Sustainable Private Debt Investing

We believe that businesses that effectively manage environmental, social and governance (ESG) factors have superior long-term prospects, and are more likely to create sustainable long-term value, than those that do not.

Benefit

As a long-term lender, the IAM Private Debt group has a critical interest in the long-term viability and success of the businesses which we finance.

Incorporating assessment of ESG management in our due diligence on prospective borrowers assists in evaluating the credit worthiness of the business and can materially reduce our risk. Evaluating ESG compliance is an important consideration in determining whether an investment is viable and attractive.

Where ESG factors are material, they can impact our assessment in a meaningful way. We expect a significant reduction in the likelihood of negative surprises from businesses that effectively manage ESG factors.

ESG Evaluation

ESG factors incorporated in our assessment of a prospective borrower include those below:

Environment

  • Energy management and GHG management
  • Waste management
  • Environmental compliance and record
  • Resource consumption and sustainability

Social

  • Product safety, liability and litigation
  • Health and safety practices
  • Working conditions
  • Labour practices and management
  • Local social impact
  • Community relations

Governance

  • Transparency
  • Regulatory compliance
  • Shareholder rights
  • Board competition and structure
  • Governance practices
  • Anti-money laundering
  • Anti-bribery and corruption

Sustainable Investing in Practice

We have broad experience in sustainable project finance. The group has financed an array of green projects in sectors which include:

  • Wind power
  • Solar power
  • Deep lake cooling
  • Biomass cogeneration
  • Solid waste management

Commitment

We are constantly researching and updating our understanding of evolving ESG issues and best practices. We are supportive of, and guided by:

  • UN PRI
  • The Equator Principles
  • The Extractive Industries Transparency Initiative (EITI)
  • CDP Water Disclosure Initiative