Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Supply Chain Sustainability
• Responsible Lending Practices

Environmental Achievements

• 40% interim 2030 net zero alignment target for direct lending
• Baseline carbon footprint analysis across direct lending portfolio companies
• 62% of direct lending borrowers had an ESG margin ratchet (2022: 53%)
• 76% of portfolio companies declared their 2023 emissions
• Offsetting Scope 1 and 2 emissions and Scope 3 business travel emissions for 2023

Social Achievements

• Launched ‘Investing Potential’ program for students from underprivileged backgrounds
• Partnership with UpReach to recruit interns from lower socioeconomic backgrounds
• Participation in 10,000 Black Interns initiative
• Participation in ILPA Diversity in Action initiative
• 40% of interns came from social mobility partnership initiatives (2022: 67%)
• 50% of Managing Director/Partner new hires were female (2022: 0%)

Governance Achievements

• Established a dedicated sustainable investing process (SIP) team
• Developed robust frameworks for SFDR Article 8 categorization
• Deployed a comprehensive internal guide (Direct Lending SIP Procedure)
• 44% of all board members are female (2022: 38%)
• 100% of employees completed mandatory ESG training

Climate Goals & Targets

Environmental Challenges

• Data availability and quality in private markets
• Lack of mandatory ESG reporting for mid-market companies
• Assessing climate risk in lending
• Identifying and managing ESG risks in diverse investment strategies

Mitigation Strategies

• Annual ESG Borrower Questionnaire
• Third-party ESG data management platforms
• Developed a climate diagnostic tool for due diligence
• Customised ESG assessment frameworks for each strategy
• ESG Margin Ratchet to incentivize sustainability performance

Supply Chain Management

Responsible Procurement

• ISO 20400 Sustainable Procurement certification (case study example)
• Supplier requirements covering worker rights and safety, zero tolerance of bribery and corruption (case study example)

Climate-Related Risks & Opportunities

Physical Risks

• Severe water shortage impacting production capacity (case study example)

Transition Risks

• Regulatory changes promoting circular economy (case study example)

Opportunities

• Increased market penetration in the transition to EVs (case study example)

Reporting Standards

Frameworks Used: SASB, TCFD, UN PRI

UN Sustainable Development Goals

• SDG 14 (Life Below Water)

Financing of a company developing technology for sustainable fishing

Awards & Recognition

• Private Debt Investor, ‘Lender of the Year Award’ 2023