Responsibility

, 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.

Our approach to responsible investment

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.

Green Portfolio Program

In May 2008, KKR launched the Green Portfolio Program (GPP) in partnership with Environmental Defense Fund (EDF). The GPP is an operational improvement program that uses an “environmental lens” to assess critical business activities of KKR’s participat­ing private equity portfolio companies.

Since the program’s inception, 25 companies have participated, with 19 companies reporting results in 2013. To date, the program has achieved more than $917 million in financial impact and avoided more than 1.8 million metric tons of GHG emissions. Click to learn more about the program, participants, and their results.

Responsible Sourcing Initiative

The Responsible Sourcing Initiative (RSI) provides portfolio companies with guidance and resources focused on the continuous improvement of their management of human rights and environmental issues in global supply chains. We have worked with 22 companies in our portfolio to review their procedures for sourcing practices and possible supply chain risks. Where there are areas for improvement we provide guidance and action plans.

KKR Wellness Works

KKR Wellness Works was launched in 2011 and is built on the idea that employees who know their key health indicators are able to make better decisions for their health and ultimately improve their well-being. Companies enrolled in this program commit to offering an annual incentivized biometric screening to employees. They also provide resources for employees to better understand and respond to their results, while protecting individual privacy.

Since the program’s inception, 25 companies have participated, with 19 companies reporting results in 2013. To date, the program has achieved more than $917 million in financial impact and avoided more than 1.8 million metric tons of GHG emissions. Click to learn more about the program, participants, and their results.

Integrity and Engagement

We encourage our portfolio companies to enhance engagement with their stakeholders by educating them about the voluntary codes and frameworks of transparency. We strive to support their efforts through a series of webinars on relevant topics. In 2012, we launched a partnership with Transparency International (TI), a global anti-corruption NGO. Through this partnership we seek to enhance our investment and company management processes, specifically in business integrity. In 2013, Transparency International participated in our annual General Counsel conference presenting on best practices in anti-corruption and anti-bribery to 32 Chief Legal and Compliance Officers representing their respective companies. We also co-hosted a webinar for our global portfolio companies titled “Bribery in Business,” which provided an overview of TI’s International Business Integrity Toolkit. Read more.

Vets @ Work

Vets @ Work is an initiative aimed at recruiting and hiring veterans across our U.S.-based private equity portfolio companies. As of December 2013, 18 of our private equity portfolio companies participate in the initiative, which together have hired more than 21,000 veterans thus far. Read more.

Creating Sustainable Value