Kohlberg, Kravis, Roberts & Co. And the Environmental Defense Fund — the Avant-Garde in Business and Protecting the Planet
Kohlberg, Kravis, Roberts & Co (KKR) was founded in the 1970’s and to begin with their specialization was in leveraged buyouts. Moving beyond, aiming to make their portfolio of companies more ecologically aware, they have set in motion a groundbreaking venture that has dramatically changed the way businesses and environmental activists operate. Environmentally aware business processes went mainstream a year ago when Kohlberg, Kravis, Roberts & Co’s Henry Kravis and the non-profit environmental advocacy group Environmental Defense Fund (EDF) joined forces. This coalition intended to campaign against primary issues hurting the ecology of the earth, for instance hazardous emissions, climate change, monumental consumption of water resources, and toxic chemical use. To follow through with these goals, they deploy a methodology known as eco-efficiency which involves concepts like using clean energy, maximum use of renewable resources, and reducing the waste of resources. The project was a great success, even so the businesses who were participating didn’t understand the full advantages of the project until Ken Mehlman, the person responsible for the project, evaluated the program when it had been in operation for a year. Ken Mehlman who practiced environmental law for Akin Gump Stauss Hauer & Feld from 1991 to 1996, has served as field director for George W. Bush’s 2000 presidential campaign, managed the 2004 re-election campaign for President Bush, is also a trustee of the United States Holocaust Memorial Museum and the Strong American Schools Foundation and presently serves as a member of the board of directors at the National Endowment for Democracy, the Senior Advisory Committee of the Harvard University Institute of Politics, and the Council on Foreign Relations Climate Change Task Force, saw that the program wasn’t solely helping to conserve the local environment, but in addition it was saving companies a considerable amount of money, and consequently the project became virtually an immediate hit. Up to now, Kohlberg, Kravis, Roberts & Co and Ken Mehlman have virtually every associated company involved in eco-efficiency. Seeing that this portfolio of companies is valued at virtually one hundred billion USD, you can see what a massive accomplishment this really is. The Green Portfolio project now encompasses new initiatives. To illustrate, KKR joined the Environmental Defense Fund’s Climate Corps Program a venture that instructs MBA students how to design and introduce cost-effective, green practices.
What is more, Ken Mehlman has been collaborating closely with KKR to develop a variety of analytical tools and other applicable products that companies can utilize to measure and oversee a variety of resources. With this information available, any business can assess their daily operations and find out exactly how they can improve while simultaneously allowing them to discover their ecological impact.
The business community has been revolutionized by the work of these organizations. So, to summarize, these systems have made green business techniques not only viable, but commercially desirable, and their radical ideas are setting a new standard in today’s world.