Responsible Investment at KKR
With our understanding of global issues, we believe that enhancing value in today’s world includes improving the environmental, social, and governance (ESG) aspects of a business.
Responsible investment is a way of doing business that we believe makes us smarter, better investors. We are dedicated to better understanding our investments and unlocking value in innovative ways. As a global investor, we have an opportunity and responsibility to be thoughtful about a diverse range of environmental, social, and governance (ESG) issues affecting the companies in which we invest.
Since formalizing a focus on responsible investment eight years ago, we have demonstrated that managing ESG issues in our investments helps us generate strong returns for our Firm and our fund investors while also having a positive impact on society. We do this by avoiding and mitigating risk wherever possible and by discovering ways to create sustainable value.
Our responsible investment approach is constantly evolving. While we are proud of the progress we have made, we believe that our work is far from over and seek to create additional sustainable value as our journey continues.
ESG Risks and Opportunities
The way that we and our companies manage environmental, social, and governance (ESG) risks and opportunities can help protect and create business value. Learn how we identify material ESG and reputational issues here.
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: ESG Integrated, ESG Targeted, and Solutions Focused.
ESG Integrated: Most broadly, when applicable, we work to integrate ESG considerations into our pre-investment diligence and post-investment management of a company, as an understanding of the material issues helps us make the most informed decisions. This is our broadest and most basic approach to ESG management.
ESG Targeted: We identify investments where improving performance on critical ESG issues helps create value or mitigate risk. We provide resources and tools to manage these issues and measure companies’ progress through metrics and benchmarks. Examples include companies that participate in programs through the Sustainable Innovation Platform or utilize our network and resources to begin sustainability reporting.
Solutions Focused: In these investments, a company’s core product or service provides a solution to an ESG-related challenge. The products and services of these companies range from renewable energy to sustainable agriculture to financial inclusion. Explore a map of our current solutions-focused investments here.