Introduction to climate change
The Invest Europe guidance on climate change has been developed for private equity investors and provides practical, entry-level, support to actors and stakeholders in the European market seeking to integrate climate change considerations in their investment processes.
It includes practical tools and guidelines for identifying climate change-related risks and opportunities in private equity portfolio companies, complemented with practical business cases. Private equity fund investors, fund managers and their portfolio companies can contribute to this shared outcome and to the EU’s climate objectives in a number of ways which are summarised in this guide. This is an overview and is not exhaustive. It aims to serve as a guide with a step-by-step approach and idea generator on where to focus efforts for the participants in the European private equity market.
Through this guide we aim to help both GPs and LPs in their climate risk assessment and management activities. In order to be most useful in this context, the approach of the guide will follow the phases of the investment process. We set out a high-level framework to scope, identify, assess, manage, and monitor climate-related risks, and how to identify the opportunities and be best positioned when transitioning to a low-carbon economy. Over time, we seek to add new tools and recommendations to the guide. This introductory guide also will be followed by intermediate and advanced level guidance, aimed at those who are ready to deepen their understanding and approach.
Explore the guide
High-level introduction to climate change
How climate change may impact GPs’ investment strategies
Due diligence and portfolio company engagement
Carbon footprint calculation and reduction
How to disclose carbon/climate performance
Toolkits and further reading
Business cases
Glossary
Summary of tools
Proud sponsors of the Climate Change Guide
AlpInvest
AlpInvest is proud to continue its support of Invest Europe, and has provided expert opinion and analysis to its established ESG and Responsible Investment agenda over a long period of time.
AlpInvest recognises that climate change is one of the most pressing issues of our time, creating unprecedented challenges and opportunities for businesses and investors.
In sponsoring the Investment Europe Climate Change Guide, we are determined to ensure that climate continues to climb the investment industry’s agenda and that more GPs join the increasingly urgent discussion on climate risk.
ETF Partners
ETF Partners supports talented entrepreneurs and management teams with investment capital and experience. We create value by investing in technology companies making a difference and offering compelling answers to the world’s most pressing problems.
Today, humanity is facing a climate crisis, and now is the time to act. We must meet the crisis head on, using digital innovation to address the threat of unprecedented climate change.
However, the challenge ahead of us is not insurmountable, and as an industry we have the collective power to make a demonstrable impact. As we believe at ETF Partners, the challenge is the opportunity.
EQT
The science is clear that climate change has and will continue to shape our societies and business on a fundamental level. At EQT, there is a strong recognition of the risks and structural changes stemming from climate change. Given the role EQT plays in society and its active ownership approach, the challenge of combating climate change also presents an opportunity to be a part of the solution and contribute to a climate-positive economy.
Responding to climate change requires a strong focus, investments and innovation, but also partnerships to drive awareness in the industry, share best practices and get the necessary scale effects for a cleaner and cooler tomorrow - something that this Guide intends to support.
Eurazeo
Given the increasing effects of climate change, conflicts over resources are set to escalate, as well as social and geopolitical crises. It is the very condition of our continued performance and resilience. As investors, it is our responsibility to select the companies that will be able to adapt and thrive in this new economic and social context, and it is also our duty to support them through this transition.
Climate change is one of the most critical challenges of our time.
Our private equity industry can have an exponential effect to bring about positive change, hence our will to contribute to this Guide, to share our experience and best practices with our peers.
Industry standards
Climate change
Read the other parts of our Climate Change Guide
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