Climate Change Data

Environmental Metrics

ESG Focus Areas

• Community Development
• Hispanic Homeownership
• Socially Responsible Investment

Environmental Achievements

• Invested approximately $9.4 million in a partnership investing in solar projects eligible to receive federal energy tax credits to promote climate change.

Social Achievements

• Capital Plus Financial (CPF), a subsidiary, is a certified Community Development Financial Institution (CDFI) and certified B-Corp supporting Hispanic homeownership.
• CPF injected over $250 million into underserved communities and populations in Texas.
• Advisory agreement with Enhanced Capital Group (ECG) expected to infuse more than $250 million into emerging communities across the country over the next 12 to 18 months.
• Acquisition of Rise Line Business Credit (RLBC) expands access to banking for small businesses.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Litigation: Greathouse v. Capital Plus Financial, LLC and Crossroads Systems, Inc. (PPP loan related)
• Litigation: Oto Analytics, Inc. D/B/A Womply v. Capital Plus Financial, LLC (PPP technology fees related)
• Changing regulations could impose additional compliance burdens and costs.

Mitigation Strategies

• The Company denies allegations of wrongdoing and intends to vigorously defend the cases.
• The Company complies with Texas Department of Savings and Mortgage Lending regulations and federal lending guidelines.
• The Company subjects itself to annual compliance, fair lending, and servicing audits.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Investment in solar tax credit fund

Reporting Standards

Frameworks Used: Null

Certifications: B Corp

Third-party Assurance: Baker Tilly US, LLP

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 11: Sustainable Cities and Communities

Initiatives contribute to these goals through community development, job creation, and affordable housing.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• environmental
• social
• governance

Environmental Achievements

• Investment in a solar tax credit fund increased to $13.7 million from $9.4 million year over year

Social Achievements

• $125 million CDFI bond for Capital Plus Financial enabling further investment into minority-owned small businesses and underrepresented populations
• $30 million financing to Rise Line Business Credit, increasing financing access to businesses

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Community Development
• Minority-Owned Business Support
• Sustainable Development Goals

Social Achievements

• Launched a $2 million social impact venture competition to support minority-owned small businesses.

Climate Goals & Targets

Environmental Challenges

• Tight housing inventory in Texas
• PPP loan forgiveness processing

Mitigation Strategies

• Continued growth of impact loan portfolio is increasing home availability
• Processing of remaining PPP loan forgiveness

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Community Development
• Environmental Sustainability
• Minority and Veteran Owned Businesses

Environmental Achievements

• Invested approximately $9.4 million in a partnership investing in solar projects eligible to receive federal energy tax credits to promote climate change.

Social Achievements

• Funded twenty-five impact loans with outstanding principal of $105.4 million as of July 31, 2022, to infuse capital into emerging communities through small businesses and projects that spur job creation, promote environmental sustainability, support women, minority and veteran-owned businesses and stimulate underserved communities.
• Provided mortgage financing for first-time home buyers, many of whom are first-time credit recipients, in the Dallas/Fort Worth, Houston and San Antonio markets.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Legal proceedings related to Paycheck Protection Program (PPP) loan funding.
• Reduction in PPP fee income.

Mitigation Strategies

• Vigorously defending legal cases.
• Growing partnerships with Enhanced Capital Group (ECG) and Rise Line Business Credit (RLBC) to diversify revenue streams.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: B Corporation

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 11: Sustainable Cities and Communities

Impact loans and homeownership initiatives contribute to economic growth and sustainable community development.

Sustainable Products & Innovation

• Impact loans, sustainable home rehabilitation and sales

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Community Development
• Climate Change
• Small Business Lending

Environmental Achievements

• Invested $15 million in a fund investing in solar projects eligible to receive federal energy tax credits to promote climate change.

Social Achievements

• Facilitated the funding of approximately $6.3 billion of loans through the Paycheck Protection Program (PPP) as of October 31, 2023.
• CPF's mission is to make homeownership available to the Hispanic market throughout Texas.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• The Company is currently in violation of our debt covenants and is currently in the process of obtaining a waiver.
• The Company was not in compliance with the audited annual report covenant as of October 31, 2023.
• In March 2023, BlueAcorn filed a demand for arbitration alleging breach of the parties’ Loan Service Provider Agreement relating to Paycheck Protection Program (“PPP”) loans claiming fees owed.

Mitigation Strategies

• The Company is currently in the process of obtaining a waiver for debt covenant violations.
• Capital Plus signed the Voluntary Agreement with SBA on January 6, 2023, addressing concerns raised in a report on PPP fraud.
• Capital Plus filed counterclaims in May 2023 in response to the arbitration demand and is pursuing discovery.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed