Kohlberg, Kravis, Roberts & Co. And the Environmental Defense Fund — Pacesetters in Green Business
05/01/2010 22:01
on: Unassigned
In the beginning, when Henry Kravis and his business partner George Roberts founded Kohlberg, Kravis, Roberts & Co (KKR) in the 70’s with some support from the First Chicago Corporation, the firm’s main business was in highly leveraged transactions. But recently they have set up an exceptional green enterprise that concentrates not alone on optimized profit margins, but in addition on how environmentally friendly each of their companies are.
Green business practices became a hot topic in 2008 when KKR’s Henry Kravis and the New York based Environmental Defense Fund (EDF) got together. Serious green issues like hazardous emissions and unreasonable consumption of water resources are a top priority in their company mission statement. Eco-efficiency (a term initially introduced by the World Business Council for Sustainable Development WBCSD) is the method used to achieve these objectives, through employing green policies like using clean energy, recycling programs and reducing the dispersion of toxic chemicals. Although the program was a tremendous success, managment just did not realize how important the effects were until Ken Mehlman, the executive in charge of the Green Portfolio Project, finished the review of the first year.
Capping all expectations, Ken found that applying eco-efficiency not only enhanced environmental responsibility, but was increasing the profitability of every last business too. Nearly all of the firms linked with KKR and Ken Mehlman at present are involved in eco-efficiency. Still, with a 2009 business portfolio valued at 86,000,000,000 USD, you may be sure this wasn’t an easy feat.
Kohlberg, Kravis, Roberts & Co and the Environmental Defense Fund along with Ken Mehlman have also expanded the initial program. For example, KKR got together with the Environmental Defense Fund’s Climate Corps Program an enterprise that instructs interns taking a Master’s in Business Administration how to introduce cost effective, green practices. In addition, Ken Mehlman has been in close collaboration with KKR to formulate metrics which firms can utilize to evaluate and oversee resources. These metrics can assess a company’s progress and identify any underlying problems. Henry Kravis, the KKR, and the Environmental Defense Fund are true groundbreakers when it comes ecologically sound business practices. These innovations have set a benchmark for organizations in every sector and shown that running a profitable business need not entail the hefty price of damaging the environment.
