PRIVATE EQUITY CLIMATE RISKS SCORECARD 2022

The 2022 Private Equity Climate Risks Scorecard evaluates eight major private equity firms, finding that most maintain significant fossil fuel holdings and lack transparency. The Carlyle Group ranked lowest (F), while TPG earned a B due to a smaller fossil fuel portfolio. The report advocates for five primary demands, including alignment with 1.5°C warming targets and full disclosure of emissions and fossil fuel exposure.

• Ten of the largest private equity buyout firms held at least 80 percent of their energy portfolios in fossil fuels as of October 2021.
• The Carlyle Group and its subsidiary NGP Energy Capital are identified as the worst fossil fuel backers among the eight firms sampled, earning an F grade. In 2020, Carlyle-owned power plants emitted over 10.8 million metric tons of carbon dioxide.
• The Blackstone Group produced the highest downstream carbon dioxide emissions of the sampled firms, totaling 18.1 million metric tons in 2020, largely due to its co-ownership of the General J.M. Gavin coal plant in Ohio.
• Warburg Pincus has the highest proportion of fossil fuel companies relative to renewable energy companies in its energy portfolio, with 97 percent (28 of 29 companies) invested in fossil fuels.
• TPG Capital earned the highest grade (B) among the sampled firms, with only 25 percent of its eight energy companies invested in fossil fuels and less than 1 percent of its total assets under management in fossil fuel companies.
• Private equity firms often acquire fossil fuel assets that public companies are shedding, operating them with minimal regulatory oversight and public visibility.
• The report establishes five primary demands for the private equity industry: aligning with 1.5°C warming targets, disclosing fossil fuel exposure and emissions, reporting portfolio-wide transition plans, integrating climate and environmental justice, and providing transparency on political spending and lobbying.
• KKR has been linked to the Coastal Gaslink Pipeline in Canada, which has faced opposition from Wet’suwet’en hereditary chiefs, and previously supported the State Financial Officers Foundation (SFOF) to promote oil and gas interests.

APA

Private Equity Climate Risks (2022). PRIVATE EQUITY CLIMATE RISKS SCORECARD 2022. https://www.peclimaterisks.org/wp-content/uploads/2024/06/PESP_AFR_Report_Climate-Demands-Scorecard_Sept2022-1.pdf

Chicago

Private Equity Climate Risks. PRIVATE EQUITY CLIMATE RISKS SCORECARD 2022. 2022. https://www.peclimaterisks.org/wp-content/uploads/2024/06/PESP_AFR_Report_Climate-Demands-Scorecard_Sept2022-1.pdf.

Wikipedia

{{cite report |author=Private Equity Climate Risks |title=PRIVATE EQUITY CLIMATE RISKS SCORECARD 2022 |date=September 2022 |url=https://www.peclimaterisks.org/wp-content/uploads/2024/06/PESP_AFR_Report_Climate-Demands-Scorecard_Sept2022-1.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{privateequityclimaterisks2022private, author = {{Private Equity Climate Risks}}, title = {{PRIVATE EQUITY CLIMATE RISKS SCORECARD 2022}}, institution = {Private Equity Climate Risks}, year = {2022}, month = sep, url = {https://www.peclimaterisks.org/wp-content/uploads/2024/06/PESP_AFR_Report_Climate-Demands-Scorecard_Sept2022-1.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }