EDF, E&Y to Help PE Firms Appraise their Investments from the Environmental Angle

  • Date: January 27, 2011
  • Source: Admin
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The Environmental Defense Fund (EDF) obviously wants private equity (PE) firms to improve the environmental and financial performance of their portfolios.  Towards this end it has designed a new program for use by PE firms. 

The Green Ops for Private Equity Program

Ernst & Young (E&Y) is piloting a Green Ops for Private Equity program. Green Ops will assist the private equity companies in appraising their investments from an environmental angle.  Quantis will assist Ernst & Young in the piloting exercise.  Quantis is a consulting company specializing in the assessment of the environment and life cycle. 

How Participating Companies will Benefit

Participating companies will be able to assess their portfolios as a result.  They will also receive a set of suggestions with the help of which they can identify the major environmental opportunities that are available to them. Environmental opportunities are available in areas like energy efficiency, fleets, data centers, waste reduction or water management.  

The EDF Program

The EDF program is born out of EDF’s association with the private equity sector over the recent years.  Founded in 1967, it tackles the most serious environmental problems with:

  • Sound science
  • Economic incentives
  • Corporate partnerships
  • Getting the law right

In line with the objectives of the Green Returns project, EDF has already associated with private equity firms Kohlberg Kravis Roberts & Co (KKR) and the Carlyle Group.  

How the Green Portfolio Program Benefited KKR

KKR launched its Green Portfolio Program in 2008.  It tracks the costs, emissions and waste saved by its 16-company portfolio.  Early last year, the Carlyle Group inaugurated a tool called EcoValuScreen.  The tool seeks out opportunities to create value through improved environmental management practices at investments.




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