to use client names in external materials,
please first check with your geography’s general counsel
guidelines on using client names and then seek GCSP
approval.
►
Area and country leaders are encouraged to supplement
these lists with local clients for customized use in your
respective geographies.
Blue font indicates client and (Channel)
Why Ernst & Young? Global Cleantech Industry Center
Page 9
Section 1
Ernst & Young’s leadership
in cleantech
Multinational corporations and governments (OCAs & GAs) where Ernst &
Young has supported cleantech projects and insight sessions
Selected corporate clients
► ABB, Ltd.
►
Note about use and company selection
Abu Dhabi Water & Electricity
Authority
►
BASF SE
►
BP PLC
►
DTE Energy Company
►
E.ON AG
►
European Commission
►
General Electric Company
►
Johnson Controls Inc.
►
The Procter & Gamble Company
►
Robert Bosch GmbH
►
RWE AG
►
Schneider Electric SA
►
Vattenfall AB
►
Veolia Environnement
►
World Bank
►
This is a working list of key global Ernst & Young
clients and may not be all-inclusive.
►
The clients listed in this document are often used by
business development and client service teams to
assist in credentializing the firm in various channel 1
and channel 2 situations/opportunities. If a client
should not be listed for confidentiality or other
reasons, please let us know so we can remove the
client’s name from this list.
►
If you wish to use client names in external materials,
please first check with your geography’s general
counsel guidelines on using client names and then
seek GCSP approval.
►
Area and country leaders are encouraged to
supplement these lists with local clients for
customized use in your respective geographies.
Please email Scott Sarazen, John de
Yonge, and Lily Donge with the
following:
Why Ernst & Young? Global Cleantech Industry Center
►
Recommended additions, corrections/changes, or
deletions to the respective lists (please provide
channel 1 audit or channel 2 non-audit designations).
►
Any comments or recommendations for improvement.
Page 10
Section 2
Ernst & Young’s Global
Cleantech Center
Ernst & Young’s Global Cleantech Center
From start-ups to large corporations to national governments, organizations worldwide are
embracing cleantech as an engine of growth, efficiency, sustainability and competitive
advantage. As cleantech enables the transformation of a variety of industries to be part of a
more resource-efficient and low-carbon economy, we see innovation in technology, business
models, financing mechanisms, cross-industry partnerships and corporate adoption.
What gives us a unique perspective and point-of-view in this expanding global market
(expected to exceed $2 trillion in the next eight years) is our global cleantech center and
experienced network.
Whether you are an innovator seeking fresh sources of capital investment to drive scalable
growth, a developer looking for guidance on large-scale renewable energy projects or a
global corporation trying to gain entry into new markets, our Global Cleantech Center can
help make the most of the growing opportunities in the cleantech marketplace.
Find out more about the Global Cleantech Center at: www.ey.com/cleantech
Ernst & Young teams can find more enablement tools on our CHS.
Section 2
Ernst & Young’s
Global Cleantech Center
Global Cleantech Center
Global center team
Service line leaders
Area leaders
Gil Forer
Jay Spencer
Ben Warren
Global Cleantech Leader
New York
+1 212 773 0335
[email protected]
Cleantech Leader – Americas
Boston
+1 617 585 1882
[email protected]
Energy & Environmental Infrastructure Leader
London, UK
+44 20 7951 6024
[email protected]
Scott Sarazen
Paul Go
Paul Naumoff
Global Cleantech Markets Leader
Boston
+1 617 585 3524
[email protected]
m
Cleantech Leader – Asia-Pacific
Beijing
+86 10 58153688
[email protected]
Global Cleantech and CCaSS Tax Leader
Columbus, OH
+1 614 232 7142
[email protected]
John de Yonge
Robert Seiter
Heather Sibley
