OVERVIEW

Since 1987, Kohlberg has been dedicated to investing with integrity to build long term value in middle market companies in the United States. Kohlberg’s long-standing mission is to invest in high-quality businesses with defensive market characteristics, to embrace a disciplined, conservative approach to risk management, and to capitalize on value creation opportunities. Kohlberg leverages ESG considerations in ways that are consistent with this mission and our fiduciary duty to generate long-term value for our investors.

PURPOSE

Our objective is to make investment decisions based on a full set of risk-reward factors, and we view ESG considerations and risk factors as a part of the important inputs into our investment process. We believe that taking into account ESG considerations can help to mitigate potential risks and realize value creation opportunities, both of which contribute toward top-performing investments with consistent returns.

GOVERNANCE

Accountability extends through our Firm with oversight residing with a cross-functional ESG & DEI Committee. The Committee includes members of senior leadership and other senior deal and operations professionals. Kohlberg’s ESG & DEI Committee is responsible for 1) setting ESG & DEI strategy for the firm; 2) developing and implementing ESG & DEI initiatives and policies; 3) monitoring and assessing ESG & DEI developments; and 4) seeking to improve Kohlberg’s performance over time. In addition, Kohlberg has dedicated personnel with subject matter expertise who spearhead ESG efforts on behalf of the Firm.

KOHLBERG’S ESG PROCESS — AT-A-GLANCE

ADVANCING AND ACTIVATING DIVERSITY IN ALL ITS DIMENSIONS

Kohlberg is committed to fostering, cultivating and preserving a culture of diversity, equity and inclusion (DEI) at Kohlberg. At Kohlberg, we know that diverse teams achieve better results and that different perspectives give us the power to make better decisions for our employees, portfolio companies and investors.

CLIMATE CONSIDERATIONS

Climate change can present a range of opportunities and vulnerabilities to a diverse portfolio such as ours. We collaborate with portfolio companies to spot and seize value-accretive opportunities presented as the world transitions to a lower carbon economy. We do not take a one-size-fits-all approach. We meet our portfolio companies along their respective journeys and help them pursue their decarbonization goals, which often are driven by the need to comply with regulatory or customer demands.

LEADING BY EXAMPLE

We are proud that in 2021, EcoVadis awarded Kohlberg a Silver Medal after assessing our business processes.

Kohlberg conducts an annual Scope 1 & 2 carbon footprint assessment according to guidelines provided by the Greenhouse Gas Protocol. Our Scope 1 & 2 emissions are as follows:

Scope 1 (Activity-based): 121 MTCO₂e

Scope 2 (Location-based): 178 MTCO₂e

PHILANTHROPY AND COMMUNITY ENGAGEMENT

In 2021, we formed Kohlberg & Co. Community Outreach (KOCO), a multifaceted philanthropic program that builds upon our firm’s long-standing tradition of community involvement. KOCO serves as a catalyst for expanded opportunity and equitable access to learning and education for a diverse group of individuals who will shape our community’s future. Its mission is to forge productive, enduring partnerships among Kohlberg, our employees, and nonprofit groups in Mount Kisco and the surrounding region.

ArtLifting is a platform for artists that have traditionally been underrepresented in the contemporary art market. Each artist has a unique perspective, style, and story based on the diversity of their experiences, talents, and processes. The combination of their artwork and stories inspires communities and drives social change. Since 2018, Kohlberg has been a proud supporter of ArtLifting, which curates artwork displayed in our offices and used in our annual sustainability reports.