When Henry Kravis and George Roberts set up Kohlberg, Kravis, Roberts & Co (KKR) in the 1970’s with some support from the First Chicago Corporation, the company’s focus was in highly leveraged transactions. However, they have assembled a novel green proposal which centers not just on how lucrative a company is, but in addition on how ecologically friendly each of their companies are. When Henry Kravis from KKR and the Environmental Defense Fund (EDF) merged in 2008 green matters in the business world became a hot topic. The coalition was forged to help resolve some challenging issues hurting the ecology of the planet, including hazardous chemical use, toxic chemicals, extravagant consumption of water resources, and climate change. In order to achieve these goals, they utilize a formula labeled eco-efficiency which involves practicable techniques like improving fuel economy through vehicle fleet maintenance, increasing the durability of products, and reducing the dispersion of toxic chemicals. Although the program was a tremendous success, no-one understood how incredible the results really were until Ken Mehlman, the head of the program and global public affairs, finished the review of the first year.
Much to everybody’s surprise, Ken discovered that this program not only decreased the impact on the environment, but was also increasing the profitability of every business too. Currently, KKR and Ken Mehlman have nearly every associated organization involved in the program. Seeing that this group of companies is valued at virtually one hundred billion USD, you can see what a tremendous achievement this really is.
Kohlberg, Kravis, Roberts & Co with the Environmental Defense Fund along with Ken Mehlman are expanding the initial project. The Climate Corps Program administrated by the EDF is an example of this, it advances ecologically friendly principles to MBA interns. KKR and Ken Mehlman have been creating metrics and other related systems that have the ability to evaluate and manage various resources. This type of data is critical as companies can evaluate all of their day to day activities and find out how any problems may be solved while at the same time allowing staff to see their impact on the environment. Henry Kravis, the KKC, and the Environmental Defense Fund have made reducing their environmental impact less painful for businesses all over the country. In conclusion, these systems have made ecologically friendly business practice not only viable, but commercially desirable, and their radical ideas are setting a new standard in today’s business world.
