Month: June 2023

Originally published on Jun 23, 2023

At KKR, we are unwavering in our commitment to seek to create and protect value. We have a fiduciary duty to our clients to do so. We also know that there is a wide range of individuals affected by our investment activities, including retirees, businesses, local communities, and others. They too have a meaningful stake in how we invest and do business.

Recently, some have questioned the merits of focusing on “ESG” factors as a tool in investment management. The bases of these questions are:

Genuine disagreement about appropriate ways for our society to deal with challenges such as climate change; energy security; diversity, equity, and inclusion (DEI); and other topics;The appropriate role of business and investors in these areas; andThe lack of uniform definitions for terms like “ESG” or “responsible investing.”

We welcome these questions. In fact, we ask ourselves these same questions. It is through dialogue and self-assessment that we can both learn from others and hold ourselves accountable. For us, our approach to what we call “sustainable investing” is an opportunity to create value and mitigate risk. It is one of many tools we have to create value, including financial proficiency, operational insight, macroeconomic expertise, and the experience gained from KKR’s 47 years of investing. Our experience has shown us that companies that focus on ESG-related risks and opportunities — where material — can create stronger, better investment outcomes. We have been doing this for many years and have publicly shared how we think about sustainable value creation for over a decade.

It is important to recognize that this work is not “one size fits all.” As this year’s report describes — and as we have described in the past 11 reports before it — we seek to identify material risks and potential value creation opportunities as part of our investment process, which are based on a number of factors, including the company’s industry, where it operates, and its stakeholders. When we talk about ESG topics, we refer to material risk factors and opportunities, which may include, for example, understanding safety records at our manufacturing investments, consumer-lending practices at financial services investments, or patient outcomes in health care investments. To enhance our thinking, we aim to incorporate third-party frameworks and standards and bring clarity to a confusing landscape by being transparent about our approach and explicit about the terminology we use to explain it.

More broadly, we identified four key objectives that we believe can align with risk mitigation and value creation across a wide variety of industries. We call these our Global Ambitions. It is our intent to support improved performance across our portfolio companies in these areas: i) Managing material ESG topics and adopting an appropriate governance framework; ii) Engaging human capital; iii) Managing climate risks and opportunities; and iv) Protecting data privacy and cybersecurity.

Why focus on these areas? Put simply: We believe that managing them helps us create and protect value.

As one example, we have found that supporting the implementation of robust employee engagement and ownership programs can create a more productive workforce, increase employee retention, and enhance operational excellence. We have experienced this by supporting employee ownership and engagement programs at 30 of our portfolio companies since 2011. The benefits of an engaged workforce as performance drivers are supported by third-party research1, where engaged teams have been found to drive 14% higher productivity and 23% higher profitability. We further detail these benefits and our experience with other topics within this report.

We also believe that creating and protecting value demands a broad, global lens. Mega and macro trends such as the energy transition, supply chain resiliency, digitization, and lifelong learning are areas of global concern where we intend to invest.

Moreover, we see providing necessary goods and services to customers and addressing global challenges as not mutually exclusive. Globally, we invested approximately $40 billion across multiple asset classes in areas aligned with such macro tailwinds since 2010, and we believe there will be more opportunities in the future. In an era of geopolitical competition, we believe investors should seek to understand geopolitically driven risks and opportunities.

This is a time of rapid social, economic, political, and technological change. Recognizing our primary responsibility to manage the investments of tens of millions of retirees — an important societal objective — and as partners to our portfolio companies in building successful commercial enterprises, we work to navigate these changes with a growth mindset. This includes learning as we go, being committed to improving, and being open to constructive criticism from those who may challenge our assumptions. Throughout all, we seek to create and protect value for our investors and for all those who are relying on us.

To learn more about our approach to sustainable investing and for more information, read our 2022 Sustainability Report.

1. Gallup, The Relationship Between Engagement at Work and Organizational Outcomes: 2020 Q12® Meta-Analysis:10th Edition, 2020.

Originally published in FedEx’s 2023 ESG Report

FedEx contracts with more than 100,000 direct suppliers, employing people across the world to empower our e-commerce and global operations. The FedEx Services Supplier Relationship Management (SRM) team manages and mitigates critical risks in our supply chain by implementing policies and governance practices. We work closely with our suppliers and collaborate with internal stakeholders to advance our ESG goals throughout the value chain, with a focus on diversity and sustainability. We require our suppliers to adhere to the principles outlined in our Code of Conduct and our commitment to protect human rights.

Our global supply chain creates significant economic activity as each FedEx vendor contributes its own revenues, employment, taxes, and capital investments to their national and local economies. According to an analysis prepared by Dun & Bradstreet, FedEx operations and business activity indirectly contributed to net economic output worth an estimated $22.6 billion across the global economy in FY22—a nearly 12% increase over the company’s indirect contributions in FY21. Our activity supported an estimated 193,000 additional jobs beyond the FedEx worldwide employee base—20,000 more jobs than FedEx indirectly supported in FY21.

Our Sourcing Sustainability Impact Team (SIT) identifies best practices and benchmarks our performance to determine where we can improve. We are founding members of the Sustainable Purchasing Leadership Council and follow International Standardization (ISO) 20400 guidance for ESG-related metrics surrounding our sourcing practices across operating companies.

Small-, women-, and minority-owned businesses enhance the strength and resilience of our supply chain. We support the development of diverse suppliers through alliance sponsorships, industry associations, and equitable market access opportunities.

