KAIF is dedicated to enhancing its environmental, social, and governance (ESG) practices within its investment portfolio. Although KAIF does not consider principal adverse impacts on sustainability factors for its investments, KAIF has a documented Environment, Social and Governance System (ESGS) from which it references policies and procedures that KAIF applies to its investments.

The ESG strategy for KAIF is predicated on its adherence to KAIF’s proprietary ESGS, which was developed to ensure investments made by KAIF are compliant with the environmental and social (E&S) policies and regulations of the country of investment as well as E&S frameworks of multilateral organisations that are active in the Asia Pacific Region.

KAIF views ESG as an integral part of KAIF’s risk management system and mitigation of such risks helps to create sustainable value and ensure long term outperformance. ESG risks may affect investment returns by impacting asset values, increasing operating or compliance costs, or limiting financing options. These risks can arise from environmental liabilities, climate-related events, and resource variability, ultimately influencing financial performance. To address these risks, the Fund has established a framework that outlines how ESG considerations are integrated throughout the investment lifecycle, from screening and due diligence to portfolio management and value creation. The framework sets out the ESG processes and assessment criteria used to evaluate and support good governance practices across portfolio companies.

As a value-add infrastructure fund platform, KAIF team works closely with its portfolio companies to implement environmental and social action plans during the investment period and thus setting the standard for ESG best practices in the sector.

For further information on SFDR disclosures at the entity level, please refer here.