Business and Ecology: Ken Mehlman of Kohlberg, Kravis, Roberts & Co. And the Environmental Defense Fund March 5, 2010
Originally, when Henry Kravis and George Roberts set up Kohlberg, Kravis, Roberts & Co (KKR) in the mid 70’s with some support from the First Chicago Corporation, their focus was in leveraged buyouts. However, hoping to make the businesses they purchase more environmentally aware, KKR have founded a unique venture which has totally changed the way business concerns and environmental activists carry on their day-to-day business.
KKR’s Henry Kravis and the New York based Environmental Defense Fund (EDF) got together a year ago, hoping to make environmentally friendly business practices a commonplace idea. Key issues like toxic chemicals and lavish water consumption are an all-important part of their company mission statement.
In order to achieve this, they deploy eco-efficiency which makes use of practical techniques such as improving fuel economy through vehicle fleet maintenance, recycling programs, and reducing the intensity of materials. Even though the project was an enormous success, managment simply didn’t realize how far-reaching the consequences really were until Ken Mehlman, the head of the Green Portfolio Project and global public affairs, carried out the review of the first twelve months. Much to everybody’s surprise, Ken realized that eco-efficiency not only served in preserving the environment, but also increased the profits from all their business organizations too. Up to now, Kohlberg, Kravis, Roberts & Co and Ken Mehlman have managed to get virtually all of their companies taking part in eco-efficiency. If you consider that this portfolio of companies has a value of 86,000,000,000 USD, you can imagine what a feat this really was. The initial Green Portfolio project now includes new ventures. For instance, KKR linked up with the EDF’s Climate Corps Program which instructs MBA interns how to introduce cost effective, green techniques. KKR and Ken Mehlman have been creating analytic tools which quantify and oversee various resources. This type of information is invaluable as companies can study each of their everyday procedures and find out exactly how any problems may be solved while simultaneously seeing their progress.
Henry Kravis, the KKC, and the Environmental Defense Fund have made going green simpler for companies all over the country. So, to summarize, these systems have made environmentally friendly business techniques not only viable, but commercially desirable, and their novel ideas are setting a new standard in today’s world.











