Going Green - with Henry Kravis of Kohlberg, Kravis, Roberts & Co. Making it More Painless for Everyone
Kohlberg, Kravis, Roberts & Co (KKR) was established by Henry Kravis and his business partner George Roberts in the 1970’s with support from the First Chicago Corporation. But just a year ago they have assembled a remarkable venture which centers not solely on how profitable a corporation is, but likewise on the environmental impact of the companies they purchase.
Green business practice became more widely accepted a year ago when Kohlberg, Kravis, Roberts & Co’s Henry Kravis and the New York based Environmental Defense Fund (EDF) got together. Their goals include encouraging companies to resolve practices which may harm the environment e.g. toxic chemical use as well as exaggerated water consumption.
In order to achieve these goals, they apply a technique dubbed eco-efficiency; this involves techniques like increasing the durability of products, improving fuel economy through vehicle fleet maintenance, and using clean energy. Although the project was an enormous success, no-one understood how significant the consequences were until Ken Mehlman, the executive responsible for the project, reviewed the first year’s profits. Only at that point did Ken learn that applying eco-efficiency was not just helping the environment, but in addition it was saving businesses a great deal of money. These days, KKR and Ken Mehlman have almost every firm in their portfolio taking part in the project. And, with a 2009 business portfolio worth 86,000,000,000 dollars, you may be certain that this was no easy achievement. The initial program has grown far beyond its initial purpose and these days includes new initiatives. To illustrate, KKR joined the EDF’s Climate Corps Program that instructs MBA interns how to encourage cost effective, ecologically friendly principles.
What is more, Ken Mehlman has been collaborating closely with KKR to create metrics which companies can use to measure resources. These systems permit management see how they are impacting on the environment and identify any problem areas. Henry Kravis, the KKR, and the Environmental Defense Fund are true pioneers in the world of green business. Their innovations have set a benchmark for organizations in every industry and established that making profits need not entail the hefty price of damaging the environment.
