13 Sep 2023
Reaffirms support of The Paris Agreement and its climate targets
Investcorp, a global leader in alternative investments, today reaffirmed its commitment to support the goal of net zero greenhouse gas (‘GHG’) emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5 degrees Celsius.
“Our commitment to achieve net zero GHG emissions by 2050, with associated near-term, science-based emissions reduction targets, demonstrates a concerted effort to build upon the strong foundation we have laid over the past two years to integrate climate and other ESG considerations across our corporate operations, analytics, and investing activities” said Mohammed Alardhi, Executive Chairman of Investcorp.
In June 2023, Investcorp released its report “Responsible Growth” detailing the firm’s approach to the consideration of environmental, social and governance factors, including Investcorp’s progress on understanding its current emissions footprint through firmwide and portfolio-level data collection and carbon accounting. This work provides the emissions baseline for science-based and time-bound emissions reduction targets.
“Our commitment is not only the right thing to do, but it is the right business decision as assets with lower emissions footprints will perform better and sell for higher prices as the world increasingly turns its focus on decarbonization,” said Rishi Kapoor, Co-CEO of Investcorp. “Equally important as what we do today, is what we build for the future. We will also contribute to decarbonization by putting Investcorp’s capital and capabilities behind the emerging climate leaders of tomorrow.”
Investcorp’s climate action strategy focuses on three key decarbonization levers:
- Corporate operational emissions
Investcorp remains committed to reducing its operational emissions consistent with efforts to achieve global net zero emissions by 2050 and builds on the progress the firm has made in recent years to improve energy efficiency in its global offices, optimize energy consumption, and deploy renewables where green tariffs are readily available.
Where corporate emissions are currently unavoidable, Investcorp will offset such emissions through supporting high-quality carbon offset programs that are backed by independent and robust verification processes and deliver demonstrable project additionality and permanence.
- Portfolio company decarbonization plans
Investcorp’s portfolio decarbonization plan is focused on increasing the percentage of underlying portfolio companies that are managed in alignment with relevant science-based decarbonization pathways, while accounting for regional, sectoral, and/or fund fiduciary considerations.
Investcorp’s near-term portfolio decarbonization goals will initially cover Scope 1 and Scope 2 emissions for in-scope majority-owned private equity companies in emissions-intensive sectors and longer hold periods, where they are most vulnerable to the impacts of climate change and where Investcorp has the greatest ability to affect long-term change.
The firm will be finalizing the details of its near-term goals over the coming months, with a view to incorporating a greater number of assets and asset classes over time as sectoral and geographical target standards continue to mature and new technologies come online.
- Climate solutions investments
Meeting global decarbonization goals will require deploying capital in a range of climate solutions businesses that provide the products and services needed to support decarbonization and address the impacts of climate change. As one of the world’s leading alternative asset managers, Investcorp has advantages of scale in identifying, investing in, and adding value to the most promising climate solutions investment opportunities. In addition, the firm’s history of operations and deep relationships in the Gulf region provide it with a unique vantage point on areas of opportunity in the energy transition.
“Our climate strategy is self-reinforcing. As our business focuses more on decarbonization, we will better understand the sticking points and where new solutions are most needed. That insight will help us make better investment decisions, and those investments will, in turn, help us to transition faster and more efficiently,” said Habib Abdur-Rahman, Global Head of ESG at Investcorp.
Investcorp recently announced its sponsorship of the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change.
Investcorp is also a member of the UNPRI-endorsed Initiative Climat International (iCI), a private consortium of investor signatories who have committed to reduce carbon emissions and contribute to the objective of The Paris Agreement to limit global warming to well-below 2.0 degrees Celsius and in pursuit of 1.5. In addition, Investcorp is a signatory of the United Nations Principles for Responsible Investment and the Abu Dhabi Sustainable Finance Declaration, a licensee of the Sustainability Accounting Standards Board standards, and a member of the ESG Data Convergence Initiative.