Climate Change Data

Apollo Commercial Real Estate Finance, Inc.

Climate Impact & Sustainability Data (2023, 2024-03-31)

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • environmental, social, and governance (ESG)

Governance Achievements

  • adopted a Code of Business Conduct and Ethics and Corporate Governance Guidelines
  • implemented Whistle Blowing Procedures for Accounting and Auditing Matters
  • implemented an insider trading policy

Climate Goals & Targets

Environmental Challenges

  • competition for investments in our target assets
  • cybersecurity risks and cyber incidents
  • unintended consequences and market distortions from governmental intervention in the economic and financial system or from regulatory reform
  • loss of exclusion from registration under the 1940 Act
  • climate change and regulatory and other efforts to reduce potential climate change impacts and the increased focus on ESG issues
Mitigation Strategies
  • rigorous, credit-oriented evaluation of prospective investments
  • implemented comprehensive anti-money laundering policies and procedures
  • incorporate ESG considerations into the investment analysis and decision-making process, including conducting and completing environmental risk assessment for all of the properties underlying our loans
  • utilizing forward currency contracts to economically hedge interest and principal payments due under our loans denominated in currencies other than U.S. dollars
  • various actions involving intervention in the economic and financial system and regulatory reform of the oversight of financial markets
  • risk management and contingency plans and taken preventive measures and other precautions

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • extreme weather events such as hurricanes or floods
Transition Risks
  • impact of U.S. and foreign climate- and ESG-related legislation and regulation
  • climate-and-ESG-related business trends

Reporting Period: 2024-03-31

Environmental Metrics

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Complete environmental risk assessments for all properties underlying our loans
  • Assess properties' sustainability by reviewing characteristics such as neighborhood walkability and transit ratings, and LEED and ENERGY STAR certifications
  • Median walkability and transit score for properties underlying U.S. loan portfolio were 91 and 86, respectively, based upon information provided by a leading third-party provider

Social Achievements

  • Apollo's commitment to diversity and inclusion is reinforced throughout multiple firmwide initiatives including training, the Apollo Women Empower (AWE) initiative, which focuses on attracting, retaining, training and promoting women, and the Apollo Veterans Initiative, which champions and supports the hiring and retention of veterans
  • Apollo launched the Apollo Opportunity Foundation in 2022 with a commitment to invest more than $100 million over the next decade in non-profit organizations working to expand opportunity for underrepresented individuals

Governance Achievements

  • ARI’s Board of Directors and Management team are committed to operate our business at the highest level of ethical conduct
  • We regularly review and update, as appropriate, our policies governing ethical conduct and responsible behavior in order to support our continued success
  • Separate CEO and Chairman roles
  • Board is majority independent and strives for diversity

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities