TCFD Report
Click on “Download Publication” to the left for Actis’ 2023 TCFD Report.
Task Force on Climate-related Financial Disclosures: Foreword
Climate change is an urgent global challenge that must be tackled. Already, its effects are keenly felt, and these will only increase in severity as time goes on, affecting all of us today and in generations to come. There is absolutely no doubt in my mind that it is one of the most pressing issues of our time.
Tackling climate change presents a significant challenge, requiring a vast, complex, multi-decade approach at a global level: all sectors of the economy – public, private, and voluntary – have a role to play.
At Actis we understand the magnitude of the challenge as well as the opportunity. We take our responsibility as one of the leading global investors in sustainable infrastructure very seriously. We are responsible stewards of capital on behalf of our partners. 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.
In addition to being serious custodians of capital, we want to be part of the solution. It is precisely through our investments that we can contribute most deeply to addressing the challenges of climate change and to also realising the opportunities offered by the climate transition. Actis has committed to managing 100% of its assets under management (AUM) in line with a 1.5ºC net zero 2050 pathway. We have also set interim targets: 60% of AUM to be aligning with net zero by 2030, and 50% of AUM in 2030 to be invested in climate solutions.
Like many at Actis, I take great pride in our track record so far. Actis has invested in 23 platforms generating renewable energy across 23 countries, with a renewable installed capacity of c.16GW of clean power. In 2023 alone, Actis investments contributed to over 1 million tCO2e avoided. And it’s not just about renewables of course. Actis is also a major investor into vital enabling infrastructure such as electricity grids as well as transmission and distribution networks. For some of our platforms, learning curves are steep so we’re working to ensure that knowledge and insights are efficiently shared across our portfolio for the benefit of all.
To inform and deepen our understanding of climate risk and opportunity, we undertook a high-quality, semi-quantitative scenario analysis of our portfolio (225 unique locations), against three warming scenarios, assessing physical climate hazards (acute and chronic) within a 25km radius as well as climate transition risks and opportunities.
The work undertaken in preparation of this report has therefore been both broad and deep, and provides us with an excellent source of analysis to further refine our understanding. As ever, the work goes on, and I look forward to discussing it with our valued partners as we continue to invest to transform infrastructure for a better tomorrow.
Torbjorn Caesar
Chairman and Senior Partner
Actis