The Initiative Climat International (iCI) today launched a brief guide to help facilitate more effective disclosure of GHG emissions between companies and their fiscal sponsors, direct lenders and other debt-holders.
The ultimate objective of the guide is to promote the measurement of GHG emissions, thus improving the transparency of decision-useful climate-related disclosures that too few companies currently produce.
Today, readily available guidance on GHG emissions measurement is complex, impacting its accessibility for senior company executives to implement. This guide aims to address this by providing companies with concise and practical guidance on the foundational steps to measuring and reporting on GHG emissions.
The guide synthesises insights, resources and tools from globally recognised organisations and standards to inform and facilitate key decisions and promote measurement and information sharing. This includes frameworks to measure, report and set reduction targets for GHG emissions, such as the GHG Protocol, the Task Force on Climate-related Financial Disclosures (TCFD) and the Science Based Targets initiative (SBTi).
The new guide has been developed by iCI’s Private Credit Working Group, co-chaired by ICG and Oak Hill Advisors, two alternative asset managers with diversified private credit businesses.
Bettina Reinboth, Director Sustainability Initiatives, Principles for Responsible Investment (PRI), commented:
Ivo Dimov, ICG and Jeff Cohen, Oak Hill Advisors, Co-Chairs of iCI’s Private Credit Working Group, commented:
Sabrina Fox, CEO of European Leveraged Finance Association (ELFA) added:
To date, the guide has received strong multi-stakeholder support from the European Leveraged Finance Association (ELFA), Loan Syndications and Trading Association (LSTA), CDP, Loan Market Association (LMA), Asia Pacific Loan Market Association (APLMA), and others.
Download the report:
About the Initiative Climat International (iCI)
iCI is a global, practitioner-led community of private markets firms and investors that seek to better understand and manage the risks associated with climate change.
iCI’s members share a commitment to reduce carbon emissions of private equity-backed companies and secure sustainable investment performance by recognising and incorporating the materiality of climate risk. In practice, this implies a commitment to effectively analyse and manage climate-related financial risk and GHG emissions within their portfolios, in line with the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD). Members commit to sharing knowledge, experience and best practice, working together to develop resources that will help standardise practices across the industry.
Over 250 member firms with collectively USD4.3 trillion of assets under management (as of July 2023) have joined the iCI. The initiative is formally endorsed by the PRI, is a Supporting Partner of The Investor Agenda, and enjoys fruitful partnerships with CDP and Ceres, and private equity and venture capital associations BVCA and France Invest.
About iCI Private Credit Working Group
The iCI Private Credit Working Group comprises experienced practitioners from firms with a range of private credit investment strategies.
We thank the broader network of iCI members for their consultation, and Baseline Group for their kind sponsorship of the design.
For questions please contact:
Specialist, Asset Class Initiatives, PRI
ICG provides flexible capital solutions to help companies develop and grow. We are a leading global alternative asset manager with over 30 years’ history, managing $82.1 billion of assets and investing across the capital structure. We operate across four asset classes: Structured and Private Equity, Private Debt, Real Assets, and Credit.
We develop long-term relationships with our business partners to deliver value for shareholders, clients, and employees, and use our position of influence to benefit the environment and society. We are committed to net zero across our operations and relevant investments by 2040.
For further information please contact:
About Oak Hill Advisors
OHA is a leading global alternative investment firm specializing in private lending, distressed credit, structured credit, real assets, special situations, leveraged loans and high yield bonds. OHA manages approximately $61 billion of capital across credit strategies in pooled funds, collateralized loan obligations and single investor mandates. The firm’s global, primarily institutional investor base includes pension funds, sovereign wealth funds, insurance companies, foundations, endowments, fund of funds, family offices and high net worth individuals.
Oak Hill Advisors is a subsidiary of T. Rowe Price. For more information, please visit oakhilladvisors.com.