Sustainability Integration
Enabling enhanced investment decision making by integrating material sustainability risks and opportunities into the investment process
Our North Star: Integrated, Materiality-Driven Approach
We view the integration of material sustainability considerations in the investment process not as a checklist, but as a strategic lens, one that helps us better understand risk, identify opportunity, and make more informed decisions. By focusing on what is most material to each business, we aim to support companies that are positioned to grow and endure.
This mindset is embedded across our investment life cycle. Our approach is grounded in research, shaped by years of experience, and refined as market and stakeholder expectations evolve.
Our Responsible Investment Process
We recognize that each investment has a unique set of material, business-relevant sustainability-related opportunities and risk factors. These may be based on a variety of factors, such as the company or asset's industry, its stakeholders, and where it operates, including where its supply chain is located.
Examples of potential sustainability topics include:
Incorporating sustainability considerations throughout the investment lifecycle.
Private Equity
We work closely with portfolio companies to integrate material sustainability factors into day-to-day operations and strategic planning to enhance long-term value. This may include how a company manages its own environmental footprint, engages its workers, or upholds effective governance.
Credit
We consider sustainability factors where relevant to risk and return. A proprietary scoring tool helps evaluate issuers and highlight areas of potential exposure or opportunity. These insights inform underwriting and portfolio decisions.
Infrastructure
We invest in a broad range of real assets that provide essential infrastructure such as electricity, water, and data. Given the nature of these assets, we believe integrating material sustainability topics like operational safety, business-relevant decarbonization, and stakeholder engagement, where relevant, is a critical part of effective asset management.
Real Estate
We focus on sustainability value creation initiatives that can help reduce costs, future-proof and enhance asset desireability. This work may include energy efficiency measures, physical climate risk assessments, or tenant engagement initiatives.
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Refer to the Cautionary Statement in the Sustainability Report for important disclosures regarding KKR’s sustainability-related initiatives, policies, and procedures.
