A guide on climate change for private equity investors

This is a guide on current and emerging practice in the developing area of assessing climate change impacts on private equity investments. The guide comprises two sections:

• Section 1: summarises the rationale for incorporating climate change concerns in private equity investments; and
• Section 2: presents a framework that Limited Partners (LPs) and General Partners (GPs) can use in due diligence, and when engaging with their fund and portfolio company investments.

The framework presents a series of questions that LPs can ask their GPs, and that GPs can ask current or potential portfolio companies. Each question is supported by guidance explaining the rationale of the question, along with examples of emerging practices.