At Kayne Anderson, we believe responsible investment practices are in the long-term interests of our clients and consistent with our fiduciary duties as an asset manager.
Making an Impact
ESG Philosophy
We believe incorporating environmental, social and governance (ESG) risks and opportunities into investment analysis and decision-making provides tangible benefits to investors, including risk mitigation, the identification of investment opportunities and improved valuations. The firm’s rigorous research and disciplined processes underpins our fundamental investment approach, which incorporates ESG factors as an element of that process.
A message from our CEO
“We believe incorporating ESG into our investment process has the double impact of improving investor returns while also positively impacting our world.”
Mike Levitt, CEO, Kayne Anderson
Investor Initiatives
Kayne Anderson has been a participant in the GRESB assessments since 2017 UNPRI. Since its founding in 2006, the United Nations Principles for Responsible Investing (PRI) has attracted support from more than 1,800 signatories representing over USD $68 trillion in assets under management as of April 2017. Signatories commit to six voluntary principles, the first of which is the incorporation of ESG issues into investment analysis and decision-making.
A letter from Mike Lombardo
Director of ESG Strategy
The purpose of all life is development and enrichment. Every Human Being, in fact, every living thing, has an inalienable right to all the development to which it is capable.
A Human Being’s right to life implies his right to have free and unrestricted access to all things, which may be necessary to assist him to realize his fullest mental, spiritual, and physical potential. In other words, every human being has the right to be rich and enjoy everything life has to offer.
There are three major motives for our lives: We live for our bodies. We live for our minds. And, we live for our soul. These three constituents are, at the same time, both highly distinctive of each other, as well as highly inter-dependent from each other.
But, in the world we live in, this is surely easier said than done. Everything we need or want has to be purchased for a price. Life has become so complex that even the most ordinary of human beings needs a great amount of money to satisfy his need for a fuller life.
Key Commitments of Our
ESG Policy
Diligence
Incorporate material ESG risks and opportunities in our investment process.
Examples of ESG issues we may consider in our research process include:
- Environmental management
- Employee health and safety
- Human capital management
- Cyber risk
- Board independence
- Executive compensation
Ownership
Engage portfolio companies on material ESG risks and opportunities.
Where the firm has controlling ownership, Kayne Anderson brings portfolio management teams together annually to discuss ESG risks and best practices, requires annual ESG self-assessments and board reporting on ESG metrics.
Transparency
To provide our stakeholders with greater visibility into our ESG initiatives.
We regularly provide updates to institutional investors regarding our ongoing ESG-related progress and participate in third-party ESG assessments for certain strategies.