ESG Mission Statement

Stellus Capital Management seeks to consider environmental, social, and governance (“ESG”) factors in its investment analysis and business management processes. We seek to partner with companies who operate and manage ESG in the following manner:

Environmental

Stellus Capital Management strives to partner with companies that operate in an environmentally responsible manner. The Firm believes that thoughtful environmental stewardship bolsters local communities and ultimately delivers a positive return to the companies that operate in those communities.

Social

Stellus Capital Management believes that a fair and meritocratic work environment, which includes proper working conditions and competitive wages and benefits for employees, can improve company performance. Stellus Capital Management has helped to build and strengthen hundreds of businesses, thereby increasing their potential to support the social development of the communities in which they operate.

Governance

Stellus Capital Management’s corporate governance practices emphasize the importance of intellectual and moral integrity and responsible corporate citizenship in our interactions with entrepreneurs, investors and with each other. Stellus Capital Management values leadership, initiative and creativity, and we seek to exercise these characteristics to effect change in the companies and communities in which it invests.

Carbon Mitigation
Efforts

Stellus Capital Management is committed to mitigating our firm’s carbon footprint by minimizing our carbon emissions and purchasing carbon offsets to mitigate those emissions that we cannot otherwise eliminate.

On an annual basis, Stellus will purchase carbon offsets to assist in mitigating our firm’s carbon footprint from sources such as employee commutes, business travel, and workplace utilities.

Stellus purchases credits from Terrapass’ general portfolio, which supports projects such as wind farms, landfill gas capture, and reforestation projects in the United States. Terrapass utilizes standards that ensure carbon offsets are real, additional, permanent, quantifiable, never double counted, and independently verified.

OUR EFFORTS ON TERRAPASSarrow

Diversity & Inclusion

Since Inception, Stellus has been focused on fostering a diverse, inclusive, collegial, and respectful work environment.

Of the 28 Full Time Employees (FTEs) at the firm, 21% are women and 21% are minorities. Approximately 17% of senior leadership positions are held by females or minorities.

To this end, Stellus’ workplace policies support this initiative by including a flexible work-from-home policy, a flexible health leave program, and by paying 100% of the costs of a low deductible, inclusive health plan for employees and their families.

COMMUNITY
INVOLVEMENT

Stellus continues to support the charitable causes championed by its employees through donations and service.

Stellus employees, collectively, support dozens of non-profit organizations such as academic institutions, research foundations, scholarship initiatives, and those that serve underprivileged communities through the contribution of both time and money. Representative organizations include the Cystic Fibrosis Foundation, MD Anderson Cancer Center, the Houston Livestock Show & Rodeo, Dress for Success of Houston, Rice University, Second Servings of Houston, UTHealth, United Way of the Gulf Coast, Capital for Children, FamilyPoint Resources, and the 12th Man Foundation, amongst others.

Additionally, each year Stellus employees participate in several group volunteer events in an effort to embolden organizations and communities in need and further camaraderie in our workplace.