Climate Change Data

Bain Capital, LP

Climate Impact & Sustainability Data (2022, 2024)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:20,203 tCO2e/year (2022, firm operations)
Scope 1 Emissions:267 tCO2e/year (2022)
Scope 2 Emissions:2,490 tCO2e/year (2022)
Scope 3 Emissions:17,446 tCO2e/year (2022)

ESG Focus Areas

  • Active Governance & Stewardship
  • Sustainable Growth & Reducing Climate Impact
  • Fair Employment, Engagement, & Well-being
  • Diversity, Equity, & Inclusion
  • Community Engagement

Environmental Achievements

  • Achieved operational carbon neutrality in 2021, offsetting emissions from 2019.
  • 70% of firm office space in green-certified buildings.
  • Bugaboo (portfolio company) announced its Push to Zero initiative to achieve net-zero carbon footprint by 2035.
  • J M Baxi (portfolio company) aims for 50% of total electricity consumed from green energy by 2025.
  • US LBM (portfolio company) saved over 800,000 miles driven per year through route planning software.
  • Ahlstrom (portfolio company) achieved a 4% emissions intensity reduction in 2022 compared to 2021.
  • Vitalink (portfolio company) established a decarbonization goal aligned with the SBTi 1.5°C target.
  • KIOXIA (portfolio company) reduced CO2e emissions by 29,600+ tonnes in 2021.
  • Reconomy Group (portfolio company) reduced CO2 emissions by 35,000 tonnes since 2018.
  • Virgin Australia Airlines (portfolio company) committed to a 22% reduction in emissions intensity by 2030.

Social Achievements

  • Launched bi-monthly Chief Human Resource Officer (CHRO) Forum in 2020.
  • 91% of North America portfolio companies have annual employee engagement surveys.
  • Cotopaxi (portfolio company) achieved 50% female and/or BIPOC representation on its external governing board and 55% in VP-level and above leadership.
  • GAIL's Bakery (portfolio company) donates over 90% of edible surplus food to local charities.
  • Zelis (portfolio company) has over 65% people of color and/or women in senior leadership.
  • Enhance Health (portfolio company) hired hundreds of employees, almost 40% women and over 50% people of color.
  • Surf Internet (portfolio company) invested more than $13 million to support 70+ schools through the E-Rate program.

Governance Achievements

  • 100% of North America Private Equity portfolio companies have at least two diverse directors.
  • 37% overall board diversity in North America Private Equity portfolio companies.
  • Increased ESG oversight responsibilities on boards and for senior management in portfolio companies.

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero emissions.
Medium-term Goals:
  • Achieve net-zero emissions.
  • Reduce emissions intensity.
Short-term Goals:
  • Maintain carbon neutrality.
  • Increase renewable energy usage.

Environmental Challenges

  • Data gaps and inconsistencies in company ESG and carbon disclosure.
  • Global transition to low-carbon, climate-resilient operations requires change and collaboration.
  • Limited availability of high-quality ESG data.
Mitigation Strategies
  • Partnered with Persefoni and Watershed for carbon management.
  • Partnered with EcoVadis for sustainability monitoring.
  • Developed an "Energy Transition Framework" for Credit and Special Situations teams.
  • Leveraged third-party data providers and consultants to bridge data gaps.
  • Collaborated with industry groups to encourage transparency and decarbonization targets.

Supply Chain Management

Responsible Procurement
  • Supplier sustainability requirements
  • Verification of supplier certifications (e.g., US LBM)

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Flooding
  • Heat stress
  • Sea level rise
  • Wildfire
Transition Risks
  • Regulatory changes
  • Market shifts
  • Technology changes
Opportunities
  • Development of energy-efficient products
  • Investment in renewable energy
  • Decarbonization initiatives

Reporting Standards

Frameworks Used: TCFD, GRI, SBTi, UN PRI

Certifications: LEED, Energy Star, EcoVadis, BREEAM

Sustainable Products & Innovation

  • Bugaboo's sustainable stroller design
  • Lithos Carbon's carbon capture technology
  • Ahlstrom's sustainable food packaging and filtration solutions

Awards & Recognition

  • Mergers and Acquisitions Innovators in ESG Award
  • BluWave Top PE Innovator
  • Actum’s Value Creation Deal of the Year Award
  • Fast Company's "10 most innovative companies working on social good"
  • Fast Company's 2023 World Changing Ideas Awards

