EQT sets science-based emissions targets

The targets have been approved and validated by the Science Based Targets Initiative (SBTI), the GP said in a statement.

The targets have been formed in line with the 1.5°C pathway outlined in the Paris Agreement, which aims to limit global warming to well below 2°C (preferably to 1.5°C) versus pre-industrial levels, with emissions peaking in 2025.

The GP has set forward-looking reduction targets to be achieved by 2030. This includes reducing EQT's direct emissions by 50%, as well as a 30% reduction in its indirect emissions from business travel. The GP also intends to ensure that all of its portfolio companies will have their own science-based targets validated by the SBTI by 2030; EQT Ventures' portfolio is excluded from this target, given that the firm makes investments that are smaller than the thresholds set by the SBTI's latest guidelines for venture capital.

Lastly, EQT plans to reduce the indirect emissions from its EQT Real Estate I and II funds by 55% per square metre of floor area.

EQT has also set interim targets and plans to report the progress of these targets annually, using 2019 as a baseline.

EQT issued its first sustainability-linked bond earlier in 2021; the setting of its science-based targets allows the GP to fulfil the first KPI target within the bond. In June 2020, EQT took out a EUR 2.3bn ESG-linked credit facility for its PE business line with a EUR 5bn upper limit.

EQT's James Yu spoke to Unquote about the increasing prevalence of ESG-linked fund financing facilities earlier in 2021.

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