Sustainability consultancy ERM buys boutique Critical Resource

18 February 2020 3 min. read
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Sustainability consultancy ERM has purchased Critical Resource Strategy & Analysis – a specialist sustainability advisory company providing expertise in assessing risks for the mining and energy industry. Founded in 2006, Critical Resource works with some of the sector’s leading organisations.

The interconnected nature of modern business means that a departmental approach to risk management can no longer work. Instead, companies must build bridges with other stakeholders to provide an overarching management of risk, establishing unity of purpose and understanding to create the success factors they need. This is particularly the case with regards to the extractive industries of oil, gas and mining, where historically siloed risk has led to calamities such as a the BP saga in the Gulf of Mexico.

ERM is a global provider of environmental, health, safety, risk, social consulting services and sustainability related services. With more than 5,500 people in over 40 countries and territories working out of more than 160 offices, the firm assists clients with delivering innovative solutions, helping them to understand and manage their sustainability challenges. In order to better support its clients in the extractive sector with their risk management, ERM has completed the purchase of Critical Resource.

Sustainability consultancy ERM buys boutique Critical Resource

ERM Group Chief Executive Keryn James commented, “The value at stake for the mining and energy sectors due to sustainability, energy transition and socio-political challenges is increasing and Critical Resource is known and respected for its capabilities in being able to help its clients navigate that challenge. Critical Resource is yet another very high-caliber addition to the ERM Group which supports this objective. Together we will help the world’s leading organisations navigate their way towards a more sustainable future for everyone.”

Founded in 2006 by Daniel Litvin, Critical Resource provides strategic advice to mining and energy firms and their investors on ‘license-to-operate’ issues, often working for C-suite executives and boards. The team specialises in socio-political, stakeholder and sustainability risk assessments of energy and mining assets. Like ERM, Critical Resource works with some of the industry’s leading organisations to help mitigate environmental, social and governance (ESG) risks for the mining and energy industry.

Litvin said, “Sustainability pressures on mining and energy firms have never been more intense. Critical Resource has built a specialism in working with senior executives who wish to pursue leading edge, strategic and responsible approaches in this area... ERM’s impressive depth of expertise on environmental and related topics, its global scale, and its own passion for sustainability, make it a great partner for us. We now have an exciting platform to enhance the capabilities we offer clients, the growth opportunities for our team, and our joint impact on a set of globally-important issues.”

The deal was advised on by Consulting M&A, a mergers and acquisitions advisory firm that focuses entirely on transactions in the consulting industry. The consultancy worked with Critical Resource to facilitate the deal, with Litvin commending the firm for knowing what the buyers were looking for and how to best engage them. He added that due to this deep expertise, CM&A was able to “achieve the best possible outcome for shareholders, staff and clients.”