The Finney School of Real Life

Kohlberg, Kravis, Roberts & Co (KKR) was launched in the mid seventies and in those days their specialty was in ‘bootstrap’ buyouts. However, they have launched a novel proposal which centers not only on optimizing ROI, but in addition on the environmental impact of the companies they buy. Green business practice became more widely acceptable last year when KKR’s Henry Kravis and the non-profit Environmental Defense Fund (EDF) joined forces. Issues like toxic emissions and colossal water consumption rank high on their agenda. Eco-efficiency (the term was initially pitched by the World Business Council for Sustainable Development WBCSD) fashions the framework for their mission, utilizing policies like increasing the durability of products, reducing the intensity of materials and using clean energy. The program was successful, but the management didn’t realize the range of the project’s benefits until Ken Mehlman, the head of the program and global public affairs, studied the project when it had been in operation for its first twelve months.

Much to everyone’s surprise, Ken learned that this program not only helped in proctecting the environment, but also increased the profitability of all their business organizations besides. Virtually all of the firms affiliated to KKR and Ken Mehlman nowadays are participating in eco-efficiency principles. If you think about the fact that this group of business concerns has a net worth of nearly $100 billion USD, you may be certain that this was no easy achievement. The original project now includes new ventures. The Climate Corps Program established by the Environmental Defense Fund is one of these, it promotes cost-effective, environmentally friendly practices to MBA interns. KKR and Ken Mehlman have been formulating systems that quantify and oversee various resources. This type of information is critical as companies may easily examine their day to day procedures and find out how they can resolve any issues while simultaneously seeing their progress.

The business community has been altered permanently by the efforts of Henry Kravis, the KKC, and the Environmental Defense Fund. In summary, the work of these organizations has made green business techniques not only viable, but commercially desirable, and their novel ideas are setting a new standard in the business world of today.