Protecting the Planet – with Kohlberg, Kravis, Roberts & Co. Setting the Standard
Kohlberg, Kravis, Roberts & Co (KKR) was launched in the mid seventies and initially the company’s focus was in leveraged buyouts. Recently they have established an innovative green proposal which focuses not solely on how profitable a corporate entity is, but additionally on the environmental impact of the companies they purchase. KKR’s Henry Kravis and the non-profit Environmental Defense Fund (EDF) joined forces a year ago, with the goal of making environmentally sound business practice an accepted principle. The coalition aims to help resolve serious environmental issues, for example toxic waste, hazardous chemicals, undue water consumption, and greenhouse gas emissions.
Eco-efficiency (the term was initially popularized by the WBCSD) is the formula applied to achieve these objectives, employing techniques like optimizing data centers for efficiency, using clean energy and fuel economy. Although the program was an enormous success, no-one realized how incredible the effects truly were until Ken Mehlman, the head of the project and global public affairs, studied the numbers for the first 12 months. Ken who practiced environmental law for Akin Gump Stauss Hauer & Feld from 1991 to 1996, has served as legislative director to Texas 21st Congressional District Representative Lamar S. Smith, was the appointed Chairman of the Republican National Committee from 2005 to 2007, is, furthermore, a trustee of the United States Holocaust Memorial Museum and Franklin & Marshall College and currently serves as a member of the executive leadership cabinet of the Martin Luther King, Jr. National Memorial Foundation, the board of directors at the National Endowment for Democracy, and the Senior Advisory Committee of the Harvard University Institute of Politics, discovered that eco-efficiency was not merely reducing their impact on the environment, but it was also helping to save firms a great deal of money. Just about all of the commercial concerns affiliated to KKR and Ken Mehlman now use eco-efficiency. If you consider that the group is valued at virtually one hundred billion dollars, you can imagine what an accomplishment this really was. The original Green Portfolio project has developed beyond its primary remit and nowadays encompasses new initiatives. To illustrate, Kohlberg, Kravis, Roberts & Co linked up with the Environmental Defense Fund’s Climate Corps Program that teaches interns studying for an MBA how to put together and initiate financially shrewd, ecologically friendly techniques.
Furthermore, Ken Mehlman has been in close collaboration with Kohlberg, Kravis, Roberts & Co to develop analytical tools and other related systems which businesses can use to measure and manage a number of resources. Tools such as these allow staff see how green they are and identify any problem areas.
Henry Kravis, the KKC, and the Environmental Defense Fund have encouraged all sorts of businesses to go green. These revolutionary developments have set a benchmark for firms in any industry and proved that running a profitable business need not entail the hefty price of damaging the environment.
