Why PMDR is a game-changer for portfolio decarbonization
As climate considerations rise on the strategic agenda, many General Partners (GPs) are wondering how to decarbonize their portfolios in a way that’s measurable, adapted to the reality of their portfolio companies and aligned with investor expectations, without overpromising or underdelivering?
The Private Markets Decarbonization Roadmap (PMDR) is the tool many GPs have been waiting for.
What is PMDR?
The PMDR is a structured, realistic roadmap tailored for the unique dynamics of private markets. It was developed by Bain & Company on behalf of the Initiative Climat International (iCI) and the Sustainable Markets Initiative (SMI), with input from private equity professionals who understand the real-world constraints of managing unlisted assets.
Unlike other frameworks, PMDR doesn’t require a formal net-zero commitment. Instead, it provides a clear and flexible roadmap to help GPs assess, disclose, and ultimately reduce the carbon footprint of their portfolios.
Why it matters for GPs
1. Your investments are the real emission drivers
The operational emissions of a management company , mostly Scope 3 from IT, travel, and services, are typically modest. But once you measure financed emissions (Scope 3, Category 15), you enter a different scale altogether: hundreds of thousands to millions of tonnes of CO₂.
If your goal is meaningful impact, this is where you need to act. Decarbonizing operations is symbolic. Decarbonizing portfolios is strategic.
2. The decarbonization imperative isn’t going away
Yes, the current regulatory and political environment may be complex, with ESG backlash and policy slowdowns. But the fundamentals haven’t changed:
Risk mitigation : anticipate regulatory and transition risks.
Value creation : improve efficiency and competitive positioning.
LP alignment : meet rising transparency and climate expectations.
Put simply, climate performance is becoming business performance and GPs who lead will differentiate.
Beyond materiality: The power of maturity
Many firms start by measuring carbon materiality, identifying which PortCos drive the most emissions. It’s a good first step. But materiality alone doesn’t tell you if a company is moving in the right direction.
That’s where PMDR’s maturity model adds value.
Each PortCo is assessed along an alignment scale with five levels:
Not Started
Capturing Data
Preparing to Decarbonize
Aligning
Aligned to Net Zero
This gives you a forward-looking view - are companies measuring emissions, planning reduction actions, or implementing change? You can then act based on both how much they emit and how ready they are to decarbonize.
Special cases: Enablers and roadblocks
PMDR also helps classify edge cases:
“No pathway to align” assets, such as fossil-reliant sectors with no current decarbonization technology (e.g., aviation).
“Decarbonization enablers”, PortCos with 50%+ revenue from climate-positive solutions, defined using local or internal taxonomies.
By identifying both blockers and boosters, you can prioritise resources and develop differentiated engagement plans.
A practical tool, not a theoretical commitment
The genius of PMDR lies in its pragmatism:
It works across asset classes and geographies.
It doesn’t force premature target-setting.
It brings structure to action and credibility to reporting
Combined with emissions data, the maturity framework creates a holistic picture of progress — enabling smarter decisions, better LP communication, and stronger outcomes.
A strategic compass for a transitioning market
PMDR isn’t just another ESG scoring. It’s a strategic tool for GPs navigating an increasingly carbon-conscious financial landscape.
It empowers you to:
Make decarbonization actionable.
Track meaningful progress.
Future-proof your portfolio for the transition economy.
At Carbometrix, we’ve integrated PMDR directly into our maturity module — helping GPs apply the roadmap at scale and with confidence.
Interested in testing ? You can register to our User Research Program to have early access and exclusive support whille testing our PMDR module for free.