Global private equity major KKR has invested in the Australian environmental markets platform GreenCollar to enable the company to provide commercial solutions to climate change-related challenges faced by governments, corporates and individuals.
The investment is part of KKR’s Global Impact Strategy and marks the Global Impact Fund’s first investment in Australia, and third in the Asia-Pacific, according to a statement. Terms of the transaction were not disclosed.
The Global Impact Fund is focused on generating risk-adjusted returns by investing in companies that contribute to the United Nations Sustainable Development Goals (SDGs).
GreenCollar’s core business directly contributes to SDG 13 (Climate Action) and supports other sustainable goals, including SDG 15 (Life on Land) and SDG 14 (Life Below Water).
“GreenCollar was established with a simple mission: to put the environment on the balance sheet, demonstrating that we can deliver essential environmental outcomes whilst building a strong for-profit business. KKR’s investment is the next part of our evolution as we look to grow GreenCollar into a global business,” GreenCollar co-founder and CEO James Schultz said.
Founded in 2011, GreenCollar specialises in using environmental markets, such as carbon markets, to enable landholders, especially farmers, to implement projects that generate revenue and reduce greenhouse gas emissions.
GreenCollar works with landowners to identify and develop land-based carbon projects, such as forest protection and land restoration at scale. Once projects are operational, GreenCollar facilitates the sale of the resulting credits to private and public organisations seeking to manage their environmental impact.
Since the market’s establishment, GreenCollar has secured contracts to supply approximately 65 million Australian Carbon Credit Units to be issued and delivered to the Emissions Reduction Fund, making it the largest player under the Scheme.
The company is also pioneering the development of a Reef Credit Scheme, which enables a market-based solution for land managers to undertake projects to improve the water quality of the Great Barrier Reef in Australia.
KKR launched its Global Impact strategy in 2018 and recently held a final close on a $1.3 billion fund. Global Impact’s 14-person global team has executed a number of transactions over the past two years, including in Barghest Building Performance, Ramky Enviro Engineers, KnowBe4, Burning Glass and the formation of a wastewater treatment platform.
KKR has invested more than $7 billion in solutions-oriented businesses that address key social imperatives, including green energy, workforce development, responsible waste management and clean water protection.