Incorporating climate changes in private markets: an investor resource guide

Year published
Regulation compliance
SDG Investments

This resource guide is aimed at direct and indirect private equity and real assets equity investors looking to identify publicly available resources and initiatives to help them incorporate climate change considerations throughout the investment process.

It builds upon the Investor Agenda’s Investor Climate Action Plans (ICAPs) expectations ladder and associated guidance document which were published to help investors develop comprehensive net-zero transition strategies across asset classes and serve as a baseline of how they can plan to implement climate pledges.

This document complements the PRI’s Climate change for private markets resource hub by contextualising the resources included there – we encourage readers to use them together.

It is not exhaustive, however, and does not cover the non-financial disclosure requirements and climate-related considerations that are increasingly being mandated by regulation, including the Sustainable Finance Disclosures Regulation, the Financial Conduct Authority’s Sustainable Disclosure Requirements, and country- or regional-level sustainable finance taxonomies.

We will periodically update this document and the resource hub and encourage signatories to suggest additional resources for consideration. Contact us at [email protected].

Using this resource guide
The ICAPs expectations ladder covers five focus areas: investment, corporate engagement, investor disclosure, governance and policy advocacy.

This guide maps the relevant actions for these (with the exception of policy advocacy[1]) against the investment process of indirect and direct private markets investors (see Figure 1) and provides commentary and links to relevant PRI or third-party guidance that can inform their action plans.

Readers are encouraged to use Figures 2 and 3 to navigate the indirect and direct investor sections respectively. Clicking on an investment stage or topic will redirect readers to that part of the guide.