Originally, when Henry Kravis and George Roberts set up Kohlberg, Kravis, Roberts & Co (KKR) in the mid 70’s with the assistance of the First Chicago Corporation, the firm’s specialization was in highly leveraged transactions. Recently they have established an unusual green enterprise which focuses not simply on maximized ROI, but in addition on the environmental impact of the companies they buy.

When Henry Kravis from KKR and the non-profit environmental advocacy group Environmental Defense Fund (EDF) merged only a year ago environmental issues suddenly turned into a mainstream topic. These companies wanted to campaign against some crucial green issues, for instance climate change, global warming, unsustainable consumption of water resources, and depletion of the ozone layer.

Eco-efficiency (the phrase was first submitted by the World Business Council for Sustainable Development WBCSD) comprises the framework for their mission, through applying policies such as using clean energy, recycling programs and reducing the intensity of materials. Although the project was a huge success, staff simply did not realize how extensive the results were until Ken Mehlman, the head of the project and global public affairs, finished the first annual review. Only at that point did Ken Mehlman learn that applying eco-efficiency was not just cutting impact on the planet, but it was also saving business concerns a great deal of money, and so the Green Portfolio project became virtually an immediate success. These days, Kohlberg, Kravis, Roberts & Co and Ken Mehlman have succeeded in getting virtually every last company in their portfolio taking part in eco-efficiency principles. Still, with a 2009 portfolio worth eighty-six billion dollars, you can be certain that this was no easy see what an enormous feat this is. The original Green Portfolio project now includes new ventures. For instance, KKR got together with the EDF’s Climate Corps Program which instructs students studying for a Master’s in Business Administration how to encourage financially strong, ecologically friendly principles.

Lately, Ken Mehlman has been in close collaboration with KKR to create a package of analytic tools which firms can use to evaluate and oversee a number of resources. Tools such as these can evaluate an organization’s progress and identify any practices that may need improving. Henry Kravis, the KKC, and the Environmental Defense Fund have encouraged all sorts of businesses to go green. These fresh concepts have simplified the process for companies in any sector and illustrated that making profits need not entail the hefty price of damaging the environment.