2020 was an exceptionally challenging year. As COVID-19 ripped through our communities and our economies, the pandemic’s cost, measured in human life, job losses and dramatic disruptions to hundreds of millions of lives globally, was painfully tangible.
Over the year, ADM Capital monitored the various direct and indirect impacts of COVID-19 on their borrowers as part of their duty of care and worked closely with portfolio companies to support them through this difficult period. Investors and borrowers alike have been shaken not only by pandemic but by the rapid shifts in behaviour that have occurred as a result.
As a private credit manager, we pride ourselves on offering loans that work with the needs and circumstances of our borrowers, allowing them to invest in their future, create or save jobs, innovate and compete globally.
We hope that our ESG integrated financings have not only helped companies to weather the challenges but emerge stronger and more resilient.
Sustainability is an integral value of ADM Capital and guides how they do business, helping to mitigate risk and define opportunity. And it has come into sharp focus as we consider the costs of the pandemic as well as the biodiversity, human and climate consequences of ignoring science.
Beyond COIVD-19, last year ADM Capital put the environment front and centre in their investment strategy, introducing a new Climate Change Policy and a refined ESG Policy. They strengthened key areas of their Environmental and Social Management System (ESMS) and due diligence processes to better identify ESG risks in the investment process.
These changes are being introduced across ADM Capital’s private credit portfolios, with borrowers asked to provide climate-relevant and other ESG-related KPIs to promote more sustainable and inclusive business practices.
In 2020 ADM Capital carried out a first audit of their Scope 1 & 2 GHG emissions and piloted an audit of the GHG emissions of five portfolio companies. A partnership with Trucost supported the footprint assessment with the objective of establishing a baseline for further interventions.
Looking to deepen climate engagement further, and seeing an opportunity in renewable energy in Asia, ADM Capital announced in November 2020 a partnership with the Asian Infrastructure Investment Bank to launch a renewable energy private credit fund targeting Emerging Asia.
Furthermore, ADM Capital believes that considering sustainability in a transaction is crucial to producing strong financial performance from their investments.
Read the full report here.