Director, Account Enablement
New York
+1 201 872 1632
[email protected]
Cleantech Leader – EMEIA
Berlin
+49 30 25471 21415
[email protected]
Global Cleantech Assurance Leader
San Francisco, CA
+1 415 894 8032
[email protected]
Why Ernst & Young? Global Cleantech Industry Center
Page 13
Section 2
Ernst & Young’s
Global Cleantech Center
Global
Global Cleantech Center leadership network
Americas
► Jay Spencer,
►
Gil Forer, Global leader
►
Scott Sarazen, Global Markets leader
►
Paul Naumoff, Global Tax Leader
►
Ben Warren, Energy and Environment
Infrastructure Advisory Leader
►
Heather Sibley, Global Assurance
Leader
►
Nicola Marshall, Transaction
Advisory Services Resident Manager
►
John de Yonge, Account Enablement
Director
AsiaPac
►
Area Leader
AsiaPac cleantech leadership network
Americas cleantech leadership network
Daniel Maranhão
Brazil
Cynthia Orr
Canada
Ray Mikovits
Financial Services
Itay Zetelny
Israel
Jeff Relyea
US: East Central
Paul Chevalier
US: Midwest
Sean Riegler
US: Northeast
Matthew Sapp
US: West
Steven McCabe
US: Southeast
Lisa Shepard
US: Southwest
Area leader: Paul Go
EMEIA
► Robert
Seiter, Area Leader
Paul Go
AsiaPac / Greater
China
Mathew Nelson
Australia
Moon-ho Choi
Korea
Krishna Sadashiv
Singapore
EMEIA cleantech leadership network
Robert Seiter
Philippe Grand
Alexis Gazzo
Sanjay Chakrabarti
Andrea Paliani
Michael Hasbani
Nimer AbuAli
Wolfgang Paardekooper
Karsten Boegel
Norman Ndaba
Rico Fehr
Steven Lang
Thomas Christiansen
EMEIA/Germany
France
France
India
Italy
Middle East
Middle East
Netherlands
Nordics (Denmark)
South Africa
Switzerland
UK and Ireland
EMEIA Operations Manager
Why Ernst & Young? Global Cleantech Industry Center
Offshore wind
Page 14
14
Section 2
Ernst & Young’s
Global Cleantech Center
Identifying future growth opportunities
In partnership with other global industry centers and service lines, we are identifying
key emerging business issues and models that will drive the global cleantech economy
and create market opportunities for Ernst & Young and our clients.
Clean transportation
Battery-powered electric vehicles (EVs) and other clean or zero emission vehicle technologies
are now operationally and economically proven and will continue to be adopted by both
consumers and large fleet users. This emerging ecosystem creates new businesses and
business models - transforming existing vehicle manufacturers as well as the individual,
corporate and municipal consumers who adopt these new technologies. In partnership
with the GAC and GPUC, the Global Cleantech Center is exploring these opportunities.
Sustainability and Transparency
With Ernst & Young’s Global Climate Change and Sustainability Services network, we are
advising our clients on their strategies to sustain growth and consumer confidence in the
face of mounting environmental challenges.
Government
Technology
Power and
utilities
Real
estate
Oil & gas
Cleantech
Consumer Products
Energy Mix and Energy Efficiency
The strategic management of energy by corporations is rapidly evolving in response to a variety of business risks—financial,
energy security, brand equity, regulatory and competitive. In response, corporations are evaluating various options for energy
generation and consumption while also making significant increases in energy efficiency measures. Innovators and investors
are responding to this demand with increased investment in new energy efficiency businesses and technologies. In partnership
with the GREC and GPUC, the Global Cleantech Center is focusing on the full value chain of this emerging ecosystem.
Water technologies
In both emerging and western geographies, the demand for water is increasing at rates that cannot be satisfied with existing
systems and sources – globally, the demand for potable water is expected to double in the next 20 years. From investors to
global corporations, new technologies and businesses are being created to address this global opportunity.
