The History of Kohlberg, Kravis, Roberts & Co & the Environmental Defense Fund
When Henry Kravis and his business partner George Roberts set up Kohlberg, Kravis, Roberts & Co (KKR) in the 1970’s with some assistance from the First Chicago Corporation, the company’s specialization was in bootstrap buyouts. However, in the hope of making their portfolio of companies more environmentally friendly and more profitable as well, they have set up an innovative green proposal which has completely changed the method by which businesses and environmental agencies carry on their day-to-day business.
Green business practice became more widely acceptable a year ago when KKR’s Henry Kravis and the New York based Environmental Defense Fund (EDF) joined forces. They was forged to help resolve a few serious environmental matters, such as climate change, hazardous waste, extreme water consumption, and hazardous emissions.
Eco-efficiency (the phrase was first pitched by the WBCSD) is the method leveraged to achieve these targets, through applying techniques like reducing the waste of resources, recycling programs and reducing the intensity of materials. Although the program was an enormous success, no-one understood how significant the effects were until Ken Mehlman, the head of the program and global public affairs, reviewed the first year’s profits.
Capping everybody’s expectations, Ken found that this program not only increased environmental responsibility, but was also increasing the profits from each company too. Up to now, Kohlberg, Kravis, Roberts & Co and Ken Mehlman have well-nigh each and every business in their portfolio taking part in eco-efficiency principles. When you look at the fact that the portfolio is worth 86 billion dollars, you can see what a challenge this actually was.
The initial program is expanding to encompass new enterprises. For instance, Kohlberg, Kravis, Roberts & Co linked up with the Environmental Defense Fund’s Climate Corps Program that teaches interns taking a Master’s in Business Administration how to introduce financially shrewd, green techniques. KKR and Ken Mehlman have taken the time to create metrics and analytical tools that will be able to administer resources. With this information available, companies may without much effort evaluate their day to day activities and discover exactly how any problems can be solved while simultaneously permitting staff to view their environmental impact.
Henry Kravis, the KKC, and the Environmental Defense Fund have encouraged all sorts of businesses to go green. In summary, these systems have made environmentally friendly business practice not only viable, but commercially desirable, and their radical ideas are setting a new standard in today’s business community.
