ICG recognises that climate change poses risks and opportunities that may impact the value of our investments. The majority of scientific opinion supports the view that the climate is warming, due to significant increases in the level of carbon dioxide (CO2) in the atmosphere, predominantly caused by human activity.
Climate change may have a number of impacts on our portfolio investments going forward, ranging from changes to regulation and policy as governments seek to limit emissions, to direct impacts on assets as a result of extreme weather events (cyclones, storms and bushfire), changes to weather patterns (flooding and droughts) and rising sea levels.
ICG also recognises the opportunities that climate change may present. We have long recognised the global trend towards a low carbon future, and have been an active renewable energy investor for over a decade. We continue to seek investments for our renewable-focused investment fund. Across ICG’s non-renewable portfolio, sustainability remains a key focus, with a number of our investments undertaking a range of initiatives aimed at reducing emissions and increasing sustainability.
We are supportive of the Paris Climate Agreement’s goal to limit global warming to below 2 degrees Celsius. We are also a supporter of the Task Force on Climate-related Financial Disclosures (TCFD), which aims to develop a voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to investors and stakeholders. We will be looking to incorporate TCFD recommendations in our reporting and disclosure.
Where practicable, ICG aims to:
- Incorporate climate change risks and opportunities into its investment process;
- Monitoring climate risks across the portfolio as part of asset management, and report to our stakeholders;
- Seek to improve the climate-related disclosures of our portfolio companies;
- Improve our own climate-related disclosure through adoption of TCFD recommendations; and
- Increase awareness of climate change through industry memberships and collaborative initiatives.