2021 ESG Report

2Resource Capital Funds | 2021 ESG Report | About This Report
3Resource Capital Funds | 2021 ESG Report | About RCF

About RCF

Established in 1998, Resource Capital Funds (“RCF” or the “Company”) pioneered the concept of a mining-focused private equity fund. Since its inception, RCF has provided financial support to over 200 mining and mining services companies. Today, RCF manages investment vehicles (“Fund” or “Funds”) which have invested in public and private mining and mining services companies across more than 32 mineral commodities in more than 51 countries. Our investment management teams, which include professionals with extensive mining and ESG experience as well as deep investing expertise, are organized around the following four investment strategies aimed at providing funding throughout the development risk spectrum and capital structure:

RCF Private Equity

RCF Private Equity invests in growth-oriented mining companies where our capital, expertise and capabilities can help create value.

RCF Opportunities

RCF Opportunities invests in mining assets at all stages of development, including exploration through pre-feasibility stages of projects and selectively at more advanced stages of project development and operations.

RCF Jolimont Innovation

RCF Jolimont Innovation invests in high-growth mining equipment, technology and services (“METS”) companies.

RCF Credit

RCF Credit expects to build a diversified portfolio of credit investments across three broad strategies: development capital, growth and operating capital, and special situations.

25 years of mining investment
4.9B capital raised to invest in mining
200+ portfolio company investments
$4.1B total realizations
30+ commodities invested in
$2.5B assets under management
90+ employees globally
177 portfolio company exits
Figures as of 30 September 2022.

Vision, Mission and Values

our vision

Build strong, successful, innovative and sustainable businesses that strive to produce superior returns to all stakeholders.

our mission

Act as a transparent and trusted fiduciary, delivering value to Limited Partners.

Be a long-term partner to the mining companies and projects in which we invest.

Provide a challenging, engaging, inclusive and rewarding environment for employees to work.

our values


4Resource Capital Funds | 2021 ESG Report | A Message from James McClements

Co-Founder & Managing Partner Resource Capital Funds

A Message from James McClements

5Resource Capital Funds | 2021 ESG Report | In Conversation with RCF's Chief Sustainability Officer, Kevin PCJ D'Souza

In Conversation with RCF's Chief Sustainability Officer, Kevin PCJ D'Souza

Q: You recently joined RCF's senior leadership team. What drew you to the Company?

A: I was drawn to RCF as I truly believe the Company is motivated by creating long-term value based on a holistic approach to ESG. For me, it was clear that at RCF, ESG is not merely a bolt-on. Rather, it's built into RCF's business strategy. The Company has a strong reputation and a purposeful organizational culture that starts at the senior leadership level and that ensures all aspects of ESG are firmly embedded in every investment decision they make. Through their Responsible Investment Strategy, they seek to identify and help mitigate ESG impacts and risks and capitalize on opportunities throughout the entire mining lifecycle, from exploration through to post-closure, by collaboratively working with their portfolio companies to strengthen ESG practices and performance. They identify and assess both risks and opportunities to generate not just financial but also environmental and societal value. Through this approach, RCF aims to demonstrate that mining and ESG can be successfully integrated and that mining can be a driver for positive change. These and more were all important considerations for me prior to joining the Company, and I now look forward to working with my RCF colleagues on continuously improving our ESG performance.

Q: You have been known to speak about “authentic ESG.” What does that look like in practice in the mining industry?

A: I believe ESG as a construct is fundamentally about understanding how a business interacts with the world. This starts with a strong governance structure that includes clear lines of accountability and ownership.

A robust ESG strategy and pragmatic framework involves putting in place policies and minimum operating standards based on accepted industry “good practices” that reflect each company's unique situation and that go beyond mere legal and regulatory compliance. Internal processes and procedures that prioritize, integrate and address the needs and goals of all stakeholders, from local communities to shareholders, are also critical components of authentic ESG implementation. And of course, meaningful ESG metrics and analytics to quantify and monitor a company's impact are essential for continuous improvement. For me, authentic ESG is also about taking a hands-on approach with boots on the ground. ESG cannot be directed from a satellite unit responsible for creating reports, delegated to “armchair experts” or simply analyzed on paper. This is where I believe RCF really excels in terms of how our investment teams conduct due diligence and post-investment collaboration with our portfolio companies to influence the implementation of responsible mining practices and in turn determine how authentic a company is when it comes to their ESG practices and commitments.

