ATG’s entrance into the GPP enhances its existing sustainability efforts which have been an area of focus since ATG’s inception
Alliance Tire Group, the off-highway tyre specialist, said that they have entered into the Green Portfolio Program (GPP) of the investment firm KKR. GPP is an operational improvement program that uses an environmental lens to assess critical business activities of KKR's participating private equity portfolio companies.
ATG said that the entrance into the GPP enhances its existing sustainability efforts which have been an area of focus since ATG's inception. These initiatives center on reducing energy consumption, minimizing scrap waste and environmental impact at its tire manufacturing facilities in India and Israel.
"ATG's core principles include being mindful of our environmental impacts. For example, waste-reduction has been a long-term goal for our business. KKR's assistance in introducing new metrics and analytics to our initiatives helps us measure and improve upon our sustainability performance," said Yogesh Mahansaria, Founder & CEO of ATG.
ATG has its office and R&D centre in Mumbai, and production unit in Chennai. The factory boasts of zero liquid discharge and rainwater harvesting. ATG said that between the second quarter of 2014 and the first quarter of 2015, Coal consumption per ton of production has been reduced by around 90 kg / ton, steam consumption has been reduced by 10 percet per ton and scrap waste is down by 4.3 percent.
The factories in India have been built to high environmental standards, with zero liquid discharge and rainwater harvesting. ATG's facilities in India and Israel have already received or are in the process of obtaining ISO 140001 environmental management systems certifications. Since August 2013, ATG's management worked with KKR and members of KKR Capstone, an independent team of operational executives who work exclusively with KKR portfolio companies, to measure its coal consumption energy usage and its scrap losses.
The GPP, which began in 2008 as a partnership between KKR and the environmental non-profit organization Environmental Defense Fund (EDF), applies KKR's approach of assessing, measuring, and optimizing performance in order to help portfolio companies manage their environmental impacts while also improving their bottom line.
As of October 2014, 21 private equity portfolio companies worldwide participating in the GPP reported achieving nearly US$1.2 billion in avoided costs and added revenue.