ESG - Kayne Capital

ESG Philosophy

Kayne believes the integration of material environmental, social and governance (“ESG”) risks and opportunities is an important consideration in the selection of both public and private market investment opportunities. Kayne is committed to selecting partners to build sustainable companies, deliver value to our clients and contribute to sustainable development globally.

A Message From our CEO

“Integrating ESG considerations is important to our firm and our investors. We believe it leads to strong long-term, risk-adjusted returns and has a positive impact on society and the global environment.”

Mike Levitt, CEO, Kayne Anderson

Mike Levitt

Membership and Industry Engagement

As signatory to the Principles for Responsible Investment (PRI), Kayne is committed to incorporating ESG practices throughout our investment lifecycle.

Renewable Energy Addresses Climate Change

Source: EIA

The growth of global energy demand is fueling the increase in carbon emissions, particularly in emerging markets, where coal is the predominant energy source. With the U.S. Energy Information Administration (EIA) projecting global energy demand to increase by nearly 50% by 2050, carbon emissions will continue to rise in the absence of continued investments and developments in renewable energy. The growth in energy demand is in large part due to the global population, which the United Nations estimates will reach 9.7 billion by 2050.

Investment in renewable energy is an important step to address global climate change. Increasing the supply of renewable energy directly replaces carbon-intensive energy sources and significantly reduces greenhouse gas emissions. In recent years, the renewable energy industry has undergone significant change. The advancement of renewable technologies and rapid reductions in cost have accelerated the deployment of renewable solutions.

Source: IRENA

Sustainable Development Goals

The Sustainable Development Goals (SDGs) were unanimously adopted the 193 Members States at the United Nations Sustainable Development Summit in September 2015. The SDGs include a universal set of 17 goals, 169 targets and 232 unique indicators to help organizations monitor and assess their progress. The SDGs represent the priorities of governments, corporations, investors, and NGOs to enhance peace and prosperity, eradicate poverty and protect the planet.

How our portfolio companies contribute to the SDGs:

Infrastructure companies, specifically renewable infrastructure entities, are well positioned to contribute to the SDGs. We have witnessed an uptick in the number of companies that have made explicit and public commitments to advance the SDGs. Our portfolio companies are actively working to achieve the following:

We integrate responsible investment practices because it drives value for our firm, our investors and our portfolio companies.

Mike Lombardo, Director of ESG Strategy

Commitment to Investors

We believe ESG integration is not a one-size-fits-all approach. In order to deliver value, responsible investing needs to be tailored to individual investment strategies. Accordingly, we use a range of methods to implement Kayne’s “Assess-Monitor-Engage” philosophy for ESG integration across our strategies.

Assess

We commit to incorporate material ESG risks and opportunities in our investment analysis and decision-making process.

Monitor

We commit to monitor ESG developments across our portfolios.

Engage

We commit to engage portfolio companies regarding material ESG risks and opportunities.

We believe in the principle of transparency and believe our stakeholders should have greater visibility into our ESG initiatives. We commit to provide updates as we progress through our ESG journey

KA Real Estate’s ESG Report

Kayne Anderson is dedicated to delivering attractive risk-adjusted returns to our investors. We also believe it is our responsibility to help create a more sustainable world. The best way we can fulfill our commitments to our investors, the environment and society is by integrating ESG principles into the management of our investments and company. Working alongside our operating partners and other key stakeholders, we are committed to finding new and innovative ways to further integrate our sustainable principles into our day-to-day operations.

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ESG in Energy Infrastructure

Public infrastructure companies own long-term, durable assets that underpin global economic growth and are central to meeting the world’s energy needs. Infrastructure investing, by its nature, is compatible with environmental, social and governance (ESG) factors and has long been a focus of managers as they make investment decisions regarding return on investment. ESG risks are also increasingly becoming a more impor tant consideration for investors and infrastructure companies have responded through enhanced ESG disclosure.

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Diversity, Equity & Inclusion
at Kayne Anderson

At Kayne Anderson, diversity, equity, and inclusion is a priority and a cornerstone to not only our philosophy as a firm, but how we operate individually. Meaningful partnerships, creative and independent thinking, and fostering an environment where our partners are encouraged to “walk the road less traveled”, allow us to embrace and celebrate the diversity of those partnerships.

In pursuit of continued celebration of our diversity, Kayne Anderson has a dedicated Diversity, Equity, and Inclusion Council, chaired by Kayne’s general counsel, Jarvis Hollingsworth, reporting directly to our executive committee. Additionally, Kayne is proud to support organizations that align with this mission through our charitable foundation. Together, we aim to empower our diverse communities and make Kayne Anderson a forward-thinking and inclusive environment.

Women and minorities represented at all levels, including firm partners, portfolio managers, and senior management
Sponsor of annual conference that promotes female entrepreneurs and women in finance
Partner with Step Up Women’s Network, Ready to Succeed, and Junior Achievement, which provide resources for women and youth from all racial and socioeconomic backgrounds to pursue education and launch successful careers
Partnership with Thrive Scholars to sponsor, support, and hire high-achieving low-income, underrepresented students, many of which are first generation college students, in our summer internship program
Partnership with Best Buddies Jobs Program, which secures jobs for people with intellectual and developmental disabilities, allowing them to earn an income and continuously and independently support themselves