Originally, when Henry Kravis and George Roberts set up Kohlberg, Kravis, Roberts & Co (KKR) in 1976 with the help of the First Chicago Corporation, the firm’s specialization was in leveraged buyouts. But they have assembled a groundbreaking venture that focuses not only on how much money they can make, but in addition on the environmental impact of the companies they buy.
When Henry Kravis from KKR and the Environmental Defense Fund (EDF) got together just a year ago environmental issues went mainstream. Issues like depletion of the ozone layer and unbounded consumption of water resources are a priority in their corporate mission.
Eco-efficiency (a phrase first propagated by the World Business Council for Sustainable Development) dictates the framework for their mission, by utilizing ecologically friendly techniques like reducing the waste of resources, maximum use of renewable resources and fuel economy. Even though the project was an enormous success, people just did not understand how important the consequences were until Ken Mehlman, the head of the Green Portfolio Project and global public affairs, finished the first annual review. Exceeding everybody’s expectations, Ken found that this program not only lessened the overall impact on the environment, but also increased the the net profit from all their businesses as well. To date, Kohlberg, Kravis, Roberts & Co and Ken Mehlman have nearly every last business in their portfolio involved in eco-efficiency techniques. Considering that this group of businesses is valued at 86,000,000,000 dollars, you can see what a challenge this really is. The initial Green Portfolio project now encompasses new ventures. The Climate Corps Program administrated by the EDF is an example of this, it heightens awareness of planet friendly business techniques to MBA interns. What is more, Ken Mehlman has been working closely with KKR to create a package of analytic tools which companies can use to quantify resources. With this information available, any business may without a lot of effort assess their daily processes and identify exactly how any issues may be resolved while simultaneously seeing their progress. Henry Kravis, the KKC, and the Environmental Defense Fund have made reducing their ecological impact easier for companies all over the world. These innovations have made decreasing their ecological impact less complicated for companies in any sector and proved that running a profitable business need not entail the hefty price of negatively impacting our planet.
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