Scope 1 & 2 total[[2]]
Scope 1 & 2 total[[2]]
2019 baseline:
178
2023:
128
2024:
103
2030 required emissions:
89
1
Reducing our GP and portfolio GHG emissions
Responsible Investment Report 2024
Reducing our GP and portfolio GHG emissions
Reducing in line with our science-based target
Bregal is on track to meet its operational science-based target by 2030 with ongoing Scope 2 mitigation for its corporate offices. Bregal has reduced its net operational emissions by 42% on average since 2019, despite a new office opening in Zug in 2024 and two office relocations. While ongoing business growth has led to annual increases in absolute Scope 1 & 2 emissions, Bregal has remained on track for its target through the procurement of renewable electricity.
Bregal continues to measure its value chain emissions and improve emissions data quality. For the past three years, Bregal has measured all material Scope 3 categories with a strong focus on improving data quality in its two largest categories outside financed emissions – Business Travel and Purchased Goods and Services.[[1]]
Scope 3 emissions categories
Scope 3 emissions categories
29%
Business Travel
2%
Employee Commute
1%
FERA
66%
Purchased Goods and Services
Carbon neutrality since 2017
While prioritizing real reductions, Bregal consistently matches 100% of its remaining emissions with high quality carbon credits with environmental and social co-benefits for local communities. Historically, Bregal has sourced carbon credits through its portfolio company, PUR – a leading developer of Nature-based Solutions (“NbS”) projects that seek to improve climate, livelihoods, and biodiversity outcomes.
Engagement with portfolio companies on carbon reduction
Measuring and reducing carbon emissions continues to be a priority for Bregal, further augmented by the increasing demand for low carbon products within our portfolio. Post-investment, we support our portfolio companies with calculating high quality carbon footprints aligned with the GHG Protocol[[3]], identifying key levers for reduction, and defining accountability for driving reduction every year during our holding period. Overall, 48 portfolio companies reported carbon emissions data for CY24, representing 71% of our total direct equity portfolio.[[4]]
Progress on science-based target setting
Through a combination of data driven analysis, a tailored decarbonization approach, and proactive support for companies, Bregal continues to be on track to meet its interim science-based target. As of 2024, 46% of our total eligible invested capital has either approved or committed science-based targets. We expect our overall alignment to continue to fluctuate as companies enter and exit our portfolio.
| % of direct equity portfolio | # of companies | |
| Approved SBTs | 37 | 23 |
| Committed to SBTs | 9 | 5 |
In addition to near-term targets, Bregal committed to net zero via the Net Zero Asset Managers (“NZAM”) initiative, with the target to achieve net zero for 80% of AUM by 2050 or sooner. Bregal tracks its portfolio’s net zero maturity using the Private Markets Decarbonization Roadmap ("PMDR") framework, developed by Bain & Company[[5]]. Bregal’s portfolio is 35% ‘Aligned’ or ‘Aligning’ with PMDR, an increase from 28% in 2023. 27% of total invested capital is currently ‘Preparing to Decarbonize’, having measured Scope 1, 2 and 3 emissions and established decarbonization plans. In the past year we’ve supported companies in moving along this maturity framework, with an uptick in companies moving from preparing to aligning to net zero.
1
2
Investing to achieve portfolio-level emissions reductions
2
3
Measuring climate and nature risk
3
4
Investing in climate and nature solutions
4
5
Engaging industry on climate and nature
5
Our climate and nature action plan
Our climate and nature action plan
1
Reducing our GP and portfolio GHG emissions
Measuring and reducing carbon emissions continues to be a priority for Bregal, further augmented by the increasing demand for low carbon products within our portfolio.
2
Investing to achieve portfolio-level emissions reductions
Bregal’s Sustainable Development Financing (“SDF”) program is a €50 million capital pool that provides loans on attractive terms to existing portfolio companies to invest in projects with positive sustainability outcomes.
3
Measuring climate and nature risk
Bregal strengthened its capabilities on and internal management climate and nature risk monitoring for its direct equity strategies in 2024.
4
Investing in climate and nature solutions
In addition to managing climate and nature-related risks and opportunities across its investment portfolio, Bregal launched a dedicated impact strategy in 2022.
5
Engaging industry on climate and nature
Bregal reinforces its climate and nature commitment by actively contributing to industry leadership, primarily through initiative Climate International (iCI).
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