To help us determine which issues to evaluate and monitor during the investment process, we consider what issues are material to each particular company based on its industry and area of operation. This process is guided by KKR’s Responsible Investment Policy, which defines material ESG issues as "those issues that KKR in its sole discretion determines have - or have the potential to have - a 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."

As such, our Firm considers a range of ESG issues associated with target companies as potentially material. As primary input to assessing what is material for each investment, KKR utilizes the industry-specific issue topics identified by the Sustainability Accounting Standards Board.¹ Sample ESG and reputational issues include: