Apex Group has launched a carbon footprint assessment and reporting service to meet the growing market demand to tackle climate change.
The new service will allow funds and companies to measure sources of emissions, implement plans to reduce their carbon footprint and provide a mechanism to offset any residual emissions, said the financial services provider.
A new survey carried out by Apex found that 91% of private equity leaders believe that climate change is an urgent issue and that 81% believe their portfolio companies should take more responsibility for their carbon footprint.
However, the survey found that only half of private equity firms currently measure the carbon footprint of their investments or offset their carbon emissions.
Of those surveyed, 74% agree or strongly agree that a carbon reduction plan would be beneficial to their key stakeholders, including employees, institutional investors and clients.
Apex’s new offering collects relevant data on an ESG online software platform to simplify the reporting requirements and calculate a carbon footprint, quantifying and reporting on a company’s Scope 1, 2 and 3 emissions.
Major sources of emissions can be identified and managed using the reports, while still aligning with the reporting requirements of key standards and regulations.
“Beyond the moral and fiducial argument for reducing carbon emissions, there are now increasing commercial and regulatory pressures creating new risks to the bottom line,” said Andy Pitts-Tucker, managing director, Apex ESG Ratings and Advisory.
“All companies must quantify and understand their carbon footprint in order to create and articulate an action plan to reduce their carbon emissions – and this new tool provides our clients with an efficient, accurate and accessible way to achieve this.”
Earlier this month, A BNP Paribas survey found that ESG is maturing more quickly than expected. Similarly to Apex’s findings, BNP Paribas found that in the next two years 34% of investors plan to incorporate ESG into at least 75% of their portfolios, showing an increased interest in ESG in investments as a whole.
“I feel strongly that climate change is not an issue to be solved by politicians alone, we as private companies and individuals all have a responsibility to take immediate action to understand and reduce our impact on the environment,” said Peter Hughes, CEO and founder of Apex Group.
“The pressure on businesses and investors is gathering momentum and will be accelerated by all world leaders meeting at the UN COP26 this November. The time to drive positive and measurable change is now.”