Leading private equity investors commit to the net zero asset managers initiative

Nov 1, 2021 | News

A group of leading private equity investors has joined the Net Zero Asset Managers initiative, an international group of asset managers committed to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5 degrees Celsius. The group has also committed to support investing aligned with net zero in the same timeframe.

The firms are all signatories of the Initiative Climat International (iCI). They include Intermediate Capital Group (ICG), Bregal Investments, FSN Capital, Hg, IG4 Capital and Investindustrial joining today, as well as DigitalBridge and Stafford Capital Partners, two firms that committed to the NZAM initiative earlier in 2021.

As signatories of NZAM, the group commits to work in partnership on decarbonisation goals, consistent with an ambition to reach net zero emissions by 2050 or sooner across all AUM. The group also commits to set an interim target for the proportion of assets to be managed in line with their net zero ambition and to review the interim target every five years, with a view to ratcheting up the proportion of AUM covered until 100% of assets are included.

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NZAM was launched in 2020 with the aim to galvanise the asset management industry to commit to a goal of net zero emissions. The initiative has seen rapid growth since inception and attracted more than 130 signatories so far, with a combined AUM of $57.4 trillion.

Benoit Durteste, CEO and CIO of Intermediate Capital Group (ICG), commented: “ICG is committed to reaching a net zero carbon future, both as a business and as stewards of our clients’ assets. We are proud to be part of this important initiative and contribute to an industry-wide drive to achieve net zero emissions.”

Fiona Reynolds, CEO, Principles for Responsible Investment (PRI), commented: “Private equity firms face a unique set of challenges when it comes to embedding net zero into their activity; in joining the Net Zero Asset Managers initiative, these firms demonstrate they are equipped to lead the way on climate. Collective action across the financial services landscape is vital in seeing real action on net zero, and by acting as part of NZAM, these private equity firms, also all members of the PRI-supported iCI, are ideally placed to move from commitment to action on the topic, and to lead the way for the sector in addressing climate change. We hope to see many other private equity firms follow rapidly in their steps and encourage firms to join iCI and/or NZAM, to ensure they’re well equipped to deliver meaningful commitment and action on climate change.”

Source: Market Screener

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