US-headed Apollo Global Management, Inc, a global, high-growth alternative asset management business, has announced the launch of a comprehensive sustainable investing platform focused on financing and investing in the energy transition and decarbonization of industry. Across asset classes, Apollo targets deploying US$50 billion in clean energy and climate capital over the next five years and sees the opportunity to deploy more than US$100 billion by 2030.
With approximately US$4.5 trillion annually in investments needed to achieve global net-zero by 2050, as per Bloomberg New Energy Finance (BNEF), July 2021, Apollo aims to be a leading capital partner to companies and communities globally.
According to a statement, Apollo’s sustainable investing platform will leverage the Firm’s “deep expertise in the key sectors” driving today’s energy transition and decarbonization.
Over the past five years, Apollo has deployed over US$19 billion into energy transition and sustainability-related investments, supporting companies, and projects across clean energy and infrastructure, including offshore and onshore wind, solar, storage, renewable fuels, electric vehicles as well as a wide range of technologies to facilitate decarbonization.
Apollo has also played an active role in helping to finance the transformation of traditional energy companies toward their decarbonization goals.
As a leading, global alternative asset manager, we see an opportunity to play a critical role in driving a more sustainable future. We recognize that fundamental change does not happen overnight and advancing the transition will require deep expertise, partnership, and long-term, flexible capital. With one of the world’s largest private credit platforms and a leading equity franchise, we are committed to leveraging our full platform to provide a one-stop-shop for holistic capital solutions to companies and communities around the globe, said Apollo Co-President, Scott Kleinman.
New management structure
Apollo’s sustainable investing platform will span the Firm’s equity, hybrid and yield businesses and will be led by Olivia Wassenaar, who has been named Head of Sustainable Investing. As part of these efforts, Joseph Moroney will head the Sustainable Finance function, focused on the Firm’s yield businesses, alongside Deputy Heads of Sustainable Finance, Christine Bave, and Dan Vogel.
I am thrilled to help lead such an important initiative as we look to partner with institutions across the globe and deploy record capital across our entire platform. Investing in the energy transition and decarbonization of industry continues to be a priority for the Firm, and I look forward to further leveraging our expertise and full resources toward this effort. We see significant opportunities across the sustainability spectrum to provide attractive, diversified returns to our investors while driving a once-in-a-generation need to create real, positive change across sectors, said Olivia Wassenaar.
The Firm’s broader sustainability strategy will be overseen by the Firm’s Chief Sustainability Officer Dave Stangis. Apollo has continued to build its expertise with a strong team of operators, including recent hires Carletta Ooton, Head of ESG for Private Equity, and Michael Kashani, Head of ESG for Credit.
With more than a decade of leadership in ESG reporting and engagement, our goal is to build new capabilities, strategies, and differentiated opportunities at the forefront of sustainable progress. We are proud of Apollo’s track record of supporting leading companies in this space, and we believe our new platform strategy demonstrates Apollo’s all-in commitment to a cohesive, yet a customizable approach to creating value for all of our stakeholders while accelerating climate goals, said Dave Stangis.
Apollo has a broad and diverse team with climate expertise and capabilities investing across its entire platform, including credit, private equity, impact, infrastructure, real estate, and natural resources. In addition to the Firm’s investment targets, Apollo has committed to:
- Reduce median carbon intensity by 15 percent over the projected hold period for new control investments in the Firm’s flagship strategy;
- Align its public reporting with the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations;
- Enhance due diligence with a deeper focus on sustainability improvements and targets; and
- Continue to identify and invest in innovative companies that accelerate the energy transition and more sustainable business models.
Apollo has been at the forefront of key growth sectors supporting the energy transition, including renewable and transitional energy assets.
As of December 31, 2021, Apollo had approximately US$498 billion of assets under management. Most recently, funds managed by Apollo and its affiliates announced:
- its acquisition of Petros PACE Finance, a leading provider of clean energy financing; invested in leading energy storage and renewable energy platform, Broad Reach Power;
- led investment to finance NextEra Energy Partners’ stake in a 2.5 GW renewable energy portfolio; formed the Ionic Blue joint venture with Johnson Controls to provide sustainability and energy efficiency services;
- purchased a majority stake in Graanul Invest, a leading European bioenergy company;
- served as the lead investor in FlexGen, which designs and integrates energy storage solutions and software platforms;
- invested in US Wind, an offshore wind development platform with 1.5 GW in Maryland;
- led a US$800 million transaction to support New Fortress’ buildout of small-scale LNG facilities in traditionally energy-starved regions; and
- formed Takkion to provide logistics, operations, and repair services to the renewable energy industry.
