The Story of Kohlberg, Kravis, Roberts & Co & the Environmental Defense Fund
In the beginning, when Henry Kravis and his partner George Roberts launched Kohlberg, Kravis, Roberts & Co (KKR) in the mid-seventies with the support of the First Chicago Corporation, their specialty was in leveraged buyouts. But they have put together an unusual green project which centers not alone on how much money they can net, but in addition on how ecologically friendly each of the corporate entities in their portfolio currently are. When Henry Kravis from KKR and the New York based Environmental Defense Fund (EDF) got together only a year ago environmental issues all of a sudden turned into a mainstream topic. Significant matters like greenhouse gas emissions and immoderate water consumption are an important part of their company mission statement.
Eco-efficiency (the term was first coined by the World Business Council for Sustainable Development WBCSD) governs their mission’s framework, using ecologically sound policies such as fuel economy, increasing the durability of products and maximum use of renewable resources. Regardless of the fact that the project was an enormous success, no-one understood how fantastic the consequences actually were until Ken Mehlman, the executive in charge of the project, finished the first annual review.
Knocking off everybody’s expectations, Ken learned that this program not only assisted in proctecting the environment, but was increasing the profitability of all their business concerns too. To date, KKR and Ken Mehlman have managed to get nearly each and every company in their portfolio involved in eco-efficiency. And, with a current business portfolio estimated at $86 billion, you can be sure this was no easy see what an enormous accomplishment this is.
The original project is expanding to encompass new opportunities. For instance, KKR linked up with the Environmental Defense Fund’s Climate Corps Program which teaches interns taking a Master’s in Business Administration how to encourage financially strong, earth friendly practices. KKR and Ken Mehlman have taken the time to formulate a package of systems that oversee various resources. Tools such as these let staff to assess their progress and identify any problem areas. The business community has been completely revolutionized by the efforts of these groups. In summary, these systems have made green business practice not only viable, but commercially desirable, and their radical ideas are setting a new standard in the business world of today.
