Why “Go Green”?
The simplest answer to the question Why “Go Green” is that better environmental performance is often associated with good business performance.
By improving their environmental performance, businesses can reduce costs through greater efficiency, create more productive workplaces, develop stronger relationships with suppliers and customers, launch new products and services and build competitive advantages. The table below shows some examples of environmental strategies that are delivering real business benefits.
|Reduce greenhouse gas emissions||Lower fuel and energy costs|
|Invest in renewable energy||Manage energy price fluctuations|
|Reduce water use||Lower water costs|
|Reduce use of raw materials||Lower input costs|
|Reduce solid waste||Lower waste disposal costs|
|Increase recycling||Lower waste disposal costs
Create new revenue streams
|Develop new environmentally friendly products and services||Improve supplier and customer relationships|
The business case for environmental management has never been stronger. The Green Portfolio Program highlights that environmental performance and business performance can go hand-in-hand. We are very excited about the momentum to date and the fact that we have taken this effort global in such a short period of time.
Henry R. KravisCo-founder of KKR
The bottom line is that "green" is not just about the environment. It can also be another way to build value. KKR believes that companies that strategically measure and manage environmental impacts should find opportunities to increase efficiency, reduce operating expenses, and boost the bottom line.
Finally, in addition to helping us and our portfolio company partners build better running companies, the initiative is consistent with our long-held commitment to being a responsible investor. As part of this commitment, we signed on to the United Nations Principles for Responsible Investment (UN PRI) and the Private Equity Council’s Guidelines for Responsible Investment in the spring of 2009. The signatories of both of these agreements commit to take environmental, social, governance, and labor issues into account when making and managing investments. In the fall of 2010, we further expanded this commitment by joining CSR Europe, a leading European business network for corporate social responsibility with around 75 multinational corporations and 27 national partner organizations as members. Becoming a part of this network provides us, as well as our portfolio companies, with access to thought leadership and proven practices in corporate social responsibility.
For more information on KKR’s responsible investment efforts, go to www.kkr2011esg.com.