ESG Management Process
Creating Sustainable Value
We seek to find value and reduce risk by identifying and managing critical issues across the entire investment life cycle. We focus our efforts in our private equity business and in select non-private equity asset classes.
Implementing Our Approach
We believe the private equity ownership model provides a strong platform for responsible investment. With a long-term investment horizon, a focus on alignment of interests, and a commitment to active anagement, the private equity model is well positioned to integrate the management of ESG issues into investments.
At KKR, we evaluate all potential private equity deals from an ESG management perspective during our due diligence process. Subsequently, to the extent that they are material to our investment, ESG-related issues are addressed post-investment. Typically this process involves three areas: implementation of the 100-day plan, ongoing management, and monitoring progress. For more on our process and approach by asset class, see the ESG Management Process infographic below.
ESG Management Process
KKR's influence and control can vary significantly across asset classes. This is taken into account during the ESG management process.
Partnering on Responsible Investment
Our approach to ESG management has been shaped by many factors, including interactions with our portfolio companies, our investment partners, and our peers in the industry. Any progress we have achieved is thanks to the expertise of a leading external network, the commitment of a dedicated internal team, and the collaboration that is part of our one-firm culture.
In addition, we strive to advance consistent and thoughtful ESG integration and reporting in the private equity industry through participation in industry and non-financial reporting dialogues and developments.
For example, we engage with the responsible investment community to maintain momentum and produce value throughout the private equity industry by:
- Sponsoring various events in the Americas, such as the inaugural Privcap Private Equity ESG Summit in New York in 2016
- Speaking at conferences in Asia-Pacific and Europe, including the Responsible Business Forum on Sustainable Development in Singapore and the ESG panel at SuperReturn 2016 in Germany
- Convening a working group of our U.S.-based private equity peers to discuss responsible investment practices and policies
- Contributing to the development of industry standards, including the American Investment Council Guidelines for Responsible Investing
- Participating in surveys and industry reports on trends and best practices