IFM Investors' is celebrating having achieved carbon neutrality across its entire private equity portfolio.
The portfolio's status is fully certified by Climate Active, which represents the Australian government's certification standard, IFM Investors said.
Supported by Pathzero and Pollination, IFM's approach to emissions reduction for its private equity portfolio is part of IFM's overall commitment to achieving net zero emissions by 2050.
IFM Investors head of private equity Stuart Wardman-Browne said this milestone is also part of a broader strategy for IFM Investors to create long-term value in private equity portfolio companies.
"Our private equity strategy is focused on driving net returns for our investors, but we do believe it's also important to build successful, sustainable businesses," Wardman-Browne said.
"We believe that we can deliver the kind of returns that our investors are looking for from private equity investments, whilst still doing so in a responsible manner.
"We think you can get the best of both worlds- in fact, we think it's important to have the best of both worlds."
The IFM Private Equity team is believed to be the first PE team in Australia to achieve carbon neutrality across its entire portfolio, he added.
"This is an important milestone for IFM Private Equity and the portfolio companies we work with," he said.
"We are focused on building successful, sustainable companies with cultures that authentically engage teams, customers and other stakeholders.
"Cultivating purpose-driven cultures, promoting fair and inclusive workplace practices, and reducing our portfolio's carbon footprint are key elements of our responsible investment approach and integral to creating value for our investors and their members and beneficiaries."
IFM Private Equity's portfolio companies include Australia's largest National Disability Insurance Scheme (NDIS) My Plan Manager (MPM), Payapps, a Melbourne-based, global Software as a Service (SaaS) provider in the construction and building management sector, and Genie Solutions, a Brisbane-based software business that provides practice management software (PMS) and associated software solutions to specialists in private medical practice.
These companies actively pursue emissions reduction initiatives to reduce gross emissions as a priority.
To achieve carbon neutrality in the short term, verified carbon offsets which enhance bio-diversity in Australia and deliver additional social, cultural and environmental co-benefits have been purchased to compensate for the organisational emissions, IFM Investors said.
This approach has been recognised recently with several of the companies held in IFM's private equity portfolio winning awards for diversity, innovation and growth.