KKR believes thoughtful transparency is essential to good business. That is why we have been working to increase the transparency of our investment activities and processes — through both formal compliance with regulations and voluntary initiatives with our investment partners, portfolio companies, shareholders and the general public. We firmly believe this commitment is consistent with our values.
We have a strong focus on stakeholder relations and communications, with a team of dedicated, experienced professionals in media and investor relations, as well as government and regulatory affairs, dedicated to effective engagement with our stakeholders. Learn more about our approach to Stakeholder Engagement.
KKR is proud to report on our approach to and management of ESG related issues, and as such, we have published two ESG and Citizenship reports.
ESG Reporting and Materiality Assessment
We consider our returns for our investment partners to be fundamental to our success, as well as to the success of our stakeholders. To ensure that our responsible investment efforts are in the best interest of our business and our stakeholders, we examined our business strategy, our stakeholders’ expectations, and emerging trends regarding responsible investment in order to define our most material issues.
In 2010, we conducted our first materiality assessment and, in 2011, we re-visited this assessment to confirm our areas of focus by applying the Global Reporting Initiative’s Technical Protocol — often used as a best practice for defining content for sustainability reporting. In doing so, in 2011, we expanded our scope and identified new areas of interest regarding the way that we consider and manage our private equity investment decisions.
Materiality Assessment Findings
Our analysis of the findings from the expanded 2011 materiality assessment using the GRI protocol confirmed that our most material issue is the method with which we integrate the consideration and management of ESG issues into our investment processes.
Due to our diverse investments in multiple asset classes, what is most material to us are not necessarily specific ESG topics, but rather the process by which we ensure that relevant ESG risks and opportunities are taken into account within the investment and ownership decision. We refer to these priorities as integrating ESG factors in the pre-investment and investment phases. In addition, we know that our transparency and engagement on our ESG approach and performance is of particularly high importance to us at this early stage in the journey.
Our analysis in 2011 also highlighted the importance to us and many of our stakeholders that we manage our own direct environmental and social impact as well as ensuring that we address corporate governance and issues related to health, wellness, and diversity. With all of this in mind, we choose to focus our efforts on those areas where we can create shared value for our business, our partners, and our stakeholders, and have sought to organize our report around these key themes.
Defining Issues of Shared Priority
As a publicly traded company, KKR files reports with the SEC about our operations and financial performance. Please visit our Public Investors section to view these filings.
Kohlberg Kravis Roberts & Co. LP is an SEC-registered investment adviser.
KKR Asset Management LLC is an SEC-registered investment adviser.
The European Union Capital Requirements Directive sets out the regulatory framework governing the amount of capital which must be maintained by credit institutions and investment firms.
Because we believe in the importance of enhancing disclosure and transparency within the private equity industry, we have voluntarily undertaken to conform to the Guidelines for Disclosure and Transparency in Private Equity (also known as the "Walker Report") and to promote further conformity by our U.K. portfolio companies.
As a member of the Large Buy-Out group of BVK (Bundesverband Deutscher Kapitalbeteiligungsgesellschaften), KKR has substantially contributed to the creation of the BVK transparency guidelines and is applying them within KKR as well as within its portfolio companies.
KKR fully complies with the BVK transparency guidelines and aims for its German portfolio companies to do so as well, and we actively monitor this process.