TPG Inc.

TPG Inc. is a San Francisco-based private equity firm with $229 billion in AUM as of August 2024. As of the end of July, 2024 firm had eight energy companies in its portfolio, with the majority of them focused on renewable energy.

Of the three fossil fuel-based companies, two of them are termed “renewable natural gas” (RNG) by the industry, which are considered upstream biomass companies for the purposes of this research. RNG is a costly fuel source with a large carbon footprint that relies on pipelines and trucking, with a high risk of methane leakage.

According to TPG’s 2023 ESG report, less than one percent of its AUM were invested in fossil fuel companies. Although the firm has conducted an analysis on its financed emissions, it has not disclosed the full or detailed results of its findings. Instead, TPG has only disclosed the results of the firm’s “Operational Emissions” for the “firm’s offices and employee activities, to better understand our emissions and identify opportunities for reduction and offsetting.”

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Although TPG is moving away from fossil fuels, the firm’s minimal level of disclosure is inadequate for investors or the public to accurately account for the level of climate risks in the firm’s remaining portfolio, and TPG has yet to make a public commitment that future funds will be free of fossil fuels. Although TPG touts its climate-friendly series of Rise Funds, it has not met an adequate threshold of climate risk transparency, earning it a B on the 2024 Climate Risks Scorecard