Languages

Overview

Responsible Investment


We believe that the thoughtful management of environmental, social, and governance (ESG) issues is smart business and see it as an essential part of long-term success in a rapidly changing world. KKR is committed to investing responsibly by integrating material ESG considerations into our private markets investment processes.

"This year marks a decade since we began our responsible investment journey. We have never been more committed to investing in a tomorrow that creates shareholder value through shared values – a tomorrow that makes our employees proud, our companies successful, and our investors happy."

JOSEPH Y. BAE and SCOTT C. NUTTALL
Co-Presidents and Co-Chief Operating Officers

Our Approach

Companies that carefully manage ESG risks and opportunities today should be better situated in the future as diminishing resources, changing consumer demands, and increased regulation are expected to pose greater challenges and opportunities. We reduce risk and create value by identifying and managing critical issues across the full investment life cycle.

Though our responsible investment approach is dynamic and keeps pace with our investments and the world around us, materiality remains at its core. More information about how we think about materiality and various asset classes and a chart illustrating our relative influence over ESG issues is available here.

We believe that our capital, operational capabilities, and long-term ownership model position us to be part of the solution. We are committed to working together – as one Firm – to manage ESG factors in our diligence process and in the management of our investments through portfolio company engagement and ongoing support.

We will continue to thoughtfully approach the ESG opportunities and challenges that we face and look forward to finding new ways to create sustainable value for our partners.

Creating Sustainable Value

Learn how KKR is working to create sustainable value by addressing environmental, social, and governance (ESG) challenges and opportunities in our private equity portfolio.

Note: All information and data are as of June 2016.

Our Commitment

We work to understand the impacts of the companies in which we invest and believe that our understanding of ESG issues can improve our opportunities to create shared value. In line with this belief, we have made a public commitment to formally incorporate the consideration of ESG factors into our private markets investment processes.

In 2009, we became a signatory to the United Nations-backed Principles for Responsible Investment (PRI) and helped to develop the guidelines for responsible investing as a member of the American Investment Council (formerly the Private Equity Growth Capital Council). In 2013, we formalized our own global Private Equity ESG Policy and began communicating it to our employees.

These principles and this policy, included below, serve as valuable platforms for formalizing and focusing our responsible investment efforts, raising internal awareness, and providing a common language and set of expectations for our investment partners, our portfolio company management teams, and other stakeholders.

Just as importantly, we see the value of interacting with and learning from others who share this commitment. Therefore, we work regularly with our peers in these communities to help develop tools and resources and to learn from each other. We are deeply engaged industry efforts to drive more responsible investing as well as a network of partners to expand our expertise.


Principles for Responsible Investment

In accordance with our own guidelines and the PRI, KKR believes we should seek to act in the best long-term interests of our beneficiaries.
+ read more

American Investment Council Guidelines

At KKR, we are committed to thoughtfully considering ESG issues as they pertain to our private equity investments. For us, this approach means more than just responsible investing; it means smart investing.
+ read more

Private Equity ESG Policy

Responsible investment is integrated into our Firm’s investment practices and is reflected in our global Private Equity ESG Policy, which was codified in 2013.
+ Read Policy

Working with Portfolio Companies

We strive to be a partner to our companies as they face a complex future. We support their processes, programs, and policies to enable our shared success. During the past decade, we collaborated with companies on a range of topics including worker safety, worker wellness, responsible sourcing, inclusion and diversity, and veterans hiring. Learn more about how we drive value within our companies here.



Reporting Our Performance

We believe that setting clear commitments helps drive progress and facilitate transparency, which is one reason why we regularly report our performance. Learn more about our key performance indicators.





Read the full 2018 ESG, Impact, and Citizenship Report for more information.