Q: What key trends do you see shaping the mining industry in the near to medium term and what role does ESG play in these trends?

A: RCF believes there are five global megatrends that are influencing the mining industry in a significant way: decarbonization, consumption, underinvestment, geo-politics and sustainability. The green energy transition is creating a shift that is “critical mineral” driven which is creating a surge in demand for critical minerals to deliver the new technology, infrastructure and capacity required to meet global decarbonization goals.

At the same time, population growth and continued efforts to eliminate poverty across the globe are creating a rising demand for material goods that will add significantly to the need for mined products. However, the past decade has been marked by a sustained period of underinvestment in new metal and mineral supply. When you add to that the intensifying geo-political tensions and the rollback of globalization to shore up national infrastructure and reduce supply chain dependence on single jurisdictions, you create a significant imbalance between supply and demand of minerals.

These interrelated trends are putting a renewed spotlight on mining and increased scrutiny on how critical minerals are sourced, which will only intensify in the coming years. Companies that are managing ESG strategically to bring greater local economic benefits and are more sensitive to local concerns and needs will be best positioned to take advantage of these trends while ensuring they can create and protect long-term value.

Q: What are your priorities for ESG at RCF going forward?

A: At RCF we are aware that we don't have all the answers. But for us, ESG is an evolution - it is a process not an outcome. As such, one of our immediate priorities is to build on RCF's ESG Strategic Roadmap (the “Roadmap”) with an executable framework of actions and deliverables. The Roadmap focuses on several key areas that resulted from our internal strategic assessment, supplemented by the materiality assessment we conducted in early 2022.

We have started by focusing on improving our due diligence and post-investment stewardship processes to continue to ensure we uphold the Principles for Responsible Investment (“PRI”) and align with the United Nations Sustainable Development Goals (“SDGs”). We are developing a multi-year Diversity, Equity & Inclusion (“DE&I”) strategy that will include a governance structure, training programs and an overhaul of our talent management policies and procedures. We are also in the process of assessing our climate-related risks and opportunities, and as part of that, we are strengthening our understanding of the emissions intensity of existing and potential portfolio companies. The other priority focus area for us is to enhance the way we collect and monitor ESG data from our portfolio companies, and in turn to improve our own reporting so that we can continue to demonstrate meaningful impact. For instance, this report includes RCF's first SASB disclosure, against the “Asset Management & Custody Activities” Standard. Going forward, we are committed to evolving our approach to ESG disclosure to include reporting against select indicators for our portfolio companies.

ESG is constantly changing, but I am confident that at RCF we have the right company culture, visionary leadership and appropriate strategy to meet the future challenges of an ever-evolving ESG landscape and thereby continue to future-proof our business.

Kevin PCJ D'Souza
Chief Sustainability Officer & Member of RCF's ESG Committee

6Resource Capital Funds | 2021 ESG Report | Corporate and ESG Highlights
7Resource Capital Funds | 2021 ESG Report | Our Approach to ESG
Within RCF there is a genuine desire to do the right thing by helping portfolio companies move up the curve in terms of their ESG practices and to partner with our companies to produce positive outcomes for all stakeholders."

Jasper Bertisen
Partner, Investment Team Leader & Chair of RCF's ESG Committee

8Resource Capital Funds | 2021 ESG Report | 2023 ESG Roadmap

2023 ESG Roadmap

Continuing to enhance our approach with a focus on long-term value.


ESG Strategic Framework

  • Review of ESG Policy & Strategy
  • Review ESG Committee Charter
  • Develop and implement multi-year ESG strategy

Total Portfolio Stewardship

  • Conduct ESG "heatmap" diagnostic for portfolio companies
  • Continual improvement of ESG due diligence
  • Deliver internal ESG training
  • Strengthen Board ESG Committee impact

Climate Change Strategy

  • Review Climate Change Policy
  • Develop multi-year climate strategy
  • Assess climate-related risks and opportunities for current portfolio companies
  • Improve TCFD reporting

Develop ESG Investment Theses

  • Continue to evaluate LP ESG-related perspectives and expectations
  • Explore ESG thematic impacts aligned with the SDG Impact Standard
  • Ensure ESG is integrated in exit strategies

