EQT formalises SBTs to address climate change

EQT has become the first private markets firm to formalise science-based targets to address climate change, through the Science Based Targets Initiative (SBTi).

SBTi aims to help the private sector drive ambitious climate action by enabling firms to set science-based emissions reduction targets in alignment with the Paris Agreement, which aims to limit global warming to 1.5°C vs. pre-industrial levels. The initiative is a partnership between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF).

EQT began mapping and offsetting greenhouse gas emissions in 2014, followed by a commitment to set SBTs in December 2020. The targets will be applicable to both the firm and its portfolio companies.

By 2030, EQT has committed to:

• Reducing EQT’s direct emissions by 50%
• Reducing the firm’s indirect emissions from business travel by 30%
• Ensuring 100% of its portfolio companies (excluding EQT Ventures) will have their own SBTs validated by 2030, which is 10 years faster than required by SBTi
• Reducing indirect emissions in the EQT Real Estate I and II funds by 55% per sqm metre floor area

The firm has set interim targets and will publicly report progress on an annual basis, with 2019 as a base year. Portfolio companies in the most recently launched funds will also be included in the targets.

“We have a clear ambition to combat climate change holistically across the EQT ecosystem and setting science based targets is an important milestone towards this goal,” commented Bahare Haghshenas, global head of sustainable transformation. “This is a testament to how we integrate purpose and positive impact into everything we do, and it will enable us to drive even better performance.”

Additionally, having SBTi-approved targets has meant EQT has also met the first KPI target in its inaugural €500m sustainability-linked bond, which was established in May.