Investors can play a pivotal role in addressing global issues with solutions government organizations can’t achieve on their own. ESG investing—meaning investments guided by environmental, social and corporate governance criteria, also known as impact investing—is one avenue for those efforts. Not only is ESG investing a way to do the right thing, it can help improve public opinion regarding companies and industries.
Some believe that the positive societal impacts of ESG investing necessarily come at the cost of lower returns. We disagree. KKR has developed what we call solution-focused investing, a proactive approach designed to add value for investors while helping to solve important global challenges.
Rather than looking at companies and ESG issues from a de-risking perspective, we ask, “Which societal changes lead to an investment thesis we can get behind?” We have a team that is dedicated especially to helping us explore complex ESG issues and arrive at win/win investments in global solutions.
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