December 1, 2009
The Growth of Green Business
When Henry Kravis and George Roberts set up Kohlberg, Kravis, Roberts & Co (KKR) in 1976 with assistance from the First Chicago Corporation, the firm’s main business was in “bootstrap” buyouts. Recently, however, aiming to make their acquisitions have less of a negative ecological impact, KKR have set in motion an innovative venture that has fundamentally changed the way businesses and environmental groups carry on their day-to-day business. When Henry Kravis from KKR and the non-profit environmental advocacy group Environmental Defense Fund (EDF) got together in 2008 environmental matters suddenly became a mainstream concern. Their mission is to offer encouragement to companies in avoiding operations which may threaten the environment e.g. toxic waste and any steep consumption of water resources.
To implement these goals, they employ a routine labeled eco-efficiency which involves concepts like using clean energy, reducing the waste of resources, and recycling programs. Although the program was a huge success, staff simply didn’t realize how incredible the results were until Ken Mehlman, the head of the program and global public affairs, looked over the first year’s profits. Ken Mehlman who practiced environmental law for Akin Gump Stauss Hauer & Feld, has also served as Chief of Staff for Texas 12th Congressional District Representative Kay Granger, was the appointed Chairman of the Republican National Committee from 2005 to 2007 and serves as a member of the Senior Advisory Committee of the Harvard University Institute of Politics, the executive leadership cabinet of the Martin Luther King, Jr. National Memorial Foundation, and the Council on Foreign Relations Climate Change Task Force, noticed that utilizing eco-efficiency was not solely helping to maintain the local environment, but additionally it was saving business concerns a remarkable sum of money, making the program almost an instant success. Almost all of the businesses connected with KKR and Ken Mehlman nowadays are taking part in the program. If you consider that this portfolio of companies is valued at almost 100 billion USD, you can see what a challenge this really was.
Kohlberg, Kravis, Roberts & Co with the Environmental Defense Fund along with Ken Mehlman have also expanded on the original project. For example, Kohlberg, Kravis, Roberts & Co got together with the EDF’s Climate Corps Program that instructs students studying for a Master’s degree in Business Administration how to encourage financially shrewd, environmentally friendly practices.
KKR and Ken Mehlman have taken the time to develop metrics and analytical tools which oversee resources. These tools can assess a company’s environmental impact and identify any underlying problems. Today’s business world has been changed forever by the ground breaking efforts of Henry Kravis, the KKC, and the Environmental Defense Fund. So, to summarize, 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 today’s business community.
