Responsible Investment Governance

How We Govern Responsible Investment

A cross-functional team of professionals manages our responsible investment strategy and its implementation across relevant asset classes. This team keeps abreast of industry trends and provides resources, knowledge, and leading practices to our portfolio companies. We also draw on the experience and insights of additional subject matter experts within KKR and external advisors.

Furthermore, KKR has adopted relevant private equity industry guidelines for responsible investing. We became a signatory to the globally recognized voluntary framework of the Principles for Responsible Investment (PRI) in 2009 and helped to develop the American Investment Council (formerly the Private Equity Growth Capital Council) Guidelines for Responsible Investing. We are actively involved with both organizations and continue to use these frameworks to help guide and align our efforts.

KKR has also actively engaged with the Sustainability Accounting Standards Board (SASB) since 2012 to enhance our understanding and evaluation of the sustainability factors that are material to our portfolio companies’ businesses. We have served on the Standards Council of the Sustainability Accounting Standards Board and most recently on its Board of Directors. In 2017, we aim to incorporate SASB’s industry-specific standards into our private equity due diligence process.

Our Governance Structure

Engagement from senior leadership and accountability throughout the organization are essential to our responsible investing efforts. Global, regional, and subject matter experts collaborate to implement an integrated approach.

Investment Oversight

Provides oversight of responsible investing strategy, with direct supervision over integration into the Firm's business priorities; the management team is updated regularly by the Gobal Head of Public Affairs.

Global

Set strategy for responsible investing; help the Firm and portfolio company leadership address risks and opportunities related to management of ESG and reputational issues

Regional

Focus on regional regulatory affairs, public policy, stakeholder engagement, and reputational considerations to manage ESG opportunities and risks in their respective areas

Subject Matter Experts

Engage during pre-investment and ongoing management to advise on a range of issues such as key governance considerations, operational efficiencies, geopolitical risks, and macroeconomic trends

Collaborating with Our Fund Investors

Increasingly, KKR is working with our fund investors to foster dialogue about responsible investment policies and practices. As part of this, for the first time, KKR is publicly sharing responses to the Principles for Responsible Investment (PRI) Limited Partners’ Responsible Investment Due Diligence Questionnaire, available here.