How Henry Kravis of Kohlberg, Kravis, Roberts & Co. Works alongside the Environmental Defense Fund
When Henry Kravis and his business partner George Roberts launched Kohlberg, Kravis, Roberts & Co (KKR) in the seventies with the support of the First Chicago Corporation, the firm’s main business was in highly leveraged transactions. Recently they have put together a groundbreaking green proposal which centers not solely on maximized ROI, but also on the environmental impact of the companies they acquire. Environmentally sound business procedures went mainstream a year ago when KKR’s Henry Kravis and the non-profit environmental advocacy group Environmental Defense Fund (EDF) merged. This coalition wanted to fight many primary matters damaging the ecology of the planet, including hazardous emissions, soil contamination, immeasurable consumption of water resources, and climate change.
Eco-efficiency (the term was first propagated by the WBCSD) governs their mission’s framework, by employing techniques such as optimizing data centers for efficiency, fuel economy and waste reduction. Simple and effective, however the KKR and EDF did not even understand the full project’s advantages until Ken Mehlman, the head of the Green Portfolio Project and global public affairs, studied the program subsequent to a full year in operation. Much to everyone’s surprise, Ken saw that this program not only cut down on environmental impact, but also increased the profits from each company besides. These days, KKR and Ken Mehlman have succeeded in getting nearly each and every firm in their portfolio involved in the project. If you think about the fact that this portfolio of companies has a value of 86,000,000,000 dollars, you can see what a tremendous accomplishment this is.
These two groups with the assistance of Ken Mehlman have also expanded the initial program. For example, Kohlberg, Kravis, Roberts & Co linked up with the Environmental Defense Fund’s Climate Corps Program that instructs interns studying for an MBA how to introduce cost-effective, environmentally friendly principles.
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KKR and Ken Mehlman have been developing metrics and analytic tools which can oversee resources. These tools allow staff see how they are impacting on the environment and discover any problem areas.
The business world has been totally revolutionized by the ground-breaking efforts of Henry Kravis, the KKC, and the Environmental Defense Fund. In summary, the work of these organizations has made green business techniques not only viable, but commercially desirable, and their revolutionary ideas are setting a new standard in the high-pressure business world of today.