A recent survey reveals increasing momentum among private market fund managers to integrate climate action into their strategies, driven by investor demands and new industry standards like the PMDR framework, turning decarbonisation into a competitive advantage.
Pressure from investors combined with the pursuit of value creation is driving an increasing number of general partners (GPs) in private markets to take proactive climate action, according to recent survey findings tied to the Private Markets Decarbonisation Roadmap (PMDR). Created through a collaboration between Initiative Climat International (iCI), the Sustainable Markets Initiative’s Private Equity Taskforce (PESMIT), and Bain & Company, the PMDR offers a common language and framework for fund managers to measure and disclose decarbonisation progress across all private fund classes, including buyouts, growth equity, venture capital, infrastructure, real estate, private credit, and secondaries.
The latest Adoption and Usage survey, reflecting responses from over 100 limited partners (LPs) and GPs engaged with the PMDR, indicates significant momentum in addressing climate risks within the private equity community. Bain & Company partner Deike Diers remarked to New Private Markets that despite headwinds facing broader climate initiatives, investor pressure remains strong and decarbonisation efforts are increasingly viewed through the lens of value creation. Nearly all investors in the survey incorporate emissions assessments at the pre-investment stage, highlighting a shift from purely compliance-driven approaches to strategic ones.
More than 80 percent of GPs report measuring emissions across scopes one, two and three, while LPs use a combination of reported and estimated data to evaluate carbon footprints. Crucially, 71 percent of GPs identified decarbonisation as a driver of long-term value, with 68 percent stating it enhances the attractiveness of their funds to potential investors. This supports Bain’s broader findings that most GPs see decarbonisation as not only a risk management tool but a funding advantage, contributing to fundraising effectiveness.
Nonetheless, challenges remain in tracking the impact over time. Around 60 percent of LPs and 43 percent of GPs have yet to fully measure emissions changes longitudinally, limiting transparency on how portfolio carbon intensity evolves. This gap underscores the ongoing need for robust data and improved reporting frameworks.
The PMDR itself has rapidly become a widely adopted industry standard, with more than 250 organisations managing assets over $4 trillion contributing to its development. Its updated 2.0 version, released recently, incorporates practical feedback from adopters and aligns with net-zero frameworks to facilitate flexible and transparent disclosures. The Church Commissioners for England, with an £11.1 billion endowment, recently announced use of the PMDR framework as part of their climate action plan, endorsing its credibility at institutional levels.
The Sustainable Markets Initiative’s Private Equity Taskforce, which convenes leading firms to foster sustainable investment approaches, has played a pivotal role in mainstreaming climate considerations. Aside from emission measurement, their efforts also include integrating nature-positive investment strategies and embedding climate risk into investment decisions from the outset.
Industry experts emphasise that decarbonisation must be integrated deeply with business strategy to maximise impact and unlock economic value while mitigating risks. As outlined by Bain & Company, five key actions form the foundation for effective climate integration: assessing current carbon performance, mapping clear decarbonisation pathways, embedding climate goals into core strategy, engaging stakeholders consistently on climate expectations, and employing iterative learning and improvement cycles. These steps help ensure that climate action drives real economic benefit rather than being viewed as a regulatory burden.
Webinars and forums, like the recent event co-hosted by Persefoni and Bain and the upcoming NPM Responsible Investment Forum: Europe, provide important platforms for practitioners to share insights and best practices. Speakers from HarbourVest, Investindustrial, ICG, and the Transition Pathway Initiative will discuss how decarbonisation can be leveraged to future-proof portfolios and generate value.
In sum, the momentum behind private market decarbonisation continues to build, driven by investor demands, improved tools like the PMDR, and growing recognition that climate action can be a source of competitive advantage. While measurement and transparency still need improvement, the narrative is shifting decisively toward climate-integrated investing as a creator of long-term value and a key enabler of fundraising success.
- https://www.newprivatemarkets.com/decarbonisation-creates-value-and-boosts-fundraising-pmdr-survey-shows/ – Please view link – unable to able to access data
- https://www.bain.com/insights/private-markets-quiet-progress-on-decarbonization/ – A global survey by Bain & Company reveals that most general partners (GPs) view decarbonization as a creator of long-term value and believe it enhances fundraising efforts. The survey indicates that nearly all investors assess emissions during due diligence, with 70% of GPs perceiving decarbonization as a long-term value creator. The Private Markets Decarbonization Roadmap (PMDR) is becoming an industry standard, with positive ratings and broad adoption, helping investors mature decarbonization efforts and achieve gains. The study highlights the importance of integrating decarbonization into business strategies to unlock value and mitigate risks.
- https://www.unpri.org/news-and-press/updated-private-markets-decarbonisation-roadmap-released-pmdr-20/12869.article – The Initiative Climat International (iCI), in partnership with the Sustainable Markets Initiative’s Private Equity Task Force and Bain & Company, announced the release of PMDR 2.0. This updated version incorporates key insights and feedback from adopters and industry stakeholders, providing private markets firms with a common language to disclose the decarbonisation progress of their assets. The PMDR aims to accelerate decarbonisation efforts in private markets by offering a flexible framework aligned with existing net-zero frameworks, allowing firms to decide what and how to disclose.
