Kerogen Capital (“Kerogen”), the independent private equity fund manager specialising in the energy sector, supports the goal of the Paris Agreement to achieve a net zero global economy and is pleased to announce the launch of its Net Zero Carbon Strategy.
This strategy includes Kerogen’s commitment to carbon neutrality across its operations for Scope 1 and 2 emissions. In 2020, it achieved carbon neutrality at:
In addition, Kerogen has committed to making all future fund vintages and investments carbon neutral.
This has been achieved initially by offsetting CO2 emissions through programmes that are aligned with the UN Sustainable Development Goals.
Kerogen recognises that carbon offsetting is not the long-term solution to climate change and must be combined with action to reduce the emissions intensity operations.
A comprehensive strategy to address climate risks and carbon neutrality will increasingly be required for all fund managers. Our strategy is outlined in the Net Zero Carbon Strategy document. It involves a number of key priorities including:
Adhering to a carbon light investment strategy
This includes climate related criteria in the screening of new investments; during our ownership providing stewardship around climate related strategy including plans to reduce carbon emissions and ensuring transparency, reporting and governance structures are in place to effect the strategy; and finally factoring in the potential for repurposing and recycling of infrastructure to facilitate development of hydrogen, CCS, offshore wind and renewable electricity projects.
Reducing the carbon intensity of our operations by 50% by 2030
Kerogen has already started implementing measures to support carbon reduction in the portfolio and we are targeting a 50% reduction in carbon intensity from our producing portfolio by 2030. The reduction is expected to be achieved from a combination of decarbonisation initiatives, including: energy consumption efficiency; digitalisation and optimisation of facilities; electrification; and where relevant solutions for flaring, venting and fugitive emissions.
Committing to transparent climate related reporting
Kerogen supports the Task Force on Climate-related Financial Disclosures (TCFD) and aims to align its disclosure with the recommendations set forth by TCFD from 2021.
Impactful offsetting of our remaining carbon emissions
We have made a commitment to use high quality carbon offsets for any remaining short-term emissions to achieve carbon neutrality immediately.
Advocating for industry change
Kerogen is committed to working with its investee companies, their joint venture partners, its peers, regulators, lenders, investors and other stakeholders to promote and accelerate decarbonisation.
Jason Cheng, Co-founder and Chief Executive Officer of Kerogen Capital, said:
“Climate change is undoubtedly the most pressing issue of our time and as an energy-focused private equity fund we understand that there is no ‘business as usual’ going forward for our industry. A path to a net zero society requires decarbonisation of the energy industry as well as growth to meet rising demand across the globe. At points of change like this, there will be new investment opportunities in areas like carbon capture and storage, hydrogen, renewable energy and digitalisation.
Our approach to net zero carbon builds on our carbon light investment strategy and climate related investment exclusion list that we introduced when we removed coal from our strategy in 2011. We are delighted to be one of the first private equity funds to have achieved carbon neutrality from 2020 at the manager level, the fund level and at our two largest controlled portfolio companies, Zennor Petroleum and Pandion Energy – one of the first E&P companies operating in the North Sea to have achieved this target.
As governments work to develop policies and regulation to achieve a net zero carbon economy by 2050, it is important for us to be responsible by taking action now. The actions we take today have a multiplier effect in the future and have the potential to accelerate the path to achieving net zero. We look forward to working with our partners, regulators, lenders and investors to enable high impact initiatives to enable this transition to net zero as swiftly as possible.”
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Kerogen is committed to delivering a carbon neutral future, and would welcome the opportunity to collaborate with our peers and industry leaders to do this.
Please contact us at investorcommunications@kerogencap.com.
