Actis publishes first TCFD Report with climate scenario analysis across 225 asset locations and 10 sectors
LONDON, 1 July 2024: Actis, a leading global investor in sustainable infrastructure, has published its first Task Force on Climate-related Financial Disclosures (TCFD) Report, which aims to inform and deepen understanding of climate risks and opportunities across its portfolio.
The TCFD Report sets out the Actis approach to managing climate change risks and opportunities – including how climate change is factored into governance, strategy, risk management and metrics. The report describes how Actis incorporates climate change analysis at different stages of the investment cycle, from due diligence to portfolio management to exit, whilst leveraging the Actis Transition Tool to support investment decision making. Actis has committed to net zero by 2050 and the report outlines the 2030 interim targets in pursuit of that goal.
Actis worked with AXA Climate to undertake a rigorous, semi-quantitative scenario analysis of its portfolio, comprising 225 unique asset locations and 10 infrastructure sectors, against three global warming scenarios. The analysis assessed acute and chronic physical climate hazards within a 25km radius of each asset, as well as transition risks and opportunities. The key findings of the scenario analysis are set out in the report.
Torbjorn Caesar, Senior Partner and Chairman at Actis, commented: "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, said: “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 has committed to net zero by 2050, with a 1.5°C-aligned pathway, and also set interim targets, including for 60% of AUM to be aligning with net zero by 2030 and 50% of AUM to be invested in climate solutions by 2030. In 2023 the firm’s portfolio generated over 11,000 GWh of renewable power, avoiding 1,084,148 tCO2e.