The Carlyle Group, a global private equity investment firm, today announced the establishment of a decarbonization-linked financing programme, allowing borrowers to access cash with conditions based on their accomplishment of environmental objectives. In the US private credit market, the programme is among the pioneering ones.
Borrowers will benefit from lower prices under the new programme if decarbonization goals are met or other climate-related Key Performance Indicators are met (KPIs). Carlyle stated that its ESG team will support and assist borrowers in achieving their climate-related objectives by working with them on the assessment and monitoring of suitable KPIs.
The successful decarbonization of the economy will require meaningful cooperation between investors and businesses. They want to provide value and build on Carlyle's long history of ESG integration by helping borrowers increase their competitive edge through this programme.
