The Carlyle Group’s Hidden Climate Impact
NEW REPORT
New report highlights that the Carlyle Group’s fossil fuel investments over the past decade have resulted in significant emissions of CO2 and other greenhouse gasses, exacerbating the global climate crisis and exposing institutional investors to transition risks.
2023 REPORT
Exposing a decade of Carlyle’s fossil fuel investments
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.
Carlyle’s investment strategy is at odds with the global push for a sustainable future and puts investors at risk.
Despite the 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
$1 trillion
in energy since 2010, with the lion’s share in fossil fuels
8 private equity firms collectively hold around
$216 billion
in energy, similar to the top 5 banks’ fossil fuel financing in 2021
Power plants owned by Carlyle emitted roughly
14 million
metric tons of CO2e in 2021
2022 REPORT
Carlyle’s Upstream Investments & the Energy Transition
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.
2022 SCORECARD & REPORT
Private Equity Climate Risks 2022 Scorecard & Report
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.
DEMANDS FOR PRIVATE EQUITY
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.
- Align with Science-Based Climate Targets To Limit Global Warming To 1.5⁰C
- Disclose Fossil Fuel Exposure, Emissions, and Impacts
- Report Portfolio-Wide Energy Transition Plan
- Integrate Climate And Environmental Justice
- Provide Transparency On Political Spending And Climate Lobbying
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