Climate Standards for Private Markets Investors

The Private Equity Stakeholder Project outlines five categories of climate standards for private markets investors: alignment with science-based targets, disclosure of fossil fuel exposure and emissions, the requirement for portfolio-wide energy transition plans, integration of environmental justice and community protections, and transparency regarding political spending and climate lobbying. The framework recommends specific timelines, such as phasing out coal power by 2030 and achieving a 4:1 ratio of low-carbon energy supply investments relative to fossil fuel investments by 2030.

• Investors are encouraged to align with science-based climate targets by committing to no new fossil fuel expansion, ending gas flaring and venting, and achieving a fossil-free energy portfolio.
• The standards recommend specific deadlines for the removal of fossil fuel assets, including the phase-out of coal power by 2030 and the start of decommissioning for other fossil fuel assets by the same year.
• To accelerate the energy transition, the document suggests that investments in low-carbon energy supply should reach a 4:1 ratio compared to fossil fuel investments by 2030.
• Comprehensive disclosure is required regarding fossil fuel assets, including financial estimates for asset impairment, as well as all direct and indirect emissions and climate-related community impacts.
• Asset managers should provide a portfolio-wide climate transition plan that includes GHG emissions reduction targets, progress metrics, and the disclosure of the role of voluntary offsets, which the document suggests should be ceased.
• The framework emphasizes the integration of human rights and social protections, calling for the establishment of grievance redress mechanisms, the adoption of no-deforestation, no peat, and no exploitation (NDPE) policies, and the development of just transition programs.
• Transparency is required for political spending and climate lobbying at the levels of the asset manager, the portfolio company, and the trade association.

APA

Private Equity Stakeholder Project (2026). Climate Standards for Private Markets Investors. https://pestakeholder.org/wp-content/uploads/2026/09/PESP_Report_Climate-Standards_2026.pdf

Chicago

Private Equity Stakeholder Project. Climate Standards for Private Markets Investors. 2026. https://pestakeholder.org/wp-content/uploads/2026/09/PESP_Report_Climate-Standards_2026.pdf.

Wikipedia

{{cite report |author=Private Equity Stakeholder Project |title=Climate Standards for Private Markets Investors |date=2026 |url=https://pestakeholder.org/wp-content/uploads/2026/09/PESP_Report_Climate-Standards_2026.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{privateequitystakeholderproject2026climate, author = {{Private Equity Stakeholder Project}}, title = {{Climate Standards for Private Markets Investors}}, institution = {Private Equity Stakeholder Project}, year = {2026}, url = {https://pestakeholder.org/wp-content/uploads/2026/09/PESP_Report_Climate-Standards_2026.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }