Going Green – with Kohlberg, Kravis, Roberts & Co. Setting an Example
When Henry Kravis and his partner George Roberts established Kohlberg, Kravis, Roberts & Co (KKR) in the 70’s with help from the First Chicago Corporation, the company’s focus was in bootstrap buyouts. Recently they have put together a unique green proposal that focuses not only on ROI, but also on how ecologically aware each of their companies are. Environmentally aware business practice went mainstream in 2008 when Kohlberg, Kravis, Roberts & Co’s Henry Kravis and the the Environmental Defense Fund (EDF) merged. They wanted to help resolve a few serious green matters, which include air pollution, climate change, disproportionate water consumption, and deforestation.
To implement this, they deploy a procedure dubbed eco-efficiency, this uses techniques such as maximum use of renewable resources, improving fuel economy through vehicle fleet maintenance, and waste reduction. Irrespective of the fact that the program was a huge success, no-one understood how significant the effects were until Ken Mehlman, the person in charge of the program, carried out the first annual review.
Beating everyone’s expectations, Ken saw that this program not only cut down on the overall impact on the planet, but was also increasing the profitability of every business organization too. These days, Kohlberg, Kravis, Roberts & Co and Ken Mehlman have managed to get almost all of their firms involved in the program. Considering that this portfolio of companies is worth virtually one hundred billion dollars, you may be sure this was no easy accomplishment.
The Green Portfolio project has now broadened to include new ventures. To illustrate, KKR got together with the Environmental Defense Fund’s Climate Corps Program an enterprise that teaches MBA interns how to introduce cost efficient, earth friendly practices.
KKR and Ken Mehlman have made the effort to develop metrics that can quantify and oversee resources. Systems such as these let any company to assess their progress and discover any underlying issues. Henry Kravis, the KKR, and the Environmental Defense Fund are true trailblazers in the business community. These radical concepts have made going green less problematic for organizations in every sector and illustrated that running a profitable business need not entail the hefty price of negatively impacting our planet.
