Ardian was voted by the judging panel to win the asset manager of the year award for – as one put it – being “at the cutting edge of driving the transition, both their hydrogen focus, their active asset management and through their nature-based solution fund”.

Another judge on IJGlobal ESG Awards 2024 said the fund manager had achieved “measurable, ambitious decarbonisation targets”, adding: “Ardian has linked decarbonisation with team remuneration which not only demonstrates the level of commitment, but accelerates the decarbonisation of the portfolio, achieving a transition-based portfolio affecting change.”

Ardian formalised its Responsible investment Policy in 2016, updated in 2023, and that same year joined the Organization for Biodiversity Certificates.

The fund manager launched a 5-year, firm-wide climate transition plan aligned with science-based frameworks, embracing all investment strategies and corporate activities.

Ardian gives 3 examples in its submission of companies it has acquired and invested – with impact achieved over the course of the judging period.

The first example is Nevel Oy that Ardia acquired in 2021 and on which the fund manager is targeting carbon neutrality in energy production by 2030.

Since acquiring the district heating and integrated utilities company, the Ardian Infrastructure team has supported Nevel to reduce its carbon emissions from across the 130+ energy production sites and 40+ district heating networks that it operates in Finland, Sweden and Estonia.

The submission states: “When we acquired Nevel, around 45% of its energy was generated from peat and oil. Our value creation plan called for phasing out these fossil fuels, investing in renewable energy, optimising fuel use and increasing efficiency of Nevel’s plants.

“Nevel is replacing peat with biofuels and using biomass from industrial plants, utilising side streams such as excess heat from industrial processes, and has piloted the use of solid recovered fuel (SRF), to support emissions savings as well as local circular economies.”

These actions have resulted in a 56% reduction in Nevel’s direct CO2 emissions (Scope 1) in the period 2020-22, and by the end of 2022 some 80% of the company’s energy production was from renewable sources.

So far, as a result of Nevel’s actions with the support of Ardian, the company’s current emissions trajectory should see it come into alignment with the Paris Agreement’s 1.5°C target by 2030. At the same time, Nevel’s EBITDA has increased by 55% since January 2021.

And then there is LBC Tank Terminals – a global provider of bulk liquid storage solutions (oil and chemical products) – that Ardian acquired in 2017 and on which the focus has been continued improvement in H&S performance.

Since Ardian acquired a share in LBC, it has supported the company in increasing its performance and maturity on sustainability topics, with a particular focus on health and safety.

One outcome has been a decrease of 72% between 2017 and 2022 in LBC’s total recordable incident frequency rate for employees and contractors, from 2.62 per 200,000 hours worked to 0.73.

A team of Ardian operating partners In 2022 supported LBC in identifying specific safety improvement programmes and further strengthen its H&S strategy. The absolute number of incidents in 2022 was reduced by more than 60% compared to 2021.

Meanwhile, on the climate objectives and energy efficiency front, LBC in 2021 took the commitment to become carbon neutral in its operations by 2030 for Scope 1 and 2, and by 2040 for Scope 3. This decision was supported by the board, where Ardian has 2 seats.

LBC has since 2020 reduced its absolute emissions by 33% (Scope 1 and 2), and in 2022 all terminals where LBC has control over the electricity purchase agreement these have switched 100% to renewable electricity.

LBC decreased by 16% the volatile organic compounds emissions linked to the storage of the products between 2021 and 2022, going from 7.13 to 5.99 (g/metric ton throughput).

The final development that Ardian cites in its submission is the Averrhoa Nature-Based Solutions Fund that the fund manager launched in 2023.

Ardian and aDryada – a French forest restoration and biodiversity operator – launched the nature-based solutions (NBS) strategy that is dedicated to large-scale projects.

It aims to remove 150mt of carbon from the atmosphere while providing biodiversity and social benefits, deploying around €1.5 billion in projects worldwide, primarily in emerging markets.

The submission states: “With a sustainable investment objective in the meaning of Article 9 of the EU SFDR, the fund aims to contribute to global climate mitigation through NBS projects to sequester carbon dioxide from the atmosphere and generate certified carbon credits to support buyers in pursuing low-carbon strategies.”

Target projects include reforestation, afforestation, and wetlands and mangrove restoration, generating recognised carbon programmes like Gold Standard and VERRA.

The submission continues: “An ESG framework was developed for the investment cycle, with an internal impact committee reviewing due diligence outcomes and providing an opinion on the prospective investment’s compliance with the fund’s ESG commitments.

“An environmental and social management system – including an ESG policy – will be implemented for the fund according to the IFC performance standard. Yearly collection of social indicators will help identify risks and implement mitigation actions.

“Environmental and social risks and relevant mitigation actions will be reviewed during the due diligence process, with the support of the sustainability team and external ESG consultants.

“The Environmental and Social Impact Assessment (ESIA) and Environmental and Social Management Plans (ESMP) of the projects will also be reviewed.”