Apollo’s credit unit ramps up ESG credentials
Apollo Global Management has revealed that more than 80 per cent of its assets under management (AUM) are now supported by its ESG credit team, as it looks to channel $50bn (£39.4bn) into clean energy and climate investments across all asset classed by 2027.
The alternative asset manager’s credit strategy is its largest by AUM, spanning both private and public markets.
Apollo’s 2023 sustainability report said that more than 80 per cent of its AUM is supported by the ESG credit team as of 31 December 2023, up by 60 per cent from the fourth quarter of 2022.
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102 of Apollo’s funds or single-managed credit accounts receive periodic ESG reporting, a 108 per cent increase from the end of 2022, while more than 290 climate and transition, impact and sustainability-linked assessments have been conducted – a 114 per cent rise.
“Apollo’s position as the inaugural chair of the ESG Integrated Disclosure Project demonstrates our commitment to advancing environmental, social and governance integration across the private credit markets and has contributed to the positive momentum of the initiative since its initial launch,” said Michael Kashani, head of ESG Credit at Apollo.
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“A harmonized approach can facilitate the development of material ESG disclosures, helping tackle one of the greatest challenges facing the private credit markets today. Greater availability of data supports our focus on value creation and meeting stakeholder needs, along with our ongoing efforts to develop innovative climate and transition financing solutions.”
Apollo’s annual sustainability report also revealed that the firm has deployed, committed or arranged $10bn towards clean energy and climate investments across all asset classes in 2023, advancing progress towards its 2027 target.
“We view the global transition to a cleaner economy and sources of energy as one of the largest strategic business opportunities of our time,” said Apollo co-president Scott Kleinman. “I’m proud of the way Apollo and our people have seized this opportunity to reinforce our position as a leading provider of flexible capital and partner of choice. I also look forward to seeing our teams continue to leverage the broader Apollo ecosystem to expand the scope and influence of our efforts to accelerate growth, value and sustainable practices for the benefit of our firm, clients and partners.”
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