Sphera to Help Blackstone Reduce its Carbon Emissions with Software as a Service Platform

(Credit: Private Equity Insights)

Sphera, a global provider of Environmental, Social and Governance (ESG) performance and risk management software, data, and consulting services, announced yesterday that its carbon accounting solutions will contribute to investment firm Blackstone’s Emissions Reduction Program.

Operating in 80 countries with more than 3,000 customers, Sphera supports businesses globally to manage and mitigate ESG risk through its software as a service solution (SaaS) and consulting services. Blackstone acquired Sphera for $1.4 billion last July.

Blackstone, which has stakes in more than 250 companies and 10,000 real estate holdings, will utilize Sphera’s platform to enhance its ability to measure progress against decarbonization efforts and strategically manage greenhouse gas emissions.

James Mandel, Chief Sustainability Officer at Blackstone, commented:

“We are in a unique position at Blackstone to support the sustainability efforts of companies across sectors and geographies given our large, global portfolio—and sophisticated measurement tools are at the core of impactful decarbonization efforts,” said. “We believe Sphera’s deep technical rigor on GHG inventories will be tremendously valuable in our ESG risk mitigation efforts, and are thrilled to integrate its software suite, consulting services and data into the platform of resources available to our portfolio companies.”

Paul Marushka, Sphera’s CEO and president, added:

“Blackstone has demonstrated a commitment to being a leader in ESG integration, engagement and reporting within the private equity industry. We’re honored that the firm has brought us on as a partner to support its carbon footprinting initiatives and look forward to working with a number of its portfolio companies to establish robust monitoring and reporting frameworks for GHG emissions.”

In January 2021, Blackstone unveiled its Emission Reductions Program to help reduce greenhouse gas emissions across many of its investments. Specifically, the firm committed to cutting Scope 1 and Scope 2 carbon emissions “for new assets globally where we control the energy usage” by 15% over the first three years of ownership.

Blackstone’s sustainability efforts date back ten years, when it began improving its energy efficiency through measures such as LED lighting, occupancy sensors, and upgrades to heating and air conditioning systems. Blackstone boasts that its initiatives have netted substantial savings: sustainability projects reduced BioMed Realty’s energy bill by $2.2 million annually. Similarly, Blackstone helped Gates Industrial Corporation save 30% in utility costs over three years.