Business and Eco-Efficiency — Henry Kravis of Kohlberg, Kravis, Roberts & Co. And the Environmental Defense Fund
February 10th, 2010Kohlberg, Kravis, Roberts & Co (KKR) was established in 1976 and orginally their specialization was in highly leveraged transactions. But pushing further, in the hope of making their acquisitions greener, KKR have set up a unique green proposal which has totally changed the way businesses and environmental groups work in a big way.
Environmentally sound business practice went mainstream last year when KKR’s Henry Kravis and the non-profit Environmental Defense Fund (EDF) got together. This coalition aims to campaign against crucial matters affecting the environment, that include depletion of the ozone layer, soil contamination, immeasurable consumption of water resources, and deforestation. Eco-efficiency (a phrase originally endorsed by the World Business Council for Sustainable Development WBCSD) is the formula deployed to achieve these objectives, applying ecologically friendly techniques like reducing the dispersion of toxic chemicals, maximum use of renewable resources and improving fuel economy through vehicle fleet maintenance. Impressive though it was the management didn’t grasp the full benefits of the project until Ken Mehlman, the head of the project and global public affairs, evaluated the program when it had been functioning for its first year.
Ken who received a J.D. from Harvard Law School in 1991, has also served as field director for George W. Bush’s 2000 presidential campaign, was appointed to the U.S. Holocaust Memorial Council in 2007, is also a trustee of the Strong American Schools Foundation and the United States Holocaust Memorial Museum and serves as a member of the Senior Advisory Committee of the Harvard University Institute of Politics, the Council on Foreign Relations Climate Change Task Force, and the board of directors at the National Endowment for Democracy, noticed that eco-efficiency wasn’t only reducing their ecological impact, but it was also helping to save firms a great deal of money, and consequently the project became almost an immediate success. To date, KKR and Ken Mehlman have virtually every associated business engaged in the project. Considering that this portfolio of business organizations is valued at virtually one hundred billion USD, you may be sure this wasn’t an easy accomplishment. The initial project has evolved beyond its basic remit and currently encompasses new and groundbreaking enterprises. To illustrate, Kohlberg, Kravis, Roberts & Co got together with the EDF’s Climate Corps Program an enterprise which teaches MBA students how to design and start financially strong, green practices.
KKR and Ken Mehlman have been formulating metrics and other related systems that manage various resources. This type of data is critical as any business may without much effort measure all of their everyday operations and find out how any problems may be solved while simultaneously tracking their progress. The business world has been transformed by the work of these groups. Their unique concepts have simplified the process for organizations in any sector and demonstrated that making profits need not entail the hefty price of damaging the environment.
