When making lending decisions, we look not only at financial risks and returns, but also at the social and environmental implications of a project or proposal. In simple terms our lending strategy considers a number of positive and negative criteria before a loan application is approved.
Prometheus lends to projects/proposals that have positive effects in relation to ecosystems, natural resources, public health, social structures, cultural heritage, animal welfare and human rights.
We explicitly exclude a number of activities from our lending. These are activities that are by their nature an obstacle in the long term to the creation of a sustainable, humane society and which result in negative social or environmental effects.
Total ‘purity’ is hard to achieve and all investors are different in terms of their ethical, social and environmental values. Also, some negative activities are indispensable to the proper functioning of our present society and exceptions must be allowed.
For example, we provide finance for recycling companies to purchase trucks and other heavy equipment as these are essential to their core operations (which we wholeheartedly support) but which are nevertheless a heavy emitter of climate change gases. Where there are no alternative and sustainable technologies available to enable otherwise positive activities we will lend in such circumstances.
Often the dividing lines are not entirely clear-cut, which makes it difficult to establish fixed lending criteria. A key part of Prometheus’ role is to use the combined years of experience of our loan management team together with any external advice to decide if the positive social or environmental implications of a project or proposal sufficiently counter any negative implications for that loan to be approved.
We may often lend to an organization or business if it is clearly taking a significant lead in developing a more sustainable approach in an otherwise largely negative activity. This is part of our vision of helping our economy and society move toward sustainability, supporting and encouraging small steps where larger ones are not available or possible at that time.