ESG Policy

1. Emanate Capital

1.1 Emanate Capital Group (Emanate Capital) is an independent corporate and structured finance advisory and investment boutique with a focus on sustainability and the energy transition, with extensive experience across renewable energy, energy infrastructure, infrastructure and real assets. We provide capital solutions globally across debt and equity for private and public companies, buy-side and sell-side, joint ventures and projects. We support businesses from start-up and growth stage through to M&A and recapitalisations.

1.2 Emanate Capital does this by:

1. assisting clients through advising on capital raising for debt and equity.
2. originating debt and equity, structuring, advising on and executing debt and equity transactions.
3. assisting clients with financial feasibility studies, structuring advice and offtake solutions.
4. direct investment.

where most clients and transactions are in the EEA and the UK and capital is typically sourced in the EEA and the UK, albeit with no geographic limitation for clients or assets.

1.3 This document sets out Emanate Capital’s ESG Policy (the Policy).

 2. Environmental, Social and Governance (ESG) Policy

2.1 This Policy applies the corporate entities owned by Emanate Capital Holdings Limited (Emanate Capital Holdings), each a Member.

2.2 Vision on energy and climate

1. Making contributions in the energy and climate sector by promoting sustainable energy has the potential to prevent climate change and irreparable damage to the planet. Reflecting to this, we aim to transition to a fossil-fuel free and low-carbon economy that requires an energy strategy containing four major elements:
   
   1. Improve: optimize use of renewable energy sources
   2. Reduce: reduce demand for, and more efficient use of energy
   3. Increase: increase use of renewable energy sources
   4. Advance: support the development and deployment of new technologies
2. This is in line with Emanate Capital’s mission to create a society that promotes people’s quality of life especially since the world’s current unsustainable patterns of energy production and consumption are increasingly posing negative impacts on people’s lives.

2.3 General ESG Principles

1. Emanate Capital will commit to the ESG principles by:
   
   1. working with clients whose principles, values, and policies are aligned with those of Emanate Capital
   2. aligning the vision, mission and the activities of any business invested in, with the business principles, values, and policies that Emanate Capital has in place
   3. complying with all the applicable local and national laws of countries where it involves a project or a business
   4. contributing to positive impact, while minimizing the potential adverse impact in, at the very least, the surrounding environment and community, workers, and other relevant stakeholders
   5. where applicable, encouraging our clients to ensure that the ESG risks arising from their supply chain are identified, mitigated, managed, and thus mitigating damages that are ESG-related
   6. monitoring the ESG impact and issues arising from the activities of the investees and also the management and mitigation measures being taken

3. The environment

3.1 Emanate Capital will:

1. comply with, at least, all the applicable local and national laws and regulations on environmental aspects.
2. consider ESG factors as part of any client onboarding or investment analysis.
3. consider where possible the material risks, impact, and issues on the environment and the appropriate mitigating and management measures, as part of investment analysis or client onboarding and, as applicable, during the investment monitoring process. In particular with regards to:
   
   1. carbon emissions,
   2. the potential change in biodiversity,
   3. the waste management system,
   4. the supply chain practice that involves the use of natural resources, and
   5. the use of scarce resources.
4. apply the appropriate measures from the best practices of environmental standards[1] if the situation is considered relevant or if the business is considered to possess significant environmental risks[2]; even when the measures are more stringent than local and national legislations.
5. report impact and issues on environmental aspects that result from the operation of the business, with a particular emphasis on the ones that raise significant concerns and require higher attention.

3.2 Emanate Capital will ensure that the transactions and clients we support are, and are developed and assessed in a manner that is, socially responsible and reflective of sound environmental management practices. Negative impacts on project affected ecosystems and communities should be avoided where possible. If these impacts are unavoidable, they should be reduced, mitigated and/or compensated for appropriately. Emanate Capital should seek opportunities to achieve positive environment, climate change and social impacts from our activities.

3.3 Emanate Capital shall promote responsible environmental stewardship and socially responsible development.

3.4 Based on the best available science, including the findings of the IPCC, on the drivers and impacts of climate change, we believe there is an urgent need to accelerate the transition towards global net zero greenhouse gas (GHG) emissions and for service providers to play their part to help deliver the goals of the Paris Agreement and ensure a timely transition to a low carbon economy.

