PAI Partners, a U.K.-based private equity firm, announced its emissions reduction targets have been validated by the Science Based Targets initiative (SBTi).

This follows the firm’s commitment to decarbonize both at the GP and portfolio level and to achieve 42% of invested capital aligned to science-based targets (SBTs) by 2029 and 100% by 2040. 

The firm will actively work to bring its portfolio companies on a path toward climate risk mitigation and competitive advantage in the future low-carbon economy. As part of this effort, PAI is focused on continuing to support its portfolio in setting SBTs to effectively manage their carbon footprints and advance on their decarbonization journey. 

To help meet its Scope 3 portfolio targets, PAI has been regularly engaging with portfolio companies to discuss and monitor progress; collecting annual carbon footprint data across Scope 1, 2 and 3 for all portfolio companies; tracking SBTi alignment using an in-house tool; and collaborating with a range of industry initiatives.

PAI integrates sustainability throughout the investment lifecycle from origination to divestment, including ESG due diligence, developing tailored sustainability strategies aligned with value creation plans and tracking progress using more than 130 ESG KPIs. These include metrics aligned with the UN Sustainable Development Goals (SDGs).

“SBTi approval for PAI’s decarbonization targets is an important validation of the work we have been doing for years,” said Esohe Denise Odaro, Head of ESG and Sustainability at PAI, in a statement. “Sustainability and decarbonisation have long been central to the firm’s investment strategy, and this recognition reinforces our ongoing commitment to driving meaningful change across our portfolio. It’s another step in ensuring the businesses we invest in are resilient, responsible and built for the future.”