The Carlyle Group Releases Inaugural Corporate Citizenship Report
Report Summarizes Responsible Investment Practices, Environmental Initiatives, Workplace Diversity Efforts and Community Volunteer Program
Washington, DC – Global alternative asset manager The Carlyle Group today released its first-ever Corporate Citizenship Report. The 32-page report describes Carlyle’s efforts to incorporate environmental, social and governance (ESG) considerations into its investment practices and into its own daily operations. Carlyle will publish the report on an annual basis.
“We believe that being a good corporate citizen is good business practice and creates long-term value for our investors,” said William E. Conway, Jr., Co-Founder and Chief Investment Officer of The Carlyle Group. “In recent years we have sharpened our focus on the environmental, social and governance issues associated with our investments and our firm. While we’re off to a good start, there is much work to do. We are committed to building on the foundation we have established and thoroughly integrating ESG considerations into the fabric of Carlyle.”
Carlyle’s 2010 Corporate Citizenship Report provides an overview of its corporate citizenship activities, as well as highlighting several efforts underway at its portfolio companies. Among other initiatives, the report describes:
• Carlyle’s development and integration of responsible investment guidelines in its investment decision-making processes for buyout transactions, including specific case studies, and the firm’s efforts to begin sharing the guidelines with a targeted set of portfolio companies;
• Carlyle’s partnership with Environmental Defense Fund and its collaborative effort to develop “EcoValuScreen,” a due diligence tool that identifies operational changes at prospective portfolio companies that simultaneously improves environmental and financial performance;
• Carlyle’s support for specific environmental initiatives at several portfolio companies, including Hertz Corporation, Allison Transmission and Project Service LLC (Connecticut); and
• Carlyle’s global “One Community” program, which promotes volunteerism in the communities in which the firm works; and its efforts to promote diversity across the firm.
“Leading private equity firms have the potential to drive environmental management across their diverse portfolios while boosting investor returns,” said Gwen Ruta, Vice President for Corporate Partnerships, Environmental Defense Fund. “The Carlyle Group is an early adopter of this important work and we applaud the firm’s innovative efforts to embed environmental performance into their investment practices. This groundbreaking report by a global private equity firm improves transparency on these important issues and we hope other firms follow suit.”
“This report confirms that Carlyle continues to be a leader in the integration of environmental, social and governance issues within the private equity sector - a move that Hermes and other LPs have encouraged GPs to pursue. As the first global private equity firm to publish such a report, I hope their work will help raise Carlyle's own ESG and transparency standards and those of the industry," said Tom Rotherham, Associate Director at Hermes Equity Ownership Services and a former coordinator of an LP-GP working group on responsible investing under the auspices of the UNPRI.
Additional information about the report is available at www.carlyle.com/citizenship.
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