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The report analyzes the role of Global North private equity firms in maintaining fossil fuel assets across the Global South, highlighting a pattern of extracting profits while offloading environmental and social risks onto local communities. Using data from the 2024 Climate Risk Scorecard, it identifies 13 firms with assets in 32 Global South countries, with a significant concentration of risky assets in Latin America, particularly Mexico. The document details specific instances of pollution in India, social displacement in Brazil, and financial instability in the Philippines, while providing a comprehensive case study on Mexico's LNG and pipeline infrastructure. It concludes that the private equity model's lack of transparency and short-term focus exacerbate climate injustice and expose institutional investors, such as public pensions, to significant financial risk.

The report reveals that twenty major private equity firms are linked to nearly 60 gigawatts of operating gas-fired power capacity globally, emitting an estimated 82 million metric tons of CO2e annually. This fleet spans 27 countries, with significant concentrations in the United States, Togo, Panama, Jamaica, and the Philippines. The document highlights a growing financial convergence where private equity firms are investing in both AI data centers and the fossil fuel power plants required to run them, potentially deepening carbon lock-in. Specific examples include BlackRock's pursuit of AES Corp and Blackstone's acquisition of TXNM.

The report 'Private Equity, Public Harm' estimates that private equity-backed fossil fuel infrastructure in the U.S. generates annual health costs between $11.3 billion and $15.1 billion, causing approximately 1,000 premature deaths and 1,500 emergency room visits yearly. Using the EPA's COBRA tool, the analysis identifies significant impacts from pollutants such as SO₂, NOₓ, VOCs, and PM2.5, noting that several individual private equity firms are responsible for over $1 billion in annual health impacts. The document calls for mandatory disclosures of fossil fuel exposure and emissions, a complete transition to a fossil-free portfolio by 2030, and the integration of environmental justice mechanisms to protect impacted communities.

The report finds that private equity-backed fossil fuel facilities in the U.S. cause between $11.3 and $15.1 billion in annual human health damages, resulting in nearly 1,000 premature deaths and 1,500 emergency room visits per year. A small group of firms, specifically ArcLight, Energy Capital Partners, and Quantum Capital, are responsible for approximately 20% of these impacts. The General J.M. Gavin coal plant in Ohio is identified as the single most harmful facility, accounting for roughly 19% of all health impacts in the study. Regional analysis highlights disproportionate burdens in the Mid-Atlantic/New England area and the Permian Basin, with Texas ranking first in asthma onset and symptoms due to its large population and proximity to extraction sites.

The 2022 Scorecard evaluates eight major private equity firms managing $3.6 trillion in assets, finding that ten of the largest buyout firms held at least 80 percent of their energy portfolios in fossil fuels as of October 2021. The Carlyle Group received the lowest grade (F), with its downstream power plants emitting over 10.8 million metric tons of carbon dioxide in 2020. Other firms including Warburg Pincus, KKR, Brookfield, Ares, Apollo, and Blackstone Group received Ds, while TPG earned a B. The report highlights a lack of transparency, noting that The Carlyle Group's TCFD report excludes its fossil-fuel-focused subsidiary, NGP Energy Capital, despite NGP contributing nearly 61 percent of the firm's profit in the first half of 2022. The authors demand that firms align with 1.5°C targets, cease fossil fuel expansion, disclose all emissions, and integrate climate and environmental justice.

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 2024 Private Equity Climate Risks Scorecard reveals that the energy portfolios of 21 analyzed private equity firms are responsible for 1.17 gigatons of annual CO2 equivalent emissions. As of July 2024, 66 percent of these portfolios remain invested in fossil fuels, primarily in upstream fossil fuels, LNG terminals, and coal plants. The report argues that these investments expose firms and their investors—including public sector pension funds—to significant financial risks such as asset stranding, citing the bankruptcy of at least 60 U.S. coal companies between 2012 and 2022. The firms are evaluated against standards including science-based targets, fossil fuel disclosure, energy transition plans, environmental justice, and lobbying transparency.

Private equity firms have invested in 85% of operating and 73% of proposed US LNG terminals, contributing significantly to global emissions. The briefing highlights that six firms—PIMCO, Brookfield, KKR, Blackstone, York Capital Management, and Global Infrastructure Partners—account for over 75% of these financed emissions. It argues that LNG may be worse than coal when lifecycle methane emissions are considered and uses the Rio Grande LNG project as a case study of private equity acquiring assets after more accountable investors exit due to climate risks.

Brookfield Corporation claims to be a leader in decarbonization with a goal of net-zero emissions by 2050, yet it maintains a vast portfolio of over 215 fossil fuel assets. The report estimates these assets emit nearly 159 million metric tons of CO2e annually, a figure approximately 14 times higher than what Brookfield discloses in its sustainability reports. A significant portion of these emissions stems from Oaktree Capital Management, which Brookfield owns 61% of but excludes from its sustainability reporting. The report also highlights the contradiction in the leadership of Mark Carney, who advocates for global net-zero targets while overseeing these investments. Geographically, the portfolio is concentrated in North America, with significant assets in the United States and Canada, as well as international investments in the United Arab Emirates.

The report alleges that KKR's public claims of environmental responsibility are contradicted by its investment portfolio, which is 78% rooted in fossil fuels. It highlights at least $9B in funding for gas and LNG projects and notes KKR's 2022 environmental ranking of 'D'. The document warns that these investments create financial, reputational, and regulatory risks for institutional investors, particularly pension funds, and calls for the firm to adopt science-based targets, full disclosure, and a clear transition plan.

The report finds that The Carlyle Group maintains a lopsided energy portfolio with approximately $22.4 billion in carbon-based energy compared to $1.4 billion in renewable energy. It argues that private equity firms act as 'pollution financiers of last resort,' acquiring dirty assets divested by public companies to allow those companies to greenwash their images while emissions continue. Between 2011 and 2021, Carlyle's fossil fuel investments contributed at least 277 million metric tons of greenhouse gases.

The report finds that Carlyle and NGP have significant exposure to transition risk, with a large portion of their planned capital expenditure for upstream oil and gas projects incompatible with the Paris Agreement's goals. It argues that Carlyle's 'net zero' target is insufficient because it excludes Scope 3 emissions and minority investments, and warns that continuing to expand fossil fuel production risks creating stranded assets as global demand shifts toward renewables.

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.