Climate Change Data

Environmental Metrics

ESG Focus Areas

• Responsible Investing
• Board Diversity
• Environmental, Social and Governance (ESG) Issues

Social Achievements

• Investment Manager worked closely with portfolio companies on collection and borrower contact strategies, including hardship relief options.

Governance Achievements

• Refreshed and strengthened the Board with the appointment of two new independent non-executive directors.
• Continuation vote resolution passed at the 2020 AGM.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic created extreme uncertainty and disruption.
• Significant volatility in share price.
• Share price discount to NAV ranged from 11.07% to 54.37%.

Mitigation Strategies

• Took a conservative approach to expected credit loss provisions.
• Implemented an active share buyback programme.
• Refreshed and strengthened the Board.
• Developed fair and transparent hardship relief options for borrowers.
• Brought in external collections experts to enhance collections capabilities.

Supply Chain Management

Supplier Audits: Not disclosed

Climate-Related Risks & Opportunities

Awards & Recognition

• Best Performing Debt Fund in Citywire’s Fourth Annual Investment Trust Awards

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Social Achievements

• Lending has helped Sunbit, Inc. to grow its business helping people with everyday needs like car repairs and opticians. Investment in Dave, Inc. supports the company’s cash advance product which helps consumers avoid bank fees with little or no cost to the consumer.

Governance Achievements

• The Company has several policies and procedures in place to assist with maintaining a culture of good governance, including those relating to diversity.

Climate Goals & Targets

Environmental Challenges

• The macroeconomic backdrop for non-traditional credit has remained somewhat volatile
• The COVID-19 pandemic is still with us, delaying hopes of a return to normality. Interest rates are rising sharply as governments withdraw pandemic support programmes and as central banks battle spiralling inflation. The ongoing conflict between Russia and Ukraine is an historic geopolitical event and a humanitarian tragedy that threatens to have long-term implications for the global economy.
• The typical discount to NAV at which our Company’s shares trade is too high

Mitigation Strategies

• VPC’s risk mitigation measures, the resilience of the portfolio and its performance have been encouraging.
• VPC’s technology and resources ensured that their employees could also work from home where necessary, without any operational disruption
• VPC’s senior secured credit strategy provides opportunistic financing across select investment verticals. Target investments are typically shorter in duration and aim to offer higher yields and greater structural protections than traditional lenders, with an emphasis on capital preservation and income generation across market cycles.
• Taking action to reduce the discount to NAV is a priority for the Company, and various steps are being taken towards achieving that goal. Strong and consistent investment performance, backed by active risk management, demonstrating this to existing and potential shareholders, and actively marketing the shares.

Supply Chain Management

Supplier Audits: Not disclosed

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: AIC

Third-party Assurance: Not disclosed

Awards & Recognition

• Investment Company of the Year (Debt Category) at Investment Week’s annual investment awards in November 2021

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Governance Achievements

• Continued to operate under its environmental, social and governance (“ESG”) policy and monitors any ESG risks that it identifies and presents them to their Investment Committee for review.

Climate Goals & Targets

Environmental Challenges

• High inflation in many advanced economies leading to tightening monetary policy and constrained spending.
• Challenges in the eCommerce industry including competition growth, supply-chain interruptions, and increased regulation.
• Stubbornly wide discount to net asset value at which the Company’s shares traded.

Mitigation Strategies

• Core asset-backed lending business continued to perform well due to rising short-term interest rates and secure lending position.
• Investment Manager working with Portfolio Companies to restructure balance sheets and evaluate strategic combinations to maximize shareholder value.
• Managed wind-down of assets approved by shareholders to address the share price discount.
• Extension of certain debt maturities to preserve value for shareholders.
• Implementation of a B Share Scheme to facilitate the return of capital to Shareholders.

Supply Chain Management

Supplier Audits: Not disclosed

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Principles for Responsible Investment

Third-party Assurance: Not disclosed