Partners Group
At a Glance
Industry
Financial Services and Insurance
Project Types
Goals/Targets, Sustainability and Energy Management Strategy
Year
2021
Location
Denver, CO
Summary
Priyanka Shome worked with Partners Group to help edit and push forward the firm's climate strategy through the creation of target reduction pathways and qualitative scenario analysis.
Goals
Partners Group is a leading global private markets firm. Since 1996, the firm has invested over USD 150 billion in private equity, private real estate, private debt, and private infrastructure on behalf of its clients globally. Partners Group seeks to create lasting positive impact through its commitment to sustainability. The firm enlisted Priyanka Shome to help edit and push forward their climate strategy through the creation of target reduction pathways and qualitative scenario analysis.
Solutions
Pri worked to put together the following for Partners Group's private equity and infrastructure direct investments:
Target GHG Reduction—Methodology & Pathways:
- Outlined differences between SBTI and traditional targets (Differences, pros and cons, considerations, etc.).
- Provided recommendation around which methodology makes sense at this time and which targets to switch to once certain steps are completed.
- Created flexible & adaptable quantitative tool that outputs reduction amount per year needed to achieve different targets under different scenarios.
Scenario Analysis and Carbon Pricing Tool:
- Created a quantitative tool that looks at different variables to understand where in the portfolio there is transition risk due to carbon taxes.
Decarbonization vs. Offsetting Strategy & Tool:
- Put together summary on different types of offsetting and associated costs.
- Estimated cost of different pathways dependent on mix of strategy and other factors.
Identification of Key Themes & Next Steps for Climate Change Strategy:
- Helped develop key themes arising w.r.t. climate change for portfolio companies in real estate, infrastructure, and private equity.
- Helped identify key next steps that will have highest impact on carbon reduction going forward.
Potential Impact
The work Pri was involved with helps Partners Group to better understand the reduction pathway needed to align with the Paris Agreement, as well as the costs of decarbonization, offsetting, and carbon taxes along that pathway. The work around scenario analysis and the carbon pricing tool helps guide climate risk management and helps Partners Group understand where material climate risks may occur and where in the portfolio there is major exposure in terms of physical and transition risk. This piece ties closely to Partners Group's work around TCFD reporting for 2021. Finally, identification of key themes and next steps across asset classes and portfolio companies helps Partners Group prioritize material ESG risks and opportunities as they work to transition to a low carbon economy.