Climate

At Montagu, we recognise the urgent issue of climate change and are committed to our pledge to support the transitioning to a zero-carbon economy.

Montagu is committed to reducing negative climate impacts and taking meaningful action to create positive impacts amongst the companies we are invested in.

We believe that climate action is not only a responsibility for any business, but that failure to address the 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 carbon-neutral economy. Montagu’s sector focus means that our portfolio generally has a low-risk profile from a climate perspective. Nevertheless, we continuously engage with all our portfolio companies to assess their climate risk and engage on material matters relating to climate and emissions.

Each portfolio company is asked annually to report metrics supporting their greenhouse gas emissions and reduction plans. During 2020, Montagu commissioned an assessment of the entire portfolio’s climate and environmental impact, which we use to target our engagement activities.

We will share more information on our climate strategy in our upcoming 2021 Sustainability report.

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 October 2021, Montagu has signed up to the Science-Based Targets initiative (SBTi). By signing up to the SBTi, we are committing to set science-based emissions reduction targets across all the value chain, that are consistent with keeping global warming 1.5°C above pre-industrial levels. Setting science-based targets further formalises our pledge to build and grow sustainable businesses that do good both for people and the planet by providing financing, relationships, expertise and resources. We will continue to work with our portfolio companies to assess and reduce carbon emissions, in line with the business ambition for 1.5 °C.