Carlyle Group Releases Corporate Citizenship Report
Report Outlines Carlyle's Approach, Progress to Date, and Goals for 2012
Global alternative asset manager The Carlyle Group released its second annual Corporate Citizenship Report, detailing the firm's efforts to make responsible investment decisions while creating value for investors. The report outlines Carlyle's range of activities in the following areas: responsible investing, environmental stewardship, community volunteering, wealth sharing, and workplace diversity. The 34-page report is available here.
Carlyle Co-Founder and Managing Director William E. Conway, Jr. said, "We're pleased with the progress we've made but realize there is more work to do. Being a good corporate citizen is good business practice and creates long-term value for our limited partners. This also further aligns our interests with limited partners who are leaders in these areas.
The report shows Carlyle's progress in meeting the Private Equity Growth Capital Council's (PEGCC) guidelines for responsible investing. More than 60 companies, which represents more than 90 percent of Carlyle's controlled, corporate buyout portfolio, evaluated their operations according to the PEGCC guidelines in 2011.
Carlyle also applied EcoValuScreen “ a due diligence tool developed in partnership with Environmental Defense Fund “ to five transactions, to establish numerical benchmarks to assess and track environmental savings. For example, by applying the EcoValuScreen process to the operations of Carlyle portfolio company NBTY, the company expects to reduce costs by approximately $1.8 million per year and eliminate about 5,000 metric tons of greenhouse gas emissions and 440,000 pounds of waste annually.
"Carlyle has demonstrated leadership by integrating environmental performance into its investment processes and by reporting measurable results to investors and stakeholders," said Gwen Ruta, Vice President of Environmental Defense Fund. "With plans to expand its initiatives, we look forward to seeing Carlyle uncover even more value in 2012 for its companies, limited partners, and the environment.
The report also notes how Carlyle will take ESG factors into account when investing in emerging markets. According to Genevieve Sangudi, a Managing Director on the Carlyle Sub-Saharan Africa team, "As Carlyle invests in Sub-Saharan Africa, we are particularly sensitive to the social issues associated with our investments. Our due diligence and portfolio management practices will reflect our commitment to responsible investing.
The report also features:
- Carlyle's partnership with Environmental Defense Fund to develop and apply the EcoValuScreen due diligence approach to new controlling and corporate investments.
- Participation by two of Carlyle's portfolio companies, Dunkin' Brands and Booz Allen Hamilton, in EDF Climate Corps, an innovative summer fellowship program that places specially-trained MBA and MPA students in companies, cities, and universities to build the business case for energy efficiency.
- Carlyle's support for specific environmental initiatives at several portfolio companies, including Allison Transmission and Veyance Technologies.
- Carlyle's global "One Community"program, which promotes volunteerism in the communities in which the firm works.
- Carlyle's support for the Toigo Private Equity MBA Fellowship, an initiative to attract minority MBA graduates to the private equity industry.
- Carlyle's global employee volunteer program and matching gift program.
About The Carlyle Group
The Carlyle Group is a global alternative asset manager with $148 billion of assets under management in 89 active funds and 52 fund of fund vehicles as of September 30, 2011. Carlyle invests across four segments “ Corporate Private Equity, Real Assets, Global Market Strategies, and Fund of Funds Solutions “in Africa, Asia, Australia, Europe, the Middle East, North America, and South America. Carlyle has developed expertise in various industries, including: aerospace, defense and government services, consumer and retail, energy, financial services, healthcare, industrial, technology and business services, telecommunications and media, and transportation. The Carlyle Group employs more than 1,200 people in 33 offices across six continents. For more information, please click here.