Collaborating for Net Zero: A Discussion with Brunel Pension Partnership and BlackRock
Title: Collaborating for Net Zero: How GPs and LPs Can Drive Stewardship in Private Credit Investments
In a recent interview with Room151, Alex Owen from Brunel Pension Partnership and Sonia Rocher from BlackRock discussed the importance of collaboration between General Partners (GPs) and Limited Partners (LPs) to ensure better stewardship on net zero initiatives in private credit investments.
Private credit has been gaining popularity, with a growing demand from institutional clients for more allocation to this asset class. Rocher highlighted that clients are increasingly considering sustainability and climate factors in their investments, including specific allocations to support their net-zero targets.
Both Owen and Rocher emphasized the need for robust measurement methodologies and improved data collection to address the challenges of carbon reporting in private markets. They also discussed the importance of engagement and transparency in driving companies towards net-zero alignment.
From an LP’s perspective, Owen noted that European LPs are pushing managers to sophisticate their approaches to net zero alignment. Brunel has ambitious targets around net zero and is working with managers to ensure progress towards these goals within their private credit portfolio.
Rocher shared insights on the challenges and opportunities in implementing net zero strategies at the SME level, emphasizing the importance of engagement and support for these companies in their decarbonization journey.
The interview also touched on the role of LPs in pushing for better standards at the companies they invest in, as well as the impact of the relationship between GPs and LPs on the effectiveness of engagement.
Overall, the collaboration between GPs and LPs is crucial in driving stewardship and promoting sustainable practices in private credit investments, ultimately contributing to the transition to a low-carbon economy.
[Source: Room151]
