UN SDG-Aligned ESG Scoring Model for SME Lending

Overview

The TIGER Asia Credit Opportunities Fund integrates a proprietary ESG scoring model aligned with the United Nations Sustainable Development Goals (UN SDGs). This model enhances risk management, ensures responsible capital deployment and enables transparent ESG impact reporting across our SME and trade receivables financing portfolio.

1. ESG Dimensions Covered

Our model scores investee companies across three pillars, each mapped to relevant SDGs:

Environmental (E)

• Carbon footprint per unit revenue (SDG 13: Climate Action).

• Energy efficiency metrics (SDG 7: Affordable & Clean Energy).

• Waste reduction and circular practices (SDG 12: Responsible Consumption & Production).

• Use of sustainable raw materials.

Social (S)

• Employee welfare, gender equality, diversity (SDG 5: Gender Equality; SDG 8: Decent Work).

• Community impact and local job creation (SDG 1: No Poverty; SDG 10: Reduced Inequalities).

• Health and safety standards in operations.

Governance (G)

• Transparency and reporting practices (SDG 16: Peace, Justice & Strong Institutions).

• Anti-corruption frameworks.

• Board and shareholder alignment with ESG principles.

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• Set micro-goals: Divide big projects into smaller tasks with clear deadlines. This gives you a sense of accomplishment as you complete each step.

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Breaking tasks into smaller parts also makes it easier to track progress and stay motivated.

2. Data Sources & AI Integration

Our scoring model leverages a combination of structured and unstructured data, processed using AI-driven analytics:

• Third-party ESG data providers (e.g., Sustainalytics, RepRisk).

• Public filings and certifications (e.g., ISO, B Corp).

• Satellite imagery for environmental compliance.

• Transaction-level data and invoice metadata.

• Web and social media sentiment (NLP-based).

Machine learning models identify patterns, fill data gaps and ensure scalable ESG scoring even in data-light SME environments.

3. Scoring Framework

Each borrower receives an ESG score on a scale of 0–100, with qualitative and quantitative inputs weighted by sector and geography.

4. ESG in Lending Decisions

• Borrowers with high ESG scores receive preferential rates or faster approval.

• ESG metrics integrated into our AI underwriting engine.

• Ongoing monitoring with automated ESG alerts based on updated data feeds.

5. Impact Reporting for LPs

Our LP reporting dashboard showcases:

• Portfolio-wide ESG score distribution.

• SDG alignment heatmaps.

• Sectoral ESG improvements over time.

• Real-world impact metrics (e.g., emissions avoided, women employed).

6. The TIGER Edge

This SDG-aligned ESG scoring model is a cornerstone of our tech-driven, impact-focused investing strategy in Asia. It enables:

• Scalable, low-cost ESG diligence for SMEs.

• Real-time monitoring of ESG compliance.

• Credible impact reporting to institutional LPs.

Interested in integrating ESG with alpha? Let’s talk.