Asset Management: How Apollo Approaches Sustainability
Climate technologies and new infrastructure are key levers in the transition to net zero, but only around 10% of the technologies needed by 2050 are currently in place according to McKinsey.
Making this significant of a change comes at a high financial cost, so investors and asset managers could play an important role.
With US$751bn of assets under management, Apollo Global Management is aiming to make its mark on the net zero transition.
Its 2024 Sustainability Report shows that the business is taking actions across its portfolio.
Dave Stangis, Chief Sustainability Officer at Apollo, said on LinkedIn: “I’m extremely proud to share Apollo’s 16th Annual Sustainability Report — the product of collaboration across strategies, time zones and hundreds of colleagues committed to advancing our firm’s ecosystem approach to sustainability across our operations and investing.
“This year’s report highlights how we’re scaling reporting efforts to increase transparency, developing new tools for value creation and expanding risk assessment and value creation capabilities across our teams.”
Achievements and initiatives
In 2024, Apollo committed, deployed or arranged around US$30bn in climate and energy-related investments – progress towards its target of US$50bn by 2027 and US$100bn by 2050.
It also broadened its application of sustainability risk assessment methodology to new investment strategies and expanded its Scope 3 GHG emissions reporting.
Apollo employees volunteered around 20,000 hours in 2024 and the company developed strategic partnerships to accelerate financing for infrastructure and renewable energy.
It also achieved multiple industry awards, including Climate Transition Fund Manager of the Year and inclusion in a list of America’s Greenest Companies.
“We aim to be a partner of choice in the new economy, where energy demands are growing,” says Scott Kleinman, Co-President of Apollo Asset Management, in the report.
“Apollo’s strengths — long-term, flexible capital; deep client relationships; and a solutions-oriented mindset, coupled with our sustainability expertise — allow us to address complex, large-scale financing needs that public markets cannot address alone.”
Portfolio impact
In 2024, Apollo enhanced its engagement with portfolio companies to support decarbonisation strategies, value-creation planning and KPI setting.
It created comprehensive playbooks for portfolio companies, including on the development of health and safety programmes and Scope 3 emissions management.
Apollo’s strategy for decarbonisation pathways for its portfolio companies consistently prioritises initiatives by financial return on investment.
“Since Apollo’s founding 35 years ago, we continue to challenge assumptions, identify white space and bring innovative solutions to the market,” says Marc Rowan, Chief Executive Officer at Apollo, in the report.
“With our integrated approach, we believe Apollo is uniquely positioned to drive positive impact through everything we do – from how we invest, to how we lend, to how our Firm operates globally.
“The world has changed a lot in the past 35 years. In today’s financial landscape, the only constant is change.
“As we look to the big opportunities ahead of us, we believe that the capital needed for infrastructure, energy transition and next generation data and power – now known as the ‘Global Industrial Renaissance’ – will scale materially.”
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