February 2, 2010
Environmentally Sound Business — Ken Mehlman of Kohlberg, Kravis, Roberts & Co. And the Environmental Defense Fund
Kohlberg, Kravis, Roberts & Co (KKR) was founded in the 70’s and initially their focus was in highly leveraged transactions. Pushing beyond, hoping to make the companies in their portfolio more environmentally friendly, KKR have established an exceptional project which has totally transformed the way business concerns and environmental agencies work.
When Henry Kravis from KKR and the Environmental Defense Fund (EDF) got together just a year ago green matters suddenly turned into a mainstream concept. This coalition wants to fight some big matters affecting the ecology of the earth, including depletion of the ozone layer, deforestation, undue water consumption, and toxic emissions.
Eco-efficiency (a phrase originally advocated by the World Business Council for Sustainable Development WBCSD) constitutes the framework for their mission, by utilizing techniques such as reducing the dispersion of toxic chemicals, optimizing data centers for efficiency and reducing the intensity of materials. The project was a stunning success, nevertheless the KKR and EDF did not even realize the full project’s benefits until Ken Mehlman, the executive responsible for the project, looked over the numbers from the program when it had been operating for its first full year. Capping everybody’s expectations, Ken discovered that utilizing eco-efficiency not only reduced the impact on the planet, but also increased the the net profit from all their businesses besides. Almost all of the firms held by Kohlberg, Kravis, Roberts & Co and Ken Mehlman at present practice eco-efficiency. Seeing that the total portfolio is worth almost $100,000,000,000 dollars, you can imagine what a challenge this really was.
These two groups with the assistance of Ken Mehlman are further developing the initial program. For example, Kohlberg, Kravis, Roberts & Co joined the EDF’s Climate Corps Program an enterprise which instructs students taking an MBA how to encourage financially astute, environmentally friendly practices. KKR and Ken Mehlman have taken the time to formulate a package of metrics and analytical tools that administer resources. Products like these permit employees see how they are progressing and discover any areas which might need to be evaluated again.
Henry Kravis, the KKR, and the Environmental Defense Fund truly are innovators in the world of green business. Their innovations have set a benchmark for firms in any industry and demonstrated that running a profitable business need not entail the hefty price of damaging the environment.