Responsible Investing Framework for Private Equity
TCDF Implementation: Considerations for Private Equity
Private equity (PE) firms and their portfolio companies (PCs) have a critical role to play in the transition to a low-carbon and climate-resilient economy. The purpose of this document is to support PE firms along their climate journey. It was developed by KPMG at the request of Initiative Climat International (iCI) and the British Private Equity & Venture Capital Association (BVCA) in response to calls from PE firms for practical guidance on climate disclosures that considers the specific context of investors in private markets as well as the diversity in approaches to climate across firms. It also seeks to satisfy the needs of private markets investors for comparable disclosures across firms.
Based on detailed input from a wide range of firms and other stakeholders (including the TCFD itself), the guide is a comprehensive tool that offers detailed practical suggestions on how different firms can use the TCFD recommendations in their climate reporting, either voluntarily or under FCA regulations.
The guide signposts practical tools that already exist, highlights how TCFD reporting can support firms’ understanding of climate risks and opportunities, and proposes a banded approach that reflects different firms’ different characteristics and priorities.