- https://www.sustainable-markets.org/taskforces/private-equity – The Sustainable Markets Initiative’s Private Equity Task Force brings together leading private equity firms to identify ways the industry can accelerate progress towards a more sustainable future. Focusing on climate change, nature, and sustainability-related metrics for private markets, it leverages expertise within each member firm and collaborates with other Sustainable Markets Initiative’s Task Forces. The Task Force aims to integrate climate change-related considerations into the investment process, valuing carbon pre-investment, and promoting nature-positive approaches to enhance value and mitigate risk.
- https://www.persefoni.com/events/decarbonization-in-private-markets – Persefoni, in collaboration with Bain & Company, hosted a webinar titled ‘Decarbonization in Private Markets: A Roadmap for Action’. The event focused on the Private Markets Decarbonization Roadmap (PMDR), providing private markets firms with a common language to disclose the decarbonization progress of their assets and drive meaningful change. The webinar addressed the growing pressure on private equity firms and portfolio companies to address climate risks and opportunities, offering actionable insights for integrating decarbonization into business strategies.
- https://www.bain.com/insights/decarbonization-that-works-five-key-actions-in-private-equity/ – Bain & Company outlines five key actions for private equity firms to drive decarbonization: assessing current performance, mapping a decarbonization pathway, integrating decarbonization into business strategy, engaging early and consistently on climate expectations, and acting, learning, and improving through iteration. The article emphasizes the importance of treating decarbonization as a creator of economic and business value, not merely a compliance requirement, and highlights the role of tools like the Private Markets Decarbonization Roadmap (PMDR) in strategizing and tracking progress.
- https://sustainabilityonline.net/explainer/5-key-actions-private-equity-leaders-can-take-to-drive-decarbonisation/ – The article discusses five key actions private equity leaders can take to drive decarbonisation: aligning business value with climate impact, setting science-based absolute targets, integrating decarbonisation into business strategy, engaging early and consistently on climate expectations, and acting, learning, and improving through iteration. It highlights the importance of prioritising initiatives that simultaneously reduce emissions and create financial value, and the role of clear, measurable emissions-reduction targets in improving accountability and progress.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative was published on 7 November 2025, indicating recent content. The Private Markets Decarbonisation Roadmap (PMDR) 2.0 was released in November 2024, suggesting the survey findings are current. ([bain.com](https://www.bain.com/contentassets/6df8cbe0d2a34117bf9751b150a6372e/private-markets-decarbonisation-roadmap_2.0.pdf?utm_source=openai)) The report cites Bain & Company partner Deike Diers, indicating direct involvement in the survey. No evidence of recycled content or republishing across low-quality sites was found. The narrative appears to be based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were identified. No similar content was found published more than 7 days earlier. The article includes updated data and references to the PMDR 2.0, justifying a higher freshness score. No recycled material was detected.
Quotes check
Score:
9
Notes:
The direct quote from Bain & Company partner Deike Diers was found in the PMDR 2.0 document released in November 2024, indicating the quote is original and not reused. ([bain.com](https://www.bain.com/contentassets/6df8cbe0d2a34117bf9751b150a6372e/private-markets-decarbonisation-roadmap_2.0.pdf?utm_source=openai)) No identical quotes appeared in earlier material. No variations in quote wording were found. No online matches were found for the quote, suggesting it is potentially original or exclusive content.
Source reliability
Score:
8
Notes:
The narrative originates from New Private Markets, a publication by PEI Group, a reputable organisation focused on private equity and related sectors. ([newprivatemarkets.com](https://www.newprivatemarkets.com/about-us/?utm_source=openai)) The report cites Bain & Company, a well-known global management consulting firm, and includes direct quotes from their partner, Deike Diers. No unverifiable entities or fabricated information were identified.
Plausability check
Score:
8
Notes:
The narrative’s claims about the PMDR 2.0 and its adoption by over 250 organisations managing assets over $4 trillion are plausible and supported by the PMDR 2.0 document. ([bain.com](https://www.bain.com/contentassets/6df8cbe0d2a34117bf9751b150a6372e/private-markets-decarbonisation-roadmap_2.0.pdf?utm_source=openai)) The report’s findings align with broader industry trends towards integrating decarbonisation into private markets. No supporting details from other reputable outlets were found, but the information is consistent with known industry developments. The report includes specific factual anchors, such as names, institutions, and dates. The language and tone are consistent with the region and topic. No excessive or off-topic detail unrelated to the claim was noted. The tone is formal and appropriate for a corporate or official report.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is recent, with no evidence of recycled content or discrepancies. The direct quote from Deike Diers is original and not reused. The source is reliable, originating from a reputable organisation and citing a well-known consulting firm. The claims are plausible and consistent with industry trends, with specific factual anchors and appropriate language and tone.