Kohlberg, Kravis, Roberts & Co. , the Environmental Defense Fund and the Development of Green Business
Kohlberg, Kravis, Roberts & Co (KKR) was set up in the mid-seventies and back then the company’s focus was in highly leveraged transactions. However, they have launched a unique project which concentrates not simply on profitability, but likewise on the ecological impact of the companies they invest in.
When Henry Kravis from KKR and the Environmental Defense Fund (EDF) joined forces only a year ago green issues in the business world became a hot topic. They aims to help resolve critical matters hurting the ecology of the planet, that include soil contamination, greenhouse gas emissions, colossal consumption of water resources, and depletion of the ozone layer. Eco-efficiency (the term was originally submitted by the World Business Council for Sustainable Development WBCSD) delineates the framework for their mission, through applying policies like improving fuel economy through vehicle fleet maintenance, reducing the waste of resources and maximum use of renewable resources. Efficient though it was the KKR and EDF didn’t even realize the scope of the program’s advantages until Ken Mehlman, the head of the program and global public affairs, assessed the program when it had been operating for a year.
Much to everybody’s surprise, Ken saw that this program not only increased environmental awareness, but was also increasing the profitability of each company besides. Well-nigh all of the businesses owned by Kohlberg, Kravis, Roberts & Co and Ken Mehlman now are involved in eco-efficiency principles. When you consider that the group is worth $86,000,000,000, you can be sure this was no easy feat.
The Green Portfolio project has grown beyond its original purpose and now encompasses new and groundbreaking initiatives. For instance, KKR linked up with the EDF’s Climate Corps Program which teaches MBA interns how to introduce cost efficient, green practices. KKR and Ken Mehlman have been developing a package of metrics which manipulate resources. These products can assess an organization’s ecological impact and identify any problem areas. Today’s business world has been revolutionized by the ground-breaking efforts of Henry Kravis, the KKC, and the Environmental Defense Fund. Their developments have simplified the procedure for companies in every sector and demonstrated to the world that running a profitable business need not entail the hefty price of negatively impacting our planet.
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