3.5 Emanate Capital commits to support the goal of net zero greenhouse gas emissions, consistent with a maximum average global temperature rise of 1.5°C above pre-industrial levels.

3.6 Emanate Capital will:

1. align all relevant services and products to achieve net zero greenhouse gas emissions. Scaling and mainstreaming Paris Agreement-alignment into the core of our business. Review and update such targets at least every five years with a view to increasing the proportion of services and products to achieve full alignment.
2. build internal capability to understand the risks and opportunities of the net zero transition using best-practice net zero methodologies where they exist and, where methodologies or data are missing, proactively and collaboratively work to address those gaps.
3. address our own operational impacts by setting science-based emissions reduction targets across all operational emissions (Scopes a and b and, where material, c) in line with 1.5°C emissions pathways.
4. consistently raise with our key stakeholders the importance and implications of setting net zero targets and strategies across Scopes a, b and c emissions and understanding the impact businesses can have to help reduce GHG emissions.
5. work to ensure our relevant services and products take into account the best available climate science, including credible emissions reduction pathways to net zero. Support innovation and prioritise our efforts where we have, or can have, the most significant impact. Support the development of products and services supporting the net zero transition.
6. advance our efforts by proactively engaging with stakeholders and policy-makers on corporate and industry action, as well as public policies, that support a net zero transition of economic sectors in line with science and with regard to social impacts.
7. Report progress at least annually, including publishing disclosures aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and climate action plans.

3.7 Emanate Capital recognises the vital role of service providers in supporting the transition to net-zero emissions and with the understanding that our clients and stakeholders, including regulators, policy-makers and standard-setters, will endeavour to facilitate these objectives.

3.8 Emanate Capital commit to engaging with policy-makers, regulators, peers and other stakeholders, consistent with applicable law and regulatory requirements, in order to pursue the objective of net zero alignment.

4. Social issues

4.1 Emanate Capital will:

1. comply with, at least, all the applicable local and national laws and regulations on social and labour aspects.
2. consider where possible the material risks, impact, and issues at the levels of society, stakeholders, and labour and the appropriate mitigating and management measures as part of any investment analysis or client onboarding and, as applicable, during the investment monitoring process. In particular with regards to:
   
   1. the society living conditions,
   2. the labour policies and regulations,
   3. the supply chain practice that involves the use of labour and affects local community,
   4. the health and safety working conditions,
   5. human rights, and
   6. stakeholders engagement process.
3. treat all employees and contractors fairly and with respect, including by not employing forced labour and harmful child labour³ and paying wages that meet or exceed the industry or national minimum wage.
4. take into account the possibilities of contributing positive impact to the local community and participating in community or social development programs.
5. apply the appropriate measures from the best practices of social and labour standards⁴ if the situation is considered relevant or if the business is considered to possess significant social and labour risks⁵; even when the measures are more stringent than local and national legislations. This is especially important when the business takes place in a country that has not ratified one or some ILO Fundamental Conventions.
6. monitoring impact and issues on social aspects result from the operation of the business, with a particular emphasis on the ones that raise significant concerns and require higher attention.

5. Governance

5.1 Emanate Capital will:

1. comply with, at least, all the applicable local and national laws and regulations on transparency and corporate governance and promote the use of the international best practice on corporate governance when relevant and possible.
2. Identify the potential risks, impacts, and issues on the governance and legal sides and the appropriate mitigating and management measures, before making investment and during the investment monitoring process.
3. apply high standards of business ethics, integrity, and honesty to the business and to the board of the company and ensure that no corruption, bribery, money laundering, and internal misconduct activities are taking place in the business. This is especially important when the business is considered to possess significant governance risks⁶.
4. deal with the relevant stakeholders, such as the regulators, tax authorities, and auditors in an open and co-operative manner.
5. clearly define the roles and responsibilities of the business shareholding and management structures.
6. report impact and issues on governance aspects that result from the operation of the business, with a particular emphasis on the ones that raise significant concerns and require higher attention.