Changing weather: putting climate at the heart of investment strategy


Apollo Case Study Changing Weather: How KPMG helped global asset manager embed a comprehensive strategy to manage climate risks and opportunities.

CHALLENGE: How do you build climate considerations into investment decisions?

Asset managers are under pressure, from regulators, investors, employees and customers, to up their game on climate risks – and opportunities.

“Climate risk is a very serious risk for all investors, in particular, the private equity community,” says Mike Hayes, Global Renewables Leader at KPMG. Climate risk is the exposure of companies across the world to both the physical risk of climate and transition risk – and the change in customer sentiment and regulations that will impact assets.

One large global asset management player that has stood up and taken notice is Apollo Global Management, Inc.. With some $523 billion assets under management, Apollo has a significant global footprint.

“In today’s marketplace, every financial firm, every alternative asset manager, is sought out as an advisor not just for investment but for advice on where the future’s going. Considering carbon and climate in our investments, our investors are looking for us to be sophisticated in this space, and our employees. too,” says Dave Stangis, Chief Sustainability Officer at Apollo Global Management.

Building a holistic climate strategy

Apollo has a long history of integrating ESG principles in its investing approach to drive positive environmental and social impact while creating value for its clients, investors and shareholders. But it recognised that there was an opportunity to strengthen its approach even further; it needed a comprehensive climate strategy that would inform every aspect of its business – from fundraising, to capital deployment and risk monitoring across investment portfolios.

INSIGHT: Engaging the whole business with the climate strategy…

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