Churchill Asset Management

ESG due diligence also helps us to uncover material issues that should be monitored throughout the lifetime of an investment. For example, through our ESG due diligence process, we discovered that a company we were considering had minor environmental issues in the past involving the handling of highly combustible chemical compounds. Even though hazards remained, the company had taken steps to curb any future issues and reduced potential chemical exposure to below Occupational Safety and Health Administration thresholds. As a result, we deemed the company investment worthy. However, awareness of this ESG risk means that we will monitor it closely, report on the status at our quarterly portfolio reviews, and work with the sponsor and company to address any potential future issues.