Climate Risk and Energy Transition Questionnaire for Private Equity Managers

This guide outlines a comprehensive set of questions for institutional investors to use during due diligence of private equity managers. It focuses on five key areas: alignment with science-based climate targets (including phasing out fossil fuels by 2030), disclosure of fossil fuel exposure and emissions, the existence of portfolio-wide energy transition plans, the integration of climate and environmental justice, and transparency regarding political spending and climate lobbying.

• The questionnaire urges institutional investors to determine if private equity firms have a formal climate policy aligned with a <2°C pathway and if they will commit to specific fossil fuel phase-outs, such as ending coal power by 2030 and decommissioning other fossil fuel assets by the same date.
• Investors are encouraged to seek detailed disclosures on fossil fuel assets, including financial assumptions regarding asset impairment, stranded asset risk, and decommissioning liabilities, as well as direct and indirect emissions (Scopes 1, 2, and 3).
• The guide recommends that managers scale up low-carbon energy supply investments to a 4:1 ratio relative to fossil fuel investments by 2030, a guideline adapted from Bloomberg NEF.
• A comprehensive energy transition plan should prioritize real-world emissions reductions over voluntary offsets and carbon removal, which the document notes have limited utility and integrity issues.
• The questionnaire emphasizes the integration of environmental justice, requiring managers to establish grievance redress mechanisms, adhere to Free, Prior and Informed Consent for Indigenous peoples, and develop just transition programs for workers and communities.
• Transparency is required regarding political spending and climate lobbying at the asset manager, portfolio company, and trade association levels to ensure alignment with global responsible corporate climate lobbying standards.

APA

Private Equity Stakeholder Project (n.d.). Climate Risk and Energy Transition Questionnaire for Private Equity Managers. https://pestakeholder.org/wp-content/uploads/2026/09/PESP_Report_Climate-Questionnaire_2026.pdf

Chicago

Private Equity Stakeholder Project. Climate Risk and Energy Transition Questionnaire for Private Equity Managers. n.d. https://pestakeholder.org/wp-content/uploads/2026/09/PESP_Report_Climate-Questionnaire_2026.pdf.

Wikipedia

{{cite report |author=Private Equity Stakeholder Project |title=Climate Risk and Energy Transition Questionnaire for Private Equity Managers |url=https://pestakeholder.org/wp-content/uploads/2026/09/PESP_Report_Climate-Questionnaire_2026.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{privateequitystakeholderprojectndclimate, author = {{Private Equity Stakeholder Project}}, title = {{Climate Risk and Energy Transition Questionnaire for Private Equity Managers}}, institution = {Private Equity Stakeholder Project}, url = {https://pestakeholder.org/wp-content/uploads/2026/09/PESP_Report_Climate-Questionnaire_2026.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }