Leading private equity investors join climate disclosure and engagement drive

A group of seven leading private equity investors have pledged to actively engage with companies they invest in, so as to encourage carbon reduction and incorporate climate risk management into decision making, in a move spearheaded by the Principles for Responsible Investment (PRI).

The seven investors have joined forces to create the "first" international network under the Initiative Climat International (iCI), which collectively commits them to align their portfolios and businesses with the Paris Agreement and embrace the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFDs).

Endorsed by the PRI, iCI was originally launched as the iC20 in 2015 by a group of French private equity firms keen to contribute to the goals of the Paris Agreement.

Now, in establishing a new international network - which was officially launched late last week - UK-based investors including Coller Capital, ICG, Palatine, Triton and HG have committed to actively engaging with private-equity backed companies to reduce global carbon emissions and pursue sustainable investment by taking full account of climate risk in decision-making.

iCI also seeks to foster mutual collaboration, ecnouraging members to effectively analyse, manage and mitigate climate-related financial risk and emissions in their portfolios, in line with the recommendations of the Financial Stability Board's TCFDs, the body said.

"The PRI welcomes the announcement that a group of leading private equity investors have joined the Initiative Climat International, and in doing so are stepping up to the climate challenge," said Fiona Reynolds, CEO at PRI.

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