New Mountain Finance Corporation
Climate Impact & Sustainability Data (2020, 2021, 2022)
Reporting Period: 2020
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Global capital markets could enter a period of severe disruption and instability.
- We are currently operating in a period of capital markets disruption and economic uncertainty.
- Adverse developments in the credit markets may impair our ability to secure debt financing.
- Events outside of our control, including public health crises, could negatively affect our portfolio companies and our results of our operations.
- Changes to U.S. tariff and import/export regulations may have a negative effect on our portfolio companies and, in turn, harm us.
- The effect of global climate change may impact the operations of our portfolio companies.
Mitigation Strategies
- Performed a company-by-company evaluation of the anticipated impact of the COVID-19 pandemic.
- Will continue to monitor our portfolio companies and provide support to their management teams where possible.
- We will continue to monitor the rapidly evolving situation surrounding the COVID-19 pandemic and guidance from U.S. and international authorities, including federal, state and local public health authorities, and may take additional actions based on their recommendations.
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2021
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- The COVID-19 pandemic and its impact on the overall market environment and the health of our portfolio companies.
- Inflation and rising commodity prices may adversely impact our portfolio companies.
- Uncertainty surrounding potential legal, regulatory and policy changes by new presidential administrations in the United States that may directly affect financial institutions and the global economy.
- The effect of global climate change may impact the operations of our portfolio companies.
Mitigation Strategies
- Company-by-company evaluation of the anticipated impact of the COVID-19 pandemic, including dialogue with sponsors and portfolio companies.
- Interest rate risk management techniques to limit exposure to interest rate fluctuations.
- Monitoring of compliance with applicable laws and regulations.
- No specific mitigation strategies for climate change are mentioned.
Supply Chain Management
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather conditions
Transition Risks
- New or strengthened regulations or legislation
Reporting Period: 2022
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- The U.S. capital markets have experienced extreme volatility and disruption following the global outbreak of COVID-19.
- Adverse developments in the credit markets may impair our ability to secure debt financing.
- Events outside of our control, including public health crises, could negatively affect our portfolio companies and our results of our operations.
- Inflation and rising commodity prices may adversely impact our portfolio companies.
- Changes in interest rates may affect our cost of capital and net investment income.
- The effect of global climate change may impact the operations of our portfolio companies.
Mitigation Strategies
- We have been closely monitoring, and will continue to monitor, the impact of the COVID-19 pandemic, including new variants of COVID-19, on all aspects of our business.
- We may use interest rate risk management techniques in an effort to limit our exposure to interest rate fluctuations.
- We and our service providers are currently impacted by restrictions being enacted by governments and private entities in response to the global COVID-19 pandemic, which are obstructing the regular functioning of business workforces.