Private equity General Partners (GPs) are being increasingly called upon to disclose climate-related data and establish ambitious targets for greenhouse gas (GHG) emissions reduction across their portfolios.
This standard represents a practical application of the GHG Protocol and the Partnership for Carbon Accounting Financials (PCAF) Standard to private equity investing, and is designed to support ESG professionals at private markets firms.
The standard, developed by the Initiative Climat International (iCI) with ERM, enables GPs to establish processes for carbon footprint data collection and thereby improve the quality of their GHG emissions reporting, providing a path to portfolio analysis and target-setting to support the transition to a net zero economy. It provides guidance on a number of different topics, including:
- Calculating Scope 1, Scope 2 and Scope 3 emissions of the GP and each portfolio company
- Attributing GHG emissions from portfolios to GPs and Limited Partners (LPs)
- Aggregating emissions at the fund level and reporting to stakeholders