Diversity, Equity & Inclusion Strategy

  • Develop multi-year DE&I strategy
  • Establish employee resource groups
  • Conduct current state inclusivity assessment
  • Review policies and procedures

ESG Performance Reporting

  • Survey portfolio companies to get a baseline of available ESG data and quality
  • Set appropriate ESG targets and key performance indicators

ESG Strategic Framework

  • Review of ESG Policy & Strategy
  • Review ESG Committee Charter
  • Develop and implement multi-year ESG strategy

Climate Change Strategy

  • Review Climate Change Policy
  • Develop multi-year climate strategy
  • Assess climate-related risks and opportunities for current portfolio companies
  • Improve TCFD reporting

Diversity, Equity & Inclusion Strategy

  • Develop multi-year DE&I strategy
  • Establish employee resource groups
  • Conduct current state inclusivity assessment
  • Review policies and procedures

Total Portfolio Stewardship

  • Conduct ESG "heatmap" diagnostic for portfolio companies
  • Continual improvement of ESG due diligence
  • Deliver internal ESG training
  • Strengthen Board ESG Committee impact

Develop ESG Investment Theses

  • Continue to evaluate LP ESG-related perspectives and expectations
  • Explore ESG thematic impacts aligned with the SDG Impact Standard
  • Ensure ESG is integrated in exit strategies

ESG Performance Reporting

  • Survey portfolio companies to get a baseline of available ESG data and quality
  • Set appropriate ESG targets and key performance indicators
9Resource Capital Funds | 2021 ESG Report | Frameworks and Standards

UN Sustainable Development Goals ("SDGs")

The SDGs offer a universal approach and outcomes-based framework to realizing positive societal outcomes by providing 17 overarching goals and 169 targets that represent a call to action to end poverty, protect the planet, and ensure that by 2030 all people everywhere enjoy peace and prosperity.

RCF believes private equity has a critical role to play in delivering the SDGs, and we are aligned with the shared belief that the mining industry has an unprecedented opportunity to mobilize significant human, physical, technological and financial resources to advance the goals. At RCF, we aim to consider both the potential positive and negative impacts on the SDGs of our investments. In addition, grant proposals submitted for consideration by the RCF Foundation are assessed based on their alignment with the SDGs.

10Resource Capital Funds | 2021 ESG Report | Frameworks and Standards

The Principles for Responsible Investment ("PRI")

The PRI is an international reporting framework that promotes the incorporation of ESG factors into investment practices across asset classes. It provides a common language and industry standard for reporting responsible investment practices. By implementing the Principles, signatories contribute to the development of a more sustainable global financial system.

RCF has been a signatory to the PRI since 2013, and we report to the PRI on our responsible investment activities annually. The reporting framework includes questions about investment practices that help drive the mission of the PRI. It considers how ESG factors are incorporated into investment processes and asset allocation decisions, how signatories assess and understand sustainability outcomes, and how these outcomes are measured.

The PRI assesses signatories' responses to identify how their responsible investment practices can be improved, with a primary focus on responsible investment implementation across organizations' overall investment processes. Reporting modules are scored with a numerical grading system ranging from 1 to 5 stars. The lowest grade is one star, allocated to those whose responsible investment behavior is at the lower end of what is expected from signatories. The highest score is five stars and awarded to those signatories who demonstrate leading practices within the responsible investment industry. In 2021, RCF received the following scores:

RCF's PRI Summary Scorecard - 20211

  1. DISCLAIMER: Source: UNPRI. Scores are disclosed for all modules where RCF received a score for the 2021 reporting cycle. Signatories report on their responsible investment activities by responding to asset-specific modules in the Reporting Framework. Each module houses a variety of indicators that address specific topics of responsible investment. Assessment scores are based on information provided directly to the PRI by RCF in the 2021 reporting cycle. The information has not been audited by the PRI or any other party acting on its behalf.
11Resource Capital Funds | 2021 ESG Report | Stakeholder Engagement


As of December 31, 2021, RCF employed 95 people who work at our seven locations around the world. Our mission is to provide a challenging, engaging, inclusive and rewarding work environment and to ensure employees from diverse backgrounds, genders and ethnicities are offered equal opportunities at all levels. Flexible working approaches have been in place at RCF for many years, which enabled us to address the complexities associated with working from home during the COVID-19 pandemic with greater nimbleness and agility.


