Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Implemented pollution prevention and resource efficiency practices across borrower companies, including wastewater treatment plants, solar facilities, and recycling programs.
• Supported sustainable packaging manufacturer in Ecuador that conserves and reuses water, avoids hazardous waste, and uses recycled materials.

Social Achievements

• Launched Main Street USA initiative to support women and/or minority-owned U.S. small businesses.
• Invested over $60 million in eight developing economy companies to mitigate the impact of COVID-19.
• Increased the number of women in management positions across all TriLinc vehicles to 32% and in board positions to 18%.

Governance Achievements

• Adherence to the IFC Exclusion List and TriLinc’s Industry Statements
• Ongoing ESG monitoring program for each borrower company.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on global economies and SMEs.
• Uneven progress towards UN Sustainable Development Goals (SDGs).

Mitigation Strategies

• Invested over $60 million in developing economy companies to help them navigate the pandemic.
• Revised ESG and impact management systems to place additional emphasis on social equity.
• Continued to engage with investees on quality jobs, products, and services, including gender, racial, and ethnic inclusivity.

Supply Chain Management

Responsible Procurement

• Sustainable Packaging Manufacturer sources recycled paper and cardboard inputs.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Principles for Responsible Investment (PRI), Operating Principles for Impact Management, Impact Reporting and Investment Standards (IRIS)

Certifications: B Corporation

UN Sustainable Development Goals

• SDG 1: No Poverty
• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation and Infrastructure
• SDG 10: Reduced Inequalities
• SDG 12: Responsible Consumption and Production
• SDG 17: Partnerships for the Goals

TriLinc's investments in SMEs contribute to these SDGs through job creation, economic growth, sustainable business practices, and community development.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Developed and implemented Environmental and Social Management System (ESMS) incorporating ESG Assessment Framework and IFC’s Environmental and Social Performance Standards.
• Supported borrower companies in implementing various environmental initiatives such as energy savings, water conservation, and waste reduction.

Social Achievements

• Financed 85 enterprises supporting 39,911 permanent jobs.
• Implemented inclusive HR policies in borrower companies, including fair hiring, compensation, and career advancement.
• Supported community engagement initiatives by borrower companies.

Governance Achievements

• ESG analysis integrated into investment due diligence, decision-making, and portfolio management.
• ESG monitoring program developed for each borrower company.
• Annual re-certification and reporting process required for each borrower company.

Climate Goals & Targets

Environmental Challenges

• Limited access to finance for growth-stage SMEs in developing economies.
• ESG data collection and reporting challenges in developing economies.

Mitigation Strategies

• Developed a robust ESG assessment framework and ESMS.
• Worked with investment partners to gather ESG-relevant data.
• Implemented a tailored ESG monitoring program for each borrower company.

Supply Chain Management

Responsible Procurement

• ESG criteria incorporated into supplier selection.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IRIS, UN Sustainable Development Goals (SDGs)

Certifications: B Corporation

Third-party Assurance: RSM US LLP

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 1: No Poverty

Investments in SMEs contribute to job creation, poverty reduction, and economic development.

Environmental Metrics

ESG Focus Areas

• economic impact
• social impact
• environmental impact

Environmental Achievements

• Not disclosed

Social Achievements

• Supported 40,265 employees in the communities where we lend
• Helped 87 companies to build sustainable communities, strengthen their workforce and enhance their global competitiveness

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• shortage of capital available to growing middle-market companies
• global pandemic (COVID-19) impacting borrowers' ability to make payments and slowing transaction volume

Mitigation Strategies

• active engagement with borrowers
• analyzing potential effects of COVID-19
• business continuity plan implemented by Advisor (remote work, ceased travel, enhanced sterilization)
• working with borrowers to restructure facilities where appropriate, without necessarily providing concessions that are out of market

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

• Economic impact
• Social impact
• Environmental impact
• Decent Work and Economic Growth (SDG 8)

