PE firm Carlyle commits to net zero greenhouse gas emissions by 2050

Feb 1, 2022 | News

Private equity firm Carlyle Group said it is targeting net zero greenhouse gas emissions by 2050 or sooner, across its investments.

The move comes as investors and lawmakers globally push companies to be conscious of the environmental, social and governance (ESG) impact and the sustainability of the businesses they invest in.

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Blackstone Inc, the world’s biggest asset manager, last month launched a platform to invest in and lend to renewable energy companies, to ramp up its sustainability credentials.

Wall Street giant JPMorgan Chase & Co’s asset management arm has also created a new private equity team to focus on sustainable investments, in order to align its activities with its climate-change commitments.

Carlyle has also set near-term targets for its majority-owned corporate private equity, power and energy portfolio companies.

The investment firm said in a statement that 75% of its portfolio companies’ scope 1 and 2 emissions will be covered by Paris-aligned climate goals by 2025. It added that after 2025, all new majority-owned portfolio companies will set the same goals within two years of ownership.

Scope 1 refers to emissions from a company’s direct operations, such as a diesel generator on an offshore platform, while scope 2 emissions are from the power a company uses for its operations, such as gas-powered electricity purchased.

Source: Reuters

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