Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Agriculture
• Disease Treatment and Prevention
• Infrastructure
• Resource Constraints

Environmental Achievements

• $1.2 billion in financial impact and avoidance of approximately 2.3 million metric tons of greenhouse gas emissions, 6.3 million tons of waste, and 27 million cubic meters of water use from the Green Portfolio Program (GPP)
• $1.6 billion invested in renewable energy (solar, wind, district heating) since 2011
• Reduced raw milk bacteria count at Modern Dairy to meet European and Japanese standards

Social Achievements

• Wellness Works program engaged more than 250,000 employees at 10 companies
• Vets @ Work program hired nearly 36,600 veterans and military spouses since 2011
• Improved milk yield by 62 percent per mature cow at Modern Dairy

Governance Achievements

• Established proactive programs for portfolio companies to address ESG risks and opportunities
• Developed a global Private Equity ESG Policy
• Developed more than 20 industry-specific ESG issue guides

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on business
• Inadequate infrastructure in many cities
• Resource constraints (food, water, etc.)
• Talent shortages

Mitigation Strategies

• Investing in renewable energy and eco-efficient technologies
• Investing in infrastructure projects (water, housing)
• Improving supply chain practices through the Responsible Sourcing Initiative (RSI)
• Improving talent management strategies (diversity, benefits, training)

Supply Chain Management

Supplier Audits: Approximately 30 high-priority portfolio companies assessed through RSI

Responsible Procurement

• Responsible Sourcing Initiative (RSI)

Climate-Related Risks & Opportunities

Opportunities

• Investing in renewable energy
• Eco-efficient technologies

Reporting Standards

Frameworks Used: PRI (Principles for Responsible Investment), GRI (Global Reporting Initiative)

Sustainable Products & Innovation

• Goodpack's reusable containers
• Santanol's sustainable sandalwood
• Tarkett's circular economy model

Environmental Metrics

ESG Focus Areas

• Transparent Information & Fair Advice for Customers
• Employee Diversity & Inclusion
• Incorporation of Environmental, Social, and Governance Factors in Investment
• Proxy Voting and Investee Engagement
• Business Ethics
• Systemic Risk Management

Social Achievements

• The information provided is the current publicly available breakdown of KKR’s diversity metrics, which do not conform with the SASB metrics.

Governance Achievements

• KKR has procedures in place to anonymously report violations or suspected violations of accounting, internal controls, auditing, legal, and regulatory matters, including by using a confidential hotline or a website, which are both administered on behalf of KKR by an independent third party.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Capital
• Business Ethics
• Cybersecurity, Privacy, and Data Protection
• Responsible Product Governance

Environmental Achievements

• Achieved carbon-neutral status in operations since 2019 by measuring GHG emissions and implementing mitigation strategies, including purchasing high-quality carbon offsets.
• 30 Hudson Yards achieved LEED Gold certification in 2021.
• London office designed to achieve BREAAM Outstanding certification.

Social Achievements

• Launched KKR Inclusion Network in 2017 to foster inclusion and celebrate diversity.
• Increased percentage of women in investing roles from 9% to 25% since the formation of the Inclusion & Diversity Council.
• Increased percentage of employees from historically underrepresented groups in investment roles by 100% since the formation of the Inclusion & Diversity Council.
• Earned a 100% score from the Human Rights Campaign’s Corporate Equality Index in 2021 for the 5th year in a row.
• Added 100 diverse members to portfolio company boards by July 2021, reaching a 19% diversity goal.
• Incoming 2022 analyst class composed of greater than 50% women.

Governance Achievements

• Established the Inclusion & Diversity Council (IDC) in 2014 to promote diversity and inclusion.
• Implemented a robust harassment policy and annual web-based training on harassment and discrimination prevention.
• Implemented a Code of Business Conduct and Ethics, along with a Whistleblower Policy.
• Implemented Anti-Money Laundering (AML), Anti-Bribery and Anti-Corruption (ABC), and Antitrust policies with corresponding training and reporting mechanisms.
• Adjusted compensation framework to enhance transparency and align compensation with realized investment performance.

Climate Goals & Targets

Environmental Challenges

• Significant decrease in air travel due to the COVID-19 pandemic impacting 2020 emissions (expecting rebound in future years).
• Challenges in facilitating employee mobility opportunities in 2020 due to the COVID-19 pandemic.

Mitigation Strategies

• Planning to measure the GHG footprint of 2021 operations and implement mitigation and management techniques to offset and prevent emissions.
• Continuing to focus on internal mobility opportunities as offices reopen.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs), Task Force on Climate-related Financial Disclosures (TCFD)

Environmental Metrics

ESG Focus Areas

• Sustainable Investing
• Sustainable Operations
• Climate Change
• Human Capital
• Data Responsibility
• Diversity, Equity, and Inclusion (DEI)

Environmental Achievements

• Achieved carbon neutrality across global operations for the 4th year.
• Consolidated office space to a LEED Gold certified building in New York City.
• Viridor launched its Vision for zero export of plastic waste, saving 126,000 metric tons of CO2 annually.

Social Achievements

• Increased diverse board seats by 52% across majority-controlled portfolio companies and investment vehicles.
• Allocated $33+ million to 150+ nonprofits through KKR’s COVID-19 Relief Effort.
• Committed $5.5 million to 250+ small businesses.
• 100% score achieved from the Human Rights Campaign’s Corporate Equality Index for the sixth year in a row.
• Launched Version 2.0 of the KKR Capstone Benefits Program for U.S.-based portfolio companies.
• Billions of dollars in equity awarded to over 45,000 non-management employees through KKR’s employee ownership program since 2011.

