Carbon accounting as a strategic imperative for private equity fund managers

Private equity fund managers are at a pivotal moment in the global shift to a low-carbon economy, where carbon accounting has become a strategic imperative rather than a compliance exercise. Rising LP expectations and evolving regulatory frameworks such as IFRS S2, ESRS E1 and TCFD are embedding greenhouse gas measurement into financial governance, linking climate competence to fiduciary performance, valuation, cost of capital and exit outcomes. While challenges remain—particularly around Scope 3 emissions, data quality, methodological trade-offs and the governance of AI-enabled tools—robust emissions measurement and oversight can deliver meaningful competitive advantage.

By establishing strong carbon baselines, prioritising material emissions, adopting a hybrid top-down and bottom-up approach, and integrating carbon metrics into investment and value-creation processes, fund managers can enhance resilience, support long-term value creation and position their portfolios for success in an accelerating decarbonisation landscape.

Work/Business Email *

First Name *

Last Name *

Job Title *

Company Name *

Country *

Firm Type *

Hedge Fund Manager

Private Markets Manager

Allocator

Hedge Fund Service Provider

Private Markets Service Provider

Other

I have read and understood the Terms and Conditions*

Yes

I have read and understood the Privacy Policy*

Yes