Comment: Climate-related risks and opportunities – what does PE need to know?

The role of finance in the fight against climate change is now clearer than ever.

Private equity and private market industries have a unique role to play. With an active investment model that supports so many businesses with significant global capital, the industry can leverage its influence to drive meaningful change, while also creating shareholder value.

By investing and engaging with portfolio companies to drive climate action, private equity firms can respond to regulatory and investor pressures, grow their value while mitigating risk and, ultimately, contribute to global environmental ambitions at pace.

To do this, private equity firms need to embed environmental sustainability into their organisation at every level and develop the ability to effectively analyse and report on climate-related risks and opportunities...