Asia Green Fund (AGF), one of the first batch of private equity firms focusing on green impact investment in China, just released its first Carbon Neutrality and Green Impact Report 2020, becoming the first ever carbon neutrality and green impact performance report published by a private equity firm in Asia.
The 2020 report shows that AGF's managed assets achieved carbon reductions of 2.64 million tons of CO2 equivalent in 2020, equal to the annual carbon emissions of 600,000 vehicles.
Moreover, as indicated by AGF Carbon Neutrality Index, AGF investments achieved 170,000 tons of carbon emissions reduction in 2020 on every 100 million yuan ($15.4 million) invested. Additionally, for every 100 million yuan invested, AGF investments reduced 45,000 tons of solid waste, 796 tons of air pollution and 1.64 million tons of wastewater.
In terms of cost savings for environmental remediation, every 1 yuan of AGF investment saved 0.36 yuan in 2020.
As a market-driven private equity firm, AGF has been pursuing both financial return and environmental impact (green impact) in its investments since its inception. AGF takes a proactive approach to selecting and investing in companies with evidence or potential to make a significant green impact.
When judging whether a single project is worth investing in, the AGF team will conduct business due diligence and financial analysis while analyzing the project's environmental, social and governance aspects, said Bai Bo, chairman and CEO of AGF.
"In the beginning, not all companies can understand. But with the national goal of 'peak carbon dioxide emissions' and 'carbon neutrality', more and more companies have gradually developed a sense of identity and even take action," said Bai.