Kohlberg, Kravis, Roberts & Co (KKR) was founded in the 1970’s and initially the firm’s focus was in highly leveraged transactions. Recently they have set up an unusual project that concentrates not merely on optimized profit margins, but likewise on the environmental impact of the companies they acquire. When Henry Kravis from KKR and the Environmental Defense Fund (EDF) joined forces last year environmental issues went mainstream. The coalition intends to fight a number of key environmental issues, including resource depletion, deforestation, undue water consumption, and toxic chemical use. In order to implement these goals, they utilize a methodology termed eco-efficiency which involves concepts such as waste reduction, increasing the durability of products, and recycling programs. The Green Portfolio Project was successful, but the management didn’t grasp the full project’s advantages until Ken Mehlman, the person responsible for the program, assessed the program following a full year in operation.
Only at that point did Ken Mehlman find out that using eco-efficiency was not just helping to save the environment, but in addition it was saving firms a great deal of money, and therefore the program turned into virtually an immediate success. Just about all of the firms affiliated to KKR and Ken Mehlman today actively participate in the Green Portfolio Project. Seeing that the portfolio has a value of virtually 100 billion USD, you can imagine what an enormous accomplishment this really was. The Green Portfolio project has grown beyond its primary purpose and now encompasses new ventures. The Climate Corps Program established by the EDF is a good illustration of this, it heightens awareness of earth friendly techniques to interns taking a Master’s in Business Administration. Moreover, Ken Mehlman has been in close collaboration with KKR to develop systems which firms can utilize to quantify assorted resources. This type of info is crucial as any business can study each of their day-to-day activities and identify where any problems can be solved while at the same time letting staff to determine their ecological impact.
Henry Kravis, the KKR, and the Environmental Defense Fund are true visionaries when it comes to raising awareness of ecologically friendly business techniques. These developments have simplified the procedure for business organizations in every industry and proved that making profits need not entail the hefty price of damaging the environment.