Private equity’s fossil fuel emissions rank fifth globally, analysis finds

A new scorecard from three advocacy groups estimates that 20 major private equity firms’ energy portfolios generate 1.5 gigatons of greenhouse gases a year, a footprint larger than every country except China, the U.S., India and Russia. The report also says many oil and gas funds have lost money after inflation, even as private equity expands into data centers and the power infrastructure that feeds them.

Why it matters: - The energy portfolios of 20 major private equity firms produce an estimated 1.5 gigatons of greenhouse gas emissions annually. - That would rank the firms’ combined fossil fuel footprint fifth globally, behind only China, the United States, India and Russia. - The analysis links private equity-backed fossil fuel assets to climate pollution, health harms and growing exposure in the fast-expanding data center market. - The report says public, investor and regulatory visibility remains limited because private equity owns many fossil fuel assets through complex structures.

What happened: - The Private Equity Stakeholder Project, Americans for Financial Reform Education Fund and Global Energy Monitor released the 2026 Private Equity Climate Risks Scorecard. - The third edition examines 20 firms managing a combined $7.3 trillion in assets. - The scorecard expands previous editions by adding oil and gas pipelines, LNG tankers, coal terminals and oil- and gas-fired power generation. - The release comes weeks after July became the hottest month recorded in the contiguous United States since recordkeeping began in 1895. - The release also comes as the Trump administration eliminates federal limits on greenhouse gas emissions from coal- and gas-fired power plants. - The scorecard is endorsed by 21 organizations working on climate, environmental justice, financial accountability and consumer issues. - The full scorecard is available as the 2026 Private Equity Climate Risks Scorecard.

The details: - The firms back at least 244 energy companies operating more than 250 oil and gas fields. - The portfolio footprint includes 15,000 miles of pipelines, 35 LNG terminals, 13 coal terminals, dozens of LNG tankers and hundreds of fossil fuel power plants. - The accompanying global asset map shows fossil fuel infrastructure by private equity firm, portfolio company, asset type and location as of June 2026. - The map covers private equity-backed extraction projects, power plants, pipelines, terminals and other fossil fuel infrastructure around the world. - Private equity firms back nearly half of the top 25 U.S. data center companies. - Private equity investment in U.S. data centers reached $45.7 billion in 2025, about 72% of total investment in the sector. - Some firms are positioned to profit from data centers and from the utilities, power plants, pipelines and other infrastructure needed to supply electricity to them. - In the United States, air pollution from private equity-backed extraction, coal plants and LNG infrastructure is linked to at least 1,000 premature deaths each year. - The same pollution is linked to 1,400 additional emergency room visits, 584,000 instances of asthma symptoms, 3,700 cases of asthma onset and 27,000 lost workdays annually. - Investors contributed $190.4 billion to 145 private equity oil and gas funds that have largely completed their investment lifecycles. - Those funds have returned $192.9 billion to investors. - The median fund returned only 2% more than investors contributed. - After accounting for inflation, investors lost money on average. - None of the 20 firms received an A on the report’s grading system. - TPG, EQT and Apollo received the highest grades, each earning a B. - Blackstone, BlackRock and Brookfield each received a C. - KKR and Carlyle each received a D.

Between the lines: - The report suggests private equity is exposed on two fronts at once: legacy fossil fuel assets and new power demand from data centers. - The weak fund returns undercut one of the industry’s central defenses for maintaining oil and gas exposure. - The emissions, health impacts and political spending questions create pressure not just on fund managers, but also on pensions and other institutional investors that back them. - The scorecard frames climate risk as both a financial disclosure issue and a public accountability problem.

What's next: - The report calls on private equity firms to disclose fossil fuel holdings and emissions, adopt science-based climate targets and publish portfolio-wide transition plans. - It also urges firms to address environmental justice impacts and provide greater transparency around political spending and climate lobbying. - The report calls on institutional investors and regulators to require stronger disclosure and accountability from private fund managers. - The findings are likely to intensify scrutiny of private equity exposure to fossil fuels and data center-related energy demand.

The bottom line: - Private equity’s climate footprint is large, opaque and increasingly tied to the power needs of the digital economy.