ClimateCare CEO Vaughan Lindsay talks in the Sunday Times about how investment firms can take responsibility for their carbon emissions in a way that delivers real, measurable results for the environment, global consumers and their business.
He explains that there are real benefits throughout the private equity cycle and points to the Nordea Equity Research report that found companies with the highest ESG ratings outperformed the lowest-rated firms by as much as 40 per cent.
The article also features one of our clients, Triton Partners, a leading European firm invested in portfolio companies with combined sales of €17.4 billion.
Part of Triton’s investment strategy is to increase environmental ambition across its investment portfolio. It does this by raising awareness of climate related risks and opportunities, and supporting portfolio companies to take responsibility for carbon emissions through carbon offsetting. As a result, Triton hopes to build the value and resilience of its portfolio.
Graeme Ardus, head of ESG at Triton, explains: “Offsetting with ClimateCare is part of a wider energy transition strategy for Triton that is focused on building better businesses by encouraging change through being more energy-efficient and adopting low carbon technology. Our role is to support that change for the better across our portfolio companies.”
Will other companies follow suit? Absolutely. The time to act is now. A robust and transparent climate strategy is no longer optional in the investment sector. It’s an essential element of a successful investment strategy to attract new capital and manage climate-related risks, and harnesses the opportunities of an economy transitioning to a low-carbon state.
To quote Larry Fink, chief executive of BlackRock: “Coming out of the crisis, we have an opportunity to accelerate towards a more sustainable world. The pandemic we’re experiencing now is further highlighting the value of sustainable portfolios.”
Read the article in full, and find out more about how we are working with companies across the investment sector including Standard Life Aberdeen.