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Our Commitment to Net Zero

ACHIEVING NET ZERO BY 2050

We are committed to reaching Net Zero for both our direct emissions – such as from our own offices and staff travel – and emissions from our investment portfolio, by 2050. To achieve this, we have a dedicated Net Zero Steering Committee and will establish ambitious interim emissions targets for 2030. These 2030 targets will be published within the next 12 months and we will report annually on our progress. We are supported in our work by SYSTEMIQ.

We, as Actis, are certified as Carbon Neutral by the CarbonNeutral Protocol, meaning that our direct emissions have been offset to zero. We are also a signatory to the Net Zero Asset Managers Initiative, which supports the goal of Net Zero greenhouse gas emissions by 2050 or sooner.

To accelerate the transition to Net Zero, we are committed to continue investing globally in sustainable infrastructure, which catalyses systemic change and helps the world align to a Net Zero pathway. Alongside this, we remain equally committed to creating sustainability leaders within our portfolio.

Q. What has been Actis’ track record so far?

We have been at the forefront of the energy transition to Net Zero for many years. As the world calls for a decade of action, we are embarking on our third. Over the last two decades, Actis’ renewable power companies have developed 11 GW of renewable energy capacity. This equates to providing renewable energy to approximately 20 million people and avoiding over 20 million tonnes of CO2 being emitted. As a result of this, our portfolio carbon footprint is already very low.

Q. What are the implications of committing to Net Zero for Actis’ current and future investments?

We remain committed to investing behind the transition to Net Zero, so the decisions we make as we mobilise capital now, and in the future, have never been more important. We have developed a Transition Tool, to inform and aid our investment decision-making process. Our Transition Tool is used on every deal and ensures a systematic and robust assessment of climate transition risk.

The Transition Tool helps us sort investments that won’t have a role in a Net Zero world, like coal, from the Green investments that will, like renewable energy. The investments in-between we call Olive. We will only invest in Olive assets if there is a clear pathway to decarbonisation, or it can be shown there is no viable alternative. The Transition Tool also helps us to identify what can be done during our ownership to decarbonise Olive assets to become Smart Olive assets – which is what we call investments than can be adapted to have a role in a low-carbon world, and therefore increase in value.

In short, it means we will invest in all shades of green, from Olive through to Green investments.
In the energy sector, we will continue investing in Green investments, such as renewables. These make up the vast majority of our energy assets and are completely aligned with a Net Zero economy. However, many countries are unable to transition their energy systems from thermal to renewable power overnight, so we apply a country-specific lens and invest in solutions which enable renewables to scale during the transition period.

Many infrastructure and real estate assets will continue to provide important services up to and beyond 2050 but need to start the process of decarbonisation now. We will continue to invest in sustainable buildings and infrastructure sectors, such as district energy and data centres, which are critical for energy efficiency, but also require decarbonisation of power supply to reach Net Zero.

Q. How will Actis monitor these – both when it comes to new investments and existing ones?

We’ve always had Environmental, Social and Governance (EGS) performance indicators for our portfolio companies and applied our proprietary impact measurement framework, the Actis Impact ScoreTM, to assess how our investments contribute to the United Nations’ Sustainable Development Goals (SDGs). In addition to this, we have established our portfolio carbon footprint for 2021, with the support of Carbon Intelligence, and will continue to measure our Scope 1, 2 and 3 carbon emissions annually.

We will provide annual progress updates during our journey to Net Zero.