ESG Policy

Injecting expertise from commercial and investment banking institutions into the nascent alternative trade finance sector

SynCap’s policy is to maintain the highest moral and ethical standards in its dealings with all stakeholders including investors, shareholders, borrowers, employees and the community. SynCap embraces the principles of ESG to better align investors and investment processes with broader objectives of society.

SynCap aims to achieve this by:

Ensuring that all transactions financed by it are compliant with its ESG policy throughout the supply chain;
Actively encouraging its borrowers to improve their ESG performance;
Working with organisations such as the International Chamber of Commerce (“ICC”) to promote visibility and transparency in international trade and to assist in formulating globally accepted standards for the trade and trade finance industry; and
Investigating the possibility of joining or supporting other relevant organisations including becoming a signatory to the United Nations’ Principles for Responsible Investment

SynCap and ESG

Transactional Commodity Trade Finance (“TCF”) activities are deeply entwined with ESG concerns because commodity production (mining/drilling, beneficiation/refining), supply (transportation from regions of production to consumption) and consumption (e.g. burning of fossil fuels) have possible adverse consequences for the environment, may be against good governance practices (money laundering, financial crime risk, bribery and corruption), or be socially/morally unacceptable (e.g., waste/emission generation or use of child labour, etc.).

SynCap is committed to sustainable and value-creating investments through the adoption of a holistic approach to ESG factors and associated risks by establishing a consistent and comprehensive methodology for integrating sustainable finance into the credit risk appetite, credit risk policies and loan origination procedures.

We incorporate ESG directives into our investment analysis and decision-making process.
We incorporate ESG directives into our policies and practices
We seek appropriate disclosure on ESG issues by the invested entities
We promote acceptance and implementation of the Principles within the investment industry
We work together to enhance our effectiveness in implementing the Principles
We report on our activities and progress towards implementing the Principles

Sustainability at SynCap

Strong and Ethical Returns for the Benefit of the Public

SynCap’s strategy and practice incorporate environmental, social and governance (ESG) factors into investment decisions making it a Responsible Investor. Sustainability is aligned to SynCap corporate purpose through the adoption of a holistic approach of integration from governance to investment.

Download Sustainability Policy >

The following principals direct our corporate strategy:

Sustainability is grounded in robust governance, policies and processes
Identification of material environmental and social risks are an integral part of borrower assessment and loan screening
Investment analysis, valuation and decisions takes account of wider stakeholder impact
Commitment to internationally recognised standards and principals

Environmental, Social and Corporate Responsibility

The ESG principals are at the heart of our business. Syn-Cap is becoming a signatory of the United Nations Principles for Responsible Investment and has implemented an internal ESG policy together with and ESG Questionnaire for our customers. Our investment approach incorporates ESG specific due diligence, continuous monitoring, negative screening, strict reporting and adherence to following values.