A Clever Spell

Kohlberg, Kravis, Roberts & Co (KKR) was established by Henry Kravis and his business partner George Roberts in the mid 70’s with support from the First Chicago Corporation. Lately, however, in the hope of making their acquisitions more ecologically aware and more profitable as well, KKR have rolled out an unusual enterprise which has fundamentally changed the method by which business concerns and environmental groups carry on their everyday business. Green business procedures went mainstream last year when Kohlberg, Kravis, Roberts & Co’s Henry Kravis and the non-profit Environmental Defense Fund (EDF) merged. Issues like global warming and steep consumption of water resources are a priority in their corporate mission statement. To follow through with this, they employ a procedure labeled eco-efficiency which uses concepts like optimizing data centers for efficiency, recycling programs, and using clean energy. Although the project was a tremendous success, managment simply didn’t recognize how fantastic the results were until Ken Mehlman, the head of the program and global public affairs, finished the first annual review. Only then did Ken Mehlman realize that utilizing eco-efficiency wasn’t simply helping to conserve the environment, but it was also saving firms a large sum of money, making the program virtually an immediate success. Just about all of the firms affiliated to Kohlberg, Kravis, Roberts & Co and Ken Mehlman at present utilize eco-efficiency. If you consider that this group of companies is valued at almost $100,000,000,000 dollars, you can be sure this was no easy feat.

Kohlberg, Kravis, Roberts & Co with the Environmental Defense Fund alongside Ken Mehlman are developing the original Green Portfolio project. The Climate Corps Program administrated by the Environmental Defense Fund is just one of these, it promotes financially sound, environmentally friendly principles to MBA interns. In recent months, Ken Mehlman has been in close collaboration with KKR to formulate metrics and analytical tools that firms can employ to evaluate and manage resources. Programs like these let staff to track their progress and discover any underlying issues. The business community has been changed by the efforts of Henry Kravis, the KKC, and the Environmental Defense Fund. In summary, these systems have made environmentally friendly business practice not only viable, but commercially desirable, and their radical ideas are setting a new standard in the business world of today.