Private equity GPs need a robust framework to assess climate-related risk and to help guide them through the transition.
This guide sets out the actions that private equity general partners (GPs) can take to address the four-pillar framework of the recommendations proposed by the Task Force on Climate-related Financial Disclosures (TCFD).
The PRI and INDEFI co-authored this guidance based on interviews with GPs, LPs and Service Providers. It includes examples of current practices of GPs who are at different stages of developing a strategy to address climate-related risk.
The guide also highlights practical resources that are available to support GPs in assessing the materiality of climate risk within a portfolio and how to conduct scenario analysis for holding companies.