The History of Kohlberg, Kravis, Roberts & Co and the Environmental Defense Fund
Tuesday, March 2nd, 2010In the beginning, when Henry Kravis and George Roberts established Kohlberg, Kravis, Roberts & Co (KKR) in the mid-seventies with the assistance of the First Chicago Corporation, their main business was in bootstrap buyouts. However, they have established a novel green enterprise which focuses not simply on how profitable a corporate entity is, but also on how ecologically friendly each of the businesses in their portfolio are. When Henry Kravis from KKR and the New York based Environmental Defense Fund (EDF) got together only a year ago green issues in the business community became a hot topic. Issues like hazardous chemical use and extreme water consumption are high on their list of goals. Eco-efficiency (a term first promoted by the World Business Council for Sustainable Development) embodies the framework for their mission, through using green policies like waste reduction, reducing the intensity of materials and improving fuel economy through vehicle fleet maintenance. Regardless of the fact that the project was an enormous success, staff simply didn’t understand how incredible the results were until Ken Mehlman, the man in charge of the project, examined the first year’s profits. Knocking off everybody’s expectations, Ken saw that this program not only increased environmental awareness, but also increased the the profit from every last business besides. Well-nigh all of the businesses connected with KKR and Ken Mehlman at present are actively engaged in the project. Still, when you consider that the group has a 2009 business portfolio worth 86,000,000,000 dollars, you may be sure this was no easy see what an enormous feat this is.
KKR and the EDF in association with Ken Mehlman are further developing the initial Green Portfolio project. For instance, KKR joined the Environmental Defense Fund’s Climate Corps Program a venture which instructs MBA interns how to formulate and introduce financially sound, planet friendly practices. KKR and Ken Mehlman have been creating metrics and other relevant systems that quantify and manipulate resources. This type of info is important as any business can measure their day to day operations and find out exactly how they can resolve any issues while at the same time letting staff to determine their impact on the environment.
Today’s business community has been revolutionized by the work of these groups. In conclusion, these systems have made ecologically friendly business techniques not only viable, but commercially desirable, and their radical ideas are setting a new standard in today’s business world.