In a step towards increased responsible investing, five French private equity firms have launched the Initiative Carbone 2020 (IC20) to address the carbon footprint of portfolio companies.
IC20, signed by Apax Partners, Ardian, Eurazeo, LBO France and PAI Partners, claimed to be the first private initiative dedicated to managing and decreasing portfolio companies’ greenhouse gas emissions.
The firms have jointly committed to measure both the direct and indirect carbon footprint of 30 sample portfolio companies, raise climate issue as a strategy across all controlled companies and publish company data as of 2020.
They will carry out their efforts in three major areas. In the investment phase, they will assess a company’s carbon footprint in its future development. They will raise climate-change awareness in companies, analyse carbon footprints and define a course of action to reduce that footprint. Finally in the disposal phase, they will “capitalise on the most significant improvements made” and “major progress achieved.”
These five firms collectively manage about €70 billion in assets and sit on the steering committee of the French PE association AFIC’s environmental, social and corporate governance commission.
The signatories of this initiative are: Apax chief executive Eddie Misrahi, Ardian managing director Dominique Gaillard, Eurazeo chief executive Patrick Sayer, LBO France chief executive Robert Daussun and PAI chief executive Michael Paris.
The announcement was made just prior to the United Nations Conference on Climate Change due to take place in Paris on 30 November to 11 December.