Business and the Environment - Kohlberg, Kravis, Roberts & Co. And the Environmental Defense Fund

In the beginning, when Henry Kravis and George Roberts set up Kohlberg, Kravis, Roberts & Co (KKR) in the 70’s with the support of the First Chicago Corporation, the firm’s main business was in bootstrap buyouts. Pushing beyond, hoping to make the companies in their portfolio more environmentally friendly and more profitable to boot, they have rolled out an unusual enterprise which has entirely changed the way businesses and environmental agencies operate. When Henry Kravis from KKR and the Environmental Defense Fund (EDF) merged last year green issues went mainstream. These companies intended to fight serious environmental issues, for instance toxic emissions, air pollution, high consumption of water resources, and resource depletion. Eco-efficiency (a phrase first introduced by the World Business Council for Sustainable Development WBCSD) stipulates their mission’s framework, by utilizing environmentally sustainable techniques such as using clean energy, fuel economy and increasing the durability of products. The project was a success, but the management did not even understand the full advantages of the project until Ken Mehlman, the head of the Green Portfolio Project and global public affairs, evaluated the project after a full year in operation. Much to everybody’s surprise, Ken saw that this program not only cut back on environmental impact, but was increasing the the net profit from all their business concerns besides. Virtually all of the companies held by Kohlberg, Kravis, Roberts & Co and Ken Mehlman now apply eco-efficiency. Still, with a current portfolio estimated at 86,000,000,000 dollars, you may be certain this wasn’t a simple see what an enormous achievement this is. The original program now encompasses new ventures. To illustrate, KKR joined the EDF’s Climate Corps Program an enterprise which instructs interns taking a Master’s degree in Business Administration how to put together and start financially strong, green techniques. Furthermore, Ken Mehlman has been in close collaboration with KKR to create a variety of metrics and analytic tools which a range of business concerns can use to evaluate and oversee a number of resources. This type of info is significant as any business may without a lot of effort examine each of their daily activities and find out how they can solve any problems while simultaneously seeing their progress.

Today’s business community has been changed permanently by the ground breaking work of Henry Kravis, the KKC, and the Environmental Defense Fund. So, in conclusion, these systems have made ecologically friendly business techniques not only viable, but commercially desirable, and their revolutionary ideas are setting a new standard in the business world of today.