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TriLinc Global, LLC

PRI reporting framework 2018

You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » (C) Implementation: Integration

(C) Implementation: Integration

FI 11. Integration overview

11.1. Describe your approach to integrating ESG into traditional financial analysis.

All of TriLinc's investments incorporate ESG and impact factors, based on the conviction that strong ESG policies and practices are a key component of risk management, and that specific practices, such as water conservation, waste reduction, and energy efficiency, can generate quantifiable cost savings.

11.2. Describe how your ESG integration approach is adapted to each of the different types of fixed income you invest in.

Corporate (non-financial)

In the sponsored funds, TriLinc makes direct loans to SMEs, either as trade finance facilities or term loans. All companies must pass ESG screens, independently of the type of financing they receive.

11.3. Additional information [OPTIONAL]

FI 12. Integration - ESG information in investment processes

12.1. Indicate how ESG information is typically used as part of your investment process.

Select all that apply
Corporate (non-financial)
ESG analysis is integrated into fundamental analysis
ESG analysis is integrated into security weighting decisions
ESG analysis is integrated into portfolio construction decisions
ESG analysis is a standard part of internal credit ratings or assessment
ESG analysis for issuers is a standard agenda item at investment committee meetings
ESG analysis is regularly featured in internal research notes or similar
ESG analysis is a standard feature of ongoing portfolio monitoring
ESG analysis features in all internal issuer summaries or similar documents
Other, specify

12.2. Additional information [OPTIONAL]

Certain references in this section (e.g. "credit ratings," "issuers") do not apply to TriLinc, as TriLinc does not invest in bonds or other traded securities, but rather makes direct loans to privately held companies.

FI 13. Integration - E,S and G issues reviewed

13.1. Indicate the extent to which ESG issues are reviewed in your integration process.

Corporate (non-financial)




13.2. Please provide more detail on how you review E, S and G factors in your integration process.

Corporate (non-financial)

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.

13.3. Additional information.[OPTIONAL]

In addition to meeting TriLinc's Exclusion and ESG requirements, borrower companies must self-identify one or more impact metric(s), using the Global Impact Investng Network's Impact Reporting and Investment Standards, and commit to providing baseline data and annual updates for as long as the loan is in TriLinc's portfolio.