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Carlyle finds financial utility in ESG data

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Carlyle Group Inc. is using data to turn the environmental, social and governance achievements of its portfolio companies into financial gains, according to an impact report the asset manager released on 22 June.

The firm last year helped portfolio company Jeanologia SL, a Spanish manufacturer of equipment for fabric and garment finishing, to secure a term loan with costs tied to water-saving targets. Interest rates on the loan decrease if Jeanologia meets those goals and go up if the company misses its targets by 15% or more, according to the report.

“That’s a great example of how the data helps us be better investors,” said Megan Starr, Carlyle’s global head of impact. Carlyle initially backed Jeanologia in 2018.

Jeanologia’s equipment is used to produce about 15% of the 6 billion pairs of jeans made annually world-wide, and it cut the amount of water used in manufacturing the clothing by roughly 10.7 million cubic meters last year, according to the report. Just one of Jeanologia’s technologies, its 5.Zero laundry plant, can cut water and chemicals used in denim finishing by as much as 85% compared with the industry average, according to a Carlyle report last year.

“They’re using less water, they’re using less chemicals,” Starr said. “So, if you’re able to actually quantify how your goods are more sustainable vis-à-vis peers, that can be a real value-add in terms of the revenue side of the business.”

In another portfolio company example, cleaning-product supplier Weiman Products LLC set out to meet environmental specifications set by regulators such as the Environmental Protection Agency and giant retailers Target Corp. and Walmart Inc. Weiman added a sustainability expert to its board of directors and acquired other companies, Starr said. As of April, nine Weiman products sold at Target had been awarded the “Target Clean” icon, and its score rose by 24 percentage points in Walmart’s sustainability scorecard in a year, the report showed.

Weiman’s improved score “helped it demonstrate to consumers the sustainable characteristics of the products,” Starr said. Carlyle and private-equity peer TA Associates acquired Weiman early last year.

Carlyle also is using ESG data at a portfolio level to spot profit opportunities. For example, the firm recently found a correlation between board diversity and annual earnings growth, the report showed.

Carlyle is increasing its focus on ESG-related data while more asset managers are embracing techniques to measure and manage the social and environmental impact of their investments. A recent survey by the Global Impact Investing Network, an advocacy group, showed that after a period of experimentation, asset managers are converging on using common impact measures such as its IRIS metrics.

But Carlyle has chosen a more independent path. Although the firm follows industrywide standards for reporting ESG-related information, it hasn’t adopted IRIS metrics.

Also, Carlyle hasn’t signed the International Finance Corp.’s operating principles for impact measurement—a framework that helps investors integrate impact aspects into their investment processes. A hundred entities have embraced the principles, including KKR & Co., BlackRock Inc. and TPG’s Rise Fund.

“We spend a lot of time engaging with different frameworks and making sure we’re up to speed on the latest developments in the field,” Starr said. But, she added, Carlyle doesn’t focus on ESG data “just to say we’re measuring it.”

“That doesn’t make us better investors and doesn’t lead to better investment outcomes,” she added.

Write to Luis Garcia at luis.garcia@wsj.com

This article was published by Dow Jones NEWSPLUS.

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Source: CFL submits revised financial request to federal government

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TORONTO — The CFL sent federal Canadian Heritage Minister Steven Guilbeault a revised revised financial request Friday.

A league source said the league is seeking about $42.5 million in aid. In April, the CFL asked the federal government for up to $150 million in the event of a cancelled 2020 season due to the COVID-19 pandemic.

The source added the request is to over cover operating costs and player salaries for a shortened 2020 season and has involved input from the CFL Players’ Association.

The source spoke on the condition of anonymity because neither the government nor CFL have confirmed the request.

“We continue discussions with the federal government including discussions on our possible return to play,” the CFL said in a statement.

The CFL’s initial request of Ottawa consisted of three tiers: It called for $30 million immediately to manage the impact the outbreak has had on league business; additional assistance for an abbreviated regular season; and up to another $120 million in the event of a lost 2020 campaign.

When CFL commissioner Randy Ambrosie spoke to a federal standing committee on finance in May, he was roundly criticized for failing to stipulate where the funds would go and not involving the CFL Players’ Association in the process.

The earliest an abbreviated ’20 season will begin is September but Ambrosie has stated a cancelled campaign also remains possible.

Last month, the CFL and CFLPA began talks at amending the current collective bargaining agreement to allow for an abbreviated season. Prior to negotiations beginning, the league gave the union a memo outlining the conditions it wanted and a completion deadline of July 23.

This report by The Canadian Press was first published July 10, 2020.



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HIMSSCast: The ongoing financial toll of COVID-19 for health systems

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This isn’t a second wave. It’s a first wave that never really went away. That’s what experts are saying about the current COVID-19 resurgence. And just as the virus isn’t going anywhere soon, neither are the financial woes it’s creating for hospitals and health systems.

On this episode of HIMSSCast, host Jonah Comstock welcomes Healthcare Finance News Managing Editor Susan Morse and Associate Editor Jeff Lagasse to talk about the current state of affairs for hospitals.

 

More related to this episode:

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Primary care doctors say they’re not ready for the next COVID-19 surge

COVID-19 is forcing rural hospitals to rethink their business models

Hospitals see an increase in jobs for first time in two months, BLS reports

Hospitals have received most of the loans from the Paycheck Protection Program

HHS announces billion-dollar push toward experimental COVID-19 vaccine

Telehealth claims increased significantly between April 2019 and 2020, report shows

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Nepal cable TV operators stop airing Indian news channels

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KATHMANDU, Nepal — Nepal’s cable and satellite television providers have stopped airing Indian news channels, with one operator saying Friday that the move was in response to public complaints over coverage of Nepal’s prime minister.

Sudeep Acharya, managing director of satellite television provider Dish Home, said they stopped airing the Indian news channels Thursday night after they were flooded with complaints about news reports about Prime Minister Khadga Prasad Oli.

Acharya said there was no government order to stop airing the channels, adding that the decision was made after discussions between cable and satellite television providers. It was not decided for how long they planned to stop airing the channels.

Some of the Indian media reports have suggested Oli is a puppet of the Chinese government. One recent report on Indian channel Zee news suggested Oli had close ties with the Chinese ambassador to Nepal, who has been meeting several leaders of Oli’s Nepal Communist Party.

Nepal’s government has condemned the reports.

“The government condemns any media content that assassinates the character of any person, spreads hatred and disregards the respect and honour of the individual concerned,” Nepal’s Information Minister Yuba Raj Khatiwad said Thursday.

Oli has been a target of both Indian leadership and media since his government brought out a new map of the country that includes territories claimed by both India and Nepal. The new map has strained relations between two South Asian nations with exchanges of strong statements.

Kathmandu’s relations with New Delhi worsened after Oli said last week in an internal party meeting that India was attempting to oust him from office with help from some of the members of his own party.

India had been a dominant force in Nepal until recently, when China’s involvement began to grow. Besides China’s investment in the building of airports, highways and hydro-power projects in Nepal, Chinese diplomats have worked to increase ties with Nepali political leaders.

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This story has been corrected to show that the government condemned content that assassinates the “character” of any person, not the “charter.”

The Associated Press

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