Earning and maintaining local community and/or Indigenous groups' acceptance is perhaps one of the most challenging aspects of investing in mining, but also presents a great opportunity.

A key focus of our due diligence process is evaluating and monitoring each portfolio company's understanding of concerns and dynamics of the local communities and/or Indigenous groups where their operations are located and their ability to manage the social impacts, risks and opportunities unique to each jurisdiction. At RCF, we believe that responsible mining positively progresses socio-economic development and we seek to assess and monitor whether our portfolio companies are fully attuned to local concerns and needs, and how they deliver local equitable benefits and create shared value (including local employment and procurement).

In 2021, RCF employees in our Denver and Perth offices had the opportunity to participate in volunteering initiatives to show support for their local communities. These events also had the benefit of contributing to RCF's internal team-building efforts.

12Resource Capital Funds | 2021 ESG Report | ESG Materiality and Priorities

Based on the results of our materiality assessment, the priority ESG topics for RCF's investment portfolio and RCF as a company are:

Portfolio Company
Environmental Tailings management
Water stewardship and efficiency
Energy management and efficiency
Hazardous material management
Mine waste management
Biodiversity and habitat conservation
Climate change (including GHG emissions)
Social Community relations
Health and safety
Involuntary resettlement
Indigenous Peoples relations
Employee welfare
Employee engagement and talent development
Security and human rights
Land access and rights
Integrated mine closure
Diversity, equity and inclusion
Governance Anti-corruption and bribery
Board composition and competency
Business conduct and ethics
Permitting and regulatory compliance
Enterprise risk management
Revenue transparency
Cybersecurity and data privacy
Disclosure and reporting
Primary Topics Secondary Topics
13Resource Capital Funds | 2021 ESG Report | Governance
14Resource Capital Funds | 2021 ESG Report | Governance

Our Approach

At RCF, we believe that good corporate governance is the foundation of successful performance. Primary governance topics for RCF's investment portfolio include anti-corruption and bribery, board composition and competency, business conduct and ethics, and permitting and regulatory compliance, all of which are addressed in our due diligence process. Prior to investing in a company, RCF teams seek to evaluate not just the composition of a company's Board of Directors but also the potential conflicts of interest, legal and regulatory risks, the levels of real and perceived transparency, and government capacity in the project's jurisdiction.

RCF seeks investments where the company has a clear and transparent anti-corruption and bribery policy that is enforced company-wide and communicated to key stakeholders. We expect companies to provide training on the different forms and manifestations of corruption and fully understand all relevant anti-corruption laws and regulations.

We will not invest in jurisdictions with excessive sovereign risk, countries that are the subject of international sanctions or those in which it is illegal for a U.S. entity to invest. As per our 2022-2023 ESG Strategic Roadmap, we will be reviewing our approach to assessing and managing governance risks and opportunities. This may include the development of region-specific guidelines and criteria for investment decisions as recommended by our stakeholders.

Although the majority of RCF's invested capital is deployed into privately owned companies, we have recently updated our proxy voting policy relating to our public company holdings to reflect the increased importance of proxy voting as an effective way for shareholders to contribute to clear, effective and accountable stewardship.

Examples of how we engage with our portfolio companies on their governance performance include the following:

  • At a gold company, we gained broad shareholder support for meaningful changes to the Board to improve corporate governance and strategy.
  • At a vanadium project, we helped to engage a consultant to assist the Board in developing its ESG vision and strategy and to prepare the company for operational-stage reporting against global standards as it enters construction.

Governance at RCF

We not only assess the governance practices of our portfolio companies but also aim to ensure that RCF's own internal governance structures, policies and practices are in line with stakeholder expectations and compliance. RCF is an SEC-registered investment advisor, and as fiduciaries of our investors' capital, we strive to conduct ourselves with integrity in everything we do.

At RCF, we believe that good corporate governance is the foundation of successful performance.
15Resource Capital Funds | 2021 ESG Report | Governance
Governance is truly the glue that holds ESG together. Without good governance, a company cannot implement environmental and social performance in a meaningful manner."

Russ Cranswick
Partner & Head of RCF Opportunities Fund

16Resource Capital Funds | 2021 ESG Report | Environment
17Resource Capital Funds | 2021 ESG Report | Environment
18Resource Capital Funds | 2021 ESG Report | Environment

Our Approach to Climate Change

At RCF we recognize that climate change is one of the most pressing global challenges of our time and that actions aligned with the goals of the Paris Agreement are critical to achieving the SDGs, given the inextricable links between climate change, water, biodiversity and socio-economic development. We acknowledge that a changing climate and its impacts represent both physical and transitional risks and opportunities which could impact portfolio companies and potential returns to the Funds.

