Leading Private Equity Firm to Improve Environmental Performance of
Portfolio Companies and Internal Operations
NEW YORK, May 1 /PRNewswire/ -- Environmental Defense Fund (EDF) and
Kohlberg Kravis Roberts & Co. L.P. (KKR) today announced a "Green
Portfolio" partnership to measure and improve the environmental performance
of companies within KKR's U.S. portfolio. Building on their successful
collaboration in the 2007 acquisition of TXU Corporation, the partnership
is the first of its kind between a private equity firm and an environmental
organization.
KKR has committed to work with EDF to develop a set of analytic tools
by which companies can assess and track improvements on a series of
environmental metrics. These tools will enable managers to cost-effectively
improve efficiency, reduce waste and address environmental impacts, such as
greenhouse gas emissions, the use of toxic substances, waste generation or
water consumption.
KKR and EDF expect that these actions will offer companies financial
benefits, as well as improved environmental performance.
To prove this concept, over the next three to six months, EDF and KKR
will conduct pilot projects within the KKR portfolio to develop analytic
tools that can then be applied across a broader range of KKR portfolio
companies over the next year. Results will be made public at the end of
both phases. Once developed, EDF and KKR will make the processes, tools and
results of their joint effort publicly available, with the mutual goal of
having these tools implemented by other companies around the world.
Concurrently, KKR has committed to improving the energy efficiency of
its own office operations, including by participating in EDF's Climate
Corps Program. As part of this commitment, KKR will undergo an energy audit
of its offices, analyze the financial and environmental benefits of
available energy efficiency improvements and implement those that are most
cost-effective.
"The private equity industry is known for its focus on improving
business performance and for the rigorous process it uses to set goals and
track improvement in portfolio companies," said Gwen Ruta, Vice President
of Corporate Partnerships for EDF. "This groundbreaking new partnership
between KKR and EDF will use the transformational power of private equity
to achieve environmental goals. In addition, KKR's commitment to EDF's
Climate Corps Program indicates their willingness to 'walk the talk' when
it comes to their own environmental footprint."
"Today's announcement is a direct result of our work with EDF and other
environmental leaders during the TXU acquisition last year. That historic
transaction was a significant step forward in incorporating environmental
considerations into investment decisions as it set a new standard for
conservation and efficiency in the energy industry. Building on that
success, we and EDF agreed to pursue an innovative, cost-effective approach
to using the private equity model to bring about improvements in
environmental performance for a variety of companies, including our own
internal operations. We believe this initiative will ultimately help our
portfolio companies build upon their own environmental efforts while
providing a workable example that may encourage other companies to make
similar progress," said Marc Lipschultz, Member of KKR.
About Environmental Defense Fund
A leading national nonprofit organization, Environmental Defense Fund
represents more than 500,000 members. Since 1967, Environmental Defense
Fund has linked science, economics, law and innovative private-sector
partnerships to create breakthrough solutions to the most serious
environmental problems. Environmental Defense Fund has a 20 year track
record of success in partnering with business. To maintain its independence
and credibility, EDF accepts no money from corporate partners; generous
individuals and foundations fund its work. For more information, please
visit http://www.edf.org.
About Kohlberg Kravis Roberts & Co.
Established in 1976, KKR is a leading global alternative asset manager.
The core of the Firm's franchise is sponsoring and managing funds that make
private equity investments in North America, Europe, and Asia. Throughout
its history, KKR has brought a long-term investment approach to portfolio
companies, focusing on working in partnership with management teams and
investing for future competitiveness and growth. Additional funds that KKR
sponsors include KKR Private Equity Investors, L.P. (Euronext Amsterdam:
KPE), a permanent capital fund that invests in KKR-identified investments;
and two credit strategy funds, KKR Financial (NYSE: KFN) and the KKR
Strategic Capital Funds, which make investments in debt transactions. KKR
has offices in New York, Menlo Park, San Francisco, London, Paris, Hong
Kong, Beijing, and Tokyo. For more information, please visit http://www.kkr.com.
Contact:
Melanie Janin, Environmental Defense Fund, (202) 572-3240, mjanin@edf.org
For KKR, David Lilly of Kekst and Company, (212) 521-4878,
david-lilly@kekst.com
Eric Berman of Kekst and Company, (212) 521-4894,
eric-berman@kekst.com
SOURCE Kohlberg Kravis Roberts & Co.
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Related links:
http://www.kkr.com
http://www.edf.org
CONTACT:
Melanie Janin, Environmental Defense Fund,
+1-202-572-3240, mjanin@edf.org, David Lilly, +1-212-521-4878,
david-lilly@kekst.com, Eric Berman, +1-212-521-4894,
eric-berman@kekst.com, both of Kekst and Company for Kohlberg
Kravis Roberts & Co.
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