CDP, a global environmental standards body, has struck a private equity deal that will split its operations into two separate organisations.
The global disclosure system used by investors and corporates to assess carbon and environmental impact has struck a deal with private equity firm Permira to launch a commercial entity providing data and disclosure systems. The new entity will operate alongside the CDP Foundation, which will focus on driving the strategic principles for disclosure.
NZI Climate Solutions Summit | 23 June | Register here
While CDP has charged self-reporting members an administrative fee, it has previously operated as a non-profit organisation. It works with more than 22,000 companies, cities, states and regions on carbon disclosures and is supported by more than 800 institutional investors.
By striking a deal with Permira, CDP hopes to enable stronger science-led disclosure and greater investment in technology to simplify the disclosure experience, the group said.
The CDP Foundation will use proceeds from the transaction to invest in science-led innovation, including the development of new frameworks to manage risks and opportunities in emerging areas such as ocean health and plastics, the group said.
Sherry Madera, chief executive of CDP, said: “This is a transformative moment, marking the next chapter of CDP’s evolution in service of global markets. We are deepening our priorities, enabling CDP to deliver stronger science-led disclosure and leverage new technologies to simplify the disclosure experience.
“CDP and the CDP Foundation will be united in a shared ambition. Together, they will uphold a pioneering disclosure system that will help unlock greater decision-useful insights to shape an Earth-positive economy. This partnership with Permira will chart a clear path for the future, enabling CDP’s environmental data and insights to deliver greater value to disclosers, companies, financial institutions and wider CDP data users, accelerating meaningful, real-world impact.”
The deal marks Permira’s first Energy Transition Commitment and comes after the firm recently established a dedicated Energy Transition team.
The $90bn private markets manager has offices across Europe, the United States, the Middle East and Asia.
Longview Networks: Institutional Investment Conferences and Summits