Hg is a private equity firm investing in technology buyouts. Hg joined the Net Zero Asset Managers Inititative in November 2021 and made its Initial Target Disclosure in November 2022.
85% of total AUM
initially committed to be managed in line with net zero
USD $37 billion
currently committed to be managed in line with net zero
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
0% of portfolio companies setting a Science Based Target.
Hg commits that 26% of its PE investments by invested capital will have set science-based targets by FY2026 and 100% by FY2040 from a FY2021 base year.
GHG scopes included:
Hg set science-based targets for both scope 1 & 2, and scope 3 separately. For scope 1 & 2, this covers Hg’s firm-level emissions of our offices. Scope 1 and 2 targets: Hg commits to reduce absolute scope 1 and 2 GHG emissions 50% by FY2030 from a FY2019 base year. Our scope 3 target covers our investments, which fall under scope 3 category 15. The target is as follows: Hg commits that 26% of its PE investments by invested capital will have set science-based targets by FY2026 and 100% by FY2040 from a FY2021 base year. Hg’s portfolio targets cover 85% of total investment and lending activities by invested capital as of 1st November 2021.
Science Based Target initiative for Financial Institutions
Hg has followed the SBTi guidance for private equity. We have worked with an external consultant to model the targets and develop target language for submission to the SBTi in October 2021. The SBTi requires that companies set targets aligned with 1.5 degrees. Our targets were approved by the SBTi in November 2021. We plan to report on progress towards our target through our annual ESG reporting.
Proportion of AUM committed:
Hg has set science-based targets in line with the SBTi guidance for private equity. This states that for ‘Buyout and growth capital,’ investments should be included that are above the 25% threshold of the fully diluted shares of the portfolio company and where Hg has a Board seat. Therefore, investments where Hg has < 25% ownership, ‘minority investments’ have been excluded from our portfolio coverage target and total AUM committed to be in line with net zero. Hg will update the proportion of invested capital covered in our annual ESG reporting. Hg worked with an external party to calculate and submit targets that were approved by the SBTi in November 2021.
Policy on coal and other fossil fuel investments:
As per our Responsible Investment policy, we do not invest in coal or other fossil fuels. Our exclusion list prohibits us from investing in companies in these industries.
Hg had their SBTi target approved in November 2021. Please find the approved targets available on the SBTi website.