At KSL, we invest in the unforgettable to create the enduring. We readily acknowledge that our investments can have both a positive and negative impact on the communities in which they operate.
We accept the challenge to mitigate the negative, and to strengthen the positive, environmental, social and governance risks and impacts of our investments.
By doing so, we will enhance our ability to create enduring value for our investors, our employees, our guests, and our neighbors in the communities in which we invest.
The purpose of this Responsible Investment (“RI”) Policy is to define KSL’s approach to integrating environmental, social and governance (“ESG”) risks and opportunities into investments made through its private equity funds. We are committed to exhibiting leadership in corporate citizenship throughout our business operations. Throughout our history of investing exclusively in travel and leisure businesses, we have considered ESG issues that may affect our prospective investments and the surrounding communities. We believe that effective management of ESG issues is critical to preserving and creating long-term value for investors, operators, employees, guests and communities. We continually seek opportunities to improve our ESG approach and policies.
We will consider and manage material ESG risks, opportunities and impacts within our firm and throughout the diligence, stewardship and exit of our investments. We strive to operate in accordance with industry standards such as the United Nations Principles for Responsible Investment and American Investment Council Guidelines for Responsible Investment while complying with all applicable laws and regulations. This policy will apply to all private equity investments made by KSL, and it will be interpreted in accordance with local laws and regulations. In accordance with our fiduciary duties to our clients, this investment policy provides that we:
KSL’s Chief Operating Officer and Management Committee have ultimate responsibility for all ESG matters. They are supported in ESG oversight by KSL’s General Counsel, Chief Compliance Officer, and ESG Manager. In order to support the implementation of this RI policy, we have internal resources that will enhance the efficacy and overall incorporation of ESG issues into our investments and business practices. We seek to foster a corporate culture that engages employees in our ESG goals by doing the following:
ESG issues present regulatory, market, reputational and operational risks and opportunities that should be considered when analyzing a prospective investment. Our process for identifying ESG risks and opportunities prior to committing to a potential investment is as follows:
We will screen all investments for alignment with our investment theses within travel and leisure.
We will use the following as a non-exhaustive guide for relevant considerations of a target investment’s ESG risks and opportunities:
Our consideration of ESG risks and opportunities continues through the life of an investment as necessary. In accordance with the onboarding plan established during the investment analysis process, our asset managers will work with each portfolio company’s management team to increase awareness, mitigate ESG risks and create value through ESG opportunities. This will be done by: