As a global investor with a long-term horizon, KKR makes investment decisions that can have an enormous impact: millions of individuals depend upon strong returns from our investments for their retirements, education, and quality of life; the companies in which we invest employ hundreds of thousands of people; and the operations of our portfolio companies affect and are affected by the communities in which they do business around the world. We believe that we have an obligation to these stakeholders and to ourselves to act responsibly — to address the environmental, social, and governance (ESG) issues surrounding our investments.
Our approach focuses on creating shared value through initiatives that benefit our private equity limited partners, our portfolio companies’ employees, as well as other stakeholders, the environment, and society in general. We believe that one of the key strengths of the private equity governance model is that the alignment of interests between investors and company management teams has a long-term rather than quarter-to-quarter mandate, enabling our portfolio companies to focus on the pursuit of mutually agreed-upon objectives. In addition, because of the breadth of our private equity portfolio, we have the ability to share best practices in a manner that impacts multiple companies, industries, and geographies. We expect that the same focus and access to resources that has made many portfolio companies more productive and efficient will also help make them better global citizens.