Henry Kravis of Kohlberg, Kravis, Roberts & Co. And the Rise of Environmentally Aware Business
Kohlberg, Kravis, Roberts & Co (KKR) was set up in the 1970’s and to begin with their focus was in leveraged buyouts. Recently they have put together an innovative green enterprise that concentrates not simply on ramping up their profit margins, but likewise on the ecological impact of the companies they acquire. Green business practices became a hot topic in 2008 when Kohlberg, Kravis, Roberts & Co’s Henry Kravis and the non-profit Environmental Defense Fund (EDF) joined forces. Their corporate mission is to offer encouragement to their affiliated firms to tackle environmental threats such as greenhouse gas emissions as well as exaggerated water consumption.
To accomplish this, they use eco-efficiency which involves down-to-earth techniques such as optimizing data centers for efficiency, maximum use of renewable resources, and reducing the dispersion of toxic chemicals. Simple and effective, but the management didn’t even understand the range of the benefits of the program until the head of the program and global public affairs, Ken Mehlman, evaluated the program when it had been up and running for its first full year. Much to everyone’s surprise, Ken discovered that eco-efficiency not only diminished environmental impact, but was increasing the profitability of each and every business besides. Up to now, KKR and Ken Mehlman have managed to get nearly every associated business involved in eco-efficiency. Considering that the portfolio is worth 86,000,000,000 dollars, you can see what an enormous feat this really is.
The two groups in association with Ken Mehlman have also developed the original program. To illustrate, KKR got together with the Environmental Defense Fund’s Climate Corps Program a venture which teaches students taking an MBA how to put together and introduce cost-effective, ecologically friendly practices.
KKR and Ken Mehlman have been creating a variety of metrics and analytic tools that manipulate various resources. Tools like these can assess an organization’s environmental impact and identify any areas which might need improving. Henry Kravis, the KKR, and the Environmental Defense Fund truly are trailblazers when it comes environmentally friendly business practices. Their radical concepts have set a high standard for organizations in any industry and shown the world that running a profitable business need not entail the hefty price of damaging the environment.
