Sustainable infrastructure investor Actis announced a landmark step in the fight against climate change with the issuance of its inaugural Task Force on Climate-related Financial Disclosures Report. This report presents a major milestone in the commitment of integrating climate change considerations by Actis within its investment strategies and operations.
Integrating Climate Change into Investment Strategies
Actis aims to integrate climate change analysis in the entire investment life cycle—from the very early stages of considering an opportunity for investment to active management and finally exits. The company draws on the Actis Transition Tool to facilitate informed investment decision-making and, therefore, to have climate-related risks and opportunities baked into its strategic plans.
One of the core commitments of Actis is to net zero by 2050, with interim targets set for 2030 that are ambitious. This report presents an in-depth review of how Actis manages the climate risk and opportunities inherent in its portfolio. It puts on record how the firm integrates climate considerations into governance, strategy, risk management, and measurement of performance.
Collaborative Climate Analysis
Actis aimed to strengthen this approach by conducting a detailed scenario analysis for its portfolio alongside AXA Climate. The ten especially differentiated infrastructure sectors considered included over 225 assets and estimated the potential climate change impact considering various warming scenarios. This report presents some of the main results of that exercise, both in terms of physical risks and opportunities arising from transition to a low-carbon regime.
Scenario analysis is an integral part of Actis’ overall strategy on the changing climate—and for this very reason: it provides invaluable insight into resilience and adaptation measures to future-proof investments. This detailed review helps protect value while giving meaning to the company’s broader climate change approach.
Commitment to Net Zero and Climate Solutions
In the present report, Actis has restated its commitment to net zero emissions by 2050 at the latest, in line with a 1.5°C warming pathway. They have set very stretching interim targets for 2030—aligning 60% of their assets under management with as yet undeveloped net zero targets and investing 50% of their assets under management in climate solutions.
Within 2023 alone, the Actis portfolio generated over 11,000 GWh of renewable power, avoiding over 1 million tonnes of CO2 equivalent emissions. These are robust indicators of Actis’ proactive stance toward climate change mitigation and investment in sustainable infrastructure solutions.
Sustainable Infrastructure Leadership
The release of the TCFD report proudly places Actis at the forefront of leadership in sustainable infrastructure. The firm has been working on constructing future-proof portfolio approaches to solving issues and unlocking opportunities related to climate change. Through the systematic factoring in of climate-related risk and opportunity across the investment cycle, Actis seeks to drive positive environmental impact alongside the delivery of sustainable returns for investors.
Actis has clearly marked strategic partnerships and rigorous climate analysis in its commitment to sustainability. To the other investors, Actis’ art of handling climate risks and opportunities stands out as exemplary. Its TCFD report holds the Actis’ approach transparent and accountable to the reinvigorated duty of acting as a leader in low-carbon transition.
Future Outlook
Actis continues to grow its portfolio and invest in climate solutions while keeping the big picture in view: long-term sustainability goals. Not only is the TCFD report going to set a leading example for future reporting, but it also will bring up the urgent requirement of integrating climate perspectives into investment decisions. Its proactive stand on mitigating climate change places Actis at par with any forward-thinking investor who feels strong commitment toward driving innovation and sustainability in this infrastructure sector.
Specifically, the first TCFD report from Actis showcases their high dedication to combating climate change through strategic investment and robust analysis on climate. Actis is leadership-positioned in sustainable infrastructure investment toward a resilient and environmentally responsible future with bold targets set and leading-edge tools deployed in their work.
Source: Actis