When Henry Kravis and George Roberts established Kohlberg, Kravis, Roberts & Co (KKR) in the mid-seventies with the assistance of the First Chicago Corporation, the firm’s specialty was in bootstrap buyouts. But pushing further, aiming to make their portfolio companies and acquisitions greener, they have established a unique proposal that has fundamentally changed the way businesses and environmental agencies carry on their day-to-day business. Green business procedures became major topic of dicussion last year when Kohlberg, Kravis, Roberts & Co’s Henry Kravis and the independent Environmental Defense Fund (EDF) merged. Issues like air pollution and unbounded consumption of water resources feature high on their agenda. Eco-efficiency (the term was first submitted by the World Business Council for Sustainable Development WBCSD) constitutes their mission’s framework, by employing ecologically sound policies like improving fuel economy through vehicle fleet maintenance, reducing the dispersion of toxic chemicals and recycling programs. The project was a stunning success, but the management did not even understand the full program’s advantages until Ken Mehlman, the head of the Green Portfolio Project and global public affairs, reviewed the project following its first year in operation.

Ken found that practicing eco-efficiency wasn’t just protecting the environment, but it was also helping to save business concerns a substantial sum of money, making the program almost an immediate hit. Almost all of the business organizations held by Kohlberg, Kravis, Roberts & Co and Ken Mehlman nowadays apply eco-efficiency. Seeing that this group of companies has a net worth of 86 billion dollars, you can see what a feat this really is.

The original program has now expanded to include new ventures. The Climate Corps Program administered by the EDF is an example of this, it advances environmentally friendly techniques to MBA interns.

KKR and Ken Mehlman have made the effort to create a variety of analytic tools which have the ability to evaluate and manage various resources. These tools can measure an organization’s progress and identify any underlying problems.

Henry Kravis, the KKC, and the Environmental Defense Fund have encouraged all sorts of businesses to become more ecologically friendly. So, in conclusion, the work of these organizations has made green business practice not only viable, but commercially desirable, and their radical ideas are setting a new standard in the high-pressure business world of today.