Climate Change Data

Berkshire Partners

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:469,531 MT CO2e
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:2,118 MT CO2e
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:32.67 MT CO2e/Millions USD (Scope 1 & 2)

ESG Focus Areas

  • Climate Change
  • Diversity, Equity, and Inclusion
  • Employee Ownership
  • Governance
  • Human Rights

Environmental Achievements

  • Supported Teraco in setting a goal to have 50% of its energy consumption from clean sources by 2027 and 100% by 2035, investing $230 million in solar farms and rooftop solar.
  • Teraco realized more than 83 million kWh of energy savings and a more than 23% improvement in overall efficiency.

Social Achievements

  • Established broad-based equity ownership programs at five portfolio companies, representing approximately 6,750 employees.
  • Doubled the percentage of portfolio company directors who are female or racially/ethnically diverse (2017-2021 acquisitions).
  • AHEAD's Launch program achieved 70% employee retention from 2020-2022 cohorts (72% diverse in 2023).

Governance Achievements

  • Developed asset-class specific responsible investment guidelines and formalized engagement, governance, and reporting processes.
  • For each new portfolio company with majority ownership, set a goal that at least one-third of outside director seats within the first year will be filled by diverse directors.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Enable net zero greenhouse gas emissions by 2050 or sooner across investments where Berkshire has effective control.
Short-term Goals:
  • Set decarbonization targets by the end of 2027, and within two years of Berkshire’s investment for companies acquired after 2025.

Environmental Challenges

  • Gathering baseline emissions data across the portfolio and analyzing how focus industries may be affected by decarbonization.
  • Achieving net-zero emissions across investments by 2050 or sooner.
Mitigation Strategies
  • Formed a Climate Strategy Steering Committee to develop a net-zero strategy.
  • Initiating GHG accounting to establish an emissions baseline, providing tools and resources to support these efforts.
  • Setting decarbonization targets by the end of 2027, and within two years of Berkshire’s investment for companies acquired after 2025.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Codes of conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:619 MT CO2e (Berkshire operational emissions)
Scope 3 Emissions:2,612 MT CO2e (Berkshire operational emissions)
Carbon Intensity:9.40 MT CO2e/Millions USD (2023)

ESG Focus Areas

  • Governance
  • Shared Ownership
  • Human Capital
  • Decarbonization
  • Climate Change
  • Diversity, Equity, and Inclusion

Environmental Achievements

  • Set a goal to enable net zero greenhouse gas emissions by 2050 or sooner across in-scope investments.
  • 28% of portfolio companies have set climate targets
  • 54% of portfolio companies have a 2023 GHG emissions inventory calculated at a more detailed level.
  • 47% of Stockbridge invested capital as of December 2023 is in portfolio companies with decarbonization targets

Social Achievements

  • 98% of Berkshire Partners employees said they are “proud to work for Berkshire Partners.”
  • 94% average annual retention from 2018–2023 for the firm (excluding Associates)
  • 5% increase in portfolio company employees in 2023
  • Eight portfolio companies have shared ownership plans reaching more than a quarter of their eligible employee bases, supporting more than 12,000 participants.

Governance Achievements

  • Adopted asset-class specific policies for Berkshire Partners Private Equity and Stockbridge.
  • 57% of private equity portfolio companies improved the diversity of their board directors.
  • 59% of all in-scope companies are meeting the goal of achieving more than 20% diversity overall, or 33% diversity among independent directors.
  • Implemented a suite of strategies to bolster cybersecurity defenses.

Climate Goals & Targets

Long-term Goals:
  • Enable net zero greenhouse gas emissions by 2050 or sooner across in-scope investments.
Short-term Goals:
  • Portfolio companies to set decarbonization targets by the end of 2027 or within two years of Berkshire’s investment for companies acquired after 2025.

Environmental Challenges

  • Geopolitical uncertainty
  • Socioeconomic tensions
  • Record-breaking temperatures and extreme weather from climate change
  • Dynamic regulatory landscape
Mitigation Strategies
  • Commitment to core guiding principles
  • Thorough due diligence on material issues
  • Engagement with portfolio companies to support effective governance
  • Embedding climate change-related considerations into workstreams across the firm.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Supply disruptions
Transition Risks
  • Rising costs
  • Litigation
Opportunities
  • Resource efficiency
  • Lower emissions technologies
  • Adaptation measures

Reporting Standards

Frameworks Used: TCFD