Blackstone Group Inc.
BX.US | Fund management activities
Blackstone Group Inc. is a global alternative asset manager and provider of financial advisory services. The company operates through various segments, including Private Equity, Real Estate, Hedge Fund Solutions, and Credit. Blackstone's Private Equity segment focuses on acquiring and investing in a...Show More
Better Health for All
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Blackstone's approach to managing healthcare costs and quality across its portfolio has led to improved health outcomes and reduced costs.
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Its Life Sciences segment has brought over 200 medicines to market
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with an 85% Phase 3 success rate,
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including investments in life-saving medications and biotechnology procedures.
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Additionally, Blackstone's investments have aimed at improving healthcare access through hospital networks,
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enhancing the global distribution of essential healthcare products,
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increasing access to affordable and high-quality digital care,
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and improving healthcare administration efficiency.
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Fair Money & Economic Opportunity
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Blackstone Group Inc. operates as an alternative asset manager and financial advisory service provider, not a consumer-facing financial institution offering lending or deposit services to the general public. Consequently, most KPIs related to consumer financial services are not applicable to its core business. The firm does not offer consumer credit products, generate customer finance data, or operate financial service access points for consumers. While the Blackstone Charitable Foundation and associated individuals engage in significant philanthropic giving, and some portfolio companies (like BXMT) have loans collateralized by affordable housing, the percentage of annual pre-tax profit reinvested in community finance or the share of the loan book aimed at low-income segments for Blackstone Group Inc. itself is not disclosed.
Fair Pay & Worker Respect
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Blackstone's CEO-to-median employee pay ratio was 1,068-to-1 in 2022, with the CEO receiving $253.1 million and the median employee earning $237,000.
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In February 2023, the U.S. Department of Labor fined Blackstone-backed Packers Sanitation Services Inc. (PSSI) $1.5 million for illegally employing at least 102 children, some as young as 13, in hazardous occupations at 13 slaughterhouses, leading to injuries.
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PSSI also faced an OSHA citation for an employee arm fracture in August 2023
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and settled another OSHA citation for an amputation hazard for $15,625.
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The U.S. Department of Labor continues to find labor violations at PSSI worksites, and Blackstone received the lowest grade on a Private Equity Labor Scorecard for wage and hour violations, lawsuit settlements, and OSHA violations.
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Additionally, workers at Blackstone-owned hotels in Southern California went on strike in July 2023, demanding fair wages, benefits, and work conditions.
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Employee satisfaction was rated 3.6 out of 5 for Culture & Values and 4.0 out of 5 for Compensation & Benefits.
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Fair Trade & Ethical Sourcing
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In February 2023, the U.S. Department of Labor fined Packers Sanitation Services Inc. (PSSI), a company owned by Blackstone, $1.5 million.
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This fine was for employing 102 children
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, some as young as 13
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, in hazardous overnight shifts at 13 slaughterhouses across eight states
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. The minors were exposed to dangerous equipment and chemicals, resulting in injuries
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. The fine amount implies 100 violations.
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Following these findings, Blackstone faced scrutiny from major institutional investors
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, and over 20 institutions urged the company to address labor practices across its portfolio companies
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. No remediation actions by Blackstone or PSSI are mentioned in the provided articles.
Honest & Fair Business
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Blackstone and its affiliates incurred $17.9 million in ethics-related regulatory fines over the past three years.
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This includes a $12 million settlement with the SEC for failing to retain employee communications on unapproved platforms,
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a $4.4 million settlement for billing fraud by TeamHealth Holdings, Inc. in October 2023,
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and $1.5 million in penalties for child labor violations at Packers Sanitation Services Inc. (PSSI) in February 2023.
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The company has a comprehensive Whistleblower Policy and Employee and Reporting Hotline, hosted by a third-party provider, which allows for anonymous reporting, prohibits retaliation, and ensures prompt review of all reports.
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Blackstone also maintains a Global Anti-Bribery & Anti-Corruption Compliance Policy (ABC Policy) that is available to all employees globally.
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This policy requires compliance with international anti-corruption laws,
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explicitly prohibits facilitation payments,
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and is supported by annual training and periodic internal audits.
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An Anti-Money Laundering Compliance Program also includes ongoing training and independent audits.
