KKR today released its 2012 Environmental, Social, and Governance (ESG) and Citizenship report, underscoring the firm’s commitment to responsible investment in its private equity portfolio and other asset classes. Now in its third year, KKR’s ESG report demonstrates the firm’s tangible progress in managing ESG factors throughout the investment process in order to create sustainable value for its investment partners and private equity portfolio companies. It also features the partnerships that make this work possible and lays out the firm’s vision for the future. The report also highlights KKR’s Citizenship efforts including employee volunteer events and the firm’s philanthropic activities to date. Highlights from the 2012 report include:
- Expanding the Green Portfolio Program, an operational improvement program that uses an “environmental lens” to assess critical business activities of KKR’s participating private equity portfolio companies. Since 2008, the reporting companies have achieved more than $644 million in cost savings and added revenue, while avoiding 1.2 million metric tons of greenhouse gas emissions, 3.4 million tons of waste, and 13.2 million cubic meters of water use.
- Launching a research study with the American Heart Association (AHA) on KKR’s efforts in employee health, KKR Wellness Works. The program is designed to promote wellness at portfolio companies by providing employees with incentives to participate in biometric health screenings. In 2012, the eight participating companies saw an aggregate biometric screening rate of 72 percent, compared to 26 percent prior to their engagement in Wellness Works.
- Expanding the Vets @ Work initiative, an effort aimed at recruiting and hiring veterans across KKR’s U.S.-based private equity portfolio companies. In 2012, the nine participating companies hired approximately 7,000 veterans.
- Enhancing and expanding KKR’s library of best practices, resources, and tools. This includes creating 18 industry guides for use in ESG diligence, launching an eco-efficiency handbook as part of the Green Portfolio Program, and providing customized assessments for portfolio companies to aid them in actively managing their unique responsible sourcing needs