GREENHOUSEGASACCOUNTING&REPORTINGFORTHEPRIVATEEQUITYSECTOR1ReferenceSectionScope1,2and3Section1FinancedEmissionSection2IntroductionReports&MetricsSection3NextStepsAppendicesGreenhouseGasAccountingandReportingFORTHEPRIVATEEQUITYSECTORProducedinpartnershipwithERMEndorsedby:Supportedby:GREENHOUSEGASACCOUNTING&REPORTINGFORTHEPRIVATEEQUITYSECTOR3ReferenceSectionScope1,2and3Section1FinancedEmissionSection2IntroductionReports&MetricsSection3NextStepsAppendicesINTRODUCINGTHEPROJECTTEAMIntroducingtheiCITheInitiativeClimatInternational(iCI)isaglobal,practitioner-ledcommunityofprivateequityfirmsandinvestorsthatseektobetterunderstandandmanagetherisksassociatedwithclimatechange.TheiCIwasoriginallylaunchedastheiC20(InitiativeClimat2020)in2015byagroupofFrenchprivateequityfirmstocontributetoachievingtheParisAgreement’sobjectives.TheiCIhassinceexpandedinternationallyandnowcountsmorethan160firmsrepresentingoverUS$3trillioninAUM,asof31March2022.PleaseseethefulllistofiCImembersattheendofthisdocument.iCI’smembersshareacommitmenttoreducecarbonemissionsofprivateequity-backedcompaniesandsecuresustainableinvestmentperformancebyrecognisingandincorporatingthematerialityofclimaterisk.Inpractice,thisimpliesacommitmenttoeffectivelyanalyseandmanageclimate-relatedfinancialriskandgreenhousegas(GHG)emissionsintheirprivateequityportfolios,inlinewiththerecommendationsoftheFinancialStabilityBoard’sTaskForceforClimate-relatedFinancialDisclosures(TCFD).Memberscommittosharingknowledge,experienceandbestpractice,workingtogethertodevelopresourcesthatwillhelpstandardisepracticesacrosstheindustry.TheiCIissupportedbythePrinciplesforResponsibleInvestment(PRI),isaSupportingPartnerofTheInvestorAgenda,andisopentoallprivatemarketsfirmsandinvestorstojoin.IntroducingERMERMisthelargestglobalpureplaysustainabilityconsultancy,partneringwiththeworld’sleadingorganisationstocreateinnovativesolutionstosustainabilitychallengesandunlockingcommercialopportunitiesthatmeettheneedsoftodaywhilepreservingopportunityforfuturegenerations.ERMisathoughtleaderandcontributeswidelytokeyindustryinitiatives.TheERMSustainAbilityInstituteisERM’sprimaryplatformforthoughtleadershiponsustainability.EngagingwithexpertsacrossERMandexternalpartners,theInstituteaddressesthecriticalsustainabilitychallengesfacingprivatesectorleadersandpolicymakersacrossallsectorsandgeographies.Ouranalysisinformsdecisionsthatacceleratedevelopmentofcircularbusinessmodelsandthecreationofamorejustandsustainablesocietyandeconomy.ERMhasover160officesacrossthefollowingcountriesandterritoriesworldwide.www.erm.com•www.sustainability.comAcknowledgementsTheiCICarbonFootprintWorkingGroupwasestablishedtodevelopaharmonisedapproachtoGHGemissionsaccountingandreportingbyGeneralParners(GPs).InpartnershipwithspecialistconsultancyfirmERM,wehavedevelopedthisguidancetosetthestandardforourindustry.ERMauthors:•JamesBone,Partner•MelanieEddis,Partner•VickyHudson,SeniorConsultant•ElizabethAyles,Consultant•DavidGregory,Consultant•ZaraPlummer,ConsultantiCIWorkingGroupmembers:•EgleSakalauskaite,BregalInvestments(Co-Chair)•NatashaBuckley,HarbourVestPartners(Co-Chair)•EimearPalmerandIvoDimov,ICG(Co-Chairs)•AndreaSiaw,Hg•ClaireSullivan,Investindustrial•KimWoehlandStephenCooper,Montagu•EminAleskerov,StirlingSquare•GeorginaThomas,theCibusFunds•JoannaHouchell,TowerBrook•GraemeArdusandSa...