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Kind to Animals
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No specific, concrete data points were found in the provided articles to assess Blackstone Group Inc. against any of the 'Kind to Animals' KPIs. The articles primarily discuss financial transactions, such as the acquisition of Rover, a pet care marketplace, and the sale of royalty rights for a human health product.
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,
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The acquisition price for Rover was $2.3bn.
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While some articles mention investments in animal healthcare
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or a subsidiary providing sanitation services to meatpacking plants, they do not provide quantitative data on cruelty-free certifications, animal testing practices, humane certifications for operations, wildlife conservation impact, ethical input substitution, supplier audits for welfare, cage-free sourcing, animal agriculture ethics, or R&D investment in animal-free alternatives. Elanco sold royalty and milestone rights to Blackstone for $295 million.
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General sustainability policies and ESG team expansion are mentioned, but without specific animal welfare metrics or advocacy efforts.
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No War, No Weapons
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Blackstone owns Arka Group, an aerospace and defense technologies firm with clients including the U.S. military.
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The company also made a strategic minority investment in American Industrial Partners, a firm with assets under management across sectors including aerospace and defense.
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There is no evidence of any divestment from defense-related assets.
Planet-Friendly Business
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Blackstone Energy, a division of Blackstone, has set a net-zero emissions target year of 2050.
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This division also has interim targets to reduce Scope 1 and 2 emissions by 25% by 2023
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and 40% by 2028.
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For its operations, Blackstone Energy reported zero incidents, fatalities, or environmental damage,
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and achieved 100% compliance with health and safety regulations.
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Respect for Cultures & Communities
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No cultural appropriation incidents have been reported.
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The company has partnered with Úújo Developments Limited Partnership, established by the Doig River First Nation, and utilizes NVT Logistics Ltd, an indigenous-established entity, for fluid hauling services.
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Blackstone allocates a portion of its annual budget to monetary donations supporting Indigenous communities' educational initiatives, cultural preservation, and overall community growth.
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However, specific quantitative data on the percentage of revenue reinvested in local communities, the total number of formal partnerships, or the overall number of indigenous suppliers is not available.
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Critics have also alleged a lack of Free, Prior, and Informed Consent (FPIC) for certain projects.
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Safe & Smart Tech
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Blackstone has no documented data breaches in recent years and maintains a comprehensive cybersecurity program with a preventative focus, including physical and digital access controls, patch management, identity verification, mobile device management, and annual employee training.
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The company has no documented incidents of unauthorized data use, explicitly prohibits it, and employs preventative controls such as monitoring data usage.
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Users are provided rights to access, correct, restrict use, delete, and port their data via an online form, though these rights are subject to limitations.
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Blackstone states compliance with applicable data protection laws, including GDPR and CCPA.
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The company retains data only as long as necessary for business purposes or legal requirements.
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Blackstone does not operate a bug bounty program and offers no rewards for vulnerability disclosures.
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CEO Steve Schwarzman advocates for global AI regulation to address potential risks to society.
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Zero Waste & Sustainable Products
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Blackstone's portfolio company, Sustana, manufactures products with 100% recycled fiber content, including FDA-compliant EnviroLife™ for food-grade packaging, demonstrating strong product recyclability and recycled content.
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Sustana aims for a fully circular value chain and invests in equipment to separate plastic liners from single-use paper cups, having recycled over 25 million Starbucks cups.
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Blackstone Energy diverts 100% of electronic waste from landfills
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and reported no waste disposal violations in the past year.
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Mundys, another portfolio company, recycles approximately 73% of its waste.
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A Blackstone-managed project, Harvard's Blackstone South Office Building, achieved 99.42% construction and demolition waste diversion
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and reused old growth timber beams.
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Blackstone Energy targets a 25% reduction in total waste by 2028 from a 2025 baseline
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and plans to fully implement a waste management program by 2025.
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Ancestry, a portfolio company, redesigned its DNA kit packaging to be 35% smaller and 50% lighter, improving material efficiency and packaging-to-product ratio.
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Blackstone corporate operations utilize a "secure print" system to reduce paper waste, and other portfolio companies implement various energy efficiency measures as waste reduction initiatives.
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