Ken Mehlman, Head of Global Public Affairs of Kohlberg, Kravis, and Roberts, announced that the private equity firm is now pursuing the Green Portfolio Project, an innovative program that melds private equity investment with environmental initiatives.

In an interview with Ken Mehlman and Elizabeth Seeger of the Environmental Defense Fund, Ken Mehlman spoke about how KKR is collaborating with the EDF’ to bring about corporate environmental best practices.

KKR and the EDF are set up a series of tools to help companies measure and improve their environmental policies. With these tools, companies can reduce waste generation, water use, greenhouse gas emissions, and toxic substance generation.

Ken Mehlman understands that setting up strict environmental practices is actually a win-win scenario. Not only does environmentalism protect nature and raise the standard of living for surrounding communities, but it actually saves money. KKR’s buyout of Texas Utilities (TXU) illustrates this principle. “They [the EDF] helped us to identify how to make that company worth more, and also make it a better citizen when it came to environmental performance,” Ken Mehlman says. “It was a classic example of where green is on both sides.”

“The future is real sustainability,” Ken Mehlman stressed. “People will want to do this [because] they think it’s the right thing to do. They should also want to do this now because it can save money.”

KKR followed up by launching the Green Portfolio Project, which strives to aid its portfolio company’s in improving their environmental track record.

Ken Mehlman also talked about a company called US Food Service. With the EDF’s help, KRR helped the company improve the efficiency of its truck fleet. “They’re going to save money, and they will improve the environment,” Ken Mehlman said.

KKR is also expanding the Green Portfolio project to include such companies as Accelent, Biomet, and Dollar General.

Article Source: Ken Mehlman and the Environmental Defense Fund: KKR Keeps Its Investments Green. (Interview Nation)