Environmental Achievements

• 67% of borrowers implemented water conservation practices
• 51% of borrowers implemented waste reduction practices
• 53% of borrowers engaged in community service
• 62% of borrowers made charitable donations
• 70% of borrowers implemented energy savings practices

Social Achievements

• Supported 42,423 employees
• 61% of borrowers implemented sexual harassment policies
• 67% of borrowers implemented fair compensation policies
• 67% of borrowers implemented fair career advancement policies
• 77% of borrowers implemented fair hiring & recruiting policies
• 81% of borrowers implemented parental leave policies
• 63% of borrowers implemented DEI policies

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on businesses and supply chains
• Social unrest
• Supply chain disruptions
• Higher input costs
• Slower economic recovery in Sub-Saharan Africa
• Delinquent borrowers

Mitigation Strategies

• Active engagement with borrowers
• Analysis of potential COVID-19 effects
• Business continuity plan implementation
• Remote work options
• Enhanced office sterilization procedures
• Restructuring facilities to provide relief to borrowers
• Legal action to recover past due amounts

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Adverse climate events

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: International Finance Corporation’s Performance Standards for Environmental and Social Performance

Certifications: Null

Third-party Assurance: Independently assured

UN Sustainable Development Goals

• SDG 1: No Poverty
• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation and Infrastructure
• SDG 10: Reduced Inequalities
• SDG 12: Responsible Consumption and Production
• SDG 17: Partnerships for the Goals

TriLinc vehicles are mapped to these SDGs at the portfolio level, and borrower companies are mapped to 15 of the 17 SDGs.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Economic impact
• Social impact
• Environmental impact

Environmental Achievements

• 63% of borrowers had a sexual harassment policy
• 52% of borrowers implemented waste reduction initiatives
• 71% of borrowers implemented water conservation initiatives

Social Achievements

• 69% of borrowers had fair compensation policies
• 83% of borrowers had fair hiring and recruiting policies
• Supported 42,504 employees

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic and the war in Ukraine
• Decreased global demand impacting borrower revenue
• High input costs

Mitigation Strategies

• Closely working with borrowers
• Pursuing additional repurchase or other financial transactions to supplement cash flows
• Selling investments to improve liquidity

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: International Finance Corporation’s Performance Standards for Environmental and Social Performance, UN SDGs (SDG 1, 5, 8, 9, 10, 12, 17)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 1
• SDG 8
• SDG 9
• SDG 10
• SDG 12
• SDG 17

Investments support growing SMEs as engines of sustainable economic growth and development

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Economic development
• Job creation
• Poverty alleviation
• Sustainable economic development
• Diversity, Equity, and Inclusion (DEI)
• Environmental sustainability
• Community impact

Environmental Achievements

• 53% of borrower companies demonstrated waste reduction practices.
• 73% of borrower companies implemented water conservation measures.
• Borrower companies utilize energy-efficient technology, industrial recycling, and reuse programs.

Social Achievements

• Supported 43,671 employees.
• 93 businesses helped to build sustainable communities and strengthen their workplaces.
• 281 (31%) of 903 management positions and 31 (17%) of 186 board positions held by women.
• 65% of borrower companies have DEI policies.
• 56% of borrower companies engaged in community service.
• 70% of borrower companies demonstrated commitment to community service.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Global pandemic challenges, particularly for small businesses in developing economies.
• Economic insecurity for individuals and households.
• Supply chain disruptions (prior to 2023).

Mitigation Strategies

• Working with borrower companies to navigate difficulties.
• Utilizing Private Debt Plus® strategy and impact investment vehicles to support SMEs.
• ESG and impact measurement analyses completed prior to investment and annually thereafter.

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: International Finance Corporation’s Performance Standards for Environmental and Social Performance

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 1, SDG 8, SDG 9, SDG 10, SDG 12, SDG 13, SDG 17

SMEs supported contribute to these goals through job creation, poverty alleviation, and sustainable development.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed