A mid-market private equity firm with investments in the UK, Europe, and the US, CGE Partners focuses on purpose-driven, high-growth, technology-enabled businesses in sectors like risk and compliance, information services, and health technology.
CGE is a values-driven organization. As a Certified B Corp, ethical considerations and ESG impacts are incorporated into the company’s operations and are integral to its investment decisions. As part of this approach, CGE invests in businesses with a clear purpose and vision.
In 2022, CGE decided to step up its carbon accounting efforts. The firm partnered with Persefoni to improve the accuracy and depth of its climate reporting, spur decarbonization in its portfolio, and further align with its responsible investing goals.
Expanding data collection efforts
Since it first launched, CGE had measured its firm-level emissions. Still, the team wanted to collect more granular data and sought additional support to navigate the carbon accounting process. They wanted to reliably measure their operational footprint along with the operational footprints of their portfolio companies. They also hoped to roll up carbon data from their portfolio into their overall firm reporting in alignment with the Partnership for Carbon Accounting Financials (PCAF).
Intuitive software, expert insights
CGE’s team set out to find a trusted carbon accounting partner that featured leading technology backed up by deep climate expertise. They researched and met with several software providers before partnering with Persefoni. Climate and finance expertise, hands-on customer support, and reliable, intuitive technology were among the features that prompted their selection.
Helping portfolio companies calculate their emissions
After carrying out a full review, the CGE team recognized that their portfolio companies would benefit from the Persefoni team's guidance and the platform’s capabilities to collect and manage their data. With Persefoni, they have been able to gather data on the operational footprints of all their investments and have incorporated this information into their overall sustainability reporting.
Using a shared, centralized platform was crucial to the process — it simplified data collection for portfolio companies across different jurisdictions and offices and facilitated communication and reporting with CGE.
A phased approach
To make the transition smoother, CGE’s team decided to adopt a phased approach, gradually introducing carbon accounting to their portfolio companies. They set a target of helping all investments collect scope 1 and 2 data in the first year of reporting, expanding to scope 3 data in the second year. With Persefoni’s easy-to-use software and expert guidance, aided by seamless onboarding and committed support, they found the process wasn’t as daunting as they had initially thought.
Looking ahead
The CGE team is buoyed by the success they’ve already achieved, not just at the firm level but within its portfolio. For example, one of CGE’s portfolio companies was able to use the robust, assured data it collected to set a Science-Based Target (SBT), an important step on the journey to net zero. CGE plans for other portfolio companies to follow suit.
Moving forward, CGE will continue to expand its carbon accounting and sustainability reporting. To this end, the team is working to collect more granular data, focusing on activity-based rather than spend-based data. This approach will help them set ambitious and achievable emissions reduction targets — ultimately leading to faster, more effective decarbonization.
Partnership Publications
