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Kerogen Capital Outlines Net Zero Carbon Strategy and Achieves Carbon Neutrality across the Fund and its Two Largest Controlled Portfolio Companies

Friday, January 22, 2021

Kerogen Capital (“Kerogen”), the independent private equity fund manager specialising in the energy sector, supports the goal of the Paris Agreement to achieve a net zero global economy and is pleased to announce the launch of its Net Zero Carbon Strategy.

This strategy includes Kerogen’s commitment to carbon neutrality across its operations for Scope 1 and 2 emissions.  In 2020, it achieved carbon neutrality at:

  • the fund manager level;
  • the Fund level for the current vintage; and
  • the two largest controlled portfolio companies, Zennor Petroleum and Pandion Energy. They are one of the first E&P companies to become carbon neutral in the UK and Norway respectively.

In addition, Kerogen has committed to making all future fund vintages and investments carbon neutral.

This has been achieved initially by offsetting CO2 emissions through programmes that are aligned with the UN Sustainable Development Goals.

Kerogen recognises that carbon offsetting is not the long-term solution to climate change and must be combined with action to reduce the emissions intensity operations.

A comprehensive strategy to address climate risks and carbon neutrality will increasingly be required for all fund managers.  Our strategy is outlined in the Net Zero Carbon Strategy document. It involves a number of key priorities including:

Adhering to a carbon light investment strategy

This includes climate related criteria in the screening of new investments; during our ownership providing stewardship around climate related strategy including plans to reduce carbon emissions and ensuring transparency, reporting and governance structures are in place to effect the strategy; and finally factoring in the potential for repurposing and recycling of infrastructure to facilitate development of hydrogen, CCS, offshore wind and renewable electricity projects.

Reducing the carbon intensity of our operations by 50% by 2030

Kerogen has already started implementing measures to support carbon reduction in the portfolio and we are targeting a 50% reduction in carbon intensity from our producing portfolio by 2030. The reduction is expected to be achieved from a combination of decarbonisation initiatives, including: energy consumption efficiency; digitalisation and optimisation of facilities; electrification; and where relevant solutions for flaring, venting and fugitive emissions.

Committing to transparent climate related reporting

Kerogen supports the Task Force on Climate-related Financial Disclosures (TCFD) and aims to align its disclosure with the recommendations set forth by TCFD from 2021.

Impactful offsetting of our remaining carbon emissions

We have made a commitment to use high quality carbon offsets for any remaining short-term emissions to achieve carbon neutrality immediately.

Advocating for industry change

Kerogen is committed to working with its investee companies, their joint venture partners, its peers, regulators, lenders, investors and other stakeholders to promote and accelerate decarbonisation.

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