A New World:

Adapting to Climate Change

A changing climate creates many issues that can profoundly influence a business’ bottom line and its ability to compete in a resource-constrained future – from changing weather patterns affecting agriculture to impending regulations that put a potential price on carbon emissions to natural disasters disrupting supply chains. As we have seen in our investments and more broadly in business, thoughtfully addressing and providing solutions to a changing climate can also be a source of opportunity.

Climate Solutions

Climate change is a global challenge and will require solutions at all levels. In the last five years, we have invested in a number of companies that are creating or utilizing innovative technologies and processes to be part of the solution in a carbon-constrained economy.

Assessing Climate Impact

KKR has traditionally looked at our companies’ effects on the environment, but we are increasingly thoughtful about what impacts the environment can have on business. In 2015, we began to analyze how our private equity portfolio companies could be affected by climate legislation and regulations, international accords, investor sentiment, and the physical impacts of climate change. We plan to complete our portfolio-level assessment in 2016 and then will determine the best course of action based on opportunities for value creation or risk mitigation.

Looking Ahead

By anticipating and planning for the new world that is to come, companies will be better positioned to compete and more able to adapt in a changing environment. Climate change poses challenges, but when companies and investors engage thoughtfully, they can be part of the solution by driving opportunity through the launch of new processes, technologies, and jobs.

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Case Study

X-ELIO: Increasing Access to Renewable Energy >

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Case Study

Transphorm: Investing in Power Conversion Technology >

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Case Study

Support for Urban Infrastructure: Gardner Denver, Sonos, and Trainline >

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