Eco-Efficiency: How Every Business Can Go Green and Still Increase Profits
22 December 2009When Henry Kravis and George Roberts founded Kohlberg, Kravis, Roberts & Co (KKR) in the 1970’s with some support from the First Chicago Corporation, the company’s specialty was in bootstrap buyouts. However, they have launched a unique enterprise that concentrates not simply on how lucrative a company is, but in addition on how ecologically aware each of the businesses in their portfolio currently are.
When Henry Kravis from KKR and the Environmental Defense Fund (EDF) joined forces last year environmental issues went mainstream. Their objectives include encouraging their associated firms in fighting against environmental threats e.g. air pollution not to forget irresponsible consumption of water resources.
Eco-efficiency (a phrase originally promoted by the World Business Council for Sustainable Development WBCSD) dictates the framework for their mission, by using ecologically aware techniques like fuel economy, improving fuel economy through vehicle fleet maintenance and increasing the durability of products. Simple and effective, but the management didn’t even realize the scope of the project’s benefits until the executive in charge of the program, Ken Mehlman, reviewed the project when it had been functioning for its first 12 months.
Ken found that practicing eco-efficiency wasn’t solely lessening ecological impact, but in addition it was saving business concerns a large sum of money, making the program virtually an immediate hit. Virtually all of the business organizations held by KKR and Ken Mehlman today are involved in the program. If you think about the fact that this portfolio of companies is valued at $86 billion, you may see what a huge achievement this really is. The original project is expanding to encompass new ventures. For example, Kohlberg, Kravis, Roberts & Co linked up with the Environmental Defense Fund’s Climate Corps Program an enterprise which teaches interns studying for a Master’s in Business Administration how to encourage cost effective, green principles. What is more, Ken Mehlman has cooperated closely with Kohlberg, Kravis, Roberts & Co to produce metrics that businesses can use to quantify and oversee resources. With this information available, any business can examine their day-to-day procedures and identify how any problems can be solved while at the same time permitting staff to find out their impact on the planet. Henry Kravis, the KKC, and the Environmental Defense Fund have made reducing their ecological impact easier for businesses large and small. In summary, these systems have made green business techniques not only viable, but commercially desirable, and their radical ideas are setting a new standard in today’s business community.
top