Analysis from global consultancy partnership Kearney has revealed that private equity investments focusing on climate protection, besides having a positive effect on the planet, do not sacrifice profitability. The exploratory study, in conjunction with the Technical University of Munich and climate change-focused start-up ‘right, based on science.’, reveals that climate protection and attractive returns can go hand in hand.

The study compared investments in 38 portfolio companies by European private equity funds with the aim of establishing their impact in three areas: the contribution to global warming of each of the investments by 2050, portfolios’ overall carbon emissions, and the impact on EBITDA.

The final element of the analysis is profitability – which was approximated in terms of EBITDA margins relative to climate impact. The analysis showed no indication that climate-impact investing and lower financial performance are linked.


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Source: Private Equity Wire