When Henry Kravis and George Roberts launched Kohlberg, Kravis, Roberts & Co (KKR) in the mid 70’s with some support from the First Chicago Corporation, their main business was in highly leveraged transactions. But just a year ago they have set up a groundbreaking project which centers not simply on profitability, but additionally 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) joined forces in 2008 environmental issues in the business world became a hot topic. Critical matters like toxic chemicals and steep water consumption are high on their list of goals.
Eco-efficiency (a phrase first coined by the WBCSD) fashions their mission’s framework, applying policies such as optimizing data centers for efficiency, maximum use of renewable resources and reducing the dispersion of toxic chemicals. Although the project was a tremendous success, staff simply did not recognize how fantastic the consequences really were until Ken Mehlman, the head of the program and global public affairs, finished the first annual review. Ken who graduated from Franklin and Marshall College in 1988, has also served as Chief of Staff for Texas 12th Congressional District Representative Kay Granger, managed the 2004 re-election campaign for President Bush, is, furthermore, a trustee of the Strong American Schools Foundation and Franklin & Marshall College and currently serves as a member of the executive leadership cabinet of the Martin Luther King, Jr. National Memorial Foundation, and the board of directors at the National Endowment for Democracy, saw that the Green Portfolio Project wasn’t merely cutting impact on the environment, but it was also helping to save firms a substantial amount of money. To date, Kohlberg, Kravis, Roberts & Co and Ken Mehlman have virtually every associated business involved in eco-efficiency principles. Seeing that the whole portfolio has a value of almost 100 billion USD, you can see what an enormous feat this is. Kohlberg, Kravis, Roberts & Co in association with Ken Mehlman have also expanded the original program. For instance, Kohlberg, Kravis, Roberts & Co linked up with the EDF’s Climate Corps Program which teaches students studying for a Master’s degree in Business Administration how to encourage cost-efficient, environmentally friendly practices.
KKR and Ken Mehlman have taken the time to create products which measure and manipulate resources. Products such as these permit management see how they are impacting on the environment and discover any underlying problems.
Henry Kravis, the KKC, and the Environmental Defense Fund have made going green more attractive for companies all over the world. In conclusion, these systems have made green business techniques not only viable, but commercially desirable, and their novel ideas are setting a new standard in the business world of today.