KKR gets green portfolio boost

KKR says ESG measures have now cut nearly $1.2bn of costs and boosted revenues

Kohlberg Kravis Roberts reduced its greenhouse gas output by more than 2.3 million metric tons between 2008 and 2013 in its portfolio – the equivalent of powering 217,000 homes and driving 156,500 cars for a year.

The US-listed firm has recorded nearly $1.2 billion in avoided costs and added revenues as a result, it said today in its latest Green Portfolio Program (GPP) performance update.

KKR's GPP is an operational improvement programme that assesses the environmental impact of KKR's private equity portfolio companies. The GPP's financial impact is a direct result of operational improvements and efficiency efforts focused on energy, waste, and water management, KKR said.

To date, 25 portfolio companies have reported into the programme's aggregate numbers. On top of achieving nearly $1.2 billion in financial impact, the reporting GPP companies have also avoided 27 million cubic meters of water use, which is enough to fill nearly 11,000 Olympic-sized swimming pools.

Furthermore, the businesses have avoided 6.3 million tons of waste, while also recycling more than 1.6 million tons of waste – enough to fill approximately 450,000 garbage trucks.

Since its inception, portfolio companies across North America, Europe, and Asia have participated in the GPP. Companies reporting 2013 results include Accellent (now operating as Lake Region Medical), Biomet, BIS Industries Limited, Capsugel, Dalmia Bharat Cement, Del Monte Foods (now Big Heart Pet Brands), Dollar General, First Data, HCA, Kion Group, Oriental Brewery, Panasonic Healthcare, Pets at Home, SunGard, Tarkett, US Foods, Van Gansewinkel Groep, Versatel, Visant, and Wild Flavors.

“This is an important milestone for the Green Portfolio Program,” Henry Kravis, co-chairman and co-chief executive officer at KKR, said in the statement. “Seeing such a significant financial impact as an outcome of improving environmental factors is a win for KKR, our companies, our investors, and the communities where we all work and live.”