When Henry Kravis and his business partner George Roberts founded Kohlberg, Kravis, Roberts & Co (KKR) in the 1970’s with the assistance of the First Chicago Corporation, the company’s specialization was in “bootstrap” buyouts. But they have put together an unusual venture that concentrates not alone on profitability, but additionally on the environmental impact of the companies they invest in.
Kohlberg, Kravis, Roberts & Co’s Henry Kravis and the non-profit Environmental Defense Fund (EDF) merged last year, intending to make environmentally friendly business practices a commonplace principle. These companies aims to fight a few important issues affecting the environment, such as hazardous chemicals, toxic chemical use, extreme water consumption, and water pollution.
Eco-efficiency (a term initially advocated by the World Business Council for Sustainable Development) denotes the framework for their mission, applying policies such as maximum use of renewable resources, increasing the durability of products and recycling programs. Although the project was a huge success, no-one understood how far-reaching the consequences actually were until Ken Mehlman, the man responsible for the Green Portfolio Project, finished the first annual review. Knocking off everyone’s expectations, Ken learned that this program not only served in preserving the local environment, but was increasing the profits from each and every business organization besides. Virtually all of the business organizations associated with KKR and Ken Mehlman today actively participate in the Green Portfolio Project. Still, with a 2009 portfolio with an estimated worth of eighty six billion dollars, you can be certain that this was no easy see what a tremendous achievement this is.
The initial program has evolved beyond its basic remit and at present encompasses new enterprises. The Climate Corps Program set up by the EDF is a good example of this, it raises awareness of eco-efficient principles to students taking an MBA. KKR and Ken Mehlman have been formulating a variety of analytical tools that manage resources. With this information available, companies may easily evaluate each of their everyday processes and identify where any problems may be solved while simultaneously allowing staff to discover their impact on the planet.
Henry Kravis, the KKR, and the Environmental Defense Fund are true pioneers when it comes to developing ecologically friendly business techniques. So, to summarize, the work of these organizations has made green business techniques not only viable, but commercially desirable, and their radical ideas are setting a new standard in the business world of today.
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