Sustainable infrastructure investor Actis demonstrates its commitment to tackling climate change by publishing its inaugural Task Force on Climate-related Financial Disclosures (TCFD) Report.

Key Takeaways

• Actis incorporates climate change analysis throughout the investment lifecycle, from initial assessment to ongoing management and exit strategies.
• The company leverages its Actis Transition Tool to support informed investment decisions.
• Actis is committed to achieving net zero emissions by 2050, with ambitious interim targets set for 2030.

This report offers insights into how Actis manages climate risks and opportunities across its entire portfolio. It details their approach to integrating climate considerations into governance, strategy, risk management, and performance measurement.

Actis partnered with AXA Climate to conduct a comprehensive scenario analysis of its portfolio. This analysis covered over 225 assets across 10 different infrastructure sectors and assessed potential impacts from climate change under various warming scenarios. The report outlines the key findings from this analysis, including both physical risks and opportunities related to climate transition.

Torbjorn Caesar, Senior Partner and Chairman at Actis: "We are delighted to share our inaugural TCFD Report. Climate change is an urgent global challenge that must be tackled. At Actis, we understand the magnitude of the challenge as well as the opportunity. We incorporate climate change risks and opportunities into all of our investment decisions. This is not a “nice to have”. It forms a fundamental pillar of how we invest and has done for years."

Shami Nissan, Partner and Head of Sustainability at Actis: “Over the last year, we have undertaken our most in-depth analysis of climate change risks and opportunities, covering hundreds of asset locations. This is very valuable input for us as a firm, but also to our portfolio companies. The analysis supports value preservation via resilience and adaptation measures, helping to future-proof our businesses. It is also critical input to our overall approach on climate change and we are pleased to share our thinking in our inaugural TCFD report.”

Actis' Commitments

The report highlights Actis' commitment to achieving net zero emissions by 2050, aligning with a 1.5°C warming pathway. They have also set ambitious interim goals for 2030:

• Aligning 60% of their Assets Under Management (AUM) with net zero targets.
• Investing 50% of their AUM in climate solutions.

Also, in 2023 alone, Actis' portfolio generated over 11,000 GWh of renewable power, successfully avoiding over 1 million tonnes of CO2 equivalent emissions.

This TCFD report demonstrates Actis' leadership in the sustainable infrastructure space and their commitment to building a future-proof portfolio that addresses the challenges and opportunities presented by climate change.

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Source: Actis