Riverstone Holdings LLC
Climate Impact & Sustainability Data (2022, 2023)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:413 metric tons of CO2e (2022, operational)
Scope 1 Emissions:7.3 metric tons of CO2e (2022, operational)
Scope 2 Emissions:212 metric tons of CO2e (2022, operational)
Scope 3 Emissions:193 metric tons of CO2e (2022, operational, air travel); 8.9 million metric tons of CO2e (2021, financed, partial Scope 3)
ESG Focus Areas
- Climate Change
- Decarbonization
- ESG Integration
- ESG Engagement
- Governance
- Diversity & Inclusion
- Cybersecurity
- Ethics and Compliance
Environmental Achievements
- Completed actions to further develop Riverstone’s ESG reporting, resulting in further alignment with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD)
- Engaged Persefoni to collaborate with portfolio companies to track their emissions, yielding disclosure of financed emissions for the first time, including Scope 1 and 2 emissions and significant sources of Scope 3 emissions
- Performed climate risk assessments to identify physical and transition risks for the majority of the portfolio
- Renewable power companies within Riverstone’s portfolio have abated approximately 120 million metric tons of carbon dioxide since 2005
Social Achievements
- Strengthened partnership with Howard University by providing summer internships, participating in their career fair and leading on-campus seminars
- Built ESG capacity at all levels in Riverstone by facilitating training on ESG topics, including unconscious bias and anti-harassment, and providing guidance on effectively utilizing the ESG toolkit
- Participated in the ESG Data Convergence Initiative (EDCI) to contribute comparable data
- Two portfolio companies donated resources to support victims of the Ukraine War
Governance Achievements
- Maintained portfolio company performance against ESG Minimum Expectations (ESG-MEs) and continued to strengthen criteria to drive further improvements in performance
- Developed an ESG onboarding pack for new portfolio companies
- Implemented a formal risk mapping and compliance oversight program
Climate Goals & Targets
Long-term Goals:
- Continue to facilitate ESG training/capacity building at Riverstone to promote greater ESG awareness and capabilities, specifically to further incorporate climate-related considerations into ongoing risk management and due diligence processes
- Further evolve ESG due diligence procedures and resources to incorporate climate risk assessment for potential investments and enhance rigor of assessment process
Medium-term Goals:
- Using the findings from climate risk assessment, enhance engagement with portfolio companies to mitigate climate-related risks, capitalize on opportunities to enhance resilience and assess opportunities to build on risk assessment further by evaluating additional companies and considering sensitivity analysis
- Update annual ESG questionnaire to further monitor ESG practices and track performance with additional focus on climate change
Short-term Goals:
- Continue to further align reporting with the TCFD recommendations and evaluate opportunities to advance risk management and estimate the financial implications of risks
- Refine GHG accounting across portfolio companies and include any new investments in GHG inventory
- Consider development of potential targets for emission reductions and support portfolio companies in understanding their emissions and pursuing their own reduction goals
Environmental Challenges
- Increasing GHG emissions data quality with more of our portfolio companies reporting more granular, “bottom-up” data
- Working with our portfolio companies on GHG emissions reduction initiatives and technologies
- Managing climate-related risks and opportunities within the portfolio
- Meeting ESG Minimum Expectations (ESG-MEs) across the portfolio, particularly for smaller companies and new investments
Mitigation Strategies
- Investing in climate solutions and data analytics to decrease the emissions of portfolio companies
- Leveraging a Screen — Assess — Adapt strategic approach for reviewing portfolio company data and using innovative tools to generate insights into key risks and opportunities
- Developing an ESG onboarding pack for new portfolio companies
- Strengthening criteria for ESG-MEs and engaging with portfolio companies to improve performance
- Engaging Persefoni to support portfolio companies in calculating their GHG emissions
Supply Chain Management
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events (cyclones, wildfires, flooding)
- Water stress and extreme heat
- Damage to infrastructure, buildings, equipment, vehicles
- Supply chain disruptions
Transition Risks
- Increased carbon taxes and pricing
- Regulatory changes to oil and gas operations
- Pressure to reduce emissions throughout the supply chain
- Decreased fossil fuel demand
- Market share loss and revenue reduction for fossil fuel companies
- Increased competition from low- or zero-emitting power sources
Opportunities
- Market growth opportunities in low- or zero-emitting power sources and related support services
- Expansion opportunities for natural gas-fired power generation (short-term)
- Market expansion for renewable energy and electric vehicle charging infrastructure
Reporting Standards
Frameworks Used: TCFD, PCAF, GHG Protocol, PRI
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:413 metric tons of CO2e (2022)
Scope 1 Emissions:7.3 metric tons of CO2e (2022)
Scope 2 Emissions:212 metric tons of CO2e (2022)
Scope 3 Emissions:193 metric tons of CO2e (2022)
ESG Focus Areas
- Climate Change
- Decarbonization
- Diversity & Inclusion
- Ethics & Compliance
- Social Responsibility
Environmental Achievements
- 75% of portfolio collects Scope 1 and 2 GHG emissions data, with 67% collecting Scope 1, 2, and 3 data
- 40% of portfolio have some form of net zero initiative
- Investments in VEMO, Energía Real, A2, and White River Renewables generated over 6,857 GWh of renewable energy, created over 2,000 jobs, installed approximately 347 MW of solar power, installed approximately 5.8 MW of EV chargers, and offset approximately 310,000 metric tons of CO2e
- IMTT doubled its renewables and vegetable oils/animal fats share of the business since implementing its Greener and Cleaner strategy; over 90% of its growth capital expenditures since December 2020 have been associated with developing non-petroleum-related infrastructure
Social Achievements
- 18% injury rate reduction across the portfolio in 2023
- Portfolio companies created over 1,800 new jobs in 2023
- Energia Real's social responsibility program with US$3 per kWp installed donation commitment, including solar panel installations for an autism school and a cerebral palsy NGO
- VEMO avoided 10,776 tCO2e in GHG emissions, abated 2,401 kg NOx, SOx, PM1 in air quality emissions, created 2,201 active jobs, and provided 1,306 active leases to underbanked ride-hailing drivers
Governance Achievements
- 89% of portfolio companies have ESG as a standing board agenda item
- All non-U.S. portfolio companies have internal compliance reporting mechanisms and anti-retaliation policies in place
- Annual ESG training for all investment professionals on various topics including anti-bribery, anti-harassment, and ethics & compliance
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Not disclosed
Environmental Challenges
- Data scarcity in ESG reporting, particularly for smaller portfolio companies
- Managing physical and transition climate risks across the portfolio
- Balancing the need for decarbonization with the reliability, affordability, and accessibility of energy sources
Mitigation Strategies
- Revised annual ESG questionnaire and stewardship approach
- Deeper engagement with portfolio companies using a technology platform for data collection
- Ongoing training and accountability of investment professionals
- Top-down review of third-party ESG consultants to reduce costs
- Development of ESG Minimum Expectations (ESG-MEs)
- Climate risk assessments and implementation plans for portfolio companies
- Focus on investments supporting the low-carbon transition
Supply Chain Management
Climate-Related Risks & Opportunities
Physical Risks
- Water stress
- Tropical cyclones
- Wildfires
- Flooding
- Extreme heat
Transition Risks
- Increased carbon taxes
- Regulatory changes
- Decreased fossil fuel demand
- Technology advancements
- Market shifts
- Reputational risks
Opportunities
- Growth in renewable energy and electric vehicle charging
Reporting Standards
Frameworks Used: TCFD, GRI, PCAF, UNPRI, EDCI