Good investments begin with rigorous due diligence on key business drivers, such as macroeconomic trends, customer preferences, and raw materials prices. KKR investment professionals consider how these factors provide opportunities and pose risks to growth and success over the long term. KKR due diligence also includes a review of how potential portfolio companies manage or are affected by environmental, social, and governance issues. Material ESG considerations that are discovered in the diligence phase can have an impact on our investment decisions. We formalized our ESG due diligence efforts in 2011 by assembling our team of internal experts and establishing regular meetings. In recent years, we developed a process that allowed us to monitor relevant deals and their associated ESG issues throughout the pre-investment phase. We also deepened the resources available during the diligence process by creating a series of relevant industry guides and continue to improve our efforts over time.
KKR shares this information publicly at http://www.kkr.com/_files/pdf/kkr-esg-policy.pdf and in the annual ESG report at www.kkresg.com.