Responsible Investment at KKR
Today, enhancing value includes improving the environmental, social, and governance (ESG) aspects of a business through focusing on an organization’s internal policies and external effects.
Differentiated Approach to Responsible Investment
We aim to identify relevant ESG issues and incorporate the consideration of these issues into our due diligence, decision-making, and management practices in varying ways across asset classes. We view responsible investment through three lenses.
Materiality and Responsible Investment
We focus our responsible investing efforts in our private equity business and, when applicable, to select non-private equity asset classes. This focus has been informed by our analysis and understanding of the issues most material to our investments – those areas in which we have influence as active managers and owners.
Identifying Material Issues
We also identify and manage issues in our portfolio that we consider to be most material to each investment. Our Private Equity ESG Policy defines material ESG issues as those that “KKR in its sole discretion determines have – or have the potential to have – a direct substantial impact on an organization’s ability to create, preserve, or erode economic value, as well as environmental and social value for itself and its stakeholders.”