The Story of Kohlberg, Kravis, Roberts & Co and the Environmental Defense Fund
Kohlberg, Kravis, Roberts & Co (KKR) was launched in the seventies and orginally the company’s specialization was in leveraged buyouts. Recently, in a drive to make their acquisitions more environmentally friendly and more profitable as well, KKR have set up a unique green project that has entirely changed the method by which business concerns and environmental activists operate.
Environmentally friendly business practice became major discussion topic last year when KKR’s Henry Kravis and the independent Environmental Defense Fund (EDF) merged. Their objectives include encouraging companies in avoiding operations which may jeopardize the environment like climate change and any colossal water consumption. To follow through with these goals, they use a methodology called eco-efficiency; this involves techniques like maximum use of renewable resources, improving fuel economy through vehicle fleet maintenance, and using clean energy. The project was initially well received, but the businesses who were participating did not grasp the full program’s advantages until Ken Mehlman, the person in charge of the program, studied the project subsequent to a full year in operation. Ken observed that applying eco-efficiency wasn’t merely helping to conserve the environment, but it was also saving firms a remarkable sum of money. Currently, Kohlberg, Kravis, Roberts & Co and Ken Mehlman have almost each and every business in their portfolio taking part in eco-efficiency principles. Yet, when you consider that the group has a 2009 business portfolio worth $86 billion, you can be sure this wasn’t an easy see what a huge feat this is.
The Green Portfolio project now includes new and innovative initiatives. The Climate Corps Program established by the EDF is one of these, it raises awareness of earth friendly business techniques to students taking an MBA. More recently, Ken Mehlman has collaborated closely with Kohlberg, Kravis, Roberts & Co to create a series of metrics which a range of business concerns can employ to measure and oversee resources. These tools let management see how they are progressing and discover any underlying issues. The business community has been transformed permanently by the efforts of these individuals. These innovations have made going green less problematic for firms in every industry and demonstrated that running a profitable business need not entail the hefty price of damaging the environment.
