Measuring Progress

We communicate the results of our efforts to integrate ESG considerations into our investment process through relevant key performance indicators that track our performance and goals.

The Challenges

Tracking and measuring our performance is an evolving task, especially given the fluidity of the holdings in our portfolios and the varying levels of our influence across asset classes. Though it is difficult to apply many traditional ESG metrics, we work to ensure that our approach is both broad and nimble to best serve our portfolio companies and to adapt over time. In addition, the important work of documentation in diligence and management is not an insignificant task. Furthermore, we seek continuous improvement in all that we do.

Tailoring Our Technique

At the onset of our ESG reporting effort in 2010, we defined relevant key performance indicators (KPIs) for measuring and reporting performance. In doing so, we also identified several KPIs that, while potentially relevant, we believed would not accurately communicate our progress. The framework for tracking our ESG management performance is aligned with the United Nations-backed Principles for Responsible Investment (PRI). It is largely qualitative in nature as it focuses on the integration of ESG principles throughout the investment process. The table below shows the various ways in which we have made progress against our goals and is organized according to relevant Principles for Responsible Investment (PRI). We welcome feedback from our partners and stakeholders as we continue to refine our KPIs.

Identification of ESG risks and opportunities pre-investment (PRI I) Management of ESG issues during portfolio management (PRI II) Green Solutions Platform (GSP) expansion (PRI II) Employee engagement program expansion (PRI II) Responsible Sourcing Initiative (RSI) expansion (PRI II) Transparency and stakeholder engagement (PRI III) Promotion of responsible investment (PRI IV) Collaboration with partners (PRI V) Transparency and reporting (PRI VI)

KKR Capstone is not an affiliate or subsidiary of KKR. Please see Important Information for additional disclosure regarding KKR Capstone.