Key Takeaways
- • The 2026 Private Equity Climate Risks Scorecard, released by PESP, Americans for Financial Reform Education Fund, and Global Energy Monitor just before Climate Week, examines 20 private equity firms managing a combined $7.3 trillion in assets.
- • The 20 firms back at least 244 energy companies operating more than 1,050 fossil fuel assets, with energy portfolios producing an estimated 1.5 gigatons of greenhouse gas emissions annually.
- • Private equity firms back nearly half of the top 25 U.S. data center companies, and private equity investment in U.S. data centers reached $45.7 billion in 2025, roughly 72 percent of total sector investment.
- • A review of 145 private equity oil and gas funds found investors contributed $190.4 billion and received $192.9 billion back, with the median fund returning just 2 percent above contributions and investors losing money on average after inflation.
- • PESP argues that AI infrastructure is climate infrastructure and that institutional investors and regulators should demand greater disclosure, transition planning, and accountability from private fund managers.
Summary
PESP used New York Climate Week and the high-level week of the 81st UN General Assembly to press the case for bringing private markets into the climate conversation. The organization pointed to its 2026 Private Equity Climate Risks Scorecard, co-produced with Americans for Financial Reform Education Fund and Global Energy Monitor, which covers the energy holdings and climate policies of 20 private equity firms managing a combined $7.3 trillion. The study expands earlier editions to include pipelines, LNG tankers, coal terminals, and oil- and gas-fired power generation, and identifies more than 1,050 fossil fuel assets, including over 250 oil and gas fields, 15,000 miles of pipelines, 35 LNG terminals, and 13 coal terminals.
The Climate Week agenda was dominated by geopolitical conflict, but climate remained part of the UN discussion. At a September 23 High-Level Event on Climate Action and Just Transition, the UN brought together governments, financial institutions, and businesses. Outgoing Secretary-General António Guterres called on governments to develop national plans for transitioning away from fossil fuels aligned with 1.5°C, with protections for affected workers and communities.
PESP's central argument concerns artificial intelligence. Private equity firms back nearly half of the top 25 U.S. data center companies, and private equity investment in U.S. data centers reached $45.7 billion in 2025, about 72 percent of the sector total. According to PESP, some firms are positioning across the AI supply chain, including data centers, utilities, power plants, and pipelines. PESP contends that AI demand could either support clean energy deployment or create incentives for new gas generation and extended fossil fuel asset lives. The organization also cites air pollution linked to private equity-backed extraction, coal, and LNG infrastructure, associated with at least 1,000 premature deaths and 27,000 lost workdays each year in the United States.
On financial accountability, the 2026 analysis of 145 private equity oil and gas funds that have largely completed their investment cycles found investors contributed $190.4 billion and received $192.9 billion back. The median fund returned 2 percent more than contributed capital, and after inflation adjustment, investors lost money on average. PESP argues that public pension funds and other institutional investors should weigh whether long-term climate, transition, and stranded-asset risks are delivering sufficient value. The Scorecard calls for disclosure of fossil fuel holdings and emissions, science-based targets, portfolio-wide transition planning, environmental justice attention, and greater transparency on political spending and lobbying.
The Climate Week agenda was dominated by geopolitical conflict, but climate remained part of the UN discussion. At a September 23 High-Level Event on Climate Action and Just Transition, the UN brought together governments, financial institutions, and businesses. Outgoing Secretary-General António Guterres called on governments to develop national plans for transitioning away from fossil fuels aligned with 1.5°C, with protections for affected workers and communities.
PESP's central argument concerns artificial intelligence. Private equity firms back nearly half of the top 25 U.S. data center companies, and private equity investment in U.S. data centers reached $45.7 billion in 2025, about 72 percent of the sector total. According to PESP, some firms are positioning across the AI supply chain, including data centers, utilities, power plants, and pipelines. PESP contends that AI demand could either support clean energy deployment or create incentives for new gas generation and extended fossil fuel asset lives. The organization also cites air pollution linked to private equity-backed extraction, coal, and LNG infrastructure, associated with at least 1,000 premature deaths and 27,000 lost workdays each year in the United States.
On financial accountability, the 2026 analysis of 145 private equity oil and gas funds that have largely completed their investment cycles found investors contributed $190.4 billion and received $192.9 billion back. The median fund returned 2 percent more than contributed capital, and after inflation adjustment, investors lost money on average. PESP argues that public pension funds and other institutional investors should weigh whether long-term climate, transition, and stranded-asset risks are delivering sufficient value. The Scorecard calls for disclosure of fossil fuel holdings and emissions, science-based targets, portfolio-wide transition planning, environmental justice attention, and greater transparency on political spending and lobbying.
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