The History of Kohlberg, Kravis, Roberts & Co and the Environmental Defense Fund
March 4th, 2010
Kohlberg, Kravis, Roberts & Co (KKR) was launched in the mid seventies and to begin with their specialization was in ‘bootstrap’ buyouts. But pushing further, aiming to make the businesses in their portfolio greener, they have set in motion an innovative green project that has completely transformed the method by which business concerns and environmental activists work. When Henry Kravis from KKR and the Environmental Defense Fund (EDF) joined forces a year ago green matters suddenly turned into a mainstream idea. Issues like toxic chemicals and unrestrained water consumption are an important part of their company mission statement. Eco-efficiency (the phrase was first endorsed by the World Business Council for Sustainable Development WBCSD) defines their mission’s framework, by applying environmentally friendly techniques like waste reduction, optimizing data centers for efficiency and reducing the dispersion of toxic chemicals. Although the project was an enormous success, people simply did not understand how important the consequences were until Ken Mehlman, the head of the project and global public affairs, studied the first year’s profits. Much to everyone’s surprise, Ken discovered that this program not only assisted in proctecting the environment, but also increased the profitability of all their business organizations too. Virtually all of the firms owned by Kohlberg, Kravis, Roberts & Co and Ken Mehlman now are engaged in the project. When you consider that the whole portfolio has a value of eighty-six billion USD, you may see what a huge feat this is.
The Green Portfolio project has evolved far beyond its initial remit and at present encompasses new ventures. The Climate Corps Program founded by the EDF is just one of these, it advances cost-efficient, ecologically friendly principles to MBA interns.
In recent months, Ken Mehlman has been in close collaboration with Kohlberg, Kravis, Roberts & Co to formulate metrics that firms can employ to measure and oversee resources. This type of information is crucial as businesses may easily assess their day to day processes and find out exactly how they can resolve any issues while at the same time seeing their progress. Henry Kravis, the KKC, and the Environmental Defense Fund have made going green simpler for businesses in every industry. Their developments have simplified the procedure for business organizations in any sector and proved that running a profitable business need not entail the hefty price of damaging the environment.
