According to private equity firm Kohlberg Kravis Roberts (KKR), companies may face a strong financial incentive to go green.
Led by Henry Kravis and George Roberts, KKR makes the case that that companies that improve their environmental performance end up reducing costs through “greater efficiency, more productive workplaces, stronger relationships with suppliers and customers,” and by launching “new products and services” that build competitive advantages.
“The business case for environmental management has never been stronger,” as Henry Kravis puts it.
And it seems that they might be doing a fair job of convincing others of the truth of the matter, according to the Investment Dealers’ Digest of March 8, 2009, “Kohlberg Kravis Roberts should be lauded for saving $16.4 million through environmental initiatives at three portfolio companies…It’s an achievement notable by any measure for keeping 25,000 metric tons of greenhouse gas emissions out of the atmosphere.”
Hopefully if being good to the environment is good for business other companies will soon follow suit.