CG: Downgrading on performance & relative valuation

Research evidence excerpt

CG: Downgrading on performance & relative valuation

The Carlyle Group Inc.

Key sustainability questions

This section is intended to highlight key sustainability discussion points relevant to this company, as well as our views on the outlook. Both the

questions we highlight and our responses will evolve over time as the dialogue between management, analysts and investors continues to

advance. We welcome any feedback on the topics.

Our view

What are the most material In its 2025 sustainability report, Carlyle recognizes the most material sustainability

sustainability issues facing this issues facing the company are climate change and the need for robust environmental

company? risk management across its investment portfolio. Additionally, the company

noted the importance of human capital development and diversity and inclusion

practices, which are critical to attracting and retaining talent. The company's

materiality assessment—conducted using GRI Standards and SASB frameworks—

also emphasizes regulatory compliance, customer sustainability requirements, and

supply chain resilience as increasingly important factors driving both operational risk

and commercial opportunity across its portfolio companies.

Does the company integrate Carlyle integrates sustainability considerations deeply into its investment strategy

sustainability considerations into its across all platforms through proprietary ESG materiality analysis tools, climate

strategy? risk assessments during due diligence, and structured engagement frameworks

designed to manage risks and drive commercial outcomes. The company embeds

sustainability into its Global Private Equity, Global Credit, and Carlyle AlpInvest

platforms, with concrete mechanisms including decarbonization-linked financing,