Kohlberg, Kravis, Roberts & Co. And the Environmental Defense Fund — Groundbreakers in Business and Ecology
Initially, when Henry Kravis and George Roberts launched Kohlberg, Kravis, Roberts & Co (KKR) in 1976 with the support of the First Chicago Corporation, the firm’s focus was in highly leveraged transactions. But moving on, aiming to make their portfolio companies and acquisitions greener, they have established an innovative green proposal that has entirely changed the method by which businesses and environmental activists function.
Kohlberg, Kravis, Roberts & Co’s Henry Kravis and the non-profit environmental advocacy group Environmental Defense Fund (EDF) joined forces a year ago, hoping to make green business processes an acknowledged principle. Their mission is to encourage companies to fight against procedures which may endanger the environment e.g. soil contamination and disproportionate consumption of water resources.
In order to attain these goals, they apply eco-efficiency, this uses techniques such as improving fuel economy through vehicle fleet maintenance, optimizing data centers for efficiency, and reducing the waste of resources. Simple and effective, however the KKR and EDF did not even understand the entirety of the program’s benefits until the person responsible for the program, Ken Mehlman, reviewed the numbers from the program subsequent to a year in operation. Much to everybody’s surprise, Ken saw that eco-efficiency not only increased environmental responsibility, but was increasing the profitability of every company besides. Currently, Kohlberg, Kravis, Roberts & Co and Ken Mehlman have almost all of their companies involved in eco-efficiency. Considering that this group of companies is valued at 86 billion dollars, you may be sure that this was no easy feat.
The initial program has grown beyond its original purpose and nowadays encompasses new and groundbreaking initiatives. The Climate Corps Program established by the Environmental Defense Fund is just one of these, it heightens awareness of earth friendly techniques to MBA interns. KKR and Ken Mehlman have taken the time to develop a package of systems that oversee resources. These metrics can track a company’s ecological impact and discover any practices which may need improving.
The business community has been changed forever by the work of these organizations. In conclusion, the work of these organizations has made green business practice not only viable, but commercially desirable, and their radical ideas are setting a new standard in today’s business world.
