Atlas Technical Consultants, Inc. (ATCX)

Company website 2020 Financial Report Stock Analysis Sustainability Page

100

Locations Nationwide

Atlas provides professional testing, inspection, environmental and consulting services in 100+ locations nationwide

Of Revenue

in 2021 Q2 was generated from Atlas' environmental solutions services

20^%

CAGR Increase

in total revenue, 2016 - 2021

View Our Analysis

The Path to Drawdown: Water Distribution

Water utilities are among the largest consumers of electricity globally, corresponding to about 1% of total electricity use. Up to 80% of that energy is used for pumping water alone. But ~35% of that water is wasted in the distribution network through pipe leakage, meter error, and unauthorized consumption. This dramatically reduces the supply of water over time and produces unnecessary emissions.

Two major water efficiency solutions already exist that can minimize this leakage: pressure management and active leak detection. Pressure management involves installing pressure valves at water inlets and outlets to better monitor the flow of water and pressures, and leads to reductions in pipe bursts and leaks from broken pipes. While addressing leaks takes financial investment, it’s the cheapest way to source new supply. These strategies also serve growing urban populations and reduce GHG emissions.

Project Drawdown estimates that, if 38-47% of the global water distribution network can adopt pressure management and leak detection solutions, they can reduce CO2e emissions by 0.66 - 0.94 gigatons between 2020 and 2050. That’s an emissions cut equivalent to taking close to 204.5 million passenger vehicles off the road for one year.

About

Atlas Technical Consultants, Inc. (stock ticker: ATCX) provides professional testing, inspection, engineering, environmental, and program management and consulting services in the United States. Leak detection and repair program management, water resource management, water and wastewater engineering are among the many technical services they provide. Atlas is headquartered in Austin, Texas.

ATCX's Role in Drawdown

The company provides a range of technical services, helping its clients test, inspect, plan, design, certify, and manage various projects across various end markets. It offers testing, inspection, and certification services, such as construction materials testing; non-destructive testing and evaluations, materials testing and inspection, laboratory, and geophysics; construction quality assurance; owner verification and inspection; forensic and structural investigations; and materials laboratory services.

Included in the range of technical services they offer are water leak detection, underground storage tank management, leak repair program management, water resource management, etc. These services help their clients distribute and manage water more efficiently.

ATCX: What We Like

We love that Atlas Technical Consultants has a Sustainability Policy Statement for all to see. It includes a section on greenhouse gas emissions and energy, in which they commit to reduce emissions and air pollution across their projects and their own operations.

The section on sustainable procurement states that Atlas "aims to partner with like-minded suppliers who are committed to sustainably procuring materials" and that they expect "suppliers to adhere to our environmental standards and commitments and reduce the environmental footprint of their own operations."

What We Want to See Improve

Steer Petroleum Clients Toward Zero-Emission Energy

Atlas discloses (p. 2) that they provide solutions for national retail petroleum clients, alongside renewable energy projects. We wonder if Atlas can steer their petroleum sector clients toward building clean and renewable energy generation capacity. As fossil fuels become less economically attractive, it will make more sense for high-emitting power companies to transition to zero-emission sources.

Disclose Absolute Emissions

Atlas provides their Sustainability Accounting Standards Board disclosure, but it doesn't include exact metrics on their absolute greenhouse gas emissions. We urge them to do so in the near future so that investors can accurately assess their carbon footprint.

Procure Clean Energy

Atlas operates out of ~140 leased locations (p. 9) across the United States. Switching to clean and renewable energy to power these offices would greatly reduce Atlas's emissions.

Related Water Conservation Stocks in the Climate Index

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Allocated	Company	Description
1.49%	Xylem (XYL)	Xylem offers solutions that help customers use water more efficiently and intelligently. Efficient water distribution conserves energy and cuts emissions
0.40%	Watts Water Technologies, Inc. (WTS)	Watts Water Technologies conserves the flow of water and energy in residential and commercial buildings. Water distribution efficiency helps cut emissions
0.23%	Itron (ITRI)	Itron makes control devices that measure and analyze electricity, gas and water consumption. Efficient water distribution can cut energy use and emissions
0.19%	Badger Meter (BMI)	Badger makes smart metering technologies that allow customers to measure and control water flow. Their solutions enhance water efficiency and reduce emissions
0.02%	Atlas Technical Consultants, Inc. (ATCX)	Atlas offer technical services on how to better manage water resources and leak detection. Water distribution efficiency can cut emissions