Sustainability Value Drivers
A future-looking framework for building capacity
To build capacity and concentrate ESG management on creating value, Carlyle increasingly looks for sustainability initiatives to deliver results in these four core categories.
For a notable segment of our portfolio companies, customer expectations now include a desire for more sustainable products and services in addition to assurances that suppliers are effectively managing their environmental and social performance. We have seen this increased demand in a range of sectors including consumer products, telecom and media, business services and the auto and broader manufacturing sectors.
Brand equity and customer satisfaction often go hand-in-hand. For some Carlyle portfolio companies, sustainability initiatives particularly enhance their brand equity because more consumers are insisting on responsibly sourced products. These companies not only develop innovative products that reduce a customer’s—and their own—environmental footprint, but also disclose details about raw materials and work to ensure ethical practices throughout the supply chain. By making “green” and social sustainability a priority, they build brand loyalty and can deliver greater value and smarter solutions.
In today’s competitive markets, companies need to achieve maximum productivity with minimum waste. Operational efficiency benefits the bottom line and can safeguard the environment as well. Savings in energy, water, and waste often require new expertise or an infusion of capital, and Carlyle’s ability to bring such resources to the table can help modernize a plant quickly. Our investments frequently result not only in greater efficiency for a company, but also measurable environmental gains.
ESG initiatives can help engage employees, and cultivating an engaged workforce creates stronger companies that can generate sustainable value. A strong workforce also reflects the important role employees play in a company’s brand and customer relations. Workforce strength captures the range of ways we work with portfolio companies to invest in their people—and the value we believe these investments bring. We also recognize that poor labor practices can erode value, including deep in the supply chain.
How our portfolio companies are performing in core categories of sustainability