Private equity giant Blackstone Group Inc. (NYSE: BX) announced Tuesday an ambitious green project of lowering carbon emissions on all newly acquired assets, The Wall Street Journal reported.
The green plan
Blackstone pledged to lower carbon emissions of any asset or company it acquires by 15% within the first three years. The initiative will start next year and includes any asset where Blackstone has control of the energy systems.
To help achieve its goals, Blackstone is teaming with the digital-automation company Schneider Electric to track its progress. The France-based company will keep records of usage, cost, and emissions data based on monthly energy bills.
Companies like Blackstone have faced increased pressure to focus more on the environment and other social and governance-related hot topics (known as ESG), according to WSJ. The pressure is coming in part from public pension funds and other investors who demand changes to old and outdated environmental practices.
Want to hear the opposing view against ESG investments? Read this article on why one pro says it is a “complete fraud.”
Blackstone is backed with $564 billion in assets under management so a company of its size should be counted on to implement real change and create a favorable impact on the environment.
Plan starts from day one
Blackstone has the “experience, the team, the capabilities, and the technology” to achieve its goals, WSJ quoted Blackstone President Jonathan Gray as saying. The experience comes from knowing how to achieve its goals before a deal is closed.
Blackstone’s due diligence of an asset or business will include questions related to energy consumption. This will give Blackstone a better idea of where and how it
