For the sponsored funds, as part of the credit application process and annually thereafter, borrowers attest to their environmental, social, and governance practices, such as inclusive human resource management policies, energy savings, and waste reduction, among others.
During the impact and ESG review process, the Investment Team inquires about the company’s environmental and social policies, procedures, and certifications, which are typically sector and geography specific, and collects any environmental and social impact assessments that have been undertaken by third-parties and governmental institutions. All of TriLinc’s borrowers must be in compliance with the IFC Exclusion List, attest compliance to local environmental, labor, and corporate governance laws, and represent that they will, as appropriate, work towards international best practice standards for ESG issues. An Initial Sustainability and Impact Review (“ISIR”) is conducted on each investment, which includes information from the potential borrower company’s ESG and impact screens; the company’s sustainability report (if available); desktop research on the company, industry, and country of operation; standards, best practices and certifications established by local and international oversight bodies; and an assessment of sustainability risks and opportunities.
TriLinc intentionally selects investments with potential to improve society while still generating competitive returns.