How Henry Kravis of Kohlberg, Kravis, Roberts & Co. Works alongside the Environmental Defense Fund
When Henry Kravis and George Roberts launched Kohlberg, Kravis, Roberts & Co (KKR) in the 1970’s with some help from the First Chicago Corporation, their focus was in highly leveraged transactions. But just a year ago they have established an unusual enterprise that centers not just on maximizing ROI, but likewise on the ecological impact of the companies they acquire. Environmentally aware business practices became more broadly acknowledged in 2008 when Kohlberg, Kravis, Roberts & Co’s Henry Kravis and the non-profit environmental advocacy group Environmental Defense Fund (EDF) merged. Issues like hazardous chemicals and reckless consumption of water resources are high on their list of priorities.
Eco-efficiency (a term first endorsed by the World Business Council for Sustainable Development WBCSD) embodies their mission’s framework, employing environmentally aware policies such as increasing the durability of products, reducing the waste of resources and recycling programs. Even though the project was an enormous success, managment just did not recognize how far reaching the results really were until Ken Mehlman, the head of the project and global public affairs, studied the numbers for the first year.
Much to everybody’s surprise, Ken found that this program not only assisted in preserving the environment, but was also increasing the the net profit from each and every company as well. These days, Kohlberg, Kravis, Roberts & Co and Ken Mehlman have succeeded in getting well-nigh every last business in their portfolio actively taking part in eco-efficiency. Yet, with a current portfolio worth $86 billion, you can be sure that this was not a simple feat. KKR with the EDF alongside Ken Mehlman are expanding the Green Portfolio project. For example, Kohlberg, Kravis, Roberts & Co joined the Environmental Defense Fund’s Climate Corps Program an organization which teaches MBA interns how to encourage cost-effective, environmentally friendly principles.
In recent months, Ken Mehlman has been collaborating closely with KKR to formulate analytic tools which business concerns can employ to quantify and manipulate resources. Programs like these can track a company’s ecological impact and identify any areas that might need improving.
Today’s business world has been transformed permanently by the ground-breaking efforts of Henry Kravis, the KKC, and the Environmental Defense Fund. So, in conclusion, these systems have made green business techniques not only viable, but commercially desirable, and their revolutionary ideas are setting a new standard in today’s business community.
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