Nearly 90 private equity firms representing $700 billion AUM have signed up to global climate initiative

Members of iCI commit to recognising the risks and opportunities that climate change presents to their investments, contribute to the Paris Agreement’s objectives, and actively engage with portfolio companies to reduce their greenhouse gas emissions. Members work collaboratively across a variety of working groups to implement their commitments.  

Private Equity firms backing the initiative include CVC Partners, Apax Partners, Ardian, BC Partners, HarbourVest Partners, TPG and Triton.

Fiona Reynolds, CEO of the PRI, commented: “The PRI calls on the private equity industry to step up climate action. We see the industry making progress on ESG in several areas, including climate, although this varies greatly firm-by-firm and region-by-region. We are pleased to support iCI, which provides a much-needed vehicle for ESG practitioners and other PE professionals to collaborate on a common challenge. Its members are committed to sharing knowledge, tools, experience, and best practice methods amongst peers to better prepare GPs for the inevitable changes ahead as LPs make their own net-zero commitments.” 

Recognising the important role that the private equity industry will need to play in the shift to a global net zero economy, the group of leading private equity firms will work to understand and address how the industry can accelerate the transition to net zero. The initiative aims to develop guidance for private equity firms on net zero by COP26 in November 2021, in addition to addressing key data and disclosure challenges in private markets by developing common metrics and methodologies for measuring and reporting emissions (including Scope 3). 

iCI will collaborate with other organisations and experts to drive convergence around best practices and to advance climate action amongst the private equity industry.  

Source: Principles for Responsible Investment