Decarbonisation is an increasingly important topic in private equity and private markets more broadly, as regulators, investors and the public put pressure on the industry to factor decarbonisation into investment and management decisions.
These pressures are compelling private market participants, including private equity firms (General Partners or GPs), and the Limited Partners (LPs) that invest in them, to act. Over the last few years, a diverse landscape of decarbonisation commitments, memberships, methodologies, and reporting platforms have emerged for GPs. With so many choices, navigating this landscape can be daunting at best, and paralysing at worst.
This guide seeks to help GPs determine which decarbonisation methodology may be best suited to their circumstances by highlighting the similarities and differences between the Private Markets Decarbonisation Roadmap (PMDR) and the Net Zero Investment Framework’s (NZIF) Component for Private Equity.
The guide is not exhaustive in its comparison and GPs are encouraged to conduct their own investigations and evaluations, and seek their own professional advice. Readers should refer to the individual documents for further detail.
It is published by the Initiative Climat International (iCI) and the Paris Aligned Investment Initiative (PAII), a coalition including: Institutional Investors Group on Climate Change (IIGCC), Ceres, Asia Investor Group on Climate Change (AIGCC) and Investor Group on Climate Change (IGCC).
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Decarbonisation methodologies for private equity
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