Reporting Period: 2024

Environmental Metrics

Total Carbon Emissions:19,628 tCO2e/year (2023)
Scope 1 Emissions:288 tCO2e/year (2023)
Scope 2 Emissions:16,877 tCO2e/year (2023)
Scope 3 Emissions:7,291 tCO2e/year (2023)

ESG Focus Areas

  • Active governance and stewardship
  • Sustainable Growth and Reducing Climate Impact
  • Fair Employment, Engagement, and Well-Being
  • Diversity, Equity, and Inclusion
  • Community Engagement

Environmental Achievements

  • 80% reduction in GHG emissions by EcoCeres fuel compared to traditional fossil fuels
  • 77% of Enduring Equity strategy capital invested in companies with GHG emission reduction goals
  • 80% less carbon intensive than the MSCI World Index (Enduring Equity strategy)
  • Cromwell set a short-term target of a 42% reduction in scope 1, 2, and 3 emissions by 2030, along with a net zero target for new developments by 2030 and 2035 for all assets under Cromwell’s operational control.
  • Cromwell released its full scope 3 emissions inventory for the first time, covering its entire supply chain of tenant activities
  • Merchants Fleet saw 65% annual growth in clients’ electric vehicle fleets and increased its electric vehicle charging port management services by 117%
  • 100% of Merchants Fleet’s internal executive fleet comprises electric vehicles
  • Estel building aims to be a model of sustainable modern urban design, with rooftop solar panels providing 34.9% of the building’s electricity and a commitment to sourcing 100% of its energy from renewable sources.

Social Achievements

  • Launched employee well-being programs and comprehensive programming
  • Conducted regular pay practice reviews across the firm to ensure pay equity
  • Imperial Dade launched an All-In equity program for employees
  • Zelis certified as a Forbes Great Place to Work 2023, with 87% of employees reporting that they love the company
  • iManage improved recruitment and hiring practices, resulting in positive impact for its employees and customers
  • SumUp launched free technology courses to more than 100 students in Brazil, Chile, and Colombia
  • Tangent maintains among the lowest Total Recordable Incident Rates (TRIR) in the industry

Governance Achievements

  • Enhanced ESG integration approach across business units
  • Enhanced IC due diligence and engagement approach
  • Continued rollout of foundational priorities (e.g., board diversity, climate, engagement)
  • Laid groundwork for expanded ESG disclosures
  • Set metrics baseline across the portfolio
  • Enhanced ESG measurement capabilities and transparency
  • Established sustainability forums in North America and Europe

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero emissions across operations and investments
Medium-term Goals:
  • Cromwell: Net zero target across Cromwell’s entire portfolio for scope 1, 2, and 3 emissions by 2045
  • Cromwell: Net zero target for new developments by 2030
Short-term Goals:
  • Reduce scope 1 and 2 emissions by 30% by 2026
  • Cromwell: 42% reduction in scope 1, 2, and 3 emissions by 2030

Environmental Challenges

  • Lack of consistently high-quality data across all investments
  • Unavailability of suitable third-party data or estimates to adequately cover all reporting gaps
  • Challenges in pursuing credible and impactful emissions-reduction targets at each company
Mitigation Strategies
  • Utilizing third-party data and estimates to fill in reporting gaps
  • Leveraging strong relationships with management teams to gather data and develop estimates
  • Engaging with companies lacking transparency
  • Developing bottoms-up measurement for carbon data and utilizing estimates where needed
  • Working across all companies to measure Scope 3 emissions and embed climate factors into their overall business strategy
  • Developing a firmwide climate ambition and decarbonization strategy

Supply Chain Management

Responsible Procurement
  • Code of conduct
  • Supplier sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Flooding
  • Supply chain disruptions
Transition Risks
  • Regulatory changes
  • Market shifts
  • Technological advancements
Opportunities
  • Development of energy-efficient products and services
  • Investment in renewable energy technologies
  • Carbon offsetting

Reporting Standards

Frameworks Used: TCFD, GRI, UN PRI, CSRD

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 13 (Climate Action)

Initiatives contribute to these goals through investments in renewable energy, carbon reduction, and sustainable practices.

Sustainable Products & Innovation

  • Sustainable aviation fuel (SAF)
  • Cellulosic ethanol
  • Lightweight composite materials for automotives
  • Water treatment systems

Awards & Recognition

  • Forbes Top Companies for Women
  • Forbes World’s Best Employers
  • EcoVadis Gold
  • CDP climate change “B” rating
  • Financial Times 2024 Europe Climate Leaders
  • Crain’s 2023 Best Places to Work