Asia Green Fund Releases Carbon Neutrality and Green Impact Report 2020


Asia Green Fund (“AGF”), an impact private equity firm founded in 2016 in Beijing, recently publicly released its Carbon Neutrality and Green Impact Report 2020, following a couple years’ non-public reports to limited partners. This makes AGF the first investment management firm in Asia’s PE/VC industry to quantify green impact on the fund level by systematically assessing the green impact of all of its portfolio companies with third-party certification.

According to the report, assets managed by AGF achieved carbon emission reduction of 2.64 million tons in 2020, which is equivalent to the annual carbon emissions of 600,000 vehicles. AGF portfolio’s Carbon Neutrality Index, measured as fund-level emission reduction driven by every 100million RMB, was 172,732 tCO2 equivalent. In addition, AGF portfolio has generated 0.36 RMB of cost savings for carbon mitigation and environment treatment by every RMB investment.

The report also illustrated AGF portfolio companies’ green contributions on hazardous waste reduction, wastewater reduction and air pollutant reduction. In total, AGF’s managed assets reduced 45,000 tons of solid waste, 796 tons of air pollution and 1.64 million tons of wastewater.

The report disclosed AGF’s green impact assessment system which was established by AGF’s in-house Research Institute with certifications from authoritative international certification firms. The Institute has also been working closely with leading environment data providers to enhance data quality and optimize the algorithm. 

As China’s leading green impact private equity investment institution, in addition to investments into clean technology, energy conservation and environmental protection, AGF has also been actively investing in opportunities where technologies including digital technologies can bring both efficiency enhancement and green impacts in logistics, transportation, and advanced manufacturing. Furthermore, AGF has developed an ecosystem to unite limited partners, portfolio companies, financial institutions, and industry alliances to pursue both financial returns and environmental impact through private equity investments.

Dr. Bo Bai, Chairman and Founder of AGF, said AGF has incorporated green impact investing as a core part of its DNA, by practicing it throughout the fund’s business processes including fund raising, subsector selection, due diligence, investment decision making and post-investment monitoring. “When we started in 2016, not everyone in the industry appreciated the idea at first, but now more and more enterprises have been invigorated and involved in the cause since China made pledges to reach peak emissions by 2030 and become carbon neutral by 2060.” Dr. Bai commented.

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