Blackstone is setting a new tone in its commitment to ESG. The firm has hired Eric Duchon as global head of real estate ESG, a newly created position. In this new role, Duchon will work with Blackstone's global real estate asset management teams to build and scale existing environmental, social and governance efforts. He will also work with portfolio companies on sustainability, diversity and inclusion issues.

Blackstone has long been an advocate of ESG, having spent several years building its ESG model. That commitment has led to a plan to reduce carbon emissions by 15% across all new investments where Blackstone controls energy usage and a target of one-third diversity on portfolio company boards for new control investments in the US and Europe starting in 2021. As part of the program Blackstone has also established a hiring program that will identify, recruit and retain candidates from underserved communities for middle-skilled roles across our portfolio.

These commitments promise to have a massive impact. Blackstone's private equity and real estate businesses are made up of more than 250 portfolio companies and it has a global real estate portfolio valued at $329 billion. Not only is ESG impactful in a company of this size, it also has the potential to drive better results through evidence-based insight, according to an ESG report that the firm produced in September 2020.