Bregal Investments spearheads the development of Science Based Target Guidance for the Private Equity sector and sets its own Paris-aligned targets for 2030
Bregal Investments — 08 Nov, 2021
Ensuring Private Equity firms set Science Based Targets as part of their commitment to decarbonise their portfolios is crucial to achieving net zero, as private equity-backed companies represent an ever-larger part of the world’s economy. In recognition of the pivotal role that the sector should play in the transition to a net-zero economy, Bregal Investments (“Bregal”) has spearheaded the development of the Science Based Target guidance for the Private Equity sector.
Developed through multi-stakeholder collaboration with members of the Initiative Climat International (“iCI”) and the Science Based Targets initiative (“SBTi”), alongside other Private Equity firms and in partnership with Laudes Foundation, this guidance will help to create greater transparency and consistency in the way the sector transitions its portfolio to net-zero.
In alignment with this work, Bregal has also set its own science-based targets in line with the 1.5°C pathway set out in the Paris Agreement. Bregal’s climate targets represent a natural evolution of its ESG programme and requires that all portfolio companies set their own science-based targets by 2030.
Bregal’s investment strategy centres around building great businesses that create long-term, sustainable value for investors, whilst having a positive impact on society. Bregal is fully committed to integrating climate action within the core of its investment strategy through setting its own ambitious carbon reduction targets.
In summary, Bregal has committed to:
- Reducing direct emissions by 50 percent by 2030
- Ensuring 40 percent of its portfolio companies will have set science-based targets by 2025
- Ensuring 100 percent of its portfolio companies have their science-based targets by 2030
Private Equity is uniquely positioned to drive change through its active ownership approach and ability to deploy capital - supporting companies to transition their business to a net-zero future. Bregal is committed to this transition, as demonstrated by our leadership in the creation of this private equity guidance and through setting our own ambitious targets across all our funds in Europe and the US. We encourage the private equity community to engage with the guidance and set their own climate targets as a priority.
Climate change is the defining challenge of our generation and today’s announcement is a significant milestone in our ESG journey. At Bregal, we acknowledge the responsibility we have as an active investor and commit to support our portfolio companies to align their business with a 1.5°C pathway. It is critical for businesses to navigate the risks and opportunities of climate change and our science-based targets provide a clear roadmap for ambitious emissions reductions within our portfolio.
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 US and Europe. With distinct investment strategies, all our teams and their related funds focus on investing in mid-market companies in a variety of sectors and geographies, either through a variety of majority control equity, minority equity or credit investments. Collectively, this represents €12 billion of assets under management. The funds are Bregal Sagemount, Bregal Unternehmerkapital, Bregal Milestone, Bregal Partners, Bregal Energy and Bregal Private Equity Partners.
About Science Based Target initiative
The Science Based Targets initiative (SBTi) mobilizes companies to set science-based targets and boost their competitive advantage in the transition to the low-carbon economy. It is a partnership between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). The SBTi call to action is one of the We Mean Business Coalition commitments. The initiative defines and promotes best practice in science-based target setting, offers resources and guidance to reduce barriers to adoption, and independently assesses and approves companies’ targets.
About Initiative Climat International (iCI)
The iCI is a global collaboration between 119 private equity investors who collectively commit to understand and reduce carbon emissions of their portfolios and to secure sustainable investment performance. One of the key tenets of the iCI is mutual collaboration, with signatories committed to sharing knowledge, tools, experience, and best practice methods amongst peers on a sector and market basis.
The iCI is officially endorsed by the Principles for Responsible Investment and is hosted on the PRI online Collaboration Platform.
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.