Ecologically Aware Business – Ken Mehlman of Kohlberg, Kravis, Roberts & Co. And the Environmental Defense Fund
Kohlberg, Kravis, Roberts & Co (KKR) was set up by Henry Kravis and George Roberts in the mid-seventies with support from the First Chicago Corporation. Recently they have assembled an unusual proposal that focuses not only on maximizing ROI, but likewise on how environmentally aware each of the firms in their portfolio are.
Green business practices became major discussion topic a year ago when KKR’s Henry Kravis and the independent Environmental Defense Fund (EDF) joined forces. Issues like depletion of the ozone layer and extreme consumption of water resources are high on their list of objectives. To follow through with these goals, they employ eco-efficiency, this calls for techniques like increasing the durability of products, reducing the intensity of materials, and recycling programs. The project was a great success, nevertheless the management didn’t even understand the range of the program’s benefits until Ken Mehlman, the head of the program and global public affairs, assessed the project after a full year in operation.
Only then did Ken Mehlman observe that applying eco-efficiency wasn’t only cutting environmental impact, but it was also saving companies a great deal of money. Virtually all of the companies connected with Kohlberg, Kravis, Roberts & Co and Ken Mehlman now participate in the Green Portfolio Project. Nevertheless, with a current business portfolio worth 86,000,000,000 USD, you can be sure this was not an easy feat. KKR with the EDF in association with Ken Mehlman are extending the Green Portfolio project. The Climate Corps Program founded by the Environmental Defense Fund is an example of this, it raises awareness of eco-efficient business techniques to interns taking an MBA. Moreover, Ken Mehlman has been working closely with KKR to develop metrics which firms can utilize to measure and manipulate resources. This type of data is invaluable as any business can measure each of their everyday activities and find out how any issues may be resolved while at the same time letting them to determine how ecologically friendly they are becoming.
Henry Kravis, the KKR, and the Environmental Defense Fund truly are pioneers in the world of green business. In summary, these systems have made green business practice not only viable, but commercially desirable, and their novel ideas are setting a new standard in the competitive business world of today.
