Only 50% of GPs measuring carbon footprint

Only half of PE firms measure the carbon footprint of their investments or offset their carbon emissions, according to new research.

The survey, carried out by Apex, which received responses from 358 PE executives, found that 91% of PE leaders believe climate change is an urgent issue, while 81% agreed they and their portfolio companies should take more responsibility for their carbon footprint.

Of those surveyed, just over half (55%) said they have plans underway to achieve carbon neutrality, while 45% want to achieve carbon neutrality but don’t have plans in place yet.

Additionally, 74% of respondents said a carbon reduction plan would benefit their key stakeholders, including employees, LPs and clients.

Against this backdrop, Apex has launched a carbon footprint assessment & reporting service.

The newly-launched platform measures sources of emissions, implements plans to reduce carbon footprints, and provides a mechanism to offset any residual emissions. It achieves this by quantifying and reporting on a company’s scope 1, 2 and 3 emissions by collecting relevant data on a secure ESG online software platform to calculate a carbon footprint. The reports can identify and manage major sources of emissions from more than 1m individual emissions factors, while aligning with reporting requirements of key standards and regulations, such as TCFD, CDP, GHG Protocol, SFDR, DEFRA, EPA. 

The solution also provides a recommendation of verified carbon offsetting projects and schemes so businesses can offset any residual and unavoidable emissions to achieve carbon neutrality.

“Beyond the moral and fiducial argument for reducing carbon emissions, there are now increasing commercial and regulatory pressures creating new risks to the bottom line,” said Andy Pitts-Tucker, managing director of Apex ESG ratings & advisory. “All companies must quantify and understand their carbon footprint in order to create and articulate an action plan to reduce their carbon emissions – and this new tool provides our clients with an efficient, accurate and accessible way to achieve this.”