Fengate ESG Policy

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2021 ESG Policy

Responsible Investment Policy 1

FENGATE - 2021 ESG Policy


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Table Of Contents

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1. Introduction

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2. Commitment to UNPRI

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3. ESG Values and Beliefs

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4. ESG Objectives

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5. Governance Structure – Fengate’s ESG Committee

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6. Integration of ESG Assessment into General Investment Processes

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• Infrastructure

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• Private Equity

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• Real Estate

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7. Active Ownership

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8. Commitment to Equity, Belonging, Inclusion, and Diversity

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9. Support for Responsible Investment Thought Leaders and the Task Force on Climate-related Financial Disclosure

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10. Contact Us

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1 | Introduction At Fengate Asset Management (Fengate), our mission statement is: We deliver excellent investment results and fulfill lives through the impact of our work. Responsible Investment, our practice of incorporating environmental, social, and governance factors into our investment processes, forms the foundation of our mission. Fengate is a leading alternative investment manager that invests on behalf of institutional and high net worth investors across infrastructure, private equity, and real estate. We believe that responsible corporate behavior and responsible investment are intrinsic to strong, long-term investor returns and align such principles with our portfolio objectives in each of our business lines. In 2018, Fengate became a proud signatory of the United Nations-supported Principles for Responsible Investment, which promotes the application of six foundational principles into business operations and investment management processes in the belief that ESG factors can positively influence financial performance. The purpose of this policy is to set out Fengate’s responsible investment beliefs, objectives, and approach to integrating ESG assessments throughout the investment processes across each of our asset classes, to deliver long-term sustainable returns for stakeholders. This policy applies to each of Fengate’s business units; infrastructure, private equity, and real estate. Due to differing asset classes and investment strategies, each team is independently responsible for their own investment decisions, assessment of material ESG factors, and incorporation of the assessment into their investment processes.

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2 | Commitment to UNPRI As a signatory of the UNPRI, Fengate has committed to upholding UNPRI’s principles in our firm’s activities. Fengate professionals across the organization work together to integrate the principles throughout the full investment life cycle. Fengate is committed to applying the six principles of the UNPRI:

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We will incorporate ESG factors into investment analysis and decision-making processes.

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We will promote acceptance and implementation of the Principles within the investment industry.

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We will be active owners and incorporate ESG factors into our ownership policies and practices.

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We will work together to enhance our effectiveness in implementing the Principles.

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We will seek appropriate disclosure on ESG factors by the entities in which we invest.

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We will report on our activities and progress towards implementing the Principles.

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3 | ESG Values and Beliefs At Fengate, ESG considerations include a variety of factors that align with Fengate’s corporate culture and vision that may have an impact – on its own or in combination – on the risk and return profile of investments and may include:

Environmental ■ GHG Emissions ■ Water & Waste Management ■ Energy Management ■ Sustainable Land Use

Social ■ Human Rights & Community Relations ■ Data Security ■ Employee Engagement, Diversity & Social Inclusion ■ Employee Health & Safety ■ Labor Practices

Governance ■ Business Ethics ■ Board Composition & Governance Rights ■ Critical Incident & Systematic Risk Management ■ Remuneration Policies ■ Accounting Integrity and Audit Equality

In principle, Fengate will not invest in tobacco, firearms, nuclear power, or coal power related opportunities. 6

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4 | ESG Objectives Fengate’s ESG objectives are:

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To integrate and assess ESG factors throughout our investment process including origination, investment due diligence, approval, asset management and disposition.

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To quantify the risk and return impact of ESG factors where possible.

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To report and be accountable on ESG-related matters to our investors.

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To promote responsible investment principles to our employees, partners, service providers and investors.

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FENGATE - 2020 ESG Policy

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5 | Governance Structure Fengate’s ESG Committee Fengate’s ESG Committee is led by the Head of Investor Relations and is comprised of a senior representative from each business unit (infrastructure, private equity, and real eastate) as well as representation from Fengate’s corporate team. The ESG Committee is responsible for the ongoing development, monitoring and improvement of Fengate’s responsible investment activities. The Committee meets at least once a quarter, and will review and update, if necessary, Fengate’s ESG Policy on an annual basis.

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6 | Integration of ESG Assessment into General Investment Processes Fengate integrates ESG considerations into all phases of its investment processes across each of its asset classes. Given Fengate’s long-term approach to investing, ESG factors present inherent risks and opportunities that Fengate must evaluate and manage throughout its holding period.

Environmental

Social

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Governance

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Infrastructure Fengate Infrastructure includes ESG factors as an integral part of the investment process, including at each phase of the investment lifecycle – from investment due diligence, through acquisition, ongoing management, to exit. The due diligence process includes environmental assessments which account for long-term considerations, including climate change and demographic projections. Similarly, Fengate considers community and other stakeholder concerns, appropriate governance systems, and protections for each project. Fengate completes an annual ESG Monitoring Assessment for each of its existing infrastructure investments to evaluate and update, as necessary, the ESG factors impacting each project. The ESG Assessment incorporates an overall risk rating of the project at acquisition, current and future outlook, and assesses various environmental, social and governance factors for the project. The annual ESG Assessment is available upon request.

