Eco-Efficiency — How Businesses Can Go Green and Still Increase Profits
When Henry Kravis and George Roberts launched Kohlberg, Kravis, Roberts & Co (KKR) in the mid-seventies with help from the First Chicago Corporation, the company’s main business was in leveraged buyouts. But recently they have set up a unique green enterprise that focuses not only on ramping up ROI, but likewise on how environmentally aware each of the corporate entities in their portfolio currently are.
Green business processes became more widely acceptable in 2008 when KKR’s Henry Kravis and the the Environmental Defense Fund (EDF) got together. These companies was forged to campaign against a few challenging environmental issues, for instance hazardous waste, toxic chemical use, intemperate consumption of water resources, and hazardous chemical use. Eco-efficiency (a phrase first introduced by the World Business Council for Sustainable Development) dictates the framework for their mission, using techniques like reducing the dispersion of toxic chemicals, waste reduction and recycling programs. Although the program was a huge success, no-one recognized how significant the consequences actually were until Ken Mehlman, the head of the Green Portfolio Project and global public affairs, looked over the first year’s profits. Topping everybody’s expectations, Ken learned that this program not only helped in preserving the environment, but also increased the the net profit from all their businesses besides. Well-nigh all of the companies owned by KKR and Ken Mehlman today apply eco-efficiency. Seeing that the whole portfolio is valued at eighty six billion USD, you can see what an achievement this actually is. The initial project has evolved far beyond its original purpose and nowadays includes new enterprises. The Climate Corps Program established by the EDF is an example of this, it campaigns for eco-efficient business techniques to interns studying for an MBA. KKR and Ken Mehlman have taken the time to formulate a variety of metrics and analytic tools which have the ability to quantify and oversee resources. Programs such as these let staff see how green they are and identify any areas which might need to improve.
Henry Kravis, the KKR, and the Environmental Defense Fund are visionaries when it comes environmentally friendly business techniques. So, in conclusion, the work of these organizations has made environmentally friendly business techniques not only viable, but commercially desirable, and their radical ideas are setting a new standard in today’s world.
