Launched in 2018, Global Impact is KKR’s dedicated lower-middle market private equity strategy established to invest in businesses delivering solutions to significant societal challenges. We align our efforts to the UN Sustainable Development Goals (“UN SDGs”).
Over the last decade, we have identified and pursued a number of commercial opportunities to invest in solutions to societal challenges across the globe. We aim to build on this experience and do more over time. Our global team – based in North America, Europe, China, India, Southeast Asia, and Australia -- combines local connectivity with the global resources of KKR to develop critical insights and relationships to better source, evaluate, and create value within our global portfolio companies. We focus on opportunities where we believe we can leverage these insights and resources to help scale an existing business by investing more capital, creating better incentives, and improving business processes to deliver enhanced economic outcomes and impact.
In addition to seeking to maximize impact, we focus on opportunities where we believe we can optimize and improve ESG performance to produce meaningful outcomes, providing our investors and key stakeholders with transparency through high-quality reporting. Our experience has proven that proactive and thoughtful management of ESG and stakeholder issues can reduce risk, mitigate externalities, and deliver double bottom-line (i.e. economic and societal) benefit.
We are committed to measuring and reporting the impact of our efforts in a manner that is (a) transparent and (b) leverages existing, proven frameworks. We will evaluate, measure, and track each company’s impact on one or more of the SDGs by using indicators defined by third-party reporting frameworks where possible.
As part of this commitment, in April 2019, Global Impact became a signatory of the Operating Principles for Impact Management (“the Principles”), and used the Principles to identify areas of improvement as we were implementing our approach. In June 2020, we published our first annual Disclosure Statement and third party verification statement.
As it relates to ESG management, we will evaluate Global Impact portfolio company performance using the topics identified by the Sustainability Accounting Standards Board as a primary input, and track and report progress on our management of these issues over time.
In 2009, Kohlberg Kravis Roberts & Co L.P. became a signatory to the globally recognized voluntary framework of the Principles for Responsible Investment (PRI) and helped to develop the American Investment Council Guidelines for Responsible Investing. We are actively involved with both organizations and continue to use these frameworks to help guide and align our efforts.
For more on our efforts related to managing ESG performance across KKR’s investments, visit www.kkresg.com.