Recognizing the urgency of ensuring a sustainable and livable future for all, Eurazeo is actively committed through three levers. The Group is part of a global movement towards carbon net neutrality, which it seeks to achieve by 2040 at the latest.
Investing in solutions
Eurazeo finances companies that contribute to climate change mitigation and adaptation through their activities, products, or services. The Group seeks investment opportunities that significantly reduce or avoid greenhouse gas emissions, in sectors such as sustainable mobility, agricultural transition, thermal insulation, the circular economy, green hydrogen, etc.
This is illustrated by Eurazeo’s portfolio companies, and more specifically its three funds dedicated to climate solutions: Eurazeo Transition Infrastructure Fund, Eurazeo Sustainable Maritime Infrastructure and Eurazeo Smart City Venture Fund II.
Promoting decarbonization
The ambitious objective of achieving carbon net neutrality by 2040 applies to Eurazeo as a whole. Consequently, the decarbonization pathway is implemented at both Group and portfolio level.
To ensure decarbonization occurs in sufficient proportions and at the pace required by the goals of the Paris Agreement (temperature rise limitation to 1.5°C), Eurazeo has committed to the Science Based Targets initiative (SBTi). It is the leading initiative to help companies set greenhouse gas (GHG) emissions reduction objectives aligned with recommendations made by the international scientific community. Eurazeo’s science-based targets cover the Group and the portfolio and were officially validated by SBTi in early 2022.
Eurazeo has been conducting a carbon footprint assessment since 2008.
Scope 3 emissions generated by business travels as well as products and services purchased by the Group are not included in the SBTi commitment scope due to their reduced materiality compared to the total Scope 3 emissions, which are mainly related to its investments. Nevertheless, Eurazeo has set a target to reduce these emissions by 30% in absolute terms by 2030 relative to 2019 (taking into account the Group's growth). Are also excluded from the commitment emissions related to portfolio companies that do not meet the eligibility criteria provided by SBTi and/or for which SBTi methodologies are still under development. However, Eurazeo actively encourages these companies to implement carbon reduction initiatives and set decarbonization targets. Finally, to further increase its climate contribution, Eurazeo has integrated ESG criteria into its syndicated credit line since 2019.
Safeguarding all planetary boundaries
Aware that environmental considerations go beyond the challenges related to global warming alone, Eurazeo is committed to aligning its activities with respect to all planetary boundaries. In practice, this involves analysing the materiality of these planetary boundaries for companies financed by the Group and formalizing progress plans where necessary.
In recent years, Eurazeo has undertaken the integration of the planetary boundary related to biodiversity erosion and has defined a strategy to help protect and restore biodiversity. This strategy was established according to the principles of the Science Based Targets for Nature methodology developed by the Science Based Targets Network (SBTN), the "equivalent" of SBTi for setting scientific objectives with regard to nature. *The Group has also undertaken an analysis of the materiality of the planetary boundary related to water for its financed companies.
In addition, Eurazeo announced in early 2024 the creation of an impact buyout strategy, the Eurazeo Planetary Boundaries Fund, which will promote the adoption of regenerative and circular economy models, while investing in solutions for environmental transition and adaptation. By doing so, Eurazeo aims to drive measurable impact while delivering strong financial returns.
For more information, please refer to the Responsible Investment Policy and the Universal Registration Document in the ESG Documents and Publications section.
