OUR APPROACH TO

RESPONSIBLE 
INVESTING

 

We understand the responsibility that comes with private lending and the impact it has on our investors and borrowers. The concept of responsible investing has always been an important part of Cortland's business model and now we have a formal ESG approach to enhance our investment process as well as identify and mitigate risks in prospective investments. 

Beyond our investments, Cortland is committed to strengthening our internal ESG practices so that we can better serve our employees and community.

ESG Objectives

Identifying and minimizing

risks coming

from ESG factors

Improving 

risk-adjusted returns to our investors

 

Strengthening

our corporate citizenship practices

 

What is ESG?

ESG stands for Environmental, Social, and Governance and are non-financial factors that can contribute to the financial performance of a company. Investors and managers are actively including ESG assessments in the investment process to identify material risks and growth opportunities.

There is no definitive list of ESG issues and some of these issues cannot be solely categorized as only environmental, social, or governance issues. Below are some examples of ESG considerations across 3 broad categories.

Examples of ESG considerations include

E

ENVIRONMENTAL

Examples of environmental considerations include Greenhouse gas emissions; Energy, water, waste, and consumption management; Regulatory compliance; Resilience to climate change; Biodiversity/habitat conservation; Hazardous materials; Contaminated land; Land rehabilitation/remediation; Supply chain impacts; Responsible  sourcing; Certifications and accreditations.

S

SOCIAL

Examples of social considerations include Stakeholder/community engagement; Health and safety practices; Employee training and development; Gender, diversity, and discrimination; Supply chain integrity; Maintaining social license to operate; Indigenous rights; Human rights; Land acquisition and relocation; Local hiring practices/ job creation; Community benefits; Security/cyber security.

G

GOVERNANCE

Examples of governance considerations include Policies and procedures; Board quality and independence; Board gender diversity; Audit/compensation committee structure and independence; Voting rights; Bribery and corruption; Executive compensation; ESG oversight and management; Political contributions; Lobbying activities; Whistleblower protection.

ESG Implementation

Engaging in

ESG-related conversations with borrowers during the origination process

Including ESG updates in investor communications and regular client reporting 

 

Incorporating applicable ESG information and analysis into credit documents

 

Establishing

a social committee to incorporate ESG considerations into corporate culture 

 

Monitoring 

ESG risks through regular meetings and reporting on company performance

 

Training

for employees

by legal and underwriting ESG team members

 

For more information on Cortland's ESG Policy