Private equity firms increase investments in fossil fuel emitters

Private equity firms are increasingly investing in major greenhouse gas emitters despite global pressure for an energy transition. A report by the Private Equity Climate Risks Consortium reveals that portfolios from 20 private equity firms fund companies responsible for 1.5 billion tons of greenhouse gas emissions annually. This volume exceeds the annual emissions of any single country except for China, the United States, India, and Russia.

While many institutions introduced stricter environmental, social, and governance (ESG) criteria following the Covid-19 pandemic, many have since retreated from these targets. These top firms manage approximately $7.3 trillion in assets, granting them significant influence over global financial decisions and the continued development of fossil fuel infrastructure, including oil, natural gas, and coal.