KKR

KKR performs fairly well in the aspects of governance and stewardship. Governance-wise, it assigns decision-making and oversight responsibility for its sustainability strategy to the highest governance body and responsibility for implementing its sustainability strategy to functions, teams or committees within the financial institution. With regards to stewardship, KKR has a stewardship policy that supports environmental transitions and social best practices in line with its sustainability strategy. It publishes an engagement/stewardship report describing the outcome of engaging on sustainability impact topics as well.

KKR also has some level of climate-related disclosures. For instance, it provides at least one example of how its products, services and capital supports the climate adaptation and resilience of society. It also monitors other scope 3 categories, by category.

KKR could enhance transparency by improving its disclosures in areas such as its organisational carbon footprint, its risk assessment processes associated with the ILO fundamental rights at work, its just transition mitigation processes, provision of financing to low and lower-middle income countries and anti-bribery and anti-corruption. With regards to emissions, while KKR discloses its scope 1-2 emissions, it could detail its scope 2 emissions with reference to those being market-based or location-based. While KKR does provide some details regarding the methodology applied in their carbon footprint calculation, it has an opportunity to cover all aspects including emissions coverage for each category, data types, sources for applied emission factors and reference to applied standards.

It is also recommended that KKR discloses that it has established a transition plan covering its own operations, supply chain and portfolio. It could also consider disclosing that its risk assessment process includes risks associated with the ILO fundamental rights at work for those impacted by its provision of products, services and capital, as well as a process for mitigating such risks when identified. Additionally, KKR could disclose that it has a process for identifying the social risks associated with its provision of products, services and capital in relation to the net zero transition.

In relation to financing, KKR could publish the breakdown of clients or beneficiaries by income group and clarify processes to prevent divestment from low-income and lower-middle-income countries due to its sustainability strategies and targets. Lastly, KKR could enhance its disclosures in relation to corruption and bribery. While it does state prohibits bribery and corruption, it has an opportunity to formalise this commitment in a public policy document and include such clauses in its contracts with business relationships.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.