The iCI and the Sustainable Markets Initiative’s Private Equity Task Force release the Private Markets Decarbonisation Roadmap (PMDR) 2.0

Wednesday 20 November 2024, London – The Initiative Climat International (iCI), an investor-led initiative supported by the Principles of Responsible Investment (PRI), in partnership with the Sustainable Markets Initiative’s Private Equity Task Force and Bain & Company, today announced the release of PMDR 2.0, a year after the launch of the initial roadmap.

The PMDR provides a common language that enables private markets firms to disclose the decarbonisation progress of their assets. It recognises firms’ early-stage progress and builds on existing frameworks, giving firms the flexibility they need to decide what and how to communicate with their stakeholders. Applying the PMDR does not require a public commitment and although funds can use the PMDR approach to set a target, doing so is optional.

Since its initial launch, the Roadmap has experienced extensive adoption and broad engagement across private markets, with numerous industry leaders applying the PMDR to engage with internal/external stakeholders.

PMDR 2.0 addresses key insights and feedback from 40+ adopters and industry stakeholders through collaborative consultations, all while safeguarding the core framework. It also provides smaller updates across the Roadmap, supporting ease-of-use and further clarity.

Key enhancements include:

• Content additions, including further asset-class specific considerations for Growth, VC and Real Estate accompanied by conceptual commentary on Avoided Emissions
• Process refinements such as simplifications to the categorisation flow of Decarbonisation Enablers (assets with economic activities enabling the net zero transition)
• A new PMDR Support Tool that enables portfolio classification and disclosure of key insights internally and/or externally through automated visualisations directly in Excel or through PowerPoint templates. The tool also provides flexibility on Scope 3 data, allowing GPs the option to communicate initial progress based on Scope 1 & 2 emissions only

“Over the last twelve months, PMDR has gained significant momentum with positive endorsements from key industry leaders and associations alike,” said Serge Younes, Global Chair at iCI and Global Head of Sustainability at Investindustrial. “We can observe tremendous adoption across the industry, both GPs and LPs, with a substantial share of iCI members using the PMDR to support their decarbonisation efforts, as the roadmap is quickly evolving into the de facto industry standard.”

Media contacts: 

To arrange an interview or for any enquiries, please contact: 

Jennifer Smit, Communications Director, Sustainable Markets Initiative [email protected] 

Surina Martin, Press Officer, PRI [email protected] 

About iCI 

The Initiative Climat International (iCI) is a global, practitioner-led community of private markets investors that seek to better understand and manage the risks associated with climate change. The iCI counts globally over 280 members; representing more than USD 4 trillion as asset under management as of October 2024. iCI members share a commitment to reduce carbon emissions of private companies and secure sustainable investment performance by recognising and incorporating the materiality of climate risk. In practice, this implies a commitment to effectively analyse and manage climate-related financial risk and greenhouse gas emissions in their portfolios, in line with the recommendations of the Financial Stability Board’s Task Force for Climate-related Financial Disclosures (TCFD). Members commit to sharing knowledge, experience and best practice, working together to develop resources that will help standardise practices across the industry. 

The iCI is supported by the Principles for Responsible Investment (PRI), is a Supporting Partner of The Investor Agenda, and is open to all private markets firms and investors to join. 

About the Sustainable Markets Initiative’s Private Equity Task Force 

Founded by His Majesty King Charles III in 2020, then the Prince of Wales, the Sustainable Markets Initiative has become the world’s ‘go-to’ private sector organisation on transition.  Launched in 2021, the Terra Carta serves as the Sustainable Markets Initiative’s mandate with a focus on accelerating positive results for Nature, People and Planet through real economy action.  Complementing the Terra Carta, the Astra Carta was launched in 2023 to support a default sustainable approach to space while leveraging space resources for sustainability on Earth.  Read more at www.sustainable-markets.org 

The Sustainable Markets Initiative’s Private Equity Task Force launched in 2021 and is the first ever CEO-level Private Equity working group established to discuss ways that the industry can effect change. It leverages expertise within each member firm across three priority areas: climate change, nature and sustainability related metrics. Learn more at www.sustainable-markets.org/taskforces/private-equity.  

About Bain & Company 

Bain & Company is a global top management consulting firm, and the world’s leading advisor to the Private Equity (PE) industry and its stakeholders. The firm’s PE practice is more than triple the size of the next-largest consulting firm serving the industry. Bain & Company’s work with PE firms spans fund types – Buyout, Infrastructure, Real Estate and Debt, as well as Hedge Funds – and many of the most prominent institutional investors, such as Sovereign Wealth Funds, Pension Funds, Endowments and Family Investment Offices. Bain & Company supports its clients across a broad range of objectives that include deal generation, due diligence, immediate post-acquisition, ongoing value addition, exit, firm strategy and operations, and institutional investor strategy.  

Through our extensive work across the PE industry, we recognise the unique role the industry can have in accelerating decarbonisation. Climate change is a complex, multi-stakeholder problem that spans portfolio strategy, operations, product design, marketing, investor relations, and more. Adapting to global warming demands that business leaders take steps to mitigate risks and spur innovation. Addressing climate change can be challenging, but also presents opportunities for growth; as the energy transition accelerates, both the complexities and the opportunities are certain to increase. At Bain, we help investors, PE firms, and their portfolio companies create a differentiated strategy to capture value from a reduced carbon footprint. Our climate change consultants help to systematically reduce the carbon intensity of our clients’ operations, supply chain, and product mix—asset by asset and product by product.