Climate

At Montagu, we recognise the urgent issue of climate change and are committed to support the transition to a net zero economy.

Montagu is committed to reducing emmissions and supporting meaningful action amongst the companies we are investing in.

We believe that climate action is not only a responsibility for any business, but that failure to assess and address exposure to climate change adds significant risk to any investment. There are also opportunities for positive returns from a reduction in carbon emissions and from investment in activities that will benefit from the transition to a net zero economy. Montagu’s sector focus means that our portfolio generally has a low-risk profile from a climate perspective. Nevertheless, we continue to engage with all our portfolio companies, assess their climate risk and engage on material matters relating to climate and emissions.

Each portfolio company is asked annually to report metrics regarding their greenhouse gas emissions and reduction plans.

In 2020, Montagu joined the UK network of the Initiative Climat International (iCI), a network of private equity investors seeking to reduce carbon emissions and build and manage climate-aligned and resilient portfolios. One of the key principles of iCI is to share best practice amongst private equity peers, enabling the members to better understand the risks associated with climate change.

In April 2022, Montagu received validation from 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 confirmed 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 Managing Partner – Chair, 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.”