Kohlberg Kravis Roberts & Co. and Environmental Defense Fund Announce First-of-Its-Kind...

Kohlberg Kravis Roberts & Co. and Environmental Defense Fund Announce
First-of-Its-Kind 'Green Portfolio' Partnership
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 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 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.

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.