Why Ernst & Young? Global Cleantech Industry Center
Page 15
Section 3
Services
Section 3
Services
Serving the market: coordinated sustainability & cleantech services
Innovators
Private and public
(SGM / GA)
ABD/ AIBD
Investors
Developers
Global
PE
houses
Infrastructure
Dedicate
d VC/PE
Corporations
Expand
Competency
Core
Competency
ALL
Cleantech
CCaSS
Global Sector Center
Sub Service Line
Cleantech Leaders
CCaSS Leaders
Area / Sub-Area
Area / Sub-Area
Governments
National strategy
focus
Assurance
VC / MP
One vision, one team, one billion
Why Ernst & Young? Global Cleantech Industry Center
Page 17
Section 3
Services
The cleantech market - from innovation to implementation
Innovators
Private and public
(SGM / GA)
Developers
Infrastructure
Investors
Global
PE
houses
Dedicated
VC/PE
Corporations
Expand
Competency
Core
Competency
Governments
National strategy focus
ALL
Capital agenda
Growth
Capital agenda
Competitive
advantage
Growth
Segment priorities
Innovation
New business models
New product
development
Commercialization /
expansion
Growing beyond
borders
Partnerships, JVs
and Alliances
Value chain
integration
Resource efficiency
•
Energy
Energy agenda
•
Water
Transparency
•
Food
Increased pressure
from regulators and
stakeholders
•
Other
Economic and national
competitiveness
Access to innovation
Innovation and jobs
Risk mitigation
Effective and
sustainable supply
chain
New infrastructure
requirements
Creating value
through sustainability
– portfolio efficiency
Growth through
sustainable
development
Policy and regulations
to match global
commitments and
environmental needs
Environmental,
Health and Safety
Low carbon agenda
Capital deployment /
investment
Strategic
transactions
Time to market
Delivering capability
– construction /
technology
Operational
efficiency
Risk management
Strategic
transactions
Growing beyond
borders
Industry
consolidation
Asset valuations
Path to profitability
Policy & incentives
Policy & incentives
Resource security
IPO Readiness / Exit
Readiness
New capital sources
Transparency of
sustainability data
Divestiture
Why Ernst & Young? Global Cleantech Industry Center
Sustainable and green
cities
Page 18
Section 3
Services
Cleantech services: innovators & developers
Innovators
Capital agenda
Growth
Competitive advantage
Innovation
New business models
New product development
Commercialization /
expansion
Growing beyond borders
Customer reach
Operational agility
• Strategic advice
• Growth strategy formulation
• Strategy implementation
• IPO Readiness
• Investing
• M&A buy-side
• Valuation and business modeling
• Due diligence (financial / commercial)
• Operational transaction support / Transaction integration
• Growing beyond borders insights session
• Introduction to potential investors and partners (events/one-on-one)
• Industry insights
•
•
•
•
Partnerships, JVs and
Alliances
Cost competitiveness
Strategic transactions
• Capital raising
• Debt / equity
• Public / private
• Cleantech incentives (R&D / Production): identify/apply/comply
• Cleantech subsidies (R&D / Production): identify/apply/comply
• Global tax strategy
• Tax compliance
Industry consolidation
Path to profitability
Policy & incentives
JVs / Partnerships / Alliances
PMO
Real estate advisory
Human capital
Stakeholder confidence
•
•
•
•
•
•
Financial audit (informed by cleantech insight)
Sustainability and Cleantech strategy advisory and implementation
Sustainability measurement, reporting and valuation
Sustainability risk
Sustainability assurance
Sustainability and Cleantech public policy advisory
Developers
Capital agenda
Growth
Value chain integration
Strategic transactions
Time to market
Delivering capability –
construction / technology
Operational efficiency
Risk management
Growing beyond borders
Asset valuations
Divestiture
Policy & incentives
Customer Reach
• Economic modeling
• Real estate: site selection / economic incentives
• Real estate: PMO / project risk management / contract compliance /
construction cost audit
• Project assurance and reporting
• IPO Readiness
Cost Competitiveness
• Cleantech incentives (R&D / Production): identify/apply/comply
• Cleantech subsidies (R&D / Production): identify/apply/comply
• Tax equity for renewable investments
• Cost / tax efficient structures
• Project finance advisory: equity, debt, tax equity
• Capital and debt advisory
• Treasury advisory
• Ratings advice
• Corporate finance
• Public / private advisory
• Debt / equity
Operational agility
• Public private partnership bid support
• Bid advisory
• Debt and equity raising
• Infrastructure M&A advisory
• Refinancing
• Assets / portfolio optimization
• Sell-side M&A
• Buy-side M&A
Stakeholder confidence
•
•
•
•
•
•
•
Financial audit (informed by cleantech insight)
Sustainability and Cleantech strategy advisory and implementation
Sustainability measurement, reporting and valuation
Sustainability risk
Sustainability assurance
Sustainability and Cleantech public policy advisory
Financial audit of parent company Financial audit of parent company Financial audit of parent
company
Why Ernst & Young? Global Cleantech Industry Center
Page 19
Section 3
Services
Cleantech service continuum for Innovators
►
As cleantech companies progress through different
stages of development, Ernst & Young has an
opportunity to provide both traditional growth company
services and cleantech advisory services. Cleantech ► IPO readiness
► Tax credits and incentives
companies are global from day one of operation.
