About This Report
The publication of KKR’s sixth ESG and Citizenship Report coincides with the 40th anniversary of the founding of our Firm. As the size and scope of our Firm’s investment activities have expanded during that period, the content of our report has also broadened and deepened. This year’s report builds on the well-received foundation of previous reports, which focused on describing our ESG values, process, performance indicators, and progress. This report both identifies some of the key global challenges facing KKR, our portfolio companies, and our investors and presents our ESG investment approach in the context of those societal issues.
We seek to align our reporting efforts with leading frameworks and methodologies. As a signatory of the voluntary framework of the United Nations-backed Principles for Responsible Investment (PRI), we organize our key performance indicators around the PRI’s six principles. When writing this report, we considered the Global Reporting Initiative principles for defining report content (completeness, materiality, stakeholder inclusiveness, and sustainability content) and for defining report quality (accuracy, balance, clarity, comparability, timeliness, and reliability).
We evaluate ESG issues with respect to several asset classes; thus, this report describes the initiatives and the integration of ESG issues in the investment processes for both our private equity investment process and private equity portfolio companies as well as for select non-private equity asset classes (i.e., energy real assets, real estate, infrastructure, and special situations), unless otherwise noted. As used in this report, “portfolio company” refers to the companies held in our private equity funds, unless otherwise noted.
The private equity data contained in this report are based on those assets held in our portfolio during the 2015 calendar year along with select forward-looking initiatives for 2016. All information and data in this report are as of December 31, 2015, unless otherwise noted.
KKR places a high value on our partnerships and thus strives to address issues that are of most interest to our stakeholders and partners. In 2015, we surveyed approximately 20 internal and external stakeholders, including limited partners of our funds and nongovernmental organizations, to obtain their input on the report content and structure. The feedback confirmed that our previous ESG reports were well-received and contained substantial content of value to our stakeholders and partners. Respondents also provided numerous suggestions for expanding and enhancing content. To that end, we have made several changes in this report, including organizing the report according to the global issues of most relevance to our Firm and investors, streamlining overall length, showcasing viewpoints of internal and external experts, and providing resources for related content.