KKR’s Green Portfolio Program, which was launched five years ago in partnership with the Environmental Defense Fund, has recorded an estimated $917 million in cost savings and added revenue and more than 1.8 million metric tons of greenhouse gases (GHGs) have been avoided between 2008 and 2012.
The Green Portfolio Program (GPP) is an operational improvement program that uses an “environmental lens” to assess business activities of KKR’s participating portfolio companies. The GPP’s financial impact is a result of energy and water efficiency efforts, operational improvements, and better waste handling across 19 portfolio companies reporting into the program.
“The continued impact that we see as a result of this program represents a significant achievement for our private equity portfolio companies, our firm, and our investment partners,” said Henry Kravis, Co-Chairman and Co-CEO, KKR. “Working with the Environmental Defense Fund to improve our portfolio companies’ environmental performance, we’ve shown that responsible investing can also be smart investing. We are working to change how companies do business, helping them save money through efficiencies while improving the environment and positively impacting the communities where they operate.”
In addition to achieving an estimated $917 million in financial impact, the GPP participants have avoided more than 1.8 million metric tons of GHGs, 19.5 million cubic meters of water use, and 4.7 million tons of waste, while also recycling more than 1 million tons of waste since 2008. Put in context, this is the same as being able to power 192,500 homes and drive 104,600 cars for a year, fill more than 7,700 Olympic-sized swimming pools, and fill 335,300 garbage trucks.
“Nearing $1 billion in financial impact from environmental efforts is a powerful way to mark the fifth anniversary of the partnership between KKR and EDF,” said Fred Krupp, President of EDF. “More importantly, these results demonstrate that environmental management has become a core part of KKR’s investment model and is taking root as a new best practice for value creation across the private equity industry.”
Since the GPP was launched in 2008, 25 portfolio companies across North America, Europe and Asia have participated in the program with 24 companies enrolled currently and 19 of those companies reporting results this year. The participating companies include Accellent, A.T.U., Bharti Infratel, Biomet, Dalmia, Del Monte Foods, Dollar General, First Data, HCA, Oriental Brewery, Pets at Home, Sealy, SunGard, Tarkett, TDC A/S, US Foods, Van Gansewinkel Groep, Visant, and Wild Flavors. Companies engaged in the program, but not yet reporting results include BIS Industries Limited, Capsugel, Kion Group, MMI, and Versatel.
KKR makes private equity, fixed income and other investments in companies in North America, Europe, Asia and the Middle East. The firm has $83 billion in assets under management. In addition to its New York headquarters the firm has offices in Menlo Park, San Francisco, Houston, Washington DC, London, Paris, Hong Kong, Tokyo, Beijing, Mumbai, Dubai and Sydney (www.kkr.com).
For more on KKR’s Green Portfolio Program and the participating private equity portfolio companies visit www.green.kkr.com.
© 2013 PEPD • Private Equity’s Leading News Magazine • 10-17-13