ESG Approach

We evaluate and consider Environmental, Social, and Governance (“ESG”) issues before making an investment.

Our evaluation includes but is not limited to:

• Evaluating the impact the company we propose to invest in has on the environment and society as a whole. We examine the specific products or services a company provides, but also their business practices and how it interacts with society as a whole
• Analyzing ESG factors from a sector-wide perspective as well as at company level
• Encouraging companies, when applicable, to adopt a responsible ESG approach and promote transparency
• Ongoing diligence throughout the course of ownership

PennantPark believes sound ESG management can help manage business risks and enhance the value of our portfolio investments.

PennantPark has committed to adopting and implementing the UN-supported Principles for Responsible Investment, and became a signatory of the PRI in 2021.

PennantPark has also adopted a formal Diversity, Equity, and Inclusion Policy and is a signatory to the ILPA Diversity in Action initiative.