January 30, 2010
The Rise of Environmentally Sound Business
When Henry Kravis and his business partner George Roberts launched Kohlberg, Kravis, Roberts & Co (KKR) in the 70’s with help from the First Chicago Corporation, their specialization was in highly leveraged transactions. But they have set up a groundbreaking enterprise which centers not simply on how profitable a corporate entity is, but in addition on the ecological impact of the companies they buy.
Environmentally friendly business practices went mainstream last year when Kohlberg, Kravis, Roberts & Co’s Henry Kravis and the non-profit environmental advocacy group Environmental Defense Fund (EDF) merged. Significant issues like climate change and immeasurable water consumption are a priority in their company mission.
Eco-efficiency (a phrase originally propagated by the World Business Council for Sustainable Development WBCSD) delineates their mission’s framework, through utilizing ecologically sound techniques such as fuel economy, waste reduction and increasing the durability of products. Simple and effective, but the management didn’t grasp the full project’s benefits until Ken Mehlman, the head of the Green Portfolio Project and global public affairs, evaluated the project when it had been up and running for its first 12 months.
Only at that point did Ken discover that eco-efficiency wasn’t only reducing their impact on the environment, but it was also helping to save business concerns a considerable amount of money, and so the project turned into almost an instant success. Virtually all of the firms affiliated to Kohlberg, Kravis, Roberts & Co and Ken Mehlman nowadays participate in the Green Portfolio Project. Considering that this group of businesses is worth $86,000,000,000, you can see what an enormous accomplishment this really was.
The initial project is expanding to include new and groundbreaking enterprises. To illustrate, Kohlberg, Kravis, Roberts & Co linked up with the EDF’s Climate Corps Program that instructs MBA interns how to promote cost efficient, earth friendly techniques. KKR and Ken Mehlman have made the effort to create a variety of metrics and analytic tools which measure and administer resources. These systems permit employees see how they are progressing and identify any underlying issues. Henry Kravis, the KKR, and the Environmental Defense Fund are genuine visionaries when it comes to advancing ecologically friendly business techniques. So, to summarize, the work of these organizations has 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.
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