KKR’s New Investment Will Help Preserve the Great Barrier Reef

GreenCollar’s Plan

KKR (KKR), a global investment firm, is backing a new initiative from GreenCollar, an Australian environmental markets investor. GreenCollar is launching a program that will provide financial incentives to companies taking action to protect Australia’s Great Barrier Reef.

The famous reef is the largest structure created by living organisms in the world. It is up against the threat of coral bleaching due to rising ocean temperatures. It is also being harmed by fertilizers and pesticides running off from nearby farms. GreenCollar has an idea for how to help.

Reef Credits

With GreenCollar’s new program, farmers will be able to obtain what the company calls “reef credits” when they stop pesticides, fertilizers, and sediment from leaking into the water surrounding the reef. This will give them an incentive to fix harmful systems, as well as a steady stream of funds to make necessary changes.

Companies will then be able to buy reef credits from farmers as a way to offset their environmental footprint. This is similar to how many companies already purchase carbon offsets.

A Larger Trend

The investment in GreenCollar is part of KKR’s Global Impact Fund—a $1.3 billion fund which began in 2018 with the goal of investing in companies driving environmental and social change. One of its main focuses is supporting companies that contribute to the United Nations’ sustainable development goals.

KKR’s deal with GreenCollar is the Global Impact Fund’s first investment in Australia and its third in Asia pacific. This is part of a larger trend of private equity firms investing in the fast-growing world of sustainability.

You can invest in a way that aligns with your principles by choosing companies that are ethically sound. Explore the Doing Good collection on SoFi Invest®.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS072002