Eco-Efficiency — How Businesses Can Protect the Planet and Still Increase Profits
Kohlberg, Kravis, Roberts & Co (KKR) was set up in the mid 70’s and back then the company’s specialization was in ‘bootstrap’ buyouts. But going on, in the hope of making their acquisitions greener and more profitable in the same stride, KKR have set up a groundbreaking proposal that has transformed the method by which business concerns and environmental activists work. When Henry Kravis from KKR and the non-profit Environmental Defense Fund (EDF) joined forces last year environmental issues all of a sudden became a mainstream topic. These companies intended to fight challenging environmental matters, including toxic chemicals, deforestation, exorbitant consumption of water resources, and water pollution. Eco-efficiency (the phrase was initially coined by the World Business Council for Sustainable Development) is the technique deployed to achieve these objectives, utilizing environmentally sustainable policies like optimizing data centers for efficiency, reducing the dispersion of toxic chemicals and using clean energy. Although the program was a colossal success, managment simply didn’t realize how incredible the consequences really were until Ken Mehlman, the person responsible for the project, examined the numbers for the first 12 months.
Much to everyone’s surprise, Ken learned that this program not only cut down on ecological impact, but was increasing the the profit from all their business concerns besides. Just about all of the businesses linked with Kohlberg, Kravis, Roberts & Co and Ken Mehlman today are participating in eco-efficiency techniques. And, with a current business portfolio estimated at 86,000,000,000 dollars, you can be certain this wasn’t an easy feat. The initial Green Portfolio project is expanding to include new and innovative enterprises. The Climate Corps Program administrated by the Environmental Defense Fund is one of these enterprises, it raises awareness of environmentally friendly business techniques to interns taking an MBA.
More recently, Ken Mehlman has cooperated closely with KKR to produce a variety of analytical tools that business concerns can use to quantify and manage resources. These tools let management to evaluate their progress and identify any underlying issues.
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Henry Kravis, the KKC, and the Environmental Defense Fund have made going green simpler for business organizations all over the country. Their fresh ideas have set a high standard for businesses in any industry and proved to the world that running a profitable business need not entail the hefty price of damaging the environment.
