Eco-Efficiency — Saving Money and the Planet
When Henry Kravis and his business partner George Roberts launched Kohlberg, Kravis, Roberts & Co (KKR) in the 70’s with assistance from the First Chicago Corporation, their main business was in highly leveraged transactions. However, aiming to make their portfolio companies and acquisitions more environmentally friendly, KKR have set up a remarkable project that has fundamentally changed the way business concerns and environmental activists operate.
Green business practice became major topic in 2008 when Kohlberg, Kravis, Roberts & Co’s Henry Kravis and the independent Environmental Defense Fund (EDF) joined forces. Issues like water pollution and intemperate water consumption feature high on their list of priorities.
Eco-efficiency (a phrase initially coined by the World Business Council for Sustainable Development) embodies the framework for their mission, utilizing environmentally sound techniques such as waste reduction, optimizing data centers for efficiency and improving fuel economy through vehicle fleet maintenance. Successful though it was the businesses who were taking part didn’t see the entirety of the project’s benefits until the head of the project and global public affairs, Ken Mehlman, reviewed the numbers from the program subsequent to a year in operation.
Much to everyone’s surprise, Ken saw that this program not only lessened the impact on the planet, but was increasing the profitability of each company too. Virtually all of the commercial organizations owned by KKR and Ken Mehlman nowadays participate in the Green Portfolio Project. Considering that the group has a net worth of $86 billion, you can imagine what a feat this actually is. Kohlberg, Kravis, Roberts & Co with the Environmental Defense Fund in association with Ken Mehlman have also extended the initial Green Portfolio project. To illustrate, Kohlberg, Kravis, Roberts & Co got together with the EDF’s Climate Corps Program that instructs MBA students how to introduce financially strong, ecologically friendly practices.
What is more, Ken Mehlman has cooperated closely with KKR to develop a variety of products which companies can employ to quantify and manage resources. Programs like these allow staff to assess their progress and discover any problem areas.
The business community has been transformed permanently by the efforts of these groups. In summary, these systems have made green business practice not only viable, but commercially desirable, and their novel ideas are setting a new standard in the competitive business world of today.
