Marble Point Loan Financing | ESG

Corporate governance and social responsibility are key investment considerations of Marble Point Credit Management LLC (“Marble Point”). Accordingly, we have integrated ESG assessments into our investment analysis and underwriting process and have established standardised guidelines with the oversight of the Marble Point Investment Committee.

Marble Point investment professionals consider ESG factors as part of their initial screenings on prospective investment opportunities. This includes identifying potential ESG positive traits or risks, such as:

• reviewing environmental factors of investing in certain companies, such as ones that produce clean energy or improve energy efficiency or ones that may cause harm to the environment as a consequence of their operations;
• looking at social factors which may include controversial practices or companies that have a positive community impact;
• performing due diligence on the governance of a company, which may include reviewing diversity of the background of key personnel or the board of directors or the existence of a corporate structure that includes the involvement of board members that are not also members of the management team.

If potential ESG risks are identified, they would be discussed along with other non-ESG factors with members of the portfolio management team to decide on whether to continue with the investment due diligence process.

Marble Point specifically precludes investments in issuers that, to the best of Marble Point’s knowledge at the time of the investment, derive a majority of revenues from the following activities (each a “Prohibited Issuer”):

• the development, production maintenance, trade, stock-piling of or distribution of weapons of mass, including biological and chemical weapons, radiologic and nuclear weapons or any primary component used specifically in the production of any such weapon;
• the manufacture of fully completed and operational assault weapons or firearms;
• the production, sale or distribution of pornographic materials or content;
• the growth, production or sale of tobacco and tobacco products, including e-cigarettes;
• the growth, production or sale of illegal drugs and narcotics;
• prostitution-related activities;
• upstream production and/or processing of palm oil for biofuel
• the making or collection of pay day loans or any unlicensed and unregistered financing.

Investment professionals are responsible for the management of assigned investments including monitoring ESG factors over the investment’s lifecycle. ESG considerations are often included in model assumptions and overall investment risk assessment on a qualitative basis. These considerations may include macro factors, such as industry or regulatory trends, as well as more idiosyncratic risks, such as company structure and relationships with customers. As a part of the monitoring process, analysts will review and evaluate changes to a company’s business that may qualify it as a Prohibited Issuer and will communicate such changes to Marble Point’s portfolio and investment management team. In conjunction with reviewing company specific trends and changes, the investment professional will often assess evolving industry standards and ESG risks and opportunities as they arise and escalate to the Investment Committee when appropriate.

Marble Point is committed to the integration of ESG considerations into our investment decision making process. We believe that doing so provides for a more thorough credit analysis and better-informed investment decisions, ultimately driving attractive risk-adjusted returns for our clients.