Hg in group of seven pioneering firms representing €133bn AUM to combat climate change by setting ambitious science-based targets
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Hg, a leading software and services investor, is proud to announce today that it is one of the first PE firms globally to have had their carbon reduction targets approved by the Science Based Targets initiative (SBTi).
As a founding member of the iCI, Hg has played a key role in supporting the development of the SBTi PE guidance, setting a new standard for the PE industry.
Hg is one of the seven pioneering firms who have invested in and worked together to create this standard, as well has having their targets approved. This has been a collaborative effort – working with Astorg, Bregal Investments, FSN Capital, ICG and Investindustrial, and alongside other members of the iCI and Anthesis, to create the first guidance and targets tailored specifically for the PE industry, to help align their investment portfolios and operations to well-below 2°C and 1.5°C climate scenarios – with all targets approved and validated by the Science Based Targets initiative (SBTi).
As part of this initiative, Hg’s detailed targets include:
50% reduction in our direct emissions (Scope 1 and 2) by 2030
All portfolio companies to have adopted science-based targets by at least 2040
“Hg is delighted to have worked together with the other members of the iCI, the SBTi and Anthesis to develop this guidance for the PE sector. It is setting the standard not only for PE firms that want to commit to credible carbon reduction targets, but also for the businesses we invest in. As a leading global software investor, we hope that this will have a positive impact and drive change in the sectors in which we invest.”
Matthew Brockman, Managing Partner at Hg.
“The urgency to make significant change, quickly, has only increased in this last year. Since the latest IPCC report, we know there is an immediate urgency to shift to more sustainable practices as soon as possible – especially in the financial sector. A tailored guidance for private equity firms helps achieve these goals by enabling efficiency and accelerating the process for investors to establish science-based targets. It is a massive success within the sustainable finance sector and will drive change at the pace we need.”
Alberto Carrillo Pineda, Managing Director and Co-founder of the SBTi.
If you are interested in knowing more about Hg’s commitment in this space, please see our newly launched and first ever Taskforce on Climate-related Financial Disclosures Report 2021 which can be found on Hg’s Responsibility webpage here: https://hgcapital.com/responsibility/
About the Science Based Targets initiative
The Science Based Targets initiative (SBTi) is a global body enabling businesses to set ambitious emissions reductions targets in line with the latest climate science. It is focused on accelerating companies across the world to halve emissions before 2030 and achieve net-zero emissions before 2050.
The initiative is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF) and one of the We Mean Business Coalition commitments. The SBTi 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. www.sciencebasedtargets.org @sciencetargets
Hg is a leading investor in software and services, focused on backing businesses that change how we all do business. Deep technology expertise, complemented by vertical application specialisation and dedicated operational support, provides a compelling proposition to management teams looking to scale their businesses. Hg has funds under management of around $40 billion, with an investment team of over 140 professionals, plus a portfolio team of more than 40 operators, providing practical support to help our businesses to realise their growth ambitions. Based in London, Munich and New York, Hg has a portfolio of over 35 software and technology businesses, worth around $78 billion aggregate enterprise value, with over 55,000 employees globally, growing at over 20% per year. Visit www.hgcapital.com for more information.
About the UN Principles for Responsible Investment
The Principles for Responsible Investment (PRI) is the world’s leading proponent of responsible investment. Supported by the United Nations, it works to understand the investment implications of environmental, social and governance (ESG) factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions. The PRI acts in the long-term interests of its signatories, of the financial markets and economies in which they operate and ultimately of the environment and society as a whole. Launched in New York in 2006, the PRI has grown to more than 4,300 signatories, managing over $121 trillion AUM.
About Initiative Climat International (iCI)
iCI was the first international initiative for private equity firms aiming to address climate change. It was originally launched as the iC20 (Initiative Climat 2020) in 2015 by a group of French private equity firms to contribute to achieving the Paris Agreement’s objectives – to limit global warming to well below 2C, and to pursue efforts to limit warming to 1.5C.
iCI is a global community of investors seeking to understand better and manage the risks associated with climate change. Members commit to sharing knowledge, tools, experience and best practice among peers to help build and manage both climate‐aligned and climate‐resilient portfolios. iCI is supported by the Principles for Responsible Investment, and is a Supporting Partner of The Investor Agenda. iCI is open to all private equity firms and investors to join.
For further information, please visit collaborate.unpri.org/group/761/stream.