Invested in Impact
invested in more than 30 solutions-oriented businesses across various KKR businesses since 2010 1
the Firm's impact investing business in 2018 after a decade of responsible investment leadership
deployed by Global Impact in 2019 contributing to the achievement of eight Sustainable Development Goals
These four investment imperatives are complex and multidimensional, relating closely to several important SDGs. The below figure illustrates some of the connections between these four impact themes and the SDGs associated with the investments Global Impact made in 2019.
Our Impact Business
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.
Our Approach to Impact Management
Our process helps us understand, measure, and track the positive impacts that our companies have on the world around them.
Our investment approach for Global Impact employs the same rigorous playbook for investment selection, governance, and value creation as our other private equity investment strategies. Developed and improved during the Firm’s 44-year history, this approach involves working actively with our companies to enhance operations and unlock new commercial opportunities. We believe that as active investors we can achieve better commercial and societal outcomes by working alongside portfolio company management teams.
Reporting on Impact
KKR is committed to measuring and reporting the impact of our efforts in a manner that is transparent and leverages established frameworks. For Global Impact, we will evaluate, measure, and track each portfolio company’s contributions to one or more of the SDGs using indicators defined by third-party reporting frameworks wherever possible. Learn more about the SDGs here.
As part of this, we expect to work with the management teams of portfolio companies to design and implement the appropriate processes to gather the necessary data.
Together with Global Impact portfolio companies, we will define expectations related to the impact of their product or service and assess progress annually against those expectations. Similarly, portfolio companies will track their performance on material ESG issues and report progress over time. This information will be reported to Global Impact fund investors, starting with our inaugural report in 2020.
Our Valued Partner: BSR
KKR has engaged with BSR to provide an external perspective on KKR’s impact investments and reporting frameworks. BSR is a global nonprofit organization that seeks to catalyze change within business by integrating sustainability strategies and operations. It also seeks to promote collaboration among companies and their stakeholders for systemic progress toward a just and sustainable world. KKR has been a member of the BSR network since 2010 and has worked closely with the BSR team on multiple ESG-related programs during that time.
With global expertise on a wide variety of sustainability challenges and best practices, BSR is a natural fit for advising KKR Global Impact. We recognize the importance of learning from thoughtful partners as we join the impact investing community and look forward to working with BSR as we continue our journey.
BSR works with the KKR Global Impact team in five key ways:
- Collaborates to integrate positive impact into KKR Global Impact’s overall approach,
including impact criteria, connection to the SDGs, measurement, and transparency
- Assesses target investments’ strategic fit and potential relative to KKR’s impact strategy and objectives
- Supports KKR’s efforts to measure companies’ performance on material ESG issues and develop action plans to guide improvements
- Advises how invested companies can enhance their impact
- Assesses portfolio company impacts for inclusion in KKR’s reports to fund investors
See Important Information for additional disclosure regarding calculation and determination of solutions-oriented businesses. The core business model, product, or service of a solutions-oriented company provides a solution to an ESG-related challenge and produces strong financial outcomes alongside positive impact.
World Meteorological Organization. Published January 1, 2020. https://public.wmo.int/en/medi...
World Economic Forum. The Future of Jobs Report 2018. https://www.weforum.org/report...