Overall, Oakley’s portfolio exposure to climate-related risks remains low across all scenarios, reflecting our investment strategy focus on sectors and geographies with low-to-average carbon intensity. Nevertheless, we view this analysis as an important input to our ongoing investment strategy, decision-making and risk management processes – particularly as we approach key climate inflection points in the coming decades. The results of our climate risk assessment and scenario analysis indicate that transition risks are significantly more pronounced under low-emissions scenarios aligned with 1.5°C or 2°C, particularly at 2030. In contrast, physical risks show limited divergence across scenarios in the short term, but increase substantially in the high-emissions scenarios as the analysis extends to 2040 and beyond.

Performing the scenario analysis allows us to better understand the potential impacts of climate change on our investments and inform our approach to mitigate identified risks, including physical and transition risks. Our approach aims to be proactive in order to mitigate climate value-at-risk before it becomes material. Key physical risks across the portfolio include heat stress, increased cooling demand and volatility in electricity pricing, as well as more localised risks such as flash flooding and high wind events in specific regions. We are also monitoring transition-related risks such as regulatory change, insurability of assets, and potential disruptions to infrastructure.

In parallel, the analysis has identified a number of climate-related opportunities. These include the deployments of on-site renewable energy (e.g. solar generation) to reduce energy cost exposure, access to capital through ESG-aligned financing mechanisms, and the potential to generate new revenue streams through low carbon products and services.

Firm operations and climate strategy

Oakley’s direct operational exposure to physical climate risks remain limited, as we operate from five office locations across Europe and primarily source business and professional services. However, we recognise the firm still has a role to play in minimising our carbon footprint and environmental impact. In 2024, Oakley grew to 219 employees, a 30% increase from 2023, which we see as an opportunity to implement greater operational efficiencies aligned with our sustainability ambition.

We have measured our operational carbon footprint annually since 2019, improving data quality and the scope of calculations every year. In 2024, we developed our first climate strategy for decarbonisation and navigating climate risks. This process involved a detailed review and refinement of our emissions data, helping us improve data quality, remove double counting, and identify key emissions hotspots.

As climate risk management continues to evolve across the private markets industry, Oakley remains committed to working alongside peers to accelerate progress. For more information on our industry collaborations, please see our collaborations.