Carlyle Megan Starr: "Teams See Influence As A Process, Not A Product"

Megan Starr, head of global influence at Carlyle investment group, said Carlyle also has a unique philosophy and strategy in the field of ESG and influence investment. Teams see influence as a process, not a product.

In a rapidly changing world, the market will pay more and more attention to various business capabilities, from the ability to deal with climate change to the ability to build a multi inclusive team, and then to the ability to formulate sustainable development strategies. Therefore, as a private investor, Carlyle focuses on cooperating with invested enterprises to help them improve their dimensions, bring better business results and long-term and better performance. Megan Starr believes that there are two important trends in the field of ESG: climate change and energy transformation, and the development of capital markets.

First, climate change and energy transformation are affecting businesses in all industries and all regions. There are huge opportunities for growth in the fields of renewable and sustainable energy and related infrastructure construction.

"As we begin to understand the physical or transformational risks posed by climate change, there may also be market repricing risks in some areas. What we see is that companies are able to understand the significant risks in their business growth opportunities and can take advantage of progress in climate adaptation to better position itself in a variety of potential possibilities. " Megan Starr said.

Secondly, there have been some interesting developments in the capital markets, especially in the financing linked to ESG indicators. In the early days of this field, many green bonds were issued to use the proceeds for specific green activities. The latest development, however, is to bind debt to the ESG indicators of a business or institution.

Earlier this year, Carlyle also provided $4.1 billion in credit lines to private equity funds in the United States. This credit price is linked to Carlyle's goal of diversification of the board of directors, that is, within two years of investment, it will help Carlyle's holding companies achieve 30% board diversification. By using the traditional tools of private investment, we can promote the further integration of profitability, environment and social impact.