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Private Equity Fengate Private Equity works with its operating partners and advisors to identify, assess and address material ESG factors in a manner consistent with its approach to material risk assessment, identified through our investment screening, diligence and management activities. Where a material ESG risk is identified, it forms part of the findings presented to Fengate’s Investment Committee and, if applicable, is incorporated into post-investment action plans to be implemented by our operating partners. During the holding period for each investment, the investment team regularly re-evaluates its ESG factor analysis with any material findings incorporated into portfolio monitoring reporting that is discussed with Fengate’s Investment Committee and Advisory Board on a quarterly basis.

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Real Estate Fengate Real Estate reviews and manages environmental, social and governance by integrating ESG factor analysis throughout the investment and development process, asset management, management/leasing, and stakeholder engagement. All real estate professionals at Fengate are responsible for implementing material sustainable business practices that may positively influence the value of the investment, such as energy and water conservation, waste management, tenant engagement, and building certification. Fengate benchmarks ESG integration practices and supports broader industry ESG integration through participation in asset level LEED Certification, pursuing BOMA Best Certification, and considering participation in the Global Real Estate Sustainability Benchmark (GRESB). Fengate Real Estate’s development team works with its industry partners to ensure that ESG factors are considered throughout the diligence and investment phase of each project. Considerations may include building code requirements, affordable housing component, utilization of recycled materials, energy efficiency, testing and removal of contaminated soil, public consultation, and stakeholder engagement. Throughout the development process, Fengate collaborates with various government entities (e.g., cities, municipalities, ministries) and stakeholders (e.g., project partners, community members, business groups).

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7 | Active Ownership Fengate strives to manage risks and maximize long-term value to our stakeholders, understanding the influence that material ESG factors have on the quality and performance of the projects or companies in which we invest. Fengate’s role of engagement varies dependent on the asset class and investment strategy. The prioritization of our engagement across each platform is focused on managing ESG risks and opportunities including, but not limited to, size of the investment, materiality of ESG factors on financial and operational performance, and our internal ESG rating of the investment.

Engagement Across our infrastructure and real estate platforms, Fengate engages with numerous service providers from property managers to operating and service providers, in which we promote the use of favorable environmental and economic practices. Fengate will engage with regulatory entities, as applicable, to ensure compliance with local jurisdictions, laws and regulations in which we operate. To ensure appropriate oversight and control of companies or projects, in most instances, Fengate obtains voting rights and board representation. Fengate will consider opportunities to participate in collaborative engagement initiatives that support businesses and projects, our stakeholders, and the industries in which we invest. Fengate is an active member in a number of industry groups to support positive growth and change within each of the industries we invest, including Association for the Improvement of American Infrastructure, Canadian Council for Public-Private Partnerships, Canadian Venture Capital and Private Equity Association, NAIOP Commercial Real Estate Association, and REALPAC. In addition, Fengate sponsors relevant industry events annually.

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Conflicts of Interest Fengate is fully committed to maintaining high standards of integrity and professional conduct, including handling conflicts of interest. Fengate’s Code of Ethics and Compliance Manual, both incorporate policies pertaining to conflicts of interest, including but not limited to: requirements pertaining to personal training, outside business activities, and gifts and entertainment. All personnel are expected to be familiar with and to adhere to Fengate’s Code of Ethics as a condition of their employment.

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Commitment to Equity, Belonging, Inclusion and Diversity

Diversity and Inclusion are important aspects of Fengate’s culture. Fengate is committed to supporting the advancement of equity, belonging, inclusion and diversity across our Firm and the industries in which we are involved. In Q1 2021, Fengate launched its EBID Think Tank, to support the formal development of Fengate’s EBID mission and strategy, which consists of professionals from across the Firm including group heads, investments, finance, human resources, investor relations, marketing and communications, legal and administrative professionals. The EBID Think Tank is designed to lead and support various internal and external EBID-focused initiatives, which will include the development of a formal EBID policy, outlining Fengate’s goals, vision and commitment.

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Support for Responsible Investment Thought Leaders and the Task Force on Climate-related Financial Disclosure

As part of its commitment to the fourth principle of the UNPRI: To promote acceptance and implementation of the Principles within the investment industry, Fengate is open to participating in and supporting other organizations that share and promote the UNPRI and other ESG-related initiatives. Fengate is on its responsible investment journey and strives to be, over time, a leader in this area with measurable real-world impact. As such, Fengate supports the recommendations of the Financial Stability Board (FSB) Task Force on Climate-related Financial Disclosure (TCFD). We recognize climate change as an important global issue and support the FSB’s mission to develop voluntary, consistent climate-related financial risk disclosures.

10 | Contact For more information, please contact: Kevin Reid

Executive Vice President, Investor Relations Phone: +1 905 491 2622 Email: investorrelations@fengate.com

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“Fengate” refers to the Fengate group of companies which is comprised of Fengate Capital Management Ltd., its affiliated entities and the funds or other investment vehicles that they manage. Fengate has produced this information brochure (the “brochure”) for informational purposes only. The information contained in the brochure (the “Information”) is believed to be accurate at the time of publication of the brochure; however, Fengate does not guarantee or warrant or make any representations concerning the quality, suitability, accuracy completeness or timeliness of the information contained in the brochure. This brochure and the information contained within it does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. In no event will Fengate be liable to any party for any claim or any direct, indirect, exemplary, incidental, punitive, special or other consequential damages arising out of information available in the brochure. Fengate is a trade name of Fengate Corporation. All other trade names, trademarks, service marks or logos found in this brochure are owned by their respective owners. © 2021 registered and unregistered trademarks are the property of Serafini Holdings Corporation. Designed and produced by Fengate. 2021.06.18

Toronto | Houston | Oakville info@fengate.com

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