Participating Private Equity Portfolio Companies Achieve More Than $644 Million in Financial Impact and Avoid More Than One Million GHG Emissions and 13.2 Million Cubic Meters of Water Use
KKR to Launch Green Portfolio Handbook Highlighting Eco-Efficiency Best Practices
NEW YORK--(BUSINESS WIRE)-- KKR announced the fourth year of results from its Green Portfolio Program (GPP) today. Launched in 2008 with Environmental Defense Fund (EDF), the GPP comprises 24 enrolled KKR private equity portfolio companies focused on improving their environmental and business performance around the world. Through efforts in energy and water efficiency, better waste handling, and operational improvements, the reporting portfolio companies achieved approximately $644 million in combined financial impact and avoided more than 1.2 million metric tons of greenhouse gas emissions, 3.4 million tons of waste, and 13.2 million cubic meters of water use, cumulatively from 2008 through 2011.
"Nearly five years since we started on this journey with EDF and our portfolio companies, our results continue to demonstrate the significant environmental and financial benefits of our program's efforts," said George Roberts, Co-Founder and Co-Chief Executive Officer of KKR. "However, the results also show us the enormous opportunities that remain to continue to improve operations and enhance the companies in which we invest. Our commitment to partnering with our portfolio companies on environmental sustainability remains strong."
The Green Portfolio Program was designed to encourage innovation, reduce environmental impacts, and improve the financial bottom line of KKR's participating private equity portfolio companies. The program began with just three portfolio companies. During the last four years, the GPP has grown to encompass 24 of KKR's portfolio companies globally, including the addition of eight new companies in 2012: Del Monte Foods and Capsugel in the U.S.; TDC A/S in Denmark; Versatel and KION Group in Germany; Bharti Infratel and Dalmia Bharat Cement in India; and MMI in Singapore. TDC, Van Gansewinkel, and Visant are reporting results for the first time. The remaining new companies are expected to report results for the first time in 2013.
"Moving forward, in addition to working intensively with GPP participants, we will focus on sharing our findings and best practices across the entire KKR portfolio," said Ken Mehlman, Head of Global Public Affairs and a Member of KKR. "We are proud of our progress to date and believe this is the next step in scaling the program to create an even-larger opportunity for positive impact in our portfolio and beyond."
In early 2013, KKR will launch its "Green Portfolio Program Best Practices Handbook," a collection of operational best practices to improve environmental and business performance that will be made available to all KKR portfolio companies. The GPP Handbook will provide numerous improvement opportunities and operational models for a range of key environmental performance areas, and is intended to be a resource for portfolio companies at all stages of planning and implementation.
"Institutional investor expectations for environmental performance at private equity firms are on the rise," said Gwen Ruta, Vice President of Environmental Defense Fund. "KKR's Green Portfolio program continues to prove what's possible when environmental management is prioritized by leadership, embedded in management systems, and integrated throughout the investment process."
The Green Portfolio Program is part of a broader effort at KKR to create sustainable long-term value by addressing environmental, social and governance ("ESG") issues in its private equity investments. In 2009 KKR became a signatory of the globally recognized voluntary framework of the United Nations-backed Principles for Responsible Investment. KKR also has built a network of external partners, including Business for Social Responsibility, Transparency International, American Heart Association, and CSR Europe. These organizations provide insight that allows KKR and its portfolio companies to understand and proactively address various ESG issues. More information on these efforts is included in KKR's second sustainability report, available at www.kkr2011esg.com.
To learn more about KKR's Green Portfolio Program and the participating companies, please visit www.green.kkr.com.
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global investment firm with $66.3 billion in assets under management as of September 30, 2012. With offices around the world, KKR manages assets through a variety of investment funds and accounts covering multiple asset classes. KKR seeks to create value by bringing operational expertise to its portfolio companies and through active oversight and monitoring of its investments. KKR complements its investment expertise and strengthens interactions with investors through its client relationships, capital markets and global stakeholder relations platform. KKR & Co. L.P. is publicly traded on the New York Stock Exchange (NYSE: KKR), and references to KKR in this release include its subsidiaries, their managed investment funds and accounts, and/or their affiliated investment vehicles, as appropriate. For additional information, please visit KKR's website at www.kkr.com.
Ali Hartman, 212-519-1638
Source: Kohlberg Kravis Roberts & Co. L.P.
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