In Asia, we see a worrisome backdrop of temperature extremes, sea level rise, biodiversity loss as well as more frequent typhoons, floods and droughts. Asia accounts for 53% of global GHG emissions, and without rapid societal transformation and further steep commitments for reductions, there is no credible pathway to limiting temperature increases to the 1.5°C scientists say we must not exceed. These challenges leave real risks to be managed and at the same time, we hope that our portfolio will contribute positively to solutions.
At the heart of ADM Capital’s investment approach is the principle that economic prosperity can be achieved whilst respecting our planet and the communities in which we operate. Our private credit solutions are designed to help our borrowers introduce sustainable practices and foster inclusive growth, to manage risk associated with ignoring both. By channeling capital towards companies keen to mitigate environmental and social risk associated with their business operations, we believe we can create a positive and lasting impact in our region whilst delivering attractive commercial returns to our clients.
Over the past 25 years of working with companies across Asia, we have extensively researched and collected data from our borrowers, as well as from our impact-driven foundation, and this has contributed to our integrated investment approach and helps ensure we achieve the best risk-adjusted returns within our private credit mandate. This process has only served to strengthen our conviction that financial growth and environmental stewardship go hand in hand.
Our most recent sustainability report includes a comprehensive overview of our ESG integrated lending strategy as well as analysis of our performance, including where we did well and where we need to do better. By publishing this information, our hope is that we can bolster our accountability and invite constructive dialogue.
On behalf of our entire organization, we extend our sincere gratitude to our valued investors, borrowers, dedicated service partners and employees. Your trust and collaboration have been instrumental to our success. In this rapidly changing world of climate and biodiversity crisis, we will continue to refine our strategies, embrace innovation, and leverage emerging technologies to propel us further. Together, we can build a resilient and prosperous Asia that leaves a positive legacy for generations to come.
You can read the ADM Capital 2022 Asia Private Credit Sustainability Report HERE