McKinsey acquires sustainability consultancy Vivid Economics
In its fourth acquisition in 2021, McKinsey & Company in the UK completed a double blow to improve its sustainability and climate protection capabilities.
With the acquisition of Vivid Economics, McKinsey expands its team of around 130 consultants and employees in the UK, the Netherlands and the US, most of whom are based in London. Vivid Economics was founded in 2006 by Robin Smale and Cameron Hepburn with the aim of bridging the gap between traditional business and management consultancies. Vivid Economics is a consulting firm specializing in strategic advice and economic policy for sustainability issues.
The consulting firm supports clients worldwide in the areas of market design, economic regulation, sustainable development, net zero transitions, renewable energies, climate resilience, carbon markets and transaction advice, among other things.
McKinsey has also acquired Planetrics, a subsidiary of Vivid Economics, which provides data analytics services and solutions for planning climate change scenarios in the financial services industry. Planetrics, based in London, has a team of around 10 professionals.
“This acquisition enables us to help clients in all sectors and regions transform themselves to successfully manage the risks and opportunities of the macroeconomic transition to a more sustainable future,” said Dickon Pinner, Senior Partner at McKinsey & Company.
According to research by McKinsey, transitioning successfully to a more sustainable future is a notorious challenge, despite the fact that climate change is affecting businesses and societies around the world and, as a result, is increasingly becoming a top priority for businesses and politicians. “It takes deep expertise and powerful analysis,” said Pinner.
This is where the joining of forces comes into play. McKinsey’s is one of the world’s leading strategic consultancies advising CEOs and government leaders on managing the effects of climate change and moving to net zero carbon emissions. The consulting firm also has a digital wing that houses the Advanced Analytics Unit.
For Jason Eis, CEO of Vivid Economics and Chairman of Planetrics, this was one of the main reasons to join McKinsey. “McKinsey was a leading voice on sustainability and climate change.”
In the meantime, Vivid Economics has developed into one of the leading players in the field of sustainability economics over the past fifteen years. “You will bring expertise, analysis and experience to our company and accelerate our existing skills and talents in the areas of sustainability, risk and resilience,” said McKinsey.
“Embedding climate risk factors in every sector has now become a must. Together we share the common desire to have a positive impact on companies and society, ”concluded McKinsey Senior Partner Cindy Levy.
Offers from McKinsey
The UK deal is McKinsey’s fourth this year after two acquisitions Down Under that improved digital practice and a deal in the US that added a 150-strong cloud advisory team. The moves signal a departure from McKinsey’s traditional growth strategy, which favors organic growth over bolt-ons. McKinsey acquired fewer than ten companies between 2015 and 2020.
