A Complex Future:

Managing Resource Constraints

As the world continues to experience population growth and demographic shifts, the demand for countless resources – including food, water, oil, metals, timber, and data – is expected to rise. To succeed in this environment, businesses will need to do more with less, create extremely efficient supply chains and manufacturing operations, and manage data as a valued business resource.

Improving Supply Chain Practices: Responsible Sourcing Initiative

iconPoor supply chain management can result in human rights violations, environmental consequences, and supply chain disruptions. With this knowledge, since 2010, we have focused on evaluating risks and opportunities in the management of the global supply chains of our relevant private equity portfolio companies.

The Responsible Sourcing Initiative (RSI), one of our proactive ESG programs, was launched in partnership with Business for Social Responsibility as a way to address these risks by assessing company practices and providing guidance to improve management of these issues in global supply chains.

To date, KKR has engaged with nearly 30 companies via sourcing program assessments. The program has provided an even greater number of portfolio companies access to applicable tools, training on trends and best practices, and customized guidance and support. In addition, responsible sourcing is featured in the annual chief procurement officer conferences convened by KKR Capstone.

Data as a Valued Business Resource

Given the increasing digitization of society, companies also need to manage data as a valued business resource, just as they manage natural, human, and financial resources. In 2016, broadened our efforts to encompass data management practices and digital resources. In 2017, we completed a cybersecurity assessment of relevant private equity portfolio companies, including a review of data privacy and risk management practices. We then provided each company with an individualized benchmarking report for consideration.

Looking Ahead

The demands on the world are continually increasing, yet the natural resources required to support this growth are often finite, increasingly difficult to manage, or both. For continued success, companies must understand their inputs, do more with less, and take an innovative approach to product design and business management.

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Case Study

GoDaddy: Analyzing Data to Improve Gender Diversity (2016) >

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Case Study

OVH: Reducing Data Center Energy Use (2017) >

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