ArcLight Capital Partners, LLC
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:Firm-level: 1,527 tCO2e/year (Scope 1, 2, 3 Category 6); Fund VII (Scope 3, Category 15): 888,059 tCO2e/year
Scope 1 Emissions:Fund VII: 865,824 tCO2e/year; Firm-level: 939 tCO2e/year
Scope 2 Emissions:Fund VII: 22,235 tCO2e/year; Firm-level: 148 tCO2e/year
Scope 3 Emissions:Fund VII: (Category 15) 888,059 tCO2e/year; Firm-level: 440 tCO2e/year (Category 6)
ESG Focus Areas
- Climate Change
- Cybersecurity
- Diversity, Equity, and Inclusion
- Responsible Investment
Environmental Achievements
- Invested in 272 MW of solar power, battery energy storage, and fuel cells through the acquisition of REC Solar.
- Generation Bridge intends to retire part of a thermal unit and implement a 15 MW/60 MWh utility-scale battery storage system at the Arthur Kill Power Station.
- Sequitur refurbished and placed 33 turbines into service, repowering mature wind projects and reducing supply chain carbon intensity.
- Elevate is developing 5 GW of BESS at over 20 ArcLight assets.
Social Achievements
- Strengthened partnership with Sponsors for Educational Opportunity (SEO), hosting their first intern.
- Griffith Energy completed a 2 MW on-site solar project providing EV charging for employees and actively participates in community support.
- Zeem opened the largest private commercial EV charging station in the U.S., dispensing over 2 GWh of electricity.
- Inspiration Mobility adopted a worker health and safety plan and was named on the list of Best Places to Work.
Governance Achievements
- Submitted inaugural mandatory Principles for Responsible Investment (PRI) report.
- Enhanced cybersecurity due diligence and monitoring by engaging a third party.
- Established AlphaGen to provide strategic management and oversight of the power infrastructure portfolio with compensation incorporating ESG goals.
- Helped portfolio companies address cybersecurity governance practices and risk through a third-party assessment.
Climate Goals & Targets
Environmental Challenges
- Physical climate-related risks (flooding, hurricanes, water stress) to key assets.
- Transition risks (regulatory changes, renewable energy emergence, carbon market pricing).
Mitigation Strategies
- Physical climate scenario analysis on key assets.
- ESG Addendum in Investment Committee memos to address material ESG risks and opportunities.
- ESG provisions in Operating Agreements.
- Collaboration with portfolio companies on ESG topics.
- Annual ESG questionnaires and scorecards for portfolio companies.
- Bi-annual ESG Priority Reviews.
Supply Chain Management
Responsible Procurement
- Sequitur sourced parts from other wind farms to reduce carbon intensity.
Climate-Related Risks & Opportunities
Physical Risks
- Storms
- Flooding
- Sea level rise
- Hurricanes
- Water stress
- Wildfire weather
- Extreme heat
Transition Risks
- Regulatory changes
- Renewable energy emergence
- Carbon market pricing
Opportunities
- Battery storage
- Renewable energy investments
- Decarbonization projects
Reporting Standards
Frameworks Used: SASB, TCFD, PRI