The Powertool Shed

When Henry Kravis and George Roberts set up Kohlberg, Kravis, Roberts & Co (KKR) in the mid-seventies with some assistance from the First Chicago Corporation, the company’s specialty was in highly leveraged transactions. But recently they have put together a groundbreaking project which centers not merely on how lucrative an enterprise is, but additionally on the environmental impact of the companies they control.

Green business practices became more widely accepted a year ago when KKR’s Henry Kravis and the New York based Environmental Defense Fund (EDF) joined forces. Issues like toxic chemical use and enormous consumption of water resources are an all-important part of their company mission. Eco-efficiency (the phrase was initially submitted by the World Business Council for Sustainable Development WBCSD) delineates their mission’s framework, by applying techniques like improving fuel economy through vehicle fleet maintenance, reducing the waste of resources and waste reduction. Simple and effective, even so the management did not grasp the full program’s benefits until Ken Mehlman, the head of the project and global public affairs, assessed the project when it had been functioning for a year. Only at that point did Ken Mehlman observe that eco-efficiency was not only lessening environmental impact, but it was also saving businesses a great deal of money, and so the Green Portfolio project became almost an instant hit. Up to now, KKR and Ken Mehlman have nearly every last company in their portfolio actively taking part in eco-efficiency techniques. And, with a current portfolio worth 86,000,000,000 dollars, you may be sure this was no easy see what a massive achievement this is.

KKR with the EDF with the assistance of Ken Mehlman are further extending the original project. To illustrate, Kohlberg, Kravis, Roberts & Co joined the Environmental Defense Fund’s Climate Corps Program an enterprise that teaches MBA students how to promote cost-effective, earth friendly practices. In addition, Ken Mehlman has been in close collaboration with KKR to formulate a package of metrics and analytical tools which firms can employ to quantify and oversee resources. These systems allow staff see how they are impacting on the environment and identify any problem areas.

Today’s business community has been transformed forever by the efforts of these organizations. In summary, the work of these organizations has made green business practice not only viable, but commercially desirable, and their novel ideas are setting a new standard in the high-pressure business world of today.