Building Better Businesses Through Portfolio Company Decarbonization

This document is a report detailing Apollo Global Management's approach to enhancing value through the decarbonization of its portfolio companies. It outlines the increasing pressure on companies to decarbonize from various stakeholders, including customers, investors, and regulators. The report highlights the challenges many companies face in developing effective decarbonization strategies and emphasizes the unique position of the private equity industry in driving long-term impact. It discusses the operational decarbonization process and its potential to create financial value while addressing climate risks. The report also describes Apollo's strategic engagement with portfolio companies, focusing on accountability mechanisms and the establishment of capabilities to support sustainability efforts. Furthermore, it emphasizes the importance of aligning decarbonization goals with business objectives to achieve both environmental and financial benefits. The document concludes by addressing the evolving regulatory landscape and the growing expectations from customers regarding sustainability performance.