World’s top 20 private equity firms produce more greenhouse gases a year than most countries, report finds
Firms manage $7.3tn in assets and could afford to transition away from fossil fuels yet invest in natural gas and coal-fired plants to power datacenters
TL;DR
- The energy portfolios of 20 private equity firms emit 1.5 billion tons of greenhouse gases annually, exceeding the emissions of most countries.
- These firms manage $7.3 trillion in assets and possess the capacity to accelerate the transition away from fossil fuels.
- Their energy investments include significant fossil fuel assets like natural gas and coal-fired power plants, used to supply electricity for data centers.
- The Private Equity Climate Risks Consortium's analysis found these firms own extensive fossil fuel infrastructure, including pipelines, power plants, and oil/gas fields.
- Half of the top 10 US data center owners are backed by private equity, with the industry facing scrutiny for its contribution to global emissions.
- Private equity has funded over $1 trillion in fossil fuel assets since 2010, with some firms increasing their fossil fuel holdings.
- Investments in utilities and data centers by the same private equity firms raise questions about potential conflicts of interest.
- The financial returns from oil and gas-focused private equity funds have barely broken even, contradicting claims of reliable performance.