Nearly 90 private equity firms representing over US $700 billion in AUM have signed up to the Initiative Climat International (iCI), a first of its kind climate initiative for private equity, supported by the Principles for Responsible Investment (PRI). The PRI is calling on the private equity industry to accelerate its drive on climate action and encourages its signatories to join iCI.
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.
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.
More information on iCI and how to join can be found here.
Supporting comments include:
Nigel Topping, COP26 High-Level Climate Action Champion commented: “It is great to see the momentum amongst private equity investors who are committing to take action ahead of COP26. The private equity industry has a vital role to play in financing the transition to net-zero, I therefore encourage firms to join iCI and to work towards joining the Race to Zero.”
Cornelia Gomez, Head of ESG, PAI Partners commented: “As a founding member of the initiative, PAI Partners is very excited by the journey accomplished so far. 2021 will be a tipping point for environmental action and engagement amongst the private equity industry is increasing exponentially. The iCI is best positioned to generate consensus among private equity players on frameworks and methodologies to address climate change; also creating a fertile ground for ambitious strategies and commitments”.
Peter Wilson, Managing Director, HarbourVest Partners commented: “We firmly believe that it is only through collaboration that we can meet the enormous challenges of climate change. We applaud the Initiative Climat International for its ability to convene this large group of PE firms and the ambitious goals of this effort, and we are delighted by the strides GPs are making towards convergence on best practices to understand climate risk.”
Serge Younes, Head of Sustainability, Investindustrial commented: “As an active member of iCI, we are collaborating with our peers to translate the shared ambitions for net-zero into concrete methodologies and tools to enable a commitment to set science-based targets to limit global warming to well below 2C. Our ambition is to make climate action mainstream business practice in private equity. We encourage our peers to sign up to this important industry initiative and join the Race to Zero ahead of COP26.”
Notes to editors
For media enquiries, please contact:
Rojîn Kiadeh, Communications Specialist, PRI
About the Initiative Climat International (iCI)
iCI was the first international initiative for private equity firms aiming to address climate change. It was originally launched as the iC20 (Initiative Climat 2020) in 2015 by a group of French private equity firms to contribute to achieving the Paris Agreement’s objectives – to limit global warming to well below 2C, and to pursue efforts to limit warming to 1.5C.
iCI is a global community of investors seeking to understand better and manage the risks associated with climate change. Members commit to sharing knowledge, tools, experience and best practice among peers to help build and manage both climate-aligned and climate-resilient portfolios.
iCI is supported by the Principles for Responsible Investment, and is a Supporting Partner of The Investor Agenda.
iCI is open to all private equity firms and investors to join.
- We recognise that climate change will have adverse effects on the global economy, which presents both risks and opportunities for investments.
- We will join forces to contribute to the objective of the Paris Agreement to limit global warming to well below 2C and in pursuit of 1.5C.
- We will actively engage with portfolio companies to reduce their greenhouse gas emissions, contributing to an overall improvement in sustainability performance.
21 Centrale partners
Access Capital Partners
Alter Equity 3P
Antin Infrastructure Partners
Caisse des dépôts et consignations
Church Commissioners for England
CVC Capital Partners
Energy Impact Partners
Equistone Partners Europe
Gaia Capital Partners
IK Investment Partners
Intermediate Capital Group
IXO Private Equity
LGT Capital Partners
MBO & Co
Montagu Private Equity \
Motion Equity Partners
Palatine Private Equity
Rothschild & Co
Sagard Private Equity Partners
Swen Capital Partners