Ares Management Corporation is moving towards making a net zero commitment, according to co-founder and chief executive Michael Arougheti. “We have not made any kind of net-zero commitment. But I think over time we likely will,” Arougheti said on a results call last week. Taking this step would put Ares among the likes of AXA Investment Managers, M&G Investments, BlackRock and Neuberger Berman, which have all set net zero targets.
On EU Sustainable Finance Disclosures Regulation, Arougheti said: “I would expect to see a number of our funds in the market and coming to market [to be designated as] Article 8 in Europe. And I think you’ll begin to see other products coming online in the near future – not least of which is our climate infrastructure fund, which just by its very nature is right in the heart of the energy transition and all things ESG.”
Ares’ Climate Infrastructure Partners Fund, focused on renewables in North America, closed on $2.2 billion in December 2021.
On sustainability-linked loans, he said: “We have been… a very significant provider of sustainability-linked loans. And as a borrower, we’ve also been a pretty significant user of SLLs in our own borrowing. We’re trying to lead by example. This is a long, multi-year journey, but we’ve got it very well resourced. We’ve got a significant operating plan in place and I think we’re executing well against it.”