Stonepeak
Stonepeak is a leading alternative investment firm specializing in infrastructure and real assets. Stonepeak joined the Net Zero Asset Managers Initiative in October 2021 and made its Initial Target Disclosure in November 2022.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
35% of total AUM (USD $18 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Portfolio coverage baseline
22% of AUM in material sectors is considered net zero, aligned, or aligning.
Portfolio decarbonisation reference baseline
Scope 1-2 emissions intensity ($ EBITDA per tCO2e) • Energy (traditional) – $476 • Transport – $376 • Communications and Digital – $4,472
Engagement threshold baseline
22% of AUM in material sectors is considered net zero, aligned, or aligning.
Allocation to climate solutions baseline
8% of AUM allocated to climate solutions.
Target(s):
Portfolio coverage target
35% of AUM in material sectors will be considered net zero, aligned, or aligning by 2030.
Portfolio decarbonisation reference target
Scope 1-2 emissions intensity ($ EBITDA per tCO2e) • Energy (all) – $953 • Transport – $752 • Communications and Digital – $8,944
Engagement threshold target
35% of financed emissions in material sectors will be considered net zero, aligned, or aligning by 2030.
50% of financed emissions are subject to direct or collective engagement and stewardship actions by 2030.
Allocation to climate solutions target
10% of AUM allocation to climate solutions.
GHG scopes included:
Stonepeak engages with its controlled portfolio companies for whom GHG emissions is a material item – which, practically, is all businesses within Stonepeak’s existing investment remit excluding renewable energy development businesses and early stage businesses – to have management prepare scope 1 and 2 GHG inventories annually, in line with commonly accepted standards (such as the World Resources Institute). Further, Stonepeak acknowledges that scope 3 emissions may be material – particularly for traditional energy businesses – and to that end encourages these businesses to, where possible, define and report their scope 3 emissions.
Methodology:
Net Zero Investment Framework
Scenario(s):
We believe that credible and achievable paths to Net Zero need to be tailored for the circumstances, challenges, and opportunities unique to each region and sector and that Science Based Targets (SBTs) represent a comprehensive third-party verification of credible emissions reductions pathways in line with the Paris Agreement and a 1.5°C Net Zero future. Where feasible, we utilize SBTs as the standard or all of our controlled portfolio company emissions reduction plans and are in the process of rolling out SBTs across our current portfolio.
Additional information
Proportion of AUM committed:
AUM managed in line with net zero may be less than 100% based on the following: 1.) Governance constraints with respect to underlying investments, pertaining either to Stonepeak’s governance of the company itself (e.g. investments that are less than majority equity control) or governance of the underlying investment vehicle; 2.) No current methodology for managing to net zero currently available, or; 3.) A net zero-aligned business plan may not be feasible for certain investments due to commercial or legislative constraints. We continue to increase the percentage AUM managed in line with Net Zero over time as reliable methodologies become available for asset classes and as engagement efforts lead to increased proportion of investee companies aligning with sector/market-relevant net zero ambitions.
Policy on coal and other fossil fuel investments:
Stonepeak is an active investor globally within the energy spectrum – across traditional, transitional, and renewable energy sectors – and believes each subsector has an important yet differing role to play within the underway multidecade energy transition, the success of which is critical to achieving NZ2050. Stonepeak believes that effectuating a smooth and inclusive energy transition – in which societal needs, energy independence, and decarbonization considerations are balanced – requires ongoing investment in and responsible ownership of traditional energy assets. We believe this approach is both compatible with and supportive of net zero ambitions, as successful and widespread decarbonization requires responsible investment into and stewardship of assets in carbon-intensive sectors.