Bregal Investments Releases 2021-2022 Responsible Investment Report
Bregal Investments — 27 Jun, 2022
A Net-Zero Future
Dedicated to aligning its portfolio with a net-zero future, Bregal, along with other leading international private equity firms, spearheaded the Private Equity Sector Science-Based Target Guidance, the first-ever guidance on how to apply the science-based target methodology to private equity firms and their portfolios. After the launch of the guidance in November 2021, Bregal announced it was setting an ambition for 100% of its portfolio to be net zero by 2030 and planning to reduce its own emissions by 50% in the same timeframe.
Bregal actively supports its portfolio companies to reduce their emissions through the development of carbon-reduction roadmaps, assistance with setting Science-Based Targets, and working towards aligning businesses with a net zero trajectory. To date, more than 10% of Bregal’s portfolio by invested capital is covered by a net zero target through the Science-Based Target initiative (“SBTi”), including six portfolio companies with targets approved by the SBTi and two companies with targets pending approval.
More broadly, Bregal increased the Bregal Sustainable Development Fund (“the fund”) by 25% to €50 million, to help finance sustainability improvement initiatives within its portfolio companies at attractive terms. The fund is designed to enable portfolio companies to undertake sustainability projects in cases where the pay-back period could be seen as too long-term for Executive teams or Boards to agree to deploy portfolio company equity or operating cash.
I firmly believe that private equity has a fundamental role to play in generating financial value alongside creating a more sustainable and liveable world. I joined Bregal at the end of 2021, and the firm’s purpose and culture, investment approach, and track record on ESG have only reinforced my belief that investing responsibly for a more sustainable impact is the right way to do business.
Alvar de Wolff, Head of ESG & Responsible Investing for Bregal Investments added,
We continue to partner with our portfolio companies to develop carbon reduction roadmaps and align them with a net zero trajectory. This work will be a central part of our ESG programme in the coming years.
About Bregal Investments
Bregal Investments is an international private equity firm providing a platform for five direct investment teams and a fund-of-funds team across the U.S. and Europe. With distinct investment strategies, all the Bregal teams and their related funds focus on investing in mid-market companies in a variety of sectors and regions, either through a variety of buy-out control equity, structured minority equity, or credit investments. Collectively, the firm has over €12 billion of assets under management.
Alvar de Wolff, Head of ESG, Bregal Investments
We champion a responsible investment approach focused on creating long-term, sustainable value and are conscious of the responsibilities we have towards all our stakeholders.