World’s top 20 private equity firms produce more greenhouse gases a year than most countries, report finds

A new report reveals that the energy portfolios of the world's top 20 private equity firms emit a staggering 1.5 billion tonnes of greenhouse gases annually. This figure surpasses the annual emissions of all countries except China, the US, India, and Russia, according to The Guardian. These firms, collectively managing $7.3 trillion in assets, possess significant influence over the shift away from fossil fuels.

However, their energy investments still include substantial fossil fuel assets, such as natural gas and coal-fired power plants that supply electricity to data centers. The Private Equity Climate Risks Consortium analyzed these top 20 private equity firms' energy infrastructure, finding they own 15,000 miles of pipelines, 124 GW of power generation capacity across 370 fossil fuel-powered plants, and numerous oil and gas fields.

Private equity's role in energy has grown, with half of the top 10 US data center owners backed by private equity. Matt Parr, communications director for the Private Equity Stakeholder Project, highlights the lack of scrutiny and credit for private equity's contribution to global emissions, calling the industry "very opaque." The researchers used data from PitchBook and other sources to assess the energy holdings of these firms, although gaps in data prevented them from calculating the exact amount of fossil fuel assets invested.

Some public-sector retirement systems have attempted to limit exposure to fossil fuel projects, yet private equity firms like BlackRock, GIP, Energy Capital Partners, EQT, and Kayne Anderson have increased their investments in fossil fuel companies compared to 2024. EQT, for instance, could soon acquire AES Corporation, which owns over 20 power plants, potentially exacerbating its fossil fuel impact.

Blackstone has invested heavily in data centers and energy infrastructure, including a $2.16 billion stake in NIPSCO, a utility serving 1.3 million customers in Indiana. NIPSCO plans to build a 2,300 MW natural gas power plant to power data centers, which could emit millions of tonnes of carbon dioxide annually. Blackstone defends its investments, citing an emissions reduction program, but questions remain about potential conflicts of interest between its ownership of utilities and the companies dependent on those utilities for electricity.