Report Outlines Generational Investment Opportunity in Decarbonizing Industry
Provides Total Emissions Reduction and Waste Mitigation Across Ara Partners' Portfolio
HOUSTON and DUBLIN, June 2, 2025 /PRNewswire/ -- Ara Partners today published its 2024 Industrial Decarbonization Report, showcasing measurable progress and the strong alignment between financial performance and emissions reduction in the industrial economy.
Ara focuses on two primary pillars – emissions reduction and waste management – that are integrated and evaluated across all its investments. For our Private Equity and Infrastructure strategies, Ara targets investments with the potential to deliver 60% or greater GHG emissions reduction at the product, service or asset level compared to market incumbents.
In 2024, Ara's private equity and infrastructure portfolio reduced emissions by an estimated 1.7m metric tonnes of CO2 equivalent and eliminated an estimated 542k metric tonnes of waste, the equivalent of removing 339,500 passenger vehicles from the road for a year and eliminating the waste handled by 77,400 garbage trucks, respectively.
"To date, the industrials sector has attracted less than ten percent of all climate-focused capital, despite being responsible for well over half of global CO2 emissions," said Irina Markina, Managing Director and Chief Decarbonization Officer at Ara Partners. "At Ara, we target the 'world of made things'—industrial sectors like manufacturing, chemicals and materials, food and agriculture, and logistics—where emissions are high, solutions are practical, and decarbonization delivers real economic value. To build future-fit businesses, decarbonization must be at the nexus of value creation and financial performance."
Ara-backed companies are built to perform through market cycles. We invest in businesses with high customer demand for low-carbon solutions, strong underlying unit economics, and critical roles in advancing energy security, reshoring, and decarbonization. This strategy was exemplified by Priority Power, an energy management services firm, and Ara's most successful exit to date.
During the investment hold phase, Ara implemented a gold-standard carbon operating model. "This included deploying an enterprise resource platform (ERP) to track emissions, quantifying the company's carbon footprint and avoided emissions potential, and embedding Scope 1–3 data into decision-making," continued Markina. "We also helped institutionalize tools that delivered measurable emissions reductions to customers."
"Ara worked closely with management to align decarbonization outcomes with operational performance, customer delivery, and long-term growth, as demonstrated by the company's 6x revenue growth of their energy management segment and 3x revenue growth in their energy infrastructure segment since 2019," said Troy Thacker, Co-Founder and Managing Partner of Ara Partners. "We created enterprise value that will scale with the company under new ownership. This is the model."
To access the public report, please visit https://www.arapartners.com/news/industrial-decarbonization-report-2024/.
About Ara Partners
Founded in 2017, Ara Partners is a global private equity and infrastructure firm dedicated to decarbonizing the industrial economy. Ara seeks to build, scale, and optimize companies with significant decarbonization impact across the industrial and manufacturing, chemicals and materials, energy efficiency and fuels, and food and agriculture sectors. The company operates from offices in Houston, Boston, Dublin and Washington, D.C.. As of December 31, 2024, Ara Partners had approximately $6.2 billion of assets under management.
For more information about Ara Partners, please visit www.arapartners.com.
Media Contacts:
Catherine MacDonald, Ara Partners
Cmacdonald@arapartners.com
Zach Harris, Prosek Partners
pro-AraPartners@prosek.com
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