Canonical Hour

Kohlberg, Kravis, Roberts & Co (KKR) was set up by Henry Kravis and his business partner George Roberts in 1976 with the support of the First Chicago Corporation. Recently they have launched an extraordinary enterprise which concentrates not just on ROI, but also on the ecological impact of the companies they invest in.

Kohlberg, Kravis, Roberts & Co’s Henry Kravis and the the Environmental Defense Fund (EDF) merged a year ago, with the intention of making environmentally sound business practice an accepted concept. Their mission is to encourage companies to help resolve environmental menaces e.g. hazardous emissions and unreasonable water consumption. Eco-efficiency (a phrase initially introduced by the World Business Council for Sustainable Development WBCSD) constitutes their mission’s framework, applying techniques such as fuel economy, recycling programs and increasing the durability of products. The project was a success, yet the management did not see the entirety of the project’s advantages until Ken Mehlman, the executive in charge of the Green Portfolio Project, evaluated the program when it had been functioning for its first year.

Topping all expectations, Ken learned that this program not only enhanced environmental awareness, but also increased the the net profit from all their business concerns besides. Currently, KKR and Ken Mehlman have virtually all of their firms involved in eco-efficiency. If you look at the fact that this portfolio of businesses has a value of virtually one hundred billion USD, you may be certain that this was no easy accomplishment.

The initial program has evolved beyond its initial remit and at present encompasses new ventures. For example, Kohlberg, Kravis, Roberts & Co got together with the EDF’s Climate Corps Program which teaches interns studying for an MBA how to develop and initiate financially sound, green practices. KKR and Ken Mehlman have made the effort to formulate a package of metrics that measure and manage resources. These systems let management see how green they are and discover any practices that might need improving.

Henry Kravis, the KKC, and the Environmental Defense Fund have encouraged all sorts of businesses to reduce their ecological impact. These developments have simplified the procedure for firms in any sector and established that running a profitable business need not entail the hefty price of negatively impacting our planet.