The Carlyle Group

The financial institution has a publicly available policy statement requiring suppliers to uphold the ILO core labor rights. In terms of governance, it assigns decision-making and oversight of its sustainability strategy to its highest governance body, while delegating implementation responsibilities to designated functions, teams, or committees within the organization. Finally, the financial institution also discloses its membership in trade associations, as well as monitors its scope 1 and 2 emissions.

The financial institution has the opportunity to disclose its methodology for determining a living wage in its operational regions and to provide a more recent impact materiality assessment, including an explanation of the objective criteria used for prioritising impacts. It is further recommended that the institution conducts third-party assurance for target reporting as well as links senior executive remuneration to sustainability targets.

In terms of climate and nature, there is further opportunity for the entity to outline a strategy for phasing out support for fossil fuel projects lacking alignment with a 1.5°C trajectory. Moreover, while sectors with high biodiversity risks have been identified, the institution could enhance transparency by prioritising sectors and areas with significant nature-related impacts. Monitoring of emissions from financing activities (Scope 3 category 15) is also recommended, along with specifying coverage of other Scope 3 emissions by category. A transition plan for operations, supply chain, and portfolio should be disclosed, as well as a breakdown of clients by income group.

The financial institution should further clarify its processes to prevent unintended divestment from low-income countries caused by sustainability strategies. Additionally, it is recommended that their risk assessment process includes ILO fundamental rights and that there are mitigation strategies for identified risks. Finally, the institution should also identify social risks related to the net zero transition and provide examples of actions taken regarding salient human rights issues from assessments conducted in the past three years.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.