Kohlberg Kravis Roberts & Co’s latest portfolio companies to evaluate their environmental impact as part of the private equity firm’s partnership with the Environmental Defense Fund are Accellent, Biomet, Dollar General, SunGard Data Systems and HCA.
Each of the companies have evaluated their impacts on environmental performance, identified opportunities for improvement and will implement these changes to achieve their goals for environmental sustainability. Once implemented, these changes will help managers to cost-effectively improve efficiency and reduce waste, while addressing the environmental impacts of their business.
“The first priority of our limited partners is to maximise investment returns, but most also recognise the importance of improving environmental performance,” says Ken Mehlman, head of global public affairs at KKR. “Our work with EDF and our portfolio companies is proving that environmental management can help create real value and drive the returns that help fund retirement pensions and other important needs.”
KKR’s investment and operating executives will continue their collective efforts in working with EDF and the portfolio companies to achieve their goals.
As part of their first of its kind partnership between a private equity firm and an environmental organisation, KKR and EDF have worked since May 2008 to develop and test a set of analytic tools and metrics to help companies improve in several key environmental performance areas, including greenhouse gas emissions, waste, water, forest resources and priority chemicals.
The pilot phase of the project yielded successful results for U.S. Foodservice, PRIMEDIA and Sealy, which together already saved $16.4m and prevented more than 25,000 metric tons of greenhouse gas emissions in 2008.
Throughout 2009, KKR and EDF will continue to work together to extend this programme across KKR’s US portfolio.
To drive broader change across the private equity and other industries, the tools and best practices developed through the partnership will be available through the EDF Innovation Exchange.
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