KKR Explores Global Challenges and Deepens Its Commitment to Providing Solutions, Publishing Fifth Environmental, Social, Governance (ESG) and Citizenship Report
Company Sees Responsible Investment as Increasingly Essential to Good Business and Strong Performance
PRESS RELEASE: KKR released its fifth ESG and Citizenship Report today, detailing how KKR can help address societal concerns and further illustrating the Firm’s commitment to responsible investing. The new ESG report delves into the challenges and opportunities it sees around the world where private capital can be part of the solution. The report’s theme “Global Challenges. Global Solutions.” offers perspective on the issues and opportunities affecting companies and explains how the Firm is engaging.
“Today, both businesses and society as a whole are facing unprecedented challenges on a global scale,” said George Roberts, Co-Chairman and Co-CEO of KKR. “It is our belief that private investors have an important role to play in helping to address these challenges.”
The following 2014 highlights are included in the report:
- “Expert Insights” from KKR leaders discussing key trends and KKR’s role in an increasingly interconnected and complex world. Topics include addressing investor expectations, improving food security and safety in Asia, advancing eco-innovation, and engaging employees.
- Progress on the integration of the consideration of ESG issues and opportunities in the investment process not only of private equity investments, but also other asset classes such as energy, infrastructure, real estate, and special situations. Case studies provide tangible examples of KKR’s growing responsible investment footprint beyond private equity.
- Overview of the Firm’s increasing focus on investing in solutions, which it distinguishes as conventional investments in companies that have an intentional focus on solving societal challenges as core to the business. Included in the report are solutions-related investment highlights, including 17 that are providing environmental solutions around the globe.
- Results of a milestone year for the Green Portfolio Program, with program participants delivering nearly $1.2 billion in financial impact from eco-efficiency efforts since the start of the program in 2008. Announcement of plans to refresh and rebrand this program in 2015 to engage portfolio companies across the areas of eco-innovation and eco-solutions in addition to the original focus area of eco-efficiency.
- Development of the KKR Veterans Advisory Council (VAC) under the leadership of General (Ret.) David Petraeus to support the Firm’s veteran hiring efforts. As of the end of 2014, nearly 28,000 veterans had been hired by 29 portfolio companies through our Vets@Work program, an initiative aimed at recruiting, hiring, and retaining veterans across our U.S.-based private equity portfolio companies.
- Creation of additional resources for KKR portfolio companies, including through KKR’s first North American Sustainability Summit, which brought together leaders from KKR portfolio companies, members of KKR , and professionals from partner organizations, such as NGOs, advisors, and consultants, including, KKR Capstone.
The report also focuses on the Firm’s citizenship and corporate engagement efforts, highlighting the following key programs and initiatives:
- Expansion of commitment to provide technical assistance to social enterprises such as Glovax Biotech Corporation and East Bali Cashews. KKR employees provide their expertise to help the social enterprises expand their businesses.
- Dedication of time and resources by more than 500 KKR employees to various nonprofit organizations globally through days of service, nonprofit board service, and mentoring programs in 2014.
- Donation of more than $500,000 to nonprofit organizations through the KKR Employee Matching Gift Program since 2013.
- Growth of internal programs such as the establishment of the Inclusion & Diversity Council, which consists of seven senior Firm leaders, and the Inclusion & Diversity Advisory Group, which is made up of 16 executives globally; a new range of wellness benefits and programming; and a continued focus on internal environmental efforts.
“At KKR, we believe that a deep understanding of global challenges can make us better investors and enhance returns for our investment partners,” said Henry Kravis, Co-Chairman and Co-CEO of KKR. “This is an evolutionary process and a lot has changed since we began this journey in 2008. We increasingly believe that we can help be part of the solution to critical challenges by how we invest in companies and engage with communities.”
To download the 2014 ESG and Citizenship Report or obtain more information about KKR’s ESG progress, click here.
KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners’ capital and brings opportunities to others through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE: KKR), please visit KKR’s website at www.kkr.com.
ABOUT KKR CAPSTONE
KKR Capstone is an operational team of highly experienced industry executives and functional specialists. The team works exclusively for KKR and on KKR investments on the ground in partnership with management teams to create sustainable improvements. KKR Capstone also leads the implementation of sustainability initiatives that help portfolio companies manage their environmental impact while also improving their businesses.
References to “KKR Capstone” or “Capstone” include their local affiliates, which are owned and controlled by their senior management. KKR Capstone is not a subsidiary or affiliate of KKR. KKR Capstone operates under several consulting agreements with KKR and uses the “KKR” name under license from KKR. References to operating executives, operating experts, or operating consultants are to employees of KKR Capstone and not to employees of KKR.
To read KKR’s 2014 ESG and Citizenship Report visit www.kkresg.com.
For more on KKR’s Green Portfolio Program visit green.kkr.com.
To watch KKR’s video on creating sustainable value visit www.kkr.com/creating-sustainable-value.
To read KKR’s Private Equity ESG Policy visit www.kkr.com/_files/pdf/kkr-esg-policy.pdf.