About People Sustainability Careers News Companies Stories CASE / COMMITTING TO THE 1,5 DEGREE TARGET As presented on November 8, 2021, the Science Based Target initiative (SBTi) has released a tailored guidance, written in partnership with Anthesis and supported by the UN PRI and signatories of Initiative Climat International (ICi), to drive much needed near-term action to enable a wide adoption of science-based targets by private equity investors. Financial institutions play a critical role in decarbonizing the economy and driving sustainable practices. The new guidance is tailored to the unique business models and asset classes of private equity firms to align their investment portfolios and operations to well-below 2°C and 1.5°C climate scenarios. Alberto Carrillo Pineda, Managing Director and Co-founder of the SBTi, commented: “The urgency to make significant change, quickly, has only increased in this last year. Since the latest IPCC report, we know there is an immediate urgency to shift to more sustainable practices as soon as possible – especially in the financial sector. A tailored guidance for private equity firms helps achieve these goals by enabling efficiency and accelerating the process for investors to establish science-based targets. It is a massive success within the sustainable finance sector and will drive change at the pace we need.” Six private equity firms to have their 1.5°C science-based targets validated are Astorg, Bregal Investments, FSN Capital, Hg, Intermediate Capital Group (ICG) and Investindustrial have already proven the effectiveness of the guidance by setting approved and validated targets aligned with 1.5°C. Altor, Eurazeo, Montagu Private Equity, Tikehau Capital and Triton Partners also committed to have their SBTi targets approved within two years. SBTi states that these firms are leading the decarbonization effort within the sector by shifting their engagement strategies to prioritize sustainability and low-emissions practices. The guidance was developed in consultation with leading sector experts, NGOs and PE firms representing a total assets under management of more than a trillion euros.” The guidance identifies challenges private equity firms commonly face to develop and achieve targets, and provides recommendations to overcome these common barriers, taking regional differences into consideration. Its release intends to raise the ambition of the private equity industry by defining and promoting best practice in science-based target setting and providing methods, criteria, guidance and tools to reduce the barriers to adoption and implementation. For the development of this guidance, the SBTi formed an Expert Advisory Group, a group of volunteer advisors from the private equity industry, academia, consultancies, non-profit and multilateral organizations with in-depth knowledge of science-based target setting for the private equity industry. The EAG serves in a technical advisory capacity for the SBTi private equity sector project and provides requested input and advice to priority topics and decisions. Private equity firms are encouraged to use the guidance to set emissions reductions targets across their operations and portfolio company engagement targets aligned with the goals of the Paris Agreement. In addition, the SBTi is developing a Net-Zero Standard for Financial Institutions that is expected to be released in 2022 to help the sector standardize and drive financial climate action. PEOPLE / NINE NEW STARS JOIN ALTOR The quality of our work is dependent on our ability to attract and retain exceptional talent in our firm. We are so happy to be able to announce that we have nine new stars who will help take to us to the next level. ALL ARTICLES Copyright © 2021 Altor All rights reserved Privacy and cookies policy JOIN US Join us on Facebook Join us on LinkedIn CONTACT STOCKHOLM Altor Equity Partners AB Altor Fund Manager Jakobsgatan 6 111 52 Stockholm Sweden Tel. +46 8 678 9100 Fax. +46 8 678 9101 info@altor.com HELSINKI Altor Equity Partners OY Pohjoisesplanadi 25 B 00100 Helsinki Finland Tel. +358 9 6829 470 Fax. +358 9 6829 4750 info@altor.com OSLO Altor Equity Partners AS Tjuvholmen Allé 19 0252 Oslo Norway Tel. +47 2212 8383 Fax. +47 2212 8384 info@altor.com COPENHAGEN Altor Equity Partners A/S Rosenborggade 15, II 1130 Copenhagen Denmark Tel. +45 3336 7300 info@altor.com ST. HELIER Altor Funds 11-15 Seaton Place St Helier Jersey JE4 0QH Channel Island Tel. +44 1534 833 000 info@altor.je ZURICH Altor Equity Partners AG Bellevueplatz 5 8001 Zurich Switzerland Tel. +41 76 445 68 84 info@altor.com COOKIES By continuing you give us permission to deploy cookies as per our privacy and cookies policy I UNDERSTAND