December 26, 2009
Business and Eco-Efficiency — Henry Kravis of Kohlberg, Kravis, Roberts & Co. And the Environmental Defense Fund
When Henry Kravis and George Roberts founded Kohlberg, Kravis, Roberts & Co (KKR) in the mid seventies with support from the First Chicago Corporation, the firm’s main business was in “bootstrap” buyouts. But only last year they have set up a unique green project that concentrates not just on how lucrative an enterprise is, but likewise on the environmental impact of the companies they invest in.
When Henry Kravis from KKR and the non-profit environmental advocacy group Environmental Defense Fund (EDF) merged a year ago green matters in the business community became major discussion topic. Issues like climate change and unrestrained consumption of water resources are an all-important part of their corporate mission statement.
Eco-efficiency (the phrase was first promoted by the World Business Council for Sustainable Development) is the routine used to achieve these targets, utilizing environmentally sustainable techniques such as fuel economy, increasing the durability of products and reducing the waste of resources. The project was a success, even so the companies involved didn’t even realize the full benefits of the program until the head of the program and global public affairs, Ken Mehlman, studied the program after its first year in operation. Topping all expectations, Ken discovered that the program not only diminished ecological impact, but was increasing the profits from each company besides. Up to now, Kohlberg, Kravis, Roberts & Co and Ken Mehlman have virtually every company in their portfolio actively taking part in eco-efficiency. And, with a current business portfolio with a value of eighty-six billion dollars, you can be certain that this was no easy feat. The original Green Portfolio project now encompasses new ventures. The Climate Corps Program founded by the EDF is a great illustration of this, it promotes environmentally friendly techniques to MBA interns.
KKR and Ken Mehlman have been creating products that have the ability to measure and oversee various resources. Programs such as these let staff see how they are progressing and discover any underlying problems.
Henry Kravis, the KKC, and the Environmental Defense Fund have encouraged all sorts of businesses to decrease their environmental impact. Their visionary concepts have simplified the process for organizations in every sector and established that running a profitable business need not entail the hefty price of damaging the environment.