Schulze Global assesses a variety of factors when considering and tracking investments and views beneficial developmental impact as an integral part of its investment strategy.

As a result, Schulze Global has incorporated a “Double Bottom Line” (“DBL”) concept into its investments in each emerging market.

Schulze Global’s DBL strategy seeks to create positive impact by:

• Contributing to the improvement of the living and working standards of individuals impacted by our investments;
• Contributing to the improvement of corporate governance in Schulze Global portfolio companies and within broader business community as a whole;
• Contributing to the improvement of environmental standards; and
• Contributing to the improvement of housing, education and economic benefits to individuals and their country.

Schulze Global’s DBL concept formulates two objectives:

Primary Objective

The first and foremost goal of Schulze Global’s investment activities in emerging markets is to achieve a high, risk-adjusted rate of financial return for its investors. Schulze Global will not consider a transaction if such proposed investment is not attractive financially; all projects must meet Schulze Global’s rigorous financial requirements demonstrating a high potential financial return. Ultimately, the firm judges its performance on the basis of an internal rate of return on dollars invested, pure and simple.

Secondary Objective

Schulze Global also pursues a secondary non-financial objective – the Double Bottom Line – by considering return on investment in the form of job and wealth creation, community revitalization, macroeconomic impact, environmental protection, governance enhancement, knowledge transfer, government revenue support and sustainable development. Schulze Global believes that the definition of “true success” is financial profit complimented by Double Bottom Line returns, resulting in tangible gains for all stakeholders.

DBL Assessment:

Upon determination that a particular project meets Schulze Global’s criteria for suitable financial returns, Schulze Global commissions an extensive formal DBL assessment process.  Schulze Global’s DBL assessment includes detailed analysis of issues within four main categories: Economic, Social, Environmental and Governance.  DBL efforts are incorporated right across the investment cycle – from origination to exit – and as such forms a totally integrated investment approach to issues such as corporate governance, business integrity, principles, and ethics; as well as health, safety and general labor and social conditions; and environmental and climate issues. For each of these categories, where relevant to the investments, Schulze Global maintains a coordinated ratings system for all risks involved.

The risk is based on the specific sector as well as the specific investment being reviewed. The identification and subsequent management of all DBL issues and risks is done alongside the target company so as to ensure ownership and participation in the DBL action plan by the management itself. This coordinated effort also promotes understanding of how these issues benefit the business, as well as the wider community.

It should be noted that Schulze Global will not invest in any of the following industries:

• Any products causing significant environmental damage
• Any illegal products or products generally condemned by the international community
• Pornography
• Tobacco
• Arms/Weapons
• Gambling
• Distilled Spirits

In addition, as part of Schulze Global’s DBL guidelines, the firm only invests in businesses which are willing to:

• Uphold high standards of business integrity and support improved corporate governance;
• Operate in accordance with local and international laws;
• Respect the dignity, well-being and diversity of all their employees and contractors;
• Provide safe working conditions; and
• Consider the environmental impact of their operations, taking reasonable steps to mitigate risks.

As Schulze Global engages each new emerging market, it aims to bring global international best practices with its investment, and as such, is constantly working to improve and refine its DBL reporting strategies and assessment processes in order to fit with the unique nature of each market.