After a year that saw a strategic partnership launched with the Environmental Defense Fund and development of a business review process called the EcoValuScreen, The Carlyle Group has issued its first corporate citizenship report.
"For 24 years, Carlyle has worked to be a good, ethical investor, and recently we have intensified our efforts to be an even better corporate citizen," Managing Directors William E. Conway Jr., Daniel A. D'Aniello and David M. Rubenstein said in the founders' letter that opens the report (pdf) released today in Washington, D.C.
"While we are making progress, we acknowledge that much work remains. Change takes time, focus, resources and the collective will of many people and organizations. Carlyle is committed to being a part of the solution."
The 32-page report lays out the work done thus far by the firm, which has some $97.7 billion under management, to embed environmental, social and governance considerations into investment practices and daily operations.
The firm pointed to six accomplishments in what the report described as "the early stages of our corporate citizenship efforts." Topping the list was The Carlyle Group's participation in the development of the Private Equity Growth Capital Council's nine-point set of Guidelines for Responsible Investment. Carlyle, one of the world's larger private equity investment firms, is one of a dozen companies that make up the council. The council established the guidelines, which were informed by the U.N. Principles for Responsible Investment and the U.N. Global Compact, in 2010.
Other accomplishments listed in the report are:
- The Carlyle Group's launching of a process to share the responsible investment guidelines with the firm's portfolio companies. Expanding that effort is one of two key objectives the company set for 2011. The other is developing performance metrics.
- Forging relationships with the Environmental Defense Fund and Robert Toigo Foundation.
- Launching the EcoValuScreen with EDF. The due diligence tool, developed with The Payne Firm environmental consultancy, is designed to help identify and evaluate opportunities for operational improvements that can boost environmental and financial performance at target companies.
- Broadening global wealth sharing and volunteer initiatives.
- Increasing transparency of The Carlyle Group's corporate citizenship activities.