► Real estate advisory
►
►
►
►
►
►
►
►
►
►
►
►
Service
opportunities
Financial audit (informed by Cleantech insight)
Tax credits and incentives
Valuations & business modeling
Capital raising
Real estate advisory
Due diligence (commercial and financial)
Clean technology partnership advisory
Government Cleantech programs
Demo plant/
Beta product
►
►
Financial advisory
Due diligence
Valuations and business modeling
Clean technology partnership
advisory
Government Cleantech programs
Growing Beyond Borders
insight session
Commercial
plant/product
►
►
►
►
►
►
►
►
►
Operational
ramp-up
►
►
►
►
►
►
►
►
Company stage
►
(growth trajectory)
►
►
Capital source
Business
challenges
Corporate
intersection
►
►
►
►
Securing tax credits and incentives
Developing corporate partnerships
Securing growth capital
Implementing financial reporting and systems
Managing innovation
Technology development (partnerships, JVs, investments)
►
►
►
►
Company
expansion
Project portfolio
development
►
Pilot plant/
product development
Technology
development
►
Financial Advisory
►
Government programs
advisory
►
Due diligence
Sustainability strategy
development
Transaction advisory
Global tax advisory
Tax credits and incentives
Regulatory and policy advisory
Cleantech business development
Clean technology development and
adoption
Sustainability advisory
Public
Construction
management
Financing options
Hedging
Regulatory insight
►
►
►
►
Market expansion
Tax effectiveness
Financial systems and controls
Acquisition strategy
Innovative financing structures
Supply chain effectiveness
Investor relations
Sustainability
Developing corporate partnerships
Securing tax credits and incentives
Securing project financing
Permitting and project build
Customer acquisition
Developing corporate partnerships
Market access
Accessing public markets
Feedstock supply
Project development (partnerships, JVs, investments)
Why Ernst & Young? Global Cleantech Industry Center
Solution sets and market access
Page 20
Section 3
Services
Sustainability & cleantech services: investors, corporates & governments
Programs and solutions
Overview
Sustainability and Cleantech
strategy advisory and
implementation
Sustainability measurement,
reporting and valuation
Sustainability risk
Sustainability
assurance
Sustainability and
Cleantech public
policy advisory
Advisory on corporate sustainability and
cleantech strategies to drive energy,
environmental and economic efficiency, drive
revenue growth, strengthen competitive
advantage, enhance brand reputation and
increase shareholder value.
Assisting clients in measuring, reporting and
valuing sustainability strategies and initiatives
Environmental and social risk
assessment with the objectives of
increasing value and reducing
risks and costs.
Assurance on
sustainability
information
Public sector advisory on
sustainability programs,
climate change, cleantech
and energy policy
• Benchmarking and insights: industry trends
and best practices
• Strategy design, roadmap and implementation
• Stakeholder engagement and materiality
assessment
• Resource efficiency and low carbon strategies:
• Vulnerability test
• Energy mix strategy and implementation
(roadmap, capital, technologies)
• Energy, water and material resources
efficiency and procurement programs
• Supply chain performance improvement
• Green products design and strategy
• Carbon tax, cleantech tax incentives and
government programs
• Carbon markets and CDM advisory
• Energy and environmental policy advisory
• Market penetration and transaction support
(investment, acquisition, JV, partnerships)
• Corporate venture capital formation and
portfolio IPO readiness
• Sustainability and integrated reporting advisory
• Benchmarking
• Framework and content development
• Report improvement
• Processes for measurement and data capture
(e.g., tools, software, internal reporting)
• Valuation methodologies for intangible assets
and externalities
• Carbon, energy, waste, and water mapping for
organizations or products (including life cycle
assessment)
• Social impact assessment
• Sustainability and climate
change risk assessment
• Supply chain audit
• Sustainability and climate
change risk process
improvement
• Sustainability internal audit
• Pre-assurance
readiness assessment
• Non-financial
information assurance
• Greenhouse gas
emission assurance
• Sustainability product/
portfolio assurance
• Management practices
assurance
• Benchmarking and Global
Adaptation Index
performance
• Mitigation policy advisory
• Adaptation policy advisory
• Cleantech, including
renewable energy, policy
advisory
• Sustainable and green city
advisory
• Sustainability policy
advisory
Support services
• Tax incentives
• Performance improvement
Support services
• Environmental due diligence
• Internal Audit
• Enterprise Risk Assessment
(ERA)
• FIDS
Support services
• Financial audit
Support services
• Transaction integration
• Supply chain
Why Ernst & Young? Global Cleantech Industry Center
Page 21
Section 4
Market facing initiatives
Section 4
Market facing initiatives
Thought leadership publications
Renewable energy country attractiveness indices
► Our
quarterly report ranking national renewable energy markets and their
suitability for individual technologies.
