PRIVATE EQUITY CLIMATE RISKS SCORECARD 2022

The Private Equity Climate Risks Scorecard 2022 evaluates eight major private equity firms on their fossil fuel exposure, downstream emissions, and alignment with science-based climate targets. The analysis finds that most of these firms maintain significant fossil fuel holdings and lack transparency, with The Carlyle Group ranking lowest (F) and TPG Capital ranking highest (B). The report argues that private equity firms often acquire polluting assets shed by public markets, thereby increasing climate and financial risks while operating with minimal regulatory oversight. It concludes with five primary demands for the industry, including aligning with 1.5°C warming targets and disclosing full fossil fuel exposure.

• 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 is the largest emitter of carbon dioxide among the sampled firms' downstream assets, producing 18.1 million metric tons in 2020. This includes the General J.M. Gavin coal plant in Ohio, which was the third-largest carbon dioxide emitter among U.S. coal plants in 2020.
• TPG Capital earned the highest grade (B) due to having the smallest fossil fuel energy portfolio, with less than $1.3 billion in fossil fuels and only 25 percent of its energy companies invested in fossil fuels as of October 2021.
• Private equity firms are accused of engaging in 'regulatory arbitrage' by acquiring fossil fuel assets that public companies are shedding to meet emissions targets, allowing these assets to operate with less oversight.
• 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 as of October 2021.
• Brookfield Asset Management and Oaktree Capital collectively manage the largest energy portfolio of the group, totaling $107.4 billion, of which 53 percent is invested in fossil fuels.
• The report establishes five primary demands for private equity firms: aligning with 1.5°C warming targets, disclosing fossil fuel exposure and emissions, reporting a portfolio-wide energy transition plan, 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 and blockades from Wet’suwet’en hereditary chiefs over land sovereignty and environmental risks.

APA

Private Equity Stakeholder Project (2022). PRIVATE EQUITY CLIMATE RISKS SCORECARD 2022. https://pestakeholder.org/wp-content/uploads/2022/09/PESP_AFR_Report_Climate-Demands-Scorecard_Sept2022.pdf

Chicago

Private Equity Stakeholder Project. PRIVATE EQUITY CLIMATE RISKS SCORECARD 2022. 2022. https://pestakeholder.org/wp-content/uploads/2022/09/PESP_AFR_Report_Climate-Demands-Scorecard_Sept2022.pdf.

Wikipedia

{{cite report |author=Private Equity Stakeholder Project |title=PRIVATE EQUITY CLIMATE RISKS SCORECARD 2022 |date=September 2022 |url=https://pestakeholder.org/wp-content/uploads/2022/09/PESP_AFR_Report_Climate-Demands-Scorecard_Sept2022.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{privateequitystakeholderproject2022private, author = {{Private Equity Stakeholder Project}}, title = {{PRIVATE EQUITY CLIMATE RISKS SCORECARD 2022}}, institution = {Private Equity Stakeholder Project}, year = {2022}, month = sep, url = {https://pestakeholder.org/wp-content/uploads/2022/09/PESP_AFR_Report_Climate-Demands-Scorecard_Sept2022.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }