Eco-Efficiency — How Businesses Can Help Protect Our Environment and Increase Profits
December 22nd, 2009
Kohlberg, Kravis, Roberts & Co (KKR) was set up by Henry Kravis and his partner George Roberts in the mid-seventies with the help of the First Chicago Corporation. But they have set up an unusual venture which centers not simply on maximized profit margins, but in addition on the ecological impact of the companies they acquire.
Kohlberg, Kravis, Roberts & Co’s Henry Kravis and the independent Environmental Defense Fund (EDF) joined forces last year, with the intention of making environmentally aware business practice an accepted concept. These companies wanted to oppose some primary matters damaging the ecology of the planet, for instance greenhouse gas emissions, climate change, colossal consumption of water resources, and hazardous chemicals. Eco-efficiency (a term originally pitched by the World Business Council for Sustainable Development) constitutes their mission’s framework, using techniques like waste reduction, increasing the durability of products and using clean energy. Effective though it was the companies who were involved didn’t even realize the range of the advantages of the program until Ken Mehlman, the head of the program and global public affairs, evaluated the project when it had been in operation for a year.
Only at that point did Ken observe that eco-efficiency wasn’t just helping to preserve the environment, but in addition it was helping to save business concerns a great deal of money. Up to now, KKR and Ken Mehlman have managed to get nearly all of their firms involved in the program. Still, when you consider that the group has a 2009 portfolio estimated at 86 billion dollars, you may be certain that this was not a simple see what a tremendous accomplishment this is. The Green Portfolio project has evolved far beyond its primary remit and now includes new and groundbreaking enterprises. For instance, KKR joined the EDF’s Climate Corps Program which instructs MBA interns how to introduce cost-effective, green principles. KKR and Ken Mehlman have taken the time to formulate metrics and analytical tools that quantify and manipulate various resources. These metrics can measure an organization’s progress and discover any areas that might need revision.
The business world has been completely changed by the efforts of these individuals. In conclusion, the work of these organizations has made green business techniques not only viable, but commercially desirable, and their revolutionary ideas are setting a new standard in today’s community.
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