The Story of Henry Kravis of Kohlberg, Kravis, Roberts & Co and the Environmental Defense Fund
When Henry Kravis and his partner George Roberts founded Kohlberg, Kravis, Roberts & Co (KKR) in the seventies with assistance from the First Chicago Corporation, the firm’s main business was in bootstrap buyouts. Lately, in the pursuit of making the businesses in their portfolio greener, they have launched a unique green project which has transformed the way businesses and environmental agencies function. Kohlberg, Kravis, Roberts & Co’s Henry Kravis and the non-profit environmental advocacy group Environmental Defense Fund (EDF) joined forces last year, hoping to make environmentally sound business processes an acknowledged principle. Their objectives include encouraging firms in opposing environmental menaces e.g. depletion of the ozone layer not to forget immeasurable consumption of water resources.
Eco-efficiency (a term originally coined by the World Business Council for Sustainable Development) defines their mission’s framework, by utilizing ecologically sustainable policies like maximum use of renewable resources, reducing the waste of resources and increasing the durability of products. Simple and effective, yet the management did not understand the full advantages of the program until the executive in charge of the Green Portfolio Project, Ken Mehlman, evaluated the program following its first year in operation.
Much to everybody’s surprise, Ken saw that using eco-efficiency not only increased environmental responsibility, but was increasing the profits from every business organization besides. To date, Kohlberg, Kravis, Roberts & Co and Ken Mehlman have succeeded in getting virtually all of their firms involved in eco-efficiency. Nevertheless, with a current portfolio estimated at $86,000,000,000, you can be sure that this wasn’t an easy accomplishment. The initial Green Portfolio project has developed beyond its original remit and today includes new ventures. For instance, Kohlberg, Kravis, Roberts & Co got together with the Environmental Defense Fund’s Climate Corps Program which instructs MBA interns how to encourage cost-effective, environmentally friendly principles.
KKR and Ken Mehlman have been formulating a package of metrics that quantify and administer various resources. With this information available, companies can examine their everyday activities and find out exactly how they can solve any problems while at the same time allowing them to determine their impact on the environment. Henry Kravis, the KKR, and the Environmental Defense Fund are groundbreakers when it comes environmentally sound business development. So, in conclusion, 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 competitive business world of today.