The Task Force on Climate-related Financial Disclosures ("TCFD")

Created in 2015 by the Financial Stability Board ("FSB"), the TCFD's aim is to promote more consistent disclosure of climate-related financial risks and opportunities. Their widely accepted framework is grouped into four pillars - governance, strategy, risk management, and metrics and targets. RCF acknowledges the importance of the TCFD's recommendations to providing investors with an increased understanding of the financial implications of climate change for their investments. This report is our introductory disclosure against the TCFD framework, and we are committed to continuous improvement of both performance and disclosure.

The organization's governance around climate-related risks and opportunities.

The actual and potential impacts of climate-related risks and opportunities on the organization's businesses, strategy and financial planning.

Risk Management:
The processes used by the organization to identify, assess and manage climate-related risks.

Metrics and Targets:
The metrics and targets used to assess and manage relevant climate-related risks and opportunities.


As with all RCF's responsible investment actions, our senior leadership oversees the management of climate-related risks and opportunities. The direct management of RCF's Climate Change Policy, which was established in 2020, is under the mandate of the ESG Committee. The Climate Change Policy outlines RCF's approach to evaluating climate-related risks and opportunities, including considering climate risk as a factor in due diligence and ongoing portfolio company engagement.

In practice, responsibility for identifying, assessing and managing climate-related risks lies with RCF's investment teams, working in partnership with our Chief Sustainability Officer, and with guidance from our ESG Committee. Where applicable, investment committees for each Fund make decisions on where RCF deploys capital, considering material ESG issues, including the findings from climate-related analysis.


Given the scale of our investment activities relative to RCF's own business, our investment portfolio is the primary focus of our climate strategy. We have identified several climate-related risks and opportunities which we expect to impact our portfolio companies over the short, medium and long term:

Physical risks

The physical impacts of climate change risks to mining operations, infrastructure, transport routes and communities globally, due to acute physical risks including the increased severity of extreme weather events and chronic physical risks related to longer-term shifts in climate patterns. For example, climate change is expected to cause more frequent droughts and floods, altering the supply of water to mining sites, disrupting operations and impacting local communities.

Transition risks and opportunities

The mining sector is facing pressure from governments, investors and society to reduce emissions. As governments align with the goals of the Paris Agreement, potential increases in regulated carbon prices may impact asset cash flows and valuations. We have also identified that relatively low emissions mining operations appear to be developing a competitive advantage which may provide better access to capital or enhance their ability to secure attractive offtake agreements.

For RCF, a key consideration is how demand for different commodities will be influenced by different climate transition pathways, as metals play a vital role in the transition to cleaner energy production. RCF's investment strategy actively seeks to identify opportunities to invest in future-facing commodities that will support global decarbonization.

19Resource Capital Funds | 2021 ESG Report | Environment

A Paradigm Shift in Mineral Demand: The Green Energy Transition

The International Energy Agency ("IEA") has clearly stated that "an energy system powered by clean energy technologies differs profoundly from one fueled by traditional hydrocarbon resources."1 Green energy technologies require substantially more mined minerals and metals - especially critical minerals like copper, lithium, nickel, manganese, cobalt, graphite and rare earth elements. By the IEA's estimates, efforts to reach the climate goals of the Paris Agreement could require a quadrupling of mineral production by 2040, and a more aggressive net-zero global emissions by 2050 scenario would require six times more mineral inputs. Both scenarios will create unprecedented long-term demand for metals and minerals across the global energy transition spectrum. RCF is well positioned to participate as a strategic capital partner to projects aimed at sustainable sources of metals and minerals to ensure society has the fundamental primary materials to solve global resource constraints.

