Travers Smith's Sustainability Insights: What can (private markets) investors do about climate change?

Investors must face reality: A new report argues that a decade of disclosure targets and stewardship has failed to drive real-world decarbonisation, because technology development and government policy – not investor pressure – are the primary determinants of how quickly economies transition.

Private markets have real advantages – but clear limits: A sponsors' greater agency over portfolio companies gives private markets a genuine edge, but fiduciary duties mean no manager can pursue climate goals unless it is in the interests of their LPs or consistent with a specific mandate.

Policy engagement is the under-used lever: Private markets managers – closer than most to what makes a project financeable – are well placed to tell governments what conditions will attract private capital, and that expertise could be deployed more deliberately, and more often.

Links:

https://www.fmg.ac.uk/sites/default/files/2026-05/What-Can-Investors-Do-About-Climate-Change_final.pdf

https://www.edf.org/

https://www.lse.ac.uk/global-school-of-sustainability

https://collaborate.unpri.org/group/761/about

https://www.bain.com/how-we-help/private-markets-decarbonization-roadmap/