NXT Capital and our parent company ORIX Corporation USA have adopted a Sustainable Investment Policy (“Policy”) to confirm our organization-wide commitment to integrating environmental, social and governance (“ESG”) factors into the investment process. This Policy sets forth NXT Capital’s approach to integrating ESG into its investment processes. The main objectives of this policy are as follows:
- Identify, understand and prioritize sustainability issues;
- Identify key ESG risks ahead of each investment to protect NXT Capital and its clients from financial, operational and reputational risks due to substandard ESG practices;
- Identify and pursue attractive sustainability opportunities;
- Analyze sustainability risks in all aspects of underwriting and develop future tools to assist in identifying ESG risks and opportunities;
- Encourage dialogue with companies and suppliers to learn and share best ESG practices;
- Develop higher employee awareness of ESG matters.
Through our collective efforts, these practices are embedded in our approach to ESG factors. We have long incorporated elements of ESG into our investment decisions and throughout the life of a loan, including environmental diligence, negative industry screening and reputational research. The development of our Policy, created in the spirit of the United Nations Global Compact, is a natural progression of our continued commitment to enhance our investment process while supporting a culture focused on risk management and sustainable business practices.
We believe that by effectively addressing ESG risks, we conduct more thorough analyses, make better-informed decisions, and create long-term value. Our Policy is intended to help us align our actions with our culture, achieve our investment objectives, and satisfy our stakeholders’ expectations.
Learn More About Sustainability At ORIX Corporation link to: https://www.orix.co.jp/grp/en/sustainability/