Bregal Sagemount sets ambitious 2030 climate commitments, aligning with new Science Based Target Guidance for the Private Equity sector spearheaded by Bregal Investments.
Ensuring Private Equity firms set Science Based Targets as part of their commitment to decarbonise their portfolios is crucial to achieving net zero, as private equity-backed companies represent an ever-larger part of the world’s economy. In recognition of the pivotal role that the sector should play in the transition to a net-zero economy, Bregal Investments (“Bregal”) has spearheaded the development of the Science Based Target guidance for the Private Equity sector.
Developed through multi-stakeholder collaboration with members of the Initiative Climat International (“iCI”) and the Science Based Targets initiative (“SBTi”), alongside other Private Equity firms and in partnership with Laudes Foundation, this guidance will help to create greater transparency and consistency in the way the sector transitions its portfolio to net-zero.
In alignment with this work, Bregal Sagemount has also set its own science-based targets in line with the 1.5°C pathway set out in the Paris Agreement. Bregal Sagemount’s climate target represents a natural evolution of its ESG programme and requires that all portfolio companies set their own science-based targets by 2030.
Bregal Sagemount’s investment strategy centres around building great businesses that create long-term, sustainable value for investors, whilst having a positive impact on society. Bregal Sagemount is fully committed to integrating climate action within the core of its investment strategy through setting its own ambitious carbon reduction targets.
In summary, Bregal has committed to:
Reducing direct emissions by 50 percent by 2030
Ensuring 40 percent of its portfolio companies will have set science-based targets by 2025
Ensuring 100 percent of its portfolio companies have their science-based targets by 2030
“We are proud to have committed to ambitious climate targets which represent a natural progression of our ESG approach. This commitment builds on the already successful adoption of science-based targets by our portfolio companies Buyers Edge Platform and Critical Start. We are excited to roll this out to our other portfolio companies as a key pillar of our Growth Factors Alpha program.”
Gene Yoon, Managing Partner, Bregal Sagemount
“Climate change is the defining challenge of our generation and today’s announcement is a significant milestone in our ESG journey. At Bregal, we acknowledge the responsibility we have as an active investor and commit to support our portfolio companies to align their business with a 1.5°C pathway. It is critical for businesses to navigate the risks and opportunities of climate change and our science-based targets provide a clear roadmap for ambitious emissions reductions within our portfolio.”
Alvar de Wolff, Head of ESG, Bregal Investments
About Bregal Sagemount
Bregal Sagemount is a growth-focused private capital firm with $4.0 billion of committed capital. The firm provides flexible capital and strategic assistance to market-leading companies in high-growth sectors across a wide variety of transaction situations. Bregal Sagemount invests $40 million to $400 million per transaction into targeted sectors including software, digital infrastructure, healthcare IT / services, business and consumer services, and financial technology / specialty finance.
About Science Based Target initiative
The Science Based Targets initiative (SBTi) mobilizes companies to set science-based targets and boost their competitive advantage in the transition to the low-carbon economy. It is a partnership between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). The SBTi call to action is one of the We Mean Business Coalition commitments. The initiative defines and promotes best practice in science-based target setting, offers resources and guidance to reduce barriers to adoption, and independently assesses and approves companies’ targets.
About Initiative Climat International (iCI)
The iCI is a global collaboration between 119 private equity investors who collectively commit to understand and reduce carbon emissions of their portfolios and to secure sustainable investment performance. One of the key tenets of the iCI is mutual collaboration, with signatories committed to sharing knowledge, tools, experience, and best practice methods amongst peers on a sector and market basis.
The iCI is officially endorsed by the Principles for Responsible Investment and is hosted on the PRI online Collaboration Platform.
Alvar de Wolff, Head of ESG, Bregal Investments