Baringa

With just over six months to go, the race to DORA compliance is on. Sign up to our upcoming webinar to understand:   ✅ What you need to do over the next six months ✅ How to deliver day one priorities ✅ What the next Regulatory Technical Standards (RTS) could mean for your firm   You’ll also have the chance to ask questions and attendees will also receive a copy of our DORA day one help guide. Register here: https://lnkd.in/e2692ymu Adele Turner | Salina Ladha | Daniel Golding | Jessica Van Droogenbroeck

In May 2024, the Federal Reserve Board released the results of the inaugural pilot climate risk scenario analysis exercise for 6 of the largest U.S. Banks. Our summary snapshot includes: Key impediments experienced by the six participants, limiting the usefulness and learnings from the exercise Key focus areas for participants (and other banks >$100Bn in total assets) to examine climate-related risks and opportunities specific to your institution What’s next for financial institutions to embed climate risk capabilities into the risk management framework and meet regulatory requirements and identify value creation opportunities through ‘in-house’ scenarios How we can help: We can advise you on how to embed climate risk into the risk management framework, while leveraging our industry-leading climate capabilities to inform risk assessments, scenario design and climate-related reporting and disclosures. Check out Baringa’s Base Case Scenario, which supports 'in-house' scenario design through sectoral and geographical downscaling capabilities as well as short-term climate stress scenarios. Please reach out to Ryan Bohn, James Belmont , Melissa Klimek, Justin Hartman, Sasha Polikarpova to learn more or visit https://ow.ly/Ku8Y50SBSoA

Given the potential scale of Australia’s Storage CIS over the next five years, every storage market participant needs to refine their strategy, governance, and bid approach to account for the market’s new largest buyer of storage contract agreements. We outline the key factors investors should consider when building bids that are both competitive and align with internal return expectations: https://ow.ly/oIIG50SC07C Anne Bailey | Ben Nethersole | Peter Sherry | Remy NGUYEN

Last week we held our second event of the year for #BaringaCOONetwork - an exclusive community for Chief Operating Officers to engage and discuss topics that matter to them. The purpose is to build a focused, diverse network of executive operational leaders who can connect, learn from common experiences, build their networks and develop their careers. It was a very special event, welcoming COOs from across a range of sectors to share stories and personal experiences on ‘The Rise of the Employee Influencer’, looking at the COO’s role in moving away from purely top-down broadcast channels and dialling up peer-to-peer focus to spark a movement across the organisation. Find out more about this event and others in Baringa’s #ClientNetwork here https://lnkd.in/e94Qs7Jv Mansi Patel Bernice McNaught Laura McKim

"We have the opportunity to reduce people’s bills, help decarbonise the planet, and create new jobs. If ever there was a clear case for investment and focus from the industry, government, and regulators, this is it." Baringa's Rebecca Teasdale on the release of our groundbreaking report on #cleantechhomes on behalf of the members of the Sustainable Markets Initiative Cleantech Homes Lighthouse Project: Rightmove , Octopus, Lloyds Banking Group, Savills, UK Power Networks, RICS, Peabody, Platform Housing Group, Pobl Group, Bellway Homes, Hill Group UK, Future Homes Hub #lowcarbonfutures Daniel Bolton Learn more here: https://ow.ly/73zK50SBlui

We’re looking forward to seeing our clients and industry peers at this week’s Australian Clean Energy Summit. If you’re in Sydney, be sure to connect with Anne Bailey, Peter Sherry and James Colbert. https://ow.ly/7R6k50SwBC1 #LowCarbonFutures #ACES2024 #cleanenergy #renewableenergy

What does the German government's new key points on the Power Plant Strategy (#Kraftwerksstrategie) mean for you? The updated strategy increases planned capacity from 10 GW to 12.5 and considers additional support for 0.5 GW long duration energy storage. It was presented during the government agreement on the draft budget 2025 and follows lengthy negotiations with the European Commission on implementation routes under state aid rules. Explore our analysis covering: 1. In order to receive state-aid approval, the support for planned volumes had to be split across arguments based on security of supply and decarbonisation efforts. The decarbonisation pillar requires that the plants don’t just provide capacity but also generate significant energy volumes and transition relatively early to hydrogen. The government therefore plans to not just support the Capex, but also the fuel cost difference between hydrogen and gas for the first 800 hours of operation per year. 2. The TSOs see a considerable need for capacity expansion of 20 - 25 GW. The 12.5 + 0.5 GW support now defined in the power plant strategy are a first step and serve as a bridge to the broader capacity market. 3. While this is now the third iteration of planned volumes, and we have learned some further details on the structure of support, the exact auction parameters and support structure, and how the announced capacity market will look like is still uncertain. Particularly the to be specified regionalisation component could have a major impact on eligible players and brownfield sites. 4. The capacity support plans combined with the targets on renewables deployment raise questions about the impact on consumer prices. While there is no suggestion of a return of the EEG levy, and any possible levy to finance the power plant strategy is claimed to be small, there remain questions about future levies required to finance the transition and how to mitigate the rising grid fees. The government plans to permanently keep the electricity tax at the currently reduced level for manufacturing industry, but broader support is uncertain as rising energy costs already have an impact on industrial activity in Germany. Talk to us about the German power market Marc Daube, Giovanni Saverio S., Florian Falcke or me! Baringa #GermanPowerMarket #CapacitiyMarket

Over recent months, Baringa’s Pharmaceuticals and Life Sciences experts have been sharing valuable perspectives around Strategic Partnerships in the R&D space to inform, inspire and spark meaningful conversations. Reach out to Joshua Elliott to find out more. #biotech #biopharma #pharma #lifesciences #pharmaceuticals #biotechnology

This morning, Ofwat published its Draft Determinations on water company allowances for the #AMP8 regulatory period (2025 to 2030), representing a substantial increase in investment when compared to the current regulatory period. The headline numbers include significant efficiency challenges for water companies to meet, with the £88bn total 16% below the level companies had sought. Of the £88bn, £10bn is set to tackle storm overflows with a target to reduce spills from storm overflows by 44% from levels in 2021. This should deliver welcome progress in an area of public concern, but demonstrates that totally solving this challenge will take multiple price control periods. At a glance, performance targets will be tough for the industry to achieve, especially in wastewater. When compounded with higher incentive rates, and fewer caps and collars than at PR19, this looks set to be another tough outcomes settlement. Elsewhere Ofwat has sought to reduce risk to the sector through the use of approval 'gates' for large investment schemes, greater risk mitigation for changes in the costs of labour, energy and plant and material costs and high sharing rates for much higher outperformance. Based upon these plans, customer bills will increase by 23% on average, from £436 in 2024/5 to £536 in 2029/30 for the median combined water and wastewater bill. Water companies now have until 28th August to respond to Draft Determinations and Ofwat will publish Final Determinations in December 2024. What is already clear is that the period from 2025 to 2030 will be very busy for the water sector with important delivery targets and a need to rebuild trust after a challenging few years. Get in touch for some expert help!

It's time for a bit of a reset when it comes to value creation. Taking a bold (but kind!) approach will provide long-term competitive performance improvement. We’ve been working with clients in this field for 15 years and would welcome the opportunity to share more. Please reach out if you're interested in a broader discussion about what is needed to drive value creation through challenging market conditions. Read more: https://ow.ly/lZSQ50SzqB6 #ValueCreation #KindnessPays #EconomicsOfKindness