CVC Capital Partners, a global alternative investment manager, has announced a series of new climate-related goals.
With Assets Under Management (AUM) of over €85bn, and a private equity portfolio of over 100 companies, CVC is an influential player in the investment world.
CVC’s new commitments are a response to the urgent need for decarbonisation and sustainable business practices. The goals are set to align with the Science Based Targets initiative (SBTi) and include actionable targets for both CVC’s own operations and its extensive investment portfolio.
CVC Capital Partners is an alternative investment manager that specialises in private equity and listed equity investments. With more than half a million employees across the globe, CVC is committed to steering its portfolio companies towards innovative solutions and sustainable practices. Its involvement in projects like the GHG Foundations Project and the Climate Action Accelerator Project underscores its dedication to environmental responsibility.
The new climate-related goals established by CVC are aimed at reducing emissions and implementing science-based targets across eligible companies. These goals include achieving SBTi-validated targets by 2035, reducing Scope 1 and 2 emissions by 73% by 2030, and an interim commitment for 40% of investments to have validated targets by 2027. The strategies encompass support for measuring emissions, setting decarbonisation roadmaps, and facilitating data collection and reporting.
Eligible companies within CVC’s portfolio must hold over a 25% ownership stake, have a board seat, and be more than 24 months since the date of acquisition. This target covers nearly 60% of CVC’s investment and lending activities, and also includes the purchase of renewable energy, electrification of the fleet, and energy efficiency in new leases.
The company has already made significant strides in reducing its Scope 2 emissions through renewable energy purchases, primarily using Energy Attribute Certificates. In the past year, CVC purchased certificates covering 962 MWh of energy used. The focus also extends to credit and secondaries, where processes are being implemented to gather credible emissions data.
CVC Head of ESG Chloë Sanders said, “This year’s confirmation from the Science Based Targets initiative that our targets have been verified was a major milestone for us. It will catalyse tangible decarbonisation in our portfolio with a focus on our private equity investments where we have most influence. With a private equity portfolio of over 100 companies, more than half a million employees across the globe, and AUM of over €85bn, it’s going to be a busy time ahead!”
CVC ESG Committee co-Chairs Jean-Remy Roussel and Chris Stadler said, “Proactively incorporating ESG will help future proof companies and meaningfully contribute to our objective of creating long-term sustainable value.”
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