Our Approach to ESG
Tree Line’s ESG Policy is comprehensive in its design and is a living component within our investment and underwriting ecosystem. The ESG Policy and its implementation across our firm involves: a regular review of the policy and ESG memberships, enforcing best practices and learnings through team trainings, a collaborative effort across the firm to execute the policy and monitor the portfolio, and quarterly reporting to our investors
Our ESG Policy has been centered on taking an “avoid harm” approach. We seek to avoid investments with companies whose products or services cause meaningful environmental or social harm. Specifically, Tree Line’s policy precludes it from investing in businesses across a number of sectors or carrying characteristics that we believe, in our sole discretion, to be harmful from an ESG perspective.
ESG is integrated into our underwriting ecosystem
Initial ESG Screen
- Sponsor ESG Assessment
- Initial Screen Matrix Completed
- Highlight Positive Practices or Potential Concerns
- Summarize assessment of initial screen criteria
- Present to IC
IC Review & Approval
- Initial ESG Screen taken into account by IC and approval required to advance to next stage of diligence.
ESG Due Diligence
- Engage with sponsor and company to discuss ESG policy, practices and planned initiatives
- Implement proprietary scoring methodology (including assessing SASB Materiality Risk Matrix and completing
- Climate & Social & Governance Assessment templates
- Develop final ESG score
- Present to IC
IC Review & Approval
- ESG Proprietary Scoring Methodology and final ESG score binds the investment decision taken by the IC as part of the approval process required to close transaction.
Post-close Monitoring
- Quarterly ESG assessment
- Track success of any identified initiatives during underwriting
- Monitor for positive events or negative incidents
- Complete Quarterly Monitoring template
- ESG Team compiles data/findings for Quarterly ESG Report
- Present to IC & Risk Management Committee
ESG Timeline
- Joined 1% for the Planet
1% for the Planet is a global network with thousands of businesses and environmental organizations working together to support people and the planet.
- Volunteered in the Carrizo Plains National Forest with one of our 1% for the Planet non-profit partners
- Reached ~$500k in direct charitable contributions to non-profit partners
2019
2020
2021
2022
2023
2024
- Became UN PRI signatory
The UN Principles for Responsible Investment (PRI) is an international organization that works to promote the incorporation of environmental, social, and corporate governance factors (ESG) into investment decision-making
- Enhanced ESG Policy to expressly prohibit investments in 12 sectors
- Enhanced Existing ESG Policy
- Launched quarterly ESG report; and
- Embedded ESG philosophies throughout our entire investment process
- Projected to reach nearly $1M in direct charitable contributions to non-profit partners
2019
- Joined 1% for the Planet
1% for the Planet is a global network with thousands of businesses and environmental organizations working together to support people and the planet.
2020
- Became UN PRI signatory
The UN Principles for Responsible Investment (PRI) is an international organization that works to promote the incorporation of environmental, social, and corporate governance factors (ESG) into investment decision-making
2021
- Volunteered in the Carrizo Plains National Forest with one of our 1% for the Planet non-profit partners
2022
- Enhanced ESG Policy to expressly prohibit investments in 12 sectors
2023
- Reached ~$500k in direct charitable contributions to non-profit partners
2024
- Enhanced Existing ESG Policy
- Launched quarterly ESG report; and
- Embedded ESG philosophies throughout our entire investment process
- Projected to reach nearly $1M in direct charitable contributions to non-profit partners
Partnerships
WILDCOAST is an international nonprofit, founded in 2000, dedicated to conserving coastal and marine ecosystems and addressing climate change with natural solutions. Our team, based in California and Mexico, collaborates with local communities to safeguard millions of acres of vital habitats including coastlines, islands, coral reefs, and mangroves.
Adventure Scientists® is based in Bozeman, MT and equips partners with data collected from the outdoors that are crucial to addressing environmental challenges. By mobilizing and training outdoor enthusiasts and local communities to collect high-quality scientific data that are difficult to access, we are a cost-effective and powerful accelerator to conservation around the world.
POW helps passionate outdoor people protect the places they love. Founded in 2007 by professional snowboarder Jeremy Jones, POW is a community of athletes, scientists, creatives, and business leaders advancing policies that protect our world today and for future generations.
Los Padres ForestWatch protects wildlife, wilderness, water, and sustainable access throughout the Los Padres National Forest and the Carrizo Plain National Monument. We achieve this through education, advocacy, and when necessary, legal action for the benefit of our communities, climate, and future generations.
Upward Bound is a federally funded program that helps low-income and first-generation high school students prepare for college. The program’s goals are to increase the number of students who graduate from high school and enroll in and graduate from college.
Compass Family Services leads the way in helping San Francisco families facing homelessness secure stable housing and attain economic self-sufficiency and family well-being. We have been service innovators for more than 100 years, and more than 90% of the families who complete our housing programs achieve lasting success.