Growing beyond: the cleantech growth journey from product development to
global market leadership - CEO retreat report
► Report
from our first annual Cleantech CEO Growth Journey retreat, insights
from nearly 50 CEOs to address the industry's capital, partnership and
expansion challenges.
IFRS in the Wind and Solar industries
► Separate
pieces for wind and solar that provide insights on key IFRS
accounting issues relevant to these changing and dynamic industries.
Cleantech matters: moment of truth for transportation electrification
► The
report from our annual Cleantech Ignition Sessions which convene
industry players from around the world to discuss trends in electrification of
vehicles.
Cleantech matters: global competitiveness - global cleantech insights and
trends report
► The
annual cleantech report provides a global perspective of trends in the
cleantech marketplace supported by analysis from the firm's various SMRs in
addition to noted industry experts.
Section 4
Market facing initiatives
Thought leadership – cleantech emerging market analyses
These single frames demonstrate the growing role of cleantech in the
national strategies of these countries and the growth potential of cleantech
over the next decade in selected markets, including:
►
Brazil: a national cleantech strategy for competitiveness
►
Canada: renewable energy to drive economic growth
►
China: leader in clean energy
►
Denmark: an early cleantech adopter
►
France: Preparing for a shift from nuclear to renewables
►
Germany: solar pioneer
►
India: solar power takes the center stage
►
Israel: world leader in water technologies
►
Japan: focus shift towards renewables post Fukushima
►
Kingdom of Saudi Arabia: emerging leader in solar energy
►
South Africa: Future driver of cleantech through water, solar and wind
►
South Korea: cleantech as a national strategy
►
United Arab Emirates: economic diversification through cleantech
►
United Kingdom: global leader in offshore wind energy
►
United States: center for cleantech innovation
Section 4
Market facing initiatives
Thought leadership – cleantech value chains
These insightful tools are designed to foster rich discussions
not only with innovators but also with corporations, investors
and other stakeholders.
Solar value chain
► Provides
perspective on the size of the solar industry, its
complexity and its global nature.
Smart grid value chain
► Identifies
the industry participants that come together to
provide clean energy delivery.
Electric vehicles value chain
► A detailed
electric vehicle value chain illustration
highlighting selected global companies involved at each
stage of EV production
Section 4
Market facing initiatives
Global cleantech events
2012 events included:
► World
Future Energy Summit
Abu Dhabi
16-19 January 2012
►
World’s foremost annual meeting for renewable energy and
environmental industry. EY is a sponsor.
► Bloomberg
New Energy Finance Summit
New York
9-21 March 2012
►
Convening over 450 of the world’s foremost authorities on clean
energy from across the sector, this is BNEF’s primary annual event,
which we sponsor, and continues to set the scene for the Clean
Energy industry.
► The Aspen
Institute Clean Energy Roundtable
Aspen
12-15 July 2012
►
This invitation-only roundtable brings together top energy, finance,
and policy experts for an in-depth conversation on how to quickly and
efficiently move toward a clean energy economy.
► Cleantech
CEO Retreat
Napa Valley, CA
10-11 September 2012
►
The Global Cleantech Center’s marquee event brings together CEOs
from emerging cleantech companies, with strategic corporate and
government partners for an intimate dialogue on issues facing their
businesses.
Section 5
Appendix: cleantech account
considerations
Section 5
Appendix
Industry megatrend: cleantech becomes a competitive advantage
What are the overall issues and implications?
The cleantech enabled transformation to a resourceefficient and low carbon economy is characterized by
many as the next industrial revolution.
How are we helping clients?
•
•
•
•
•
•
•
•
As this transformation accelerates, global corporations are
increasingly coming to the realization that they must
understand the impact of cleantech on their industries and
develop strategic action plans, whether to improve their
internal operations, implement a more efficient energy and
other resources mix or pursue new cleantech-enabled
revenue opportunities.
