The Initiative Climat International (iCI) today launched a brief guide to help facilitate more effective disclosure of GHG emissions between companies and their fiscal sponsors, direct lenders and other debt-holders.
The ultimate objective of the guide is to promote the measurement of GHG emissions, thus improving the transparency of decision-useful climate-related disclosures that too few companies currently produce.
Today, readily available guidance on GHG emissions measurement is complex, impacting its accessibility for senior company executives to implement. This guide aims to address this by providing companies with concise and practical guidance on the foundational steps to measuring and reporting on GHG emissions.
The guide synthesises insights, resources and tools from globally recognised organisations and standards to inform and facilitate key decisions and promote measurement and information sharing. This includes frameworks to measure, report and set reduction targets for GHG emissions, such as the GHG Protocol, the Task Force on Climate-related Financial Disclosures (TCFD) and the Science Based Targets initiative (SBTi).
The new guide has been developed by iCI’s Private Credit Working Group, co-chaired by ICG and Oak Hill Advisors, two alternative asset managers with diversified private credit businesses.
Bettina Reinboth, Director Sustainability Initiatives, Principles for Responsible Investment (PRI), commented:
This guide is a practical, tangible resource that will facilitate GHG emissions measurement for companies and encourage transparency. It highlights the important role of private credit investors and lenders in helping companies measure, report and reduce their emissions.
Ivo Dimov, ICG and Jeff Cohen, Oak Hill Advisors, Co-Chairs of iCI’s Private Credit Working Group, commented:
Meeting the pressing challenges of climate change requires the concerted effort of a diverse range of stakeholders including lenders. With this guide, we seek to help companies navigate the complex and dense technical content available, and make it easier to measure, reduce and disclose GHG emissions. We believe this is an important, foundational step that provides lenders, fiscal sponsors and other stakeholders with the climate related information that is necessary to make strategic decisions and fulfil current and future regulatory obligations.
Sabrina Fox, CEO of European Leveraged Finance Association (ELFA) added:
ELFA fully supports this much needed guide for borrowers on disclosing emissions, designed to aid them in providing crucial information to lenders. The report aligns with ELFA’s ongoing work to improve disclosure on ESG topics in the leveraged finance market and to develop best practice guidance on ESG disclosures for corporate borrowers. This guidance is an essential step in addressing the urgent, global issue of climate change.
To date, the guide has received strong multi-stakeholder support from the European Leveraged Finance Association (ELFA), Loan Syndications and Trading Association (LSTA), CDP, Loan Market Association (LMA), Asia Pacific Loan Market Association (APLMA), and others.
Download the report:
Carbon Footprint Measurement: A Concise Guide for Companies and their Lenders
About the Initiative Climat International (iCI)
iCI is a global, practitioner-led community of private markets firms and investors that seek to better understand and manage the risks associated with climate change.
iCI’s members share a commitment to reduce carbon emissions of private equity-backed companies and secure sustainable investment performance by recognising and incorporating the materiality of climate risk. In practice, this implies a commitment to effectively analyse and manage climate-related financial risk and GHG emissions within their portfolios, in line with the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD). Members commit to sharing knowledge, experience and best practice, working together to develop resources that will help standardise practices across the industry.
Over 250 member firms with collectively USD4.3 trillion of assets under management (as of July 2023) have joined the iCI. The initiative is formally endorsed by the PRI, is a Supporting Partner of The Investor Agenda, and enjoys fruitful partnerships with CDP and Ceres, and private equity and venture capital associations BVCA and France Invest.
About iCI Private Credit Working Group
The iCI Private Credit Working Group comprises experienced practitioners from firms with a range of private credit investment strategies.
We thank the broader network of iCI members for their consultation, and Baseline Group for their kind sponsorship of the design.
For questions please contact:
Sixtine Dubost
Specialist, Asset Class Initiatives, PRI
[email protected]
About ICG
ICG provides flexible capital solutions to help companies develop and grow. We are a leading global alternative asset manager with over 30 years’ history, managing $82.1 billion of assets and investing across the capital structure. We operate across four asset classes: Structured and Private Equity, Private Debt, Real Assets, and Credit.
We develop long-term relationships with our business partners to deliver value for shareholders, clients, and employees, and use our position of influence to benefit the environment and society. We are committed to net zero across our operations and relevant investments by 2040.
ICG is listed on the London Stock Exchange (ticker symbol: ICP). Further details are available at www.icgam.com. You can follow ICG on LinkedIn and Twitter.
For further information please contact:
Clare Glynn
Director, Head of Corporate Communications
+44 (0)20 3545 2000
[email protected]
About Oak Hill Advisors
OHA is a leading global alternative investment firm specializing in private lending, distressed credit, structured credit, real assets, special situations, leveraged loans and high yield bonds. OHA manages approximately $61 billion of capital across credit strategies in pooled funds, collateralized loan obligations and single investor mandates. The firm’s global, primarily institutional investor base includes pension funds, sovereign wealth funds, insurance companies, foundations, endowments, fund of funds, family offices and high net worth individuals.
Oak Hill Advisors is a subsidiary of T. Rowe Price. For more information, please visit oakhilladvisors.com.
For further information please contact:
Natalie Harvard
Head of Investor Relations & Partner
+1 (212) 326-1505
[email protected]
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