*KPIs based on a sample of 5 portfolio companies selected by the GP, March 2024
Enhancing Investments with Accurate Emissions Measurement
Limited Partners (LPs) are increasingly prioritizing Environmental, Social, and Governance (ESG) initiatives within the portfolios of General Partners (GPs) they invest with. This heightened emphasis highlights the critical need for transparency and accountability in emissions accounting for both GPs and LPs. GPs are actively adopting more precise measurement practices to accurately quantify and manage emissions across their investment portfolios. Through standardized frameworks and advanced technologies, GPs can pinpoint emission hotspots, assess risks, and implement targeted mitigation strategies. This strategic shift not only aligns with global sustainability objectives but also strengthens trust and collaboration between GPs and LPs, ensuring a shared commitment to responsible investment practices.
A Reliable and Streamlined Tool for Carbon Accounting
TPG is one example of a GP that has begun working with its portfolio companies to institute scalable, bottoms-up carbon footprinting aligned with industry best practices. Several companies in TPG’s portfolio have adopted Persefoni Pro as their solution for carbon accounting. The tool enables companies to readily identify emissions hotspots where reductions will have the most impact, along with opportunities for cost savings. It helps companies respond to the rapidly evolving climate disclosure landscape — ultimately establishing a competitive advantage.
Seamless Engagement with Portfolio Companies
To begin with, companies in the GP’s portfolio created free Persefoni Pro accounts, which allowed them to measure their scope 1 and 2 carbon emissions — no prior carbon accounting experience required. Through Persefoni’s Support program (paid add-on), companies connected with climate experts who were available at every step to answer questions and guide them as they measured their footprints for the first time.
The support experience included three steps:
- Concierge Onboarding: After a 30-minute introductory call with a Persefoni climate expert, each company knew exactly what data they needed to collect and who to collect it from.
- Managed Footprint Collection and Calculation: The Concierge team worked with companies throughout the data collection process, answering questions, offering guidance, and finally, helping load their data into the Persefoni platform.
- Footprint Review: After entering its emissions data, each company received a footprint review from Persefoni. They could see the breakdown of their emissions, how emissions were calculated, and which emission factors were used in the process. After reviewing their footprints, companies clicked a single button to immediately share the information with GPs like TPG.
Clarity and Confidence in Emissions Disclosures
By partnering with Persefoni, companies in the GP’s portfolio were able to quickly calculate and report their GHG emissions. Examples of portfolio companies using the platform include:
- A fintech company in South Africa
- A low-carbon materials company in the US
- A financial services company in India
- A solar energy company in the US
After the organizations entered their data into the platform, it typically took less than 30 minutes to receive a carbon footprint from Persefoni. The partnership with Persefoni showed companies that they could streamline emissions calculations in their operations without lengthy or complex processes. These companies now have a strong foundation from which to implement decarbonization strategies. Next year, they’ll calculate their emissions again, tracking progress on their targets over time, and further advancing management of their environmental impacts.
Turning Data Into Action
Partnership with Persefoni promises to spark an even greater impact in the future. Armed with more granular data and deeper insights into their emissions, companies and GPs will be empowered to develop effective reduction strategies — and they’ll be better prepared to meet increasing regulatory demands and stakeholder needs.
As scrutiny over climate impact increases, Persefoni offers a vital addition to the operational toolkit of GPs.
Disclaimer: TPG is an investor in Persefoni.