Governance Achievements

• Formed a cross-Firm ESG Committee to advance a global, proactive ESG agenda.
• Launched an independent, third-party Sustainability Expert Advisory Council.
• Published first TCFD-aligned Climate Action Report.

Climate Goals & Targets

Environmental Challenges

• Limited ESG disclosure across private credit, bank loan, and high-yield markets.
• Challenges in effectively and consistently measuring the impact of learning solutions.
• Growing data privacy and cybersecurity challenges for corporate and public entities.

Mitigation Strategies

• Developed a proprietary ESG Scorecard for Credit portfolios.
• Developed a rigorous approach to integrate impact and ESG considerations throughout the investment process.
• Established Project Shield to improve cybersecurity awareness and performance across the investment life cycle.
• Expanded internal resources and added leadership positions in data responsibility.

Supply Chain Management

Responsible Procurement

• Responsible Sourcing Initiative

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Investing in the energy transition
• Development of energy-efficient products

Reporting Standards

Frameworks Used: SASB, TCFD, GRI, UN SDGs, Operating Principles for Impact Management

Certifications: ISO 14001, LEED Gold, BREEAM Outstanding

UN Sustainable Development Goals

• Goal 1
• Goal 4
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16

Investments in companies contributing to solutions for critical global challenges as identified by the UN SDGs.

Sustainable Products & Innovation

• CMC's 3D packaging machines

Awards & Recognition

• 2021 Responsible Investment Award (Asian Venture Capital Journal)
• Global Packaging World-star Award (Wella Company)

Environmental Metrics

ESG Focus Areas

• ESG management and governance
• Human capital
• Climate
• Data responsibility

Environmental Achievements

• Achieved carbon neutrality across global operations for the 5th consecutive year
• Seoul office awarded LEED Gold certification
• London office designed to achieve BREEAM Outstanding certification

Social Achievements

• Launched 11 new broad-based employee ownership programs, bringing the total to 30 portfolio companies with 50,000+ non-senior management employees participating
• 6x increase in the number of senior women (partners and managing directors)
• 33% women in investing roles, up from 28%
• Formalized seven employee resource groups (ERGs)

Governance Achievements

• Consolidated existing policies into KKR Ethics and Compliance Handbook, with nearly 100% certification of receipt from KKR employees
• Formed a new ESG Controls working group

Climate Goals & Targets

Environmental Challenges

• Market volatility
• Geopolitical rivalry
• Data breaches and cybersecurity threats
• Climate change risks (physical and transition)

Mitigation Strategies

• Strengthened sustainability initiatives across investments and operations
• Developed additional geopolitical protocols and screening processes
• Enhanced cybersecurity and data privacy practices
• Integrated climate considerations into investment process, supported portfolio companies in measuring GHG emissions and implementing decarbonization plans

Supply Chain Management

Responsible Procurement

• Responsible Sourcing Initiative

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Wildfires
• Hurricanes
• Rising sea levels

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Energy transition investments

Reporting Standards

Frameworks Used: SASB, TCFD, UN SDGs

Certifications: LEED, BREEAM

Awards & Recognition

• Human Rights Campaign Foundation's Best Places to Work for LGBTQ Equality

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Capital
• Data Responsibility
• Governance

Environmental Achievements

• Pre-purchased permanent carbon removal tons from Frontier’s offtake portfolio to support the acceleration and development of the carbon removal industry
• Launched new Global Climate investing strategy

Social Achievements

• Launched Inclusion Exchange bringing together a community of leaders at portfolio companies to foster an inclusive workplace
• 59% of our global employees are affiliated with at least one Employee Resource Group (ERG)
• 39 portfolio companies with 85,000+ non-senior management employees implemented ownership programs, awarding billions of dollars in equity since 2011, including 7 new broad-based ownership programs launched in 2023

Governance Achievements

• 165+ portfolio companies engaged to improve information security and cyber defense capabilities across our portfolio through Project Shield
• Enhanced KKR’s cybersecurity annual training with updated content to reflect current threats and Firm policies
• Set up generative AI (GenAI) working group to provide clear and direct governance of our artificial intelligence (AI) strategy and program

Climate Goals & Targets

Environmental Challenges

• Volatile market conditions
• Increasing regulatory scrutiny around sustainability practices
• Evolving best practices in sustainability reporting
• Cybersecurity risks
• Geopolitical risks

Mitigation Strategies

• Collaborative and integrated culture
• Focus on business-relevant, material sustainability topics
• Proactive engagement with portfolio companies on material ESG topics
• Development and implementation of Project Shield
• Enhanced cybersecurity training
• Establishment of a Geopolitical Governance Subcommittee

Supply Chain Management

Responsible Procurement

• Responsible Sourcing Initiative

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters
• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts
• Changes in consumer behavior

Opportunities

• Energy transition investments
• Decarbonization initiatives

Reporting Standards

Frameworks Used: SASB, TCFD, UN SDGs, GHG Protocol, PCAF

Certifications: ISO 14001

Awards & Recognition

• Best Places to Work in Private Equity
• World’s Best Companies
• Equality 100 Leader
• Top 100 Best Adoption-Friendly Workplaces
• Private Equity Wire’s ESG AAA European Award