Montagu is proud to announce that it has received validation by the Science Based Targets initiative (SBTi) for its greenhouse gas emissions (GHG) reduction targets. As one of the first PE firms to adopt science-based targets, the validation confirms Montagu’s commitment to acting on climate change and its pledge to build and grow sustainable businesses. The targets apply to Montagu’s corporate operations and its portfolio of investments and are in line with a 1.5 °C pathway.
Montagu has committed to:
- 55% of its eligible private equity investments by invested capital setting SBTi validated targets by 2026, and 100% of its eligible private equity investments by invested capital setting SBTi validated targets by 2030.
- reduce absolute scope 1 and 2 GHG emissions 70% by 2030 from a 2019 base year.
- increase annual sourcing of renewable electricity from 4% in 2019 to 100% by 2030.
Montagu’s portfolio targets cover 95% of its total investment and lending activities by invested capital as of November 2021.
Montagu’s Chief Executive Officer Jason Gatenby says, “I am proud that we are one of the first private equity firms to set science-based carbon reduction targets for our own operations and our portfolio. This reflects our longstanding commitment to reducing carbon emissions and is aligned with the actions that we have already undertaken to support our portfolio companies to decarbonise.”
I am proud that we are one of the first private equity firms to set science-based carbon reduction targets for our own operations and our portfolio.
The science-based targets will become an integral part of Montagu’s longstanding ESG programme and ownership strategy, as well as the full potential plans of its portfolio companies. Montagu believes that every company has an important role to play to drive the transition to a zero-carbon economy. It will continue to work closely with its portfolio companies to assess and reduce carbon emissions across the full investment lifecycle, in line with its business ambition for a 1.5 °C pathway.
Montagu’s commitment to climate action is reflected in a number of actions over the past several years, which include the following key actions in the past 12 months:
- Measuring GHG emissions across all portfolio companies (since 2018). In 2021, 80% of Montagu’s companies measured their scope 1 and 2 emissions.
- Delivering carbon footprinting training to portfolio companies and science-based targets training to its investment teams.
- Creating a new community ‘Sustainability Connect’ on the Montagu Connect platform for individuals leading on ESG initiatives at portfolio companies. Members can raise questions, share resources, and collaborate on sustainability-related topics, including climate.
- Disclosure of emissions in line with the recommendations of the Taskforce for Climate-related Financial Disclosures (TCFD).
- Moving to 100% renewable electricity in its London office.
- Contributing to key industry initiatives, including as active members of the initiative Climat International (iCI).
To find out more please see Montagu’s 2021 Sustainability Report (which includes Montagu’s first report in line with the recommendations of the Taskforce on Climate-related Financial Disclosures).
About the Science Based Targets initiative
The Science Based Targets initiative (SBTi) is a global body enabling businesses to set ambitious emissions reductions targets in line with the latest climate science. It is focused on accelerating companies across the world to halve emissions before 2030 and achieve net-zero emissions before 2050.
The initiative is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI), and the World Wide Fund for Nature (WWF) and one of the We Mean Business Coalition commitments. The SBTi defines and promotes best practice in science-based target setting, offers resources and guidance to reduce barriers to adoption, and independently assesses and approves companies’ targets.