  1. IEA, "Total mineral demand for clean energy technologies by scenario": https://www.iea.org/data-and-statistics/charts/total-mineral-demand-for-clean-energy-technologies-by-scenario-2010-2040-2
  1. Greenhouse gas emissions are generated from the direct combustion of fuels (Scope 1) and by purchase of electricity from independent suppliers (Scope 2). Scope 3 emissions are the result of activities not owned or controlled by the reporting organization but that the organization indirectly impacts in its value chain.
  2. Where actual energy consumption for an office was not available, estimates have been made using the leased area and energy efficiency ratings for each property. Electricity emissions accounting has been carried out using a location-based approach. The location-based approach uses default factors provided by jurisdiction. These factors indicate the average amount of GHG emissions produced (in kgCO2-e) per kWh of electricity consumed from the grid. RCF's final total electricity consumption per location (actual or estimated in kWh) is multiplied by the relevant grid factors (kgCO2-e/kWh electricity consumption) to estimate emissions.
  3. Emission factors for corporate flights are sourced from DBEIS factors for 2022: https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2022
20Resource Capital Funds | 2021 ESG Report | Social Performance
21Resource Capital Funds | 2021 ESG Report | Social Performance
Diversity provides a competitive advantage in our business; therefore, it is vitally important for us to apply a diversity lens to our recruitment and talent management practices."

Michael Rowe
Partner, HR Business Director

22Resource Capital Funds | 2021 ESG Report | Social Performance
23Resource Capital Funds | 2021 ESG Report | Social Performance
The broad mandate of the Foundation has resulted in the support of a wide variety of charitable causes reflecting both geographic and demographic diversity. We are proud to be making a positive impact on people across the globe, and we are grateful to be continuing the good work envisioned at the start of the Resource Capital Funds Foundation."

Sherri A. Croasdale
Senior Advisory Partner & Chair of the RCF Foundation

24Resource Capital Funds | 2021 ESG Report | Social Performance

Resource Capital Funds Foundation
2021 Grant Beneficiaries

Relevant SDG Beneficiaries Geographic Location
No Poverty United Way - Northwest Territories Canada
Good Health and Well-being Happy 2 Be Home Inc. USA
Apraxia USA
Harry Perkins Institute Australia
Silver Chain Group Limited Australia
Quality Education York University Canada
Catholic Organization for Development and Solidarity Africa
Alaska Resource Education USA
Colorado Mining Association Education Foundation USA
The Morgan Center USA
Save Our Youth Inc. USA
Boy Scouts of America USA
AARP Experience Corps Pinal-Casa USA
Affordable and Clean Energy Colorado Cleantech Industry Association Foundation USA
Decent Work and Economic Growth Colorado School of Mines Foundation USA
Reduced Inequalities The Navy Clearance Diver Trust Australia
Sustainable Cities and Communities Twin Hills Trust Africa
Life on Land The Wild Animal Sanctuary USA
25Resource Capital Funds | 2021 ESG Report | Social Performance

Lighting the Way to a Better Future

In 2021, Orezone Gold Corporation ("Orezone"), a gold mining company that operates in Burkina Faso, applied to the RCF Foundation to obtain funding for the installation of solar powered lights in seven communities surrounding Orezone's Bomboré gold project. The lack of public lighting presents numerous issues for local residents, particularly for girls and women. At night and without light, women are not able to carry out income-generating activities such as weaving, trade and catering, which puts them at an economic disadvantage. Young girls typically do housework during the day and are not able to do their homework until their domestic chores are completed, thereby limiting the time available for studying during daylight. Lack of lighting also poses safety risks for all community members. In 2021, the RCF Foundation donated $15,700 for the installation of solar lamps. Based on the success of the project, Orezone has submitted a further application that would provide lighting to 11 additional communities in 2022.

Supporting Early Childhood Education for the Most Vulnerable

Every year, over 200 children under the age of five are diagnosed with cancer in the New York metropolitan area. Because these children suffer from a compromised immune system resulting from chemotherapy, they are not able to attend regular preschool because of the risk of exposure to viruses. For an immunocompromised child, even the common cold can lead to a life-threatening illness. In 2021, the RCF Foundation approved a $15,000 grant to the Morgan Center in Brightwaters, NY. This non-profit enables preschool age children battling cancer to learn and socialize with their peers in a safe environment. Morgan Center programs prepare children for kindergarten and provide a sense of normalcy and distraction from the stress of their illness and treatment.

26Resource Capital Funds | 2021 ESG Report | Sustainability Accounting Standards Board Index

Sustainability Accounting Standards Board (“SASB”) Index

RCF is committed to providing transparency in our sustainability reporting by providing meaningful information to our Limited Partners and other stakeholders and by continuing to enhance our disclosure, including with the following, which is our first effort to align with the Sustainability Accounting Standards Board ("SASB") framework. This report includes sustainability data for the year ending December 31, 2021.

SASB is an independent non-profit organization that sets standards to guide the disclosure of financially material sustainability information by companies to their investors. SASB created the Sustainable Industry Classification System® ("SICS"®) to group like companies based on their sustainability-related risks and opportunities. As of the date of this ESG Report, RCF is classified in the "Asset Management & Custody Activities" Primary SICS Industry. The SICS "Metals & Mining" classification is primarily geared towards mine operators and producers, but RCF recognizes that many of the topics and metrics included in this classification are relevant to its ESG performance. Going forward, we will be looking at developing metrics to also align with the SASB "Metals & Mining" Standard as part of our evolving approach to appropriate and balanced reporting.

Topic Metric Response
Transparent Information & Fair Advice for Customers


(1) Number and (2) percentage of covered employees with a record of investment-related investigations, consumer-initiated complaints, private civil litigations, or other regulatory proceedings
RCF does not have any employees who fall under the definition of "covered employees" under the FINRA rules. Therefore, this item is not applicable.


Total amount of monetary losses as a result of legal proceedings associated with marketing and communication of financial product related information to new and returning customers
RCF did not sustain any monetary losses in 2021 as a result of legal proceedings associated with our marketing and communications of financial product related information to new and returning customers.


Description of approach to informing customers about products and services

Around 93% of RCF's Limited Partners ("LPs") are located in the U.S. (based on tax status) and range from university endowments, foundations and philanthropic trusts to family trusts and pension funds.

RCF has an integrated approach to informing potential and existing LPs about RCF's capabilities to address their needs and meet their particular investment goals. This approach includes detailed policies and procedures to ensure that all marketing materials comply with relevant SEC regulation. Any performance data distributed by the Company and its Supervised Persons to prospective or existing Investors or Clients is subject to the provisions of Rule 206(4)-1 and Rule 206(4)-8 under the Advisers Act.

To fulfill our commitment of being a transparent and trusted fiduciary, we regularly engage with our LPs, providing quarterly reports and holding an annual general meeting.

Refer to page 11 of this ESG report for more detail on how RCF engages, communicates and collaborates with our Investors.

Form ADV

As a registered investment advisor, RCF is required to file a Uniform Application for Investment Adviser Registration on Form ADV ("Form ADV") with the SEC. Parts 1 and 2A of the Company's Form ADV are available for review by the SEC, applicable state regulatory authorities and the public via the SEC website.

Per regulatory requirements, RCF's policy is to deliver the Form ADV Parts 2A and 2B to each prospective LP, prior to entering into a binding subscription agreement.
27Resource Capital Funds | 2021 ESG Report | Sustainability Accounting Standards Board Index

Topic Metric Response
Employee Diversity & Inclusion


Percentage of gender and racial/ethnic group representation for (1) executive management, (2) non-executive management, (3) professionals, and (4) all other employees
Female Male N/A*
Executive Management 4 14 0
Non-Executive Management 5 20 0
Professional 16 21 0
All Other Employees 12 0 0
Grand Total 37 55 0
Black or African
Asian American Latin American White Other† N/A*
Executive Management 0 0 1 17 0 0
Non-Executive Management 0 1 3 21 0 0
Professional 4 1 4 28 0 0
All Other Employees 1 0 1 10 0 0
Grand Total 5 2 9 76 0 0

* N/A = not available or not disclosed
† Other includes the classifications: Native American or Alaska Native, Native Hawaiian or Pacific Islander, and "Two or More Races"

Refer to page 22 of this ESG report for more detail on RCF's diversity, equity and inclusion initiatives for fostering equitable employee representation across our global operations.
Incorporation of Environmental, Social, and Governance Factors in Investment Management & Advisory


Amount of assets under management, by asset class, that employ (1) integration of environmental, social, and governance ("ESG") issues, (2) sustainability themed investing, and (3) screening
ESG Integration

RCF believes in the importance of investing responsibly and that ESG management is as important as a project's technical characteristics or market conditions. As part of its investment analysis and risk management strategy, every investment team at RCF considers ESG factors in their investment processes. RCF believes that this contributes to the improvement of long-term returns and more sustainable businesses.

100% assets under management employ ESG integration.


Due diligence incorporates norms-based screening, drawing from relevant international standards to assess portfolio company performance and identify areas where performance does not satisfy RCF's minimum standards.

RCF also employs negative screening in relation to investments in portfolio companies primarily engaged in the mining, exploitation or commercial production of thermal coal.

100% assets under management employ ESG screening.

Sustainability-themed Investing
RCF does not have assets under management which have a specific mandate to be invested in sustainability-themed assets.
28Resource Capital Funds | 2021 ESG Report | Sustainability Accounting Standards Board Index

Topic Metric Response
Incorporation of Environmental, Social, and Governance Factors in Investment Management & Advisory


Description of approach to incorporation of environmental, social, and governance ("ESG") factors in investment processes and strategies
Refer to the main body of this ESG report for comprehensive discussion on RCF's approach to the incorporation of ESG factors in our investment processes and strategies.


Description of proxy voting and investee engagement policies and procedures
Proxy Voting

The majority of investments made by the private investment funds to which RCF provides its advisory service ("Clients") are private companies.

Where publicly listed equity positions are held, RCF has adopted policies and procedures which ensure that it complies with the requirements of Rule 206(4)-6 and Rule 204-2(c)(2) under the Advisers Act.

RCF monitors the performance, activities and events related to each investment. When exercising its voting authority securities held by, it considers such information, evaluates other issues that could have an impact on the value of the security and votes with a view toward maximizing overall value. RCF votes all proxies in a prudent manner, considering the prevailing circumstances at such time and RCF's fiduciary duty to its Clients.

In accordance with Rule 204-2 of the Advisers Act, RCF maintains appropriate books and records in connection with proxy voting.

Engagement Policy

RCF's investee engagement procedures are governed by our Responsible Investment Policy and Strategy. The level of engagement with portfolio companies is based on the materiality of issues and the size of the ownership stake.

Refer to page 11 of this ESG report for more detail on RCF's engagement strategy.
Business Ethics


Total amount of monetary losses as a result of legal proceedings associated with fraud, insider trading, anti-trust, anti-competitive behavior, market manipulation, malpractice, or other related financial industry laws or regulations

RCF did not sustain any monetary losses in 2021 as a result of legal proceedings associated with our marketing and communications of financial product related information to new and returning customers.

RCF reports all such matters that are material to RCF in our filings with the SEC.


Description of whistleblower policies and procedures
RCF's Whistleblower Policy encourages employees to bring good faith claims of violations of applicable laws to the attention of the Chief Compliance Officer. The policy includes a non-retaliation measure and does not limit the rights of employees under applicable whistleblower laws and regulation to report violations of any such laws or regulations.


(1) Total registered and (2) total unregistered assets under management ("AUM")

(1) RCF's total registered AUM was nil as of December 31, 2021.

(2) RCF's total unregistered AUM was approximately $2.5 billion as of December 31, 2021.


Total assets under custody and supervision
As an alternative asset manager, total AUM is a more relevant activity metric for RCF. As of December 31, 2021, RCF had $2.5 billion AUM.
29Resource Capital Funds | 2021 ESG Report | Our Global Presence

Our Global Presence

RCF is headquartered in Denver and has regional offices in New York, London, Perth, Melbourne, Toronto and Santiago.

Denver - RCF Management LLC
1400 Wewatta Street, Suite 850 Denver CO 80202, USA
Tel. +1 720 946 1444
Perth - Resource Capital Funds Management Pty Ltd
24 Kings Park Road, Level 1 West Perth WA 6005, AU
Tel. +61 8 9476 1900
New York - RCF Management LLC
2 Jericho Plaza, Suite 103 Jericho, NY 11753, USA
Tel. +1 631 692 0043
Santiago - RCF Management (Chile) SpA
Nueva Costanera 4040, #31 Vitacura, Santiago 7630000, CL
Tel. +56 2 2245 4361
Toronto - RCF Management (Toronto) Inc.
25 York Street, Suite 610 Toronto ON M5J 2V5, CA
Tel. +1 647 726 0640
London - RCF Management (UK) Ltd
33 St James's Square, St James's London SW1Y 4JS, UK
Tel. +44 20 8132 7672
Melbourne - Resource Capital Funds Management Pty Ltd
133 Flinders Lane, Level 1 Melbourne, VIC 3000, AU
Tel. +61 3 8638 8950