As one of the world’s largest private equity firms, The Carlyle Group invests heavily in fossil fuels, despite the urgent need to transition to renewable energy. For every $1 invested in renewable energy, Carlyle invests $16 in fossil fuels, exacerbating the global climate crisis.
Carlyle’s energy investments from 2011-2021 is heavily skewed toward fossil fuels with $22.4 billion in carbon-based energy and only $1.4 billion in renewables. This resulted in an estimated 277 million metric tons of CO2 emissions, which would take 4.6 billion newly planted trees ten years to remove.
Learn more about the financial and reputational risks of Carlyle’s fossil fuel investments and their impact on the planet and communities.
Despite growing urgency for climate action and investors prioritizing environmentally responsible investments, Carlyle remains focused on oil and gas.
Their lack of a credible energy transition plan exposes investors to potential financial risks and suggests a disconnect between their public commitments and their actual investment practices.
Major private equity firms have invested over
in energy since 2010, with the lion’s share in fossil fuels
78% of KKR’s energy portfolio companies invest in fossil fuels, with at least
in gas and LNG transportation and storage
Power plants owned by Carlyle emitted roughly
metric tons of CO2e in 2021
This report finds Carlyle’s portfolio has been relatively more exposed to transition risk than almost all of the oil majors. The firm’s net-zero target for its portfolio companies is not aligned with the goals of the Paris Agreement, highlighting increased risk for investors and the need for stronger transition planning.
The report is written by analysts at the Carbon Tracker Initiative, with editing and research support provided by the Private Equity Stakeholder Project and Global Energy Monitor.
This scorecard and report reveals the top eight private equity firms invested in oil and gas and includes a set of demands to hold private equity accountable.
The firms analyzed in the scorecard are The Carlyle Group, Warburg Pincus, KKR, Brookfield Asset Management, Ares Management, Apollo Global Management, The Blackstone Group, and TPG.
Society can’t afford to let private equity continue to pollute under the shroud of darkness and put people’s retirement at risk. The policymakers and regulators who govern financial markets, and private equity investors, must require comprehensive disclosures and plans to transition out of fossil fuels.