Benchmarking
Customized insight-based meetings / workshops
Partnership and alliance advisory
Lead M&A advisory
Tax incentives
Corporate venture capital advisory
Growing Beyond advisory
Due diligence
Governments also view cleantech as a national strategic
platform for creating jobs, fostering innovation, and
establishing local industries.
What is happening in the marketplace?
• Global cleantech investment touched a new high in 2011,
growing 7% from the previous year to reach a record of
US$263 billion according to Bloomberg New Energy
Finance. Investment has been driven by growth in
emerging markets, especially China and India.
Government involvement
• Market momentum shifting to emerging market countries
that are pursuing well-defined national cleantech
strategies, e.g., China, S. Korea, S. Africa, Brazil
Cleantech as
competitive
advantage
What are the critical issues to be addressing now?
Innovators
• Global cleantech “arms race” to capture innovation,
ensure energy security and create competitive advantage
Corporate activity
• >227 M&A deals in 2011.
• Increased acquisitions by Japanese , S. Korean and
Chinese corporations
• R&D / Business development by Chinese companies in
developed and developing markets
• New partnerships models
Why Ernst & Young? Global Cleantech Industry Center
• Increased emphasis by corporations on revenue
generations and not only operational efficiency and cost
savings.
• Accelerated activity between larger corporations and
innovators in the cleantech marketplace - direct
investments, partnerships and acquisitions.
• Increased allocations to internal R&D by large
corporations.
• Looking at revenue generations beyond existing core
competencies.
• Corporations are looking more to focus on cutting edge
acquisitions and not only leading value ones.
Page 28
Section 5
Appendix
Industry megatrend: competitiveness drives the capital agenda
What are the overall issues and implications?
How are we helping clients?
• According to Bloomberg New Energy Finance, $262b
were invested in clean energy n 2011, the strongest year
so far for investment in clean energy .
• However, A global oversupply of renewable equipment
due to the economic downturn and austerity measures in
the US and Europe challenges equipment manufacturers
.
• Falling prices increase competitiveness of renewable
energy and accelerates adoption, particularly in emerging
markets.
• Winning companies will emerge from a period of shakeout and consolidation as market conditions favor the most
efficient, global producers.
• Cleantech innovators in developed markets are
challenged to find growth capital in the absence of a
robust IPO pipeline.
• Capital innovation is required (sources, models, roles,
etc.)
•
•
•
•
•
•
•
Governments
Investors
Capital
agenda
What is happening in the marketplace?
• Governments in the US and Europe are pulling back
support for cleantech in light of austerity measures.
• Investors are looking to structure new models that are
tailored to cleantech time scales.
• Non-dedicated cleantech investors are exiting the market
• Asset financing dominates cleantech investment
• Cleantech innovators continuously trying to raise capital
• Currently no clear path to IPO
• Strategic partnerships and alliances increasingly
important as a path to commercialization and global
expansion.
Transaction readiness and alternatives (Ch1 and Ch2)
Project finance advisory
Fund structuring
Partnership and alliance advisory
Due diligence
Government tax incentives and grants acquisition
Growing Beyond advisory
What are the critical issues to be addressing now?
Corporates
Innovators
Why Ernst & Young? Global Cleantech Industry Center
• How do a preserve capital as seek financing and
commercialize my technology?
• How do access foreign investment sources and
government opportunities?
• What is the full range of potential capital sources?
• How do I identify an appropriate strategic partner? What
are the risks in partnership deals? How to overcome
them?
• How do I access project finance sources?
Page 29
Section 5
Appendix
Industry megatrend: corporate focus on resource and energy agenda
Energy mix strategy and resource/energy efficiency
What are the overall issues and implications?
How are we helping clients?
The strategic management of energy by corporations is
rapidly evolving in response to a variety of business risks—
financial, energy security, brand equity, regulatory and
competitive.
• Benchmarking and insights: industry trends and best
practices
• Strategy design, roadmap and implementation
• Resource efficiency and low carbon strategies:
• Vulnerability test
• Energy mix strategy and implementation
• Energy, water and material resources efficiency
programs
• Supply chain performance improvement
• Waste and electronics waste
• Green building and LEED advisory
• Carbon tax, cleantech tax incentives and government
programs
• Carbon markets and CDM advisory
A Global Cleantech Center survey of 100 companies with
revenues of US$1 billion or more showed that:
• The largest global corporations are meeting the challenge
of transitioning to a low carbon and resource-efficient
economy through proactive energy strategies with C-suite
engagement.
