December
2009
Eco-Efficiency — Saving Money and Our Ecology
Kohlberg, Kravis, Roberts & Co (KKR) was established by Henry Kravis and his partner George Roberts in 1976 with some assistance from the First Chicago Corporation. But just a year ago they have established a remarkable green project that concentrates not simply on maximum profit margins, but in addition on how ecologically friendly each of the companies in their portfolio are.
When Henry Kravis from KKR and the Environmental Defense Fund (EDF) merged last year environmental matters suddenly became a mainstream topic. Their goals include encouraging businesses in avoiding environmental menaces like air pollution not to forget any monumental water consumption.
To accomplish these goals, they employ a method termed eco-efficiency which makes use of concepts like increasing the durability of products, waste reduction, and optimizing data centers for efficiency. Impressive though it was the businesses involved did not even realize the totality of the project’s benefits until the head of the Green Portfolio Project and global public affairs, Ken Mehlman, reviewed the numbers from the project when it had been functioning for its first year.
Ken Mehlman learned that eco-efficiency wasn’t solely protecting the environment, but additionally it was saving companies a great deal of money, making the program almost an instant success. To date, KKR and Ken Mehlman have nearly all of their firms involved in eco-efficiency principles. And, with a current business portfolio estimated at $86 billion, you may be sure this was not a simple see what a massive accomplishment this is.
The original Green Portfolio project has developed far beyond its initial remit and currently includes new initiatives. For example, Kohlberg, Kravis, Roberts & Co got together with the EDF’s Climate Corps Program that instructs MBA interns how to put together and start cost-effective, earth friendly principles. KKR and Ken Mehlman have been creating metrics and analytic tools that administer resources. This type of information is invaluable as companies can assess their daily activities and discover how they can solve any problems while at the same time permitting staff to see their impact on the environment. The business community has been transformed forever by the environmentally centered efforts of these people. Their radical ideas have simplified the process for firms in every industry and illustrated that making profits need not entail the hefty price of damaging the environment.
