In response to increased regulatory and investor pressure, our client, a value-driven private equity firm, recognized the importance of addressing carbon emissions within their portfolio. They sought a comprehensive portfolio-wide carbon assessment to analyze their environmental impact, meet evolving regulatory requirements and better align with investor expectations.
A&M played a substantial role in supporting the client by providing a portfolio-wide carbon assessment. Our esteemed environmental, social and governance (ESG) team made up of environmental engineers, greenhouse gas (GHG) experts and strategy consultants worked closely with the client and their portfolio companies to compile, consolidate and analyze energy use data and GHG emissions, confirming regulatory compliance and sustainability initiatives were met.
Working closely with the client’s portfolio companies, A&M identified the largest sources of carbon emissions and performed GHG calculations using data provided by the client and emissions factors. Through detailed analysis, A&M identified the portfolio companies’ carbon emissions hotspots and immediate approaches to drive reductions. At the private equity fund-level, A&M identified the most carbon emissions-intensive companies within the portfolio, compared them with industry peers and used the results to recommend appropriate actions to drive total value.
Based on our comprehensive analysis, A&M generated a detailed fund-level report and concise company-specific report summaries. Our findings provided valuable insights to the client and individual portfolio companies, empowering them to both strengthen data processes and reduce carbon emissions. Key recommendations for portfolio companies included energy audits, equipment upgrades, fleet optimization, route optimization and renewable energy procurement, ensuring emissions reduction and regulatory compliance.
The analysis also emphasized the need for the private equity fund to focus on its four highest-emitting companies, which have the largest impact on its carbon footprint, if it wants to make meaningful reductions in its carbon emissions reduction efforts.