Carlyle Global Credit Announces Financing Programme Linked to Decarbonisation

Published on: 03 August 2022
by KnowESG
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Carlyle announced that its Global Credit platform had introduced a decarbonisation-linked finance programme, offering an incentive for borrowers to reduce greenhouse gas (GHG) emissions or meet other climate-related goals.

The initiative is one of the first decarbonisation-linked financing schemes accessible in the US private credit market and represents Carlyle's most recent endeavour to advance the energy transition.

Through the initiative, Carlyle provides a pricing benefit based on a borrower's fulfilment of decarbonisation goals or other customised climate-related KPIs. 

Carlyle and participating borrowers will collaborate closely to assess and monitor relevant KPIs, while Carlyle's dedicated ESG team will provide ongoing support and expertise to assist borrowers in attaining climate-related objectives.

Mark Jenkins, Carlyle’s Head of Global Credit, said: 

“We believe that strong ESG competencies are a hallmark of management excellence and that successful decarbonisation requires meaningful engagement between investors and businesses. Through this programme, we seek to drive value by helping borrowers improve their competitive positioning while building on Carlyle’s long history of ESG integration.” 

Megan Starr, Carlyle’s Global Head of Impact, said: 

“This innovative decarbonisation-linked financing programme provides another avenue for Carlyle to support its investment portfolios in a changing world, and drive meaningful action on the transition to a lower carbon future. As a non-controlling asset class, credit naturally has lagged private equity’s ability to collect ESG data and incentivise ESG improvements. This new approach addresses both challenges, and we believe it may result in significant carbon emissions reductions within our portfolio over time.”  

Source: Carlyle

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