Appen dix 2
Climate-related financial disclosures According to the Intergovernmental Panel on Climate Change (IPCC), human activities, principally through emissions of greenhouse gases, have unequivocally caused global warming, with global surface temperature reaching 1.1°C above 1850–1900 in 2011–202032. Continued greenhouse gas emissions will lead to increasing global warming, with the best estimate of reaching 1.5°C in the near term in considered scenarios and modelled pathways. Fengate recognizes the urgency of addressing climate change, and acknowledges the linkage between climate risk and humanitarian, financial, and global economic risk. As a responsible investor and asset manager, we are committed to integrating climate-related considerations into our decision-making processes to ensure long-term resilience and sustainable value creation. Fengate climate-related disclosures voluntarily align to ISSB S2 standards, formally known as Task Force on Climate-related Financial Disclosures (TCFD), structured around governance, strategy, risk management, metrics, and targets.
Strategy Fengate has established a thoughtful climate strategy on managing physical and transition climate risks and opportunities, focused on decarbonization, physical climate risk management, and investment in renewable and low-carbon infrastructure. Our decarbonization strategy is rooted in a bottom-up approach, leveraging detailed asset-level analysis to assess emissions baselines and identify viable pathways for reducing our carbon footprint. Our approach centres on identifying practical pathways to improve energy efficiency, meet evolving regulatory requirements, capture renewable energy incentives, and safeguard exit value. By framing carbon reduction through this lens, we ensure our strategy remains pragmatic and return-focused, supporting the delivery of resilient, long-term value for our investors while reducing our environmental impact.
Infrastructure In response to the risk of climate change, Fengate recognizes the importance of decarbonizing its infrastructure funds and the investments it makes, and as a fiduciary Fengate is committed to taking a thoughtful and pragmatic approach to transition planning at the asset level. Similar to other asset managers, majority of Fengate’s carbon emissions are derived from Scope 3 Category 15, Financed Emissions. Fengate’s transition strategy is informed by current leading target-setting frameworks in private markets, including the Institutional Investors Group on Climate Change’s (IIGCC) Net Zero Investment Framework (NZIF)33. In addition, Fengate references Bain’s Private Markets Decarbonization Roadmap (PMDR) developed by the Initiative Climat International (iCI) and the Sustainable Markets Initiative’s Private Equity Task Force for guidance, where applicable.
INTRODUCTION
STRATEGIC PILLARS
RESPONSIBLE INVESTMENT IN ACTION
LOOKING AHEAD
APPENDICES
IIGCC Net Zero Investment Framework Categories Criteria underpinning alignment assessment when a criterion is required to be fulfilled for a particular alignment category to be obtained.
Criteria
Committed to aligning
Aligning to a net zero pathway
Aligned to a net zero pathway
Achieving net zero
Asset with emissions intensity required by the sector and regional pathway for 2050 and whose operational model will maintain this performance.92 Emissions performance: Current and forecast emissions performance (scope 1, 2 and material scope 3) relative to a net zero benchmark/pathway or an asset’s science-based target. An aligned asset would need to see emissions decline consistent with targets set to converge an asset with a net zero pathway. Decarbonisation plan: Development and implementation of a quantified plan setting out a decarbonisation strategy for scope 1, 2, and material scope 3. Governance: Governance/management responsibility for targets and decarbonisation plan. Disclosure: Disclosure of scope 1 and 2 emissions, and disclosure of material scope 3, in line with regulatory requirements where applicable or the PCAF Standard. Targets: Short and medium term targets for scope 1, 2 and material scope 3 emissions in line with sciencebased ‘net zero’ pathway. These may be absolute, or intensity based: a) where available, a sectoral decarbonisation / carbon budget approach should be used; b) minimum for other assets is a global or regional average pathway. Ambition: A long term goal consistent with the global goal of achieving net zero by 2050. Source: iigcc.org/hubfs/NZIF 2.0 Report PDF.pdf
(32) https://www.ipcc.ch/report/ar6/syr/summary-for-policymakers/ (33) Further information is available in the Net Zero Investment Framework 2.0 Report
Fengate 2025 Sustainability Report
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