Global private capital investment firm The Carlyle Group announced that it has secured a €2.3 billion ESG-linked credit facility for its European private equity and real estate platform with terms tied to the firm’s board diversity, climate, and governanceGovernance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. More targets.
The announcement follows Carlyle’s $4.1 billion ESG-linked credit facility secured earlier this year for its Americas corporate private equity funds, which had its price of debt is directly tied to the firm’s goal of having 30% diverse directors on the boards of its controlled companies within two years of ownership.
Kewsong Lee, CEO at Carlyle, said:
“For many years Carlyle has been driving significant progress on board diversity in our portfolio companies on a global basis, recognising the correlation with strong financial decisions and performance. This European ESG-linked credit facility closely follows that of our Americas private equity platform, and together represent a significant moment in Carlyle’s strategy to reinforce our commitment to achieving greater diverse board-level representation.”
The new facility also supports Carlyle’s 30% board diversity goal and adds two sustainability goals, including having more accurate and comprehensive measurements of greenhouse gas emissions across all portfolio companies and providing ESG-competent board training for all Carlyle board directors.
Megan Starr, Global Head of Impact at Carlyle, said:
“We are proud that Carlyle is a pioneer in integrating ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. More considerations into the financing arrangements of portfolio companies in Europe and the US. In aggregate this represents approximately $10 billion in financings for our US and European private equity funds and illustrates an important milestone in our journey to align successful investment and sustainability outcomes, and deliver long-term value and positive change for all stakeholders.”
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