Ares Management is a Los Angeles-based firm that holds $447 billion in AUM as of June 2024. Ares currently holds 14 energy companies in its portfolio as of July 2024, with 78 percent of them in fossil fuels.
Ares noted that its Corporate Opportunities Fund VI would not invest in energy, but said energy investments “will be completed outside of our sixth fund and in our dedicated energy funds going forward” in a 2020 earnings call.
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In June 2023, Ares published its second Climate Action Report based on the Task Force for Climate‑related Financial Disclosures (TCFD) framework. The report discloses financed emissions estimates (Scope 3) for 35 percent of its 2022 investments, earning a partial alignment with Demand 2.2. Although the report affirms Ares’ interest in the energy transition, it is lacking in details. Overall, Ares has made small progress since the 2022 Scorecard, earning a C.
78%
Percent of Fossil Fuel Companies In Energy Portfolio
14
Number of Fossil Fuel Companies
24 million
Emissions from Upstream Operations
0
Emissions from LNG Terminals
1.9 million
Emissions from Coal-fired Power Plants
26.2 million
Total Est. Annual Emissions (upstream, LNG, coal)
9%
Percent of Demands Met
C
2024 Scorecard Grade
