Knoware House

Kohlberg, Kravis, Roberts & Co (KKR) was founded in the mid-seventies and initially the company’s focus was in highly leveraged transactions. However, hoping to make their portfolio companies and acquisitions have less ecological impact, they have set in motion a groundbreaking green project which has entirely changed the method by which business concerns and environmental activists work.

When Henry Kravis from KKR and the Environmental Defense Fund (EDF) merged last year environmental matters all of a sudden turned into a mainstream idea. Pivotal matters like depletion of the ozone layer and flagrant water consumption feature high on their agenda. Eco-efficiency (a term initially endorsed by the World Business Council for Sustainable Development) informs their mission’s framework, through applying techniques such as improving fuel economy through vehicle fleet maintenance, reducing the intensity of materials and using clean energy. Simple and effective, but the companies who were participating did not understand the totality of the program’s advantages until Ken Mehlman, the head of the program and global public affairs, evaluated the numbers from the project when it had been functioning for its first year.

Only then did Ken discover that practicing eco-efficiency was not just protecting the local environment, but it was also helping to save businesses a great deal of money, making the program virtually an instant success. At the time of writing, KKR and Ken Mehlman have managed to get virtually each and every company in their portfolio actively involved in eco-efficiency principles. Yet, when you consider that the group has a 2009 business portfolio estimated at 86,000,000,000 dollars, you can be certain this was no easy feat.

The Green Portfolio project now encompasses new ventures. The Climate Corps Program established by the Environmental Defense Fund is a good example of this, it campaigns for eco-efficient techniques to MBA interns.

KKR and Ken Mehlman have taken the time to develop a series of analytic tools which quantify and administer resources. With this information available, businesses may easily evaluate their day-to-day activities and discover where they can improve while at the same time allowing them to view their environmental impact.

Henry Kravis, the KKR, and the Environmental Defense Fund are genuine trailblazers when it comes to raising awareness of environmentally friendly business techniques. In conclusion, the work of these organizations has made environmentally friendly business techniques not only viable, but commercially desirable, and their novel ideas are setting a new standard in today’s business world.