Full Title: Private Equity Propels the Climate Crisis: The Risks of a Shadowy Industry's Massive Exposure to Oil, Gas and Coal
Author(s): Alyssa Giachino, Riddhi Mehta-Neugebauer
Publisher(s): Private Equity Stakeholder Project
Publication Date: October 12, 2021
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The private equity industry has pumped hundreds of billions of dollars into fossil fuel companies—buying up offshore drilling in the Gulf of Mexico, propping up fracking operations, expanding infrastructure through pipelines and export terminals, spewing pollution from gas and coal power plants—with minimal public scrutiny.
This report explores the energy holdings for ten of the world’s largest alternative asset managers which combined manage $3 trillion in assets: Ares Management, Apollo Global Management, The Blackstone Group, Brookfield Asset Management/Oaktree Capital, The Carlyle Group/NGP Energy Capital, CVC Capital, KKR, Kayne Anderson, TPG Capital and Warburg Pincus.
The private equity industry must take responsibility for its role in the climate crisis. Firms should disclose all energy holdings and impacts, a plan to swiftly transition to clean energy, and ensure investment practices align with a 1.5 degree Celsius scenario. Investors, regulators and policymakers must compel private equity firms to provide full transparency on their fossil fuel holdings and impacts and act now to ensure a livable future for all.