SCORECARD 2024 PRIVATE EQUITY CLIMATE RISKS

The 2024 Private Equity Climate Risks Scorecard reveals that 21 analyzed private equity firms are responsible for an estimated 1.17 gigatons of annual emissions from upstream operations, LNG terminals, and coal plants. The report argues that the industry's lack of transparency and continued investment in fossil fuels obstruct the global transition to a 1.5°C warming scenario. It ranks firms from 'B' to 'F', with EIG Global Energy Partners receiving the lowest grade due to its high emissions and low alignment with climate demands. The authors call for mandatory disclosures and a just transition for workers and impacted communities.

• The energy portfolios of the 21 private equity firms analyzed are responsible for an estimated combined total of 1.17 gigatons (1.17 billion metric tons) of annual CO2 equivalent (CO2e) emissions, specifically from upstream operations, LNG terminals, and coal plants.
• As of July 2024, the 21 featured private equity firms held at least 67 percent of their energy portfolios in fossil fuels.
• EIG Global Energy Partners was the most polluting firm in the scorecard, receiving an 'F' grade with estimated annual emissions of 271.8 million tons of CO2e.
• The report identifies a trend where private equity firms acquire fossil fuel assets that public markets are shedding, allowing these assets to operate with less regulatory oversight and public visibility.
• Private equity's financial strategies, such as leveraged buyouts and aggressive cost-cutting, are linked to safety and environmental risks, exemplified by the 2019 explosion at the Philadelphia Energy Solutions refinery.
• The report establishes five primary 'Climate Demands' for private equity: alignment with 1.5°C targets, disclosure of fossil fuel exposure and emissions, reporting a portfolio-wide transition plan, integrating climate and environmental justice, and transparency on political spending and lobbying.
• Several large firms, including Blackstone, Apollo, KKR, Carlyle, and TPG, have not signed onto the sector-specific alliance of the Glasgow Financial Alliance for Net Zero (GFANZ).
• The report argues that the industry's use of 'renewable natural gas' (RNG) and carbon capture and storage (CCS) often serves as greenwashing rather than meaningful emission reduction.

APA

Private Equity Climate Risks (2024). SCORECARD 2024 PRIVATE EQUITY CLIMATE RISKS. https://www.peclimaterisks.org/wp-content/uploads/2024/10/PECR_Report_Climate-Risks-Scorecard_2024.pdf

Chicago

Private Equity Climate Risks. SCORECARD 2024 PRIVATE EQUITY CLIMATE RISKS. 2024. https://www.peclimaterisks.org/wp-content/uploads/2024/10/PECR_Report_Climate-Risks-Scorecard_2024.pdf.

Wikipedia

{{cite report |author=Private Equity Climate Risks |title=SCORECARD 2024 PRIVATE EQUITY CLIMATE RISKS |date=October 2024 |url=https://www.peclimaterisks.org/wp-content/uploads/2024/10/PECR_Report_Climate-Risks-Scorecard_2024.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{privateequityclimaterisks2024scorecard, author = {{Private Equity Climate Risks}}, title = {{SCORECARD 2024 PRIVATE EQUITY CLIMATE RISKS}}, institution = {Private Equity Climate Risks}, year = {2024}, month = oct, url = {https://www.peclimaterisks.org/wp-content/uploads/2024/10/PECR_Report_Climate-Risks-Scorecard_2024.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }