Private Equity's 'Dirty Energy' Bets Persist Despite ESG Promises
Some of the largest private equity firms are exposing investors to significant climate risks through fossil-fuel heavy portfolios that go unnoticed by regulators, a new report concludes.
A new study by the Private Equity Stakeholder Project, or PESP, and Americans for Financial Reform Education Fund, known as AFREF, found that Carlyle was the worst offender among eight buyout firms, which include Warburg Pincus, KKR, Ares Management, Apollo Global Management, TPG, and the tie-up of Brookfield Asset Management and Oaktree Capital Management. The report’s findings are based on an analysis of portfolios, green energy transition plans, and political and climate lobbying transparency.
TPG come out on top, landing a B grade because of its smaller number of fossil fuel investments. Carlyle received an F – the lowest grade – on the study’s climate credentials scorecard.