About the Global Impact Fund
Launched in 2018, the Global Impact Fund is KKR’s dedicated lower-middle market private equity strategy established to invest in businesses delivering solutions to significant societal challenges. We seek to work strategically with management teams to help our portfolio companies scale their businesses and achieve more – greater financial success, incremental positive impact, and improved ESG performance. The Global Impact Fund invests around four core investment themes – climate action, lifelong learning, sustainable living, and inclusive growth – where we believe we can create value for our investors and contribute meaningful solutions to the UN Sustainable Development Goals (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.
Impact and ESG Management
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. We use the Sustainability Accounting Standards Board (SASB) industry standards as the primary input to determine a company’s most important, or material, ESG issues, tailoring that guidance to each company’s unique circumstances. 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 define and measure each company’s contribution to one or more of the SDG targets using indicators from third-party reporting frameworks wherever possible, such as IRIS, SDG Compass, and the SDG target indicators.
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 2021, we published our second annual Disclosure Statement and third party verification statement. In September 2021, we also published our first public disclosure with excerpts and highlights from our full 2020 Impact Report, which is provided to Fund investors.
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.