In brief: 3 takeaways from Apollo’s sustainability report

Apollo Global Management is turning its attention to carbon accounting and real estate risk assessments, according to its sustainability report released last week. The report provides an overview of the firm’s ESG-related activities in 2022, as well as its Sustainability Accounting Standards Board, Global Reporting Initiative and Task Force on Climate-related Financial Disclosures indices. A few titbits for New Private Markets readers:

• 2022 saw the firm beginning to invest in “centralising and standardising” carbon accounting in its PE portfolio. To do this, it has partnered with climate management platform Persefoni to implement the Partnership for Carbon Accounting Financials financed emissions standard.
• The firm intends to implement an ESG risk rating framework to its real estate equity investments in 2023, after it began doing so for its real estate credit portfolio last year. There are also plans to conduct “physical and transition risk studies across select new and existing investments”.
• The report also confirmed that the firm has closed its Impact Mission Fund, as NPM reported earlier this month. The report had no further details on the close.

Apollo has been clear in its intention to invest in climate solutions in recent months; it announced a $4 billion strategy to “support corporates in their transition to clean energy” earlier this year. A green PE strategy is also in the works.