Global alternative investment manager CVC Capital Partners announced a new series of new climate-related goals for its own operations and investment portfolio, including a commitment for all eligible companies in its private equity and listed equity portfolio to have Science Based Targets initiative (SBTi)-validated emissions reduction targets set by 2035.

The new goals, unveiled in CVC’s 2023 ESG Report, include an interim commitment for 40% of listed and private equity investments to have SBTI-validated targets by 2027, and for the CVC to reduce its own absolute Scope 1 and 2 emissions by 73% by 2030, on a 2019 base year.

CVC said that the new targets have been set and validated with the SBTi.

In the report, CVC Head of ESG Chloë Sanders said:

“This year’s confirmation from the Science Based Targets initiative that our targets have been verified was a major milestone for us. It will catalyse tangible decarbonisation in our portfolio with a focus on our private equity investments where we have most influence. With a private equity portfolio of over 100 companies, more than half a million employees across the globe, and AUM of over €85bn, it’s going to be a busy time ahead!”

Scope 3 emissions, particularly those from its investment portfolio, represent the vast majority of CVC’s emissions footprint. The company said that it will support its portfolio companies in measuring emissions and setting decarbonization roadmaps, highlighting engagement efforts through projects including the GHG Foundations Project, which helps companies collect emissions data, develop a plan to support ongoing data collection and reporting and prepare for carbon accounting, and the Climate Action Accelerator Project, to model emissions reductions in line with science-based targets, develop action plans and a business case for decarbonization, and submit targets to the SBTi.

Eligible companies covered by the portfolio target include those in which CVC holds more than a 25% ownership stake and a board seat, and with more than 24 months since date of acquisition. The target covers nearly 60% of CVC’s investment and lending activities, with credit and secondaries holdings representing over 35%. In the report, CVC noted that credit and secondaries are at an earlier stage, with the current focus primarily on implementing processes to gather credible emissions data. Currently, fewer than 10% of eligible companies have SBTI-validated targets, according to the report.

In the report, CVC ESG Committee co-Chairs Jean-Remy Roussel and Chris Stadler said:

“Proactively incorporating ESG will help future proof companies and meaningfully contribute to our objective of creating long-term sustainable value.”

In order to reach its emissions goals covering its own operations, CVC said that it will purchase renewable energy, electrify its fleet and consider energy efficiency in new leases. The company noted that it has already significantly reduced its Scope 2 emissions through renewable energy purchases, primarily using Energy Attribute Certificates. Over the past year, CVC said that it purchased Energy Attribute Certificates covering 962 MWh of energy used.