Costed decarbonisation and SBT feasibility for a major private equity portfolio

What did the client need?

As Limited Partner (LP) expectations intensified and exit market requirements evolved, the client recognised that setting a Private Equity Science-Based Target (PE SBT) was no longer optional. However, they needed to look beyond theoretical targets. The firm required a strategic partner who could conduct a deep feasibility assessment to identify which portfolio companies were best positioned to move quickly. Crucially, they needed to understand the financial implications, the exact scale of effort, the capital required, and the tangible ROI for each prioritised portfolio company (PortCo). They needed to definitively prove to their PortCo boards that decarbonisation, particularly addressing complex areas like electrifying heat and tackling operational energy use, was a powerful lever for EBITDA enhancement and long-term resilience, rather than just a cost.

How did BIP.Verco support the client?

We positioned ourselves as their dedicated value creation partners, deploying a robust, commercially-led approach:

• Deep Portfolio Feasibility: We conducted an exhaustive, sector-by-sector feasibility assessment across their holdings. By drawing parallels with our extensive database of companies we have guided to SBTs in similar sectors, we pinpointed five prime PortCos for immediate target setting, and engaged directly with each PortCo, identifying where strong leadership champions could drive rapid adoption.
• Rapid Costed Insights: We moved the conversation from carbon accounting to financial planning. We mapped out the operational changes required (such as major electrification initiatives) and translated these into rapid costed decarbonisation roadmaps. We demonstrated how immediate, short-term energy efficiency savings could be ring-fenced to self-fund longer-term transition capital expenditures.
• Changing the Narrative: We provided initial "how-to" implementation expertise. By showing PortCo leadership exactly what to do, what to avoid, and the best order to execute, we began to mitigate execution risk. This hands-on, boots-on-the-ground perspective fundamentally shifted the client's internal sentiment, reframing SBTs from a systemic risk mitigation exercise into an aggressive value creation strategy.

What was the result?

The engagement completely transformed the PE firm's approach to portfolio sustainability. Our costed feasibility work successfully unlocked enthusiasm and buy-in across the portfolio, with the five targeted PortCos now eager and fully committed to setting their own targets. The client secured a credible, financially sound pathway to achieving 38% portfolio coverage by 2030, safeguarding their LP reporting and future exit valuations. More importantly, we are now in the process of being retained to develop and execute the robust, costed decarbonisation roadmaps for these companies, through our implementation partnership approach, actively turning theoretical savings into actualised financial value and operational resilience.