By Lee Coker
The Carlyle Group's annual report, released last week, highlights significant savings and environmental impact from the sustainability programs ongoing at Carlyle portfolio companies. In addition, as Carlyle continues to branch out beyond buyouts it's showing an interest in integrating ESG into investment decisions in other asset classes, beginning with real estate.
Environmental initiatives have saved or are anticipated to save Carlyle portfolio companies $7 million while reducing greenhouse gas emissions by more than 31,000 metric tons, Carlyle said. This report marks the first year Carlyle has released measurable results and the third year of reporting on its environmental, social and governance (ESG) program.
We're excited to see these concrete results from the ESG initiatives that we’ve worked with Carlyle to develop in recent years. By leveraging EcoValuScreen early in the due diligence phase Carlyle is able to create financial and environmental value from the beginning of their investment period.
The annual report describes more than a dozen portfolio companies' sustainability efforts including Yashili Group, Syniverse, RAC and Booz Allen Hamilton, with initiatives and status or outcome clearly listed — an important development for future accountability. We're particularly proud of the integral role that EDF's Climate Corps fellows have had in driving results. Fellows have identified compelling energy efficiency opportunities at Carlyle's real estate portfolio and at specific portfolio companies including Booz, Dunkin Brands and Syniverse.
By integrating sustainability into the firm's annual report, Carlyle emphasizes that ESG is central to the investment direction and strategy, rather than a separate or peripheral interest area.
We’re excited to see Carlyle expand this effort and continue to demonstrate that sustainability can create value across multiple asset classes.
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