Responsible Investing

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Investing Responsibly and Ethically

Investing responsibly and ethically can lead to better-informed decisions, therefore protecting and/or creating long-term value for our stakeholders. Through our Corporate Sustainability Policy, Sustainable Assessment Policy, and Stewardship and Engagement Policy, ORIX USA Group has developed guidelines seeking to incorporate critical sustainability considerations into its decision-making processes in addition to developing a constructive approach to engaging with stakeholders.

Key Sustainability Considerations

Environmental

We seek to identify and discuss matters pertaining to environmental issues to determine a potential obligor’s/investee’s direct and indirect impact on the environment (e.g. air, water, and waste-related emissions, resource use/efficiency, environmental innovation, and climate change resilience/preparedness) and the implications such risks may have.

Governance

We seek to evaluate the qualification, independence, and diversity of the senior management teams, and the presence of potential corrupt practices or unethical behaviors in order to validate that the potential obligor/investee is equipped to manage potential future risks and will act in the interest of its stakeholders, including shareholders and employees. Corporate governance is a foundational block as poor corporate governance often poses other material risks.

Social

We seek to evaluate the potential obligor’s/investee’s relationship with its employees, suppliers, customers/clients, regulators and communities in which they operate, in addition to how it approaches human rights and manages labor relations as well as employee and product/service safety.

Sustainability Assessment Framework

Our approach to responsible investing has been translated into our “Sustainability Assessment Framework” which applies to new and existing investment opportunities across all our asset classes¹ consisting of the following:

Screen & Assess

Applying a screen to certain escalated activities that we generally seek to avoid. Consideration of material sustainability issues relating to a potential investment, using our proprietary Sustainability Scorecard. Leverage the guidance of ORIX USA Group’s Sustainability Advisory Group as needed.

Monitor

Regular review and update of our sustainability assessments, with a focus on areas of concern identified during underwriting.

Engage

Seek to engage – constructively and directly – with sponsors, obligors/investees, and stakeholders on material sustainability matters and effectively address areas of concern that may enable risk mitigation, as well as value protection and/or creation.

¹ Strategies under asset classes are subject to any fiduciary or other legal limitations, as well as the level of control, access, and influence we have through our equity positions in investees and/or loans provided to obligors and should also be considered to the extent possible so long as consistent with each client’s contract, specific investment objectives, investment management agreements, offering memoranda or private placement memoranda and other governing documents (collectively, “Governing Documents”), as well as relevant regulatory requirements.

Our team

Amy Chang

Head of Sustainability, Investor Relations and Client Services Manager, Asset Management

Tim Kök

Senior Director, Sustainable Investment Strategies