• Improving energy efficiency to mitigate energy cost hikes,
increasing use of renewable energy and growing energy
self-generation form the foundation of corporate energy
strategies worldwide.
• Only those corporations that have a comprehensive and
diversified energy strategy will be able to create a
competitive advantage in the new world of a more
resource-efficient and low-carbon economy.
What is happening in the marketplace?
• Corporations are evaluating various options for energy
generation and consumption
• The rise in energy prices increased the interest in
diversifying energy mix and looking for alternative energy
sources.
• Increasing corporate use of renewable energy, both selfgenerated and acquired
• Significant increase in corporate energy efficiency
measures
• Growing corporate self-generation of energy in light of
energy security concerns
Financial risk
Energy
Security
Risk
Energy
Mix
strategy
Brand
Equity
Risk
Competitive
risk
Regulatory
Risk
Why Ernst & Young? Global Cleantech Industry Center
What are the critical issues to be addressing now?
• What is the right energy mix? Who should be responsible
for energy mix strategy?
• Financing and capital issues related to energy mix
projects
• Identifying and accessing government grants and
incentives
• Assessing and selecting technologies
• Measuring or tracking progress in meeting energy mix
strategy objectives
Page 30
Ernst & Young
Ernst & Young Global Cleantech Center leadership network
Gil Forer
Global Leader
New York
+1 212 773 0335
[email protected]
Jay Spencer
Americas Leader
Boston
+1 617 585 1882
[email protected]
Paul Naumoff
Global Cleantech and
Sustainability Tax Leader
Columbus
+1 614 232 7142
[email protected]
Scott Sarazen
Global Markets Leader
Boston
+1 617 585 3524
[email protected]
Paul Go
Greater China Leader
Beijing
+86 10 58153688
[email protected]
Nicola Marshall
Transaction Advisory
Services Resident Manager
+1 212 773 5156
[email protected]
Robert Seiter
EMEIA Leader
Berlin
+49 30 25471 21415
[email protected]
Heather Sibley
Global Cleantech
Assurance
Leader
San Francisco
+1 415 894 8032
[email protected]
John de Yonge
Director, Account
Enablement
New York
+1 201 872 1632
[email protected]
Ben Warren
Energy & Environmental
Finance Group Leader
London
+44 20 7951 6024
[email protected]
Assurance | Tax | Transactions | Advisory
About Ernst & Young
Ernst & Young is a global leader in assurance, tax, transaction and
advisory services. Worldwide, our 152,000 people are united by our
shared values and an unwavering commitment to quality. We make a
difference by helping our people, our clients and our wider
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Ernst & Young refers to the global organization of member firms of
Ernst & Young Global Limited, each of which is a separate legal entity.
Ernst & Young Global Limited, a UK company limited by guarantee,
does not provide services to clients. For more information about our
organization, please visit www.ey.com.
How Ernst & Young’s Global Cleantech Center can help your
business
From start-ups to large corporations and national governments,
organizations worldwide are embracing cleantech as a means of
growth, efficiency, sustainability and competitive advantage. As
cleantech enables a variety of sectors, old and new, to transform and
participate in a more resource-efficient and low-carbon economy, we
see innovation in technology, business models, financing
mechanisms, cross-sector partnerships and corporate adoption. Ernst
& Young’s Global Cleantech Center offers you a worldwide team of
professionals in assurance, tax, transaction and advisory services
who understand the business dynamics of cleantech. We have the
experience to help you make the most of opportunities in this
marketplace, and address any challenges. Whichever sector or
market you’re in, we can provide the insights you need to realize the
benefits of cleantech.
© 2012 EYGM Limited.
All Rights Reserved.
1208-1385199 NY
This publication contains information in summary form and is therefore
intended for general guidance only. It is not intended to be a substitute for
detailed research or the exercise of professional judgment. Neither EYGM
Limited nor any other member of the global Ernst & Young organization can
accept any responsibility for loss occasioned to any person acting or refraining
from action as a result of any material in this publication. On any specific
matter, reference should be made to the appropriate advisor.