$18.8 billion 

In FY22, our U.S. operations acquired $18.8 billion in goods and services from diverse and small business suppliers.

Through our Small Business Grant Contest, we provided $365,000 in grant money to contest winners in FY22, with 91% given to womenowned businesses and 50% given to minorityowned businesses. Over the last ten years the grant contest has provided over $1.7 million to 111 small businesses across the U.S. The contest is now offered in Europe, India, Asia-Pacific, and Latin America and the Caribbean.

We help women- and minority-owned businesses, including many FedEx suppliers, succeed through the Global Entrepreneurship pillar of FedEx Cares, our global community engagement program focused on in-kind shipping, volunteer work, and charitable giving. Our initiatives provide these entrepreneurs with training, mentoring, networking, capital access, and other resources to assist in growing their business while navigating challenges.

The FedEx E-Commerce Learning Lab, developed alongside Accion Opportunity Fund and womenowned social enterprise 37 Oaks, helps women and minority small business owners develop their e-commerce operations, find new customers, and build professional networks. Nearly 2,200 business owners have engaged with online e-commerce courses, and 88% of Learning Lab graduates feel confident in operating and scaling their e-commerce businesses after having completed the program. Additionally, in FY22, we worked with United Way Mumbai to provide resources and help restart more than 700 women-led micro and small businesses across Maharashtra impacted by the COVID-19 pandemic.

See the Diversity, equity, and inclusion create opportunity section for more information on our DEI initiatives.

Key links 

Global Economic Impact Report

Global Entrepreneurship | FedEx Cares

Supplier diversity

Read more

Abbott

ARLINGTON, Va. and ABBOTT PARK, Ill., June 28, 2023 /3BL/ – On June 24, the American Diabetes Association® (ADA) and Abbott announced a collaboration aimed at better understanding how diabetes technology like continuous glucose monitoring (CGM) systems can help people living with diabetes make informed decisions about their food and activity.

Dietary habits play a pivotal role in glucose control. Nonetheless, individual variations in glycemic response to the same foods make it very challenging to prescribe a universal nutritional plan for diabetes management. Clinical studies support that keeping glucose levels steady over time leads to better clinical outcomes for people with diabetes.1 CGM systems, like those made by Abbott, are an important tool in helping a person manage their diabetes. They offer personalized, real-time data on how food and activity affect glucose levels. Over time, research shows that the data from CGMs allows people with diabetes to learn patterns and create a nutritional plan that provides steady glucose levels and the potential for improved clinical outcomes, like lowering A1C.

“What people with diabetes eat is a critical part of managing their diabetes,” said Charles “Chuck” Henderson, chief executive officer of the ADA. “Personalized nutrition using CGMs has the potential to revolutionize diabetes management by providing individuals with more data and tools to manage their glucose levels, improve their quality of life, and reduce the risk of diabetes-related complications. The ADA is grateful to Abbott for its continued support of our mission to improve the lives of people impacted by diabetes. “

For more than 20 years, Abbott and the ADA have worked together with a shared mission to fight for all those affected by diabetes. Abbott is providing a $2.65 million grant over the next three years to the ADA to enable them to:

Engage with top healthcare professionals and key opinion leaders to evaluate existing clinical evidence on the use of CGM systems for personalized, therapeutic nutrition.Launch two pilot programs targeted at adults with Type 2 diabetes to gain a deeper understanding of the role a CGM can play in personalized therapeutic nutrition. These programs will leverage CGM data to understand how they help people with diabetes achieve their objectives, which include modifications to their nutritional intake and dietary habits.Host roundtable discussions in collaboration with renowned health care experts to review and evaluate the existing clinical evidence. These discussions will investigate the role of therapeutic nutrition using CGM data and its potential to inform nutrition recommendations.

“Abbott’s FreeStyle Libre technology can be a critical tool for all people living with diabetes, not only those on insulin,” said Robert B. Ford, chairman and chief executive officer, Abbott. “We look forward to working with the American Diabetes Association to gather further evidence to show how the technology we designed to be affordable and accessible can provide personalized insights t0 help people make informed decisions about their food and activity.”

About the American Diabetes Association:

The American Diabetes Association (ADA) is the nation’s leading voluntary health organization fighting to bend the curve on the diabetes epidemic and help people living with diabetes thrive. For 82 years, the ADA has driven discovery and research to treat, manage, and prevent diabetes while working relentlessly for a cure. Through advocacy, program development, and education we aim to improve the quality of life for the over 133 million Americans living with diabetes or prediabetes. Diabetes has brought us together. What we do next will make us Connected for Life®. To learn more or to get involved, visit us at diabetes.org or call 1-800-DIABETES (1-800-342-2383). Join the fight with us on Facebook (American Diabetes Association), Spanish Facebook (Asociación Americana de la Diabetes), LinkedIn (American Diabetes Association), Twitter (@AmDiabetesAssn), and Instagram (@AmDiabetesAssn).

About Abbott:

Abbott is a global healthcare leader that helps people live more fully at all stages of life. Our portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 115,000 colleagues serve people in more than 160 countries.

Connect with us at www.abbott.com, on LinkedIn at www.linkedin.com/company/abbott-, on Facebook at www.facebook.com/Abbott and on Twitter @AbbottNews.

1 Miller E, Brandner L, Wright E. HbA1c reduction after initiation of the FreeStyle Libre system in type 2 diabetes patients on long-acting insulin or non-insulin therapy [84-LB]. Poster presented at: 80th Scientific Sessions of the American Diabetes Association: June 12-16, 2020; Virtual.