Carlyle has announced it has secured a €2.3 billion ESG-linked credit facility for its European private equity and real estate platform.

The firm says the facility is to support the firm’s 30% board diversity target and to address climate change by having more accurate and comprehensive measurements of greenhouse gas emissions across all portfolio companies. It also aims to improve ESG outcomes through better governance by providing ESG-competent board training for all Carlyle board directors.

Kewsong Lee, CEO at Carlyle, said: “For many years Carlyle has been driving significant progress on board diversity in our portfolio companies on a global basis, recognising the correlation with strong financial decisions and performance. This European ESG-linked credit facility closely follows that of our Americas private equity platform, and together represent a significant moment in Carlyle’s strategy to reinforce our commitment to achieving greater diverse board-level representation.”

NatWest Markets arranged the facility as Lead Arranger and Facility Agent and Crédit Agricole Corporate and Investment Bank acted as ESG Coordinator and Agent.