Fengate 2024 Sustainability Report

FENGATE ASSET MANAGEMENT

2024 Sustainability Report

Land acknowledgement Fengate acknowledges that we live and work on the land of traditional territories of Indigenous Peoples from across Turtle Island, which is also known as North America, and is home to many diverse peoples, cultures, languages and territories including First Nations, Inuit and Métis people.

Fengate acknowledges and pays respect to Indigenous Peoples who have been stewards of the land for generations and hold unique perspectives, knowledge and rights to ecosystem conservation and climate change.

Fengate strives to find opportunities to partner with, consult, and promote Indigenous People in our business and our investments.

We also commit to continuously educate our employees on Indigenous history, culture, rights and the ongoing process of reconciliation. Please see page 24 for Fengate’s Indigenous Reconciliation Strategy.

Table of contents Introduction and overview ............................................04 Message from our President and CEO ................................. 04 Message from our Director of Responsible Investment ........ 06 About Fengate ........................................................................... 08 About this report ...................................................................... 10 Responsible investment highlights ...................................... 11 Our firmwide approach .................................................12 Responsible investment in action ..................................34 Case studies ............................................................................... 34 Appendix ......................................................................46 Key ESG metrics ........................................................................ 46 2024 TCFD report ...................................................................... 48 Nature and biodiversity methodology ................................ 64

Message from our President and CEO Fengate was founded with a fundamental commitment to upholding our responsibilities to our stakeholders, our environment, and the communities in which we serve, as we believe responsible investment is critical to delivering long-term, sustainable value.”

Dear stakeholders,

Fengate Asset Management | 2024 Sustainability Report

I am pleased to present Fengate’s 2024 Sustainability Report. At Fengate, our commitment goes beyond delivering excellent investment results. Acting responsibly on behalf of our stakeholders, which includes a growing roster of global institutional investors, is central to our values. Fengate was founded with a fundamental commitment to uphold our responsibilities to our stakeholders, our environment, and the communities in which we serve, as we believe responsible investment is critical to delivering longterm, sustainable value.

We are proud to integrate responsible investment principles into each step of the investment process across our infrastructure, private equity, and real estate business units. As well, we recognize that we can achieve significant results by being thoughtful in the opportunities we pursue, and by selecting only exceptional partners in the delivery of our projects.

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OUR FIRMWIDE APPROACH

In the last year we assembled a Responsible Labour team, and their work has become an important differentiator for our funds. We aim to partner with reputable design-builders and operators who are aligned with our Responsible Contractor Policy and principles. We continue to build relationships with the North American labour community, and strive for meaningful engagement with local communities.

From building essential infrastructure such as schools and hospitals to delivering renewable energy and battery storage capacity, our investments aim to create a lasting, positive impact. We support business growth through private equity investments and create meaningful places for people to live and thrive through the delivery of real estate investments such as seniors and student housing. We understand the privilege of being part of the fabric of our communities, and the responsibility which comes with it.

RESPONSIBLE INVESTMENT IN ACTION

APPENDICES

I am proud of the work we have done with our responsible investment practices, and we will continue to find ways of making a positive impact through our work. We are thankful for the continued support and trust from our investors and our partners as we aspire to become North America’s most trusted partner for private investments by putting our people, clients and communities first.

Fengate Asset Management | 2024 Sustainability Report

INTRODUCTION

Lou Serafini Jr. President and Chief Executive Officer

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Message from our Director of Responsible Investment Throughout the year, several guiding principles have emerged to shape our ongoing strategy: 1) Sustainability as a value creation lever

Fengate Asset Management | 2024 Sustainability Report

2024 was an important year for Fengate’s Responsible Investment team. Throughout the past year, we have focused on building the foundation for a strong and adaptable Responsible Investment Program. Our efforts prioritized building up in-house capabilities, developing tools and frameworks, and creating scalable and repeatable processes. As fiduciaries, we are committed to actively monitoring and assessing the evolving investment landscape. Our approach emphasizes proactive risk management and opportunity identification—ensuring we drive attractive risk-adjusted returns for our investors while contributing positively to our community and the environment.

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Increasingly, sustainability-related initiatives need to demonstrate a clear linkage to risk mitigation and value creation. As organizations and asset managers begin to measure and quantify the impact of sustainability-related actions, it has become clear that value lies in linking sustainability outcomes with financial performance.

Additionally, there is now a cost of inaction when sustainability-related risks are ignored or mismanaged.

At Fengate, we understand that we need to embed this approach into our investment strategy. Through due diligence and active asset management, our teams are encouraged to identify how critical issues such as physical climate risk, health and safety, responsible labour practices, and greenhouse gas (GHG) emissions can materially impact asset value and investment performance.

2) Responsible labour practices as a win-win strategy Fengate is committed to upholding responsible labour practices across our investments. Fengate’s Responsible Labour Program, governed by our Responsible Investment (RI) team, provides a framework for the firm to engage with labour partners and ensures responsible labour practices are integrated into the investment and asset management process. The team ensures that we are proactively notifying responsible labour groups of upcoming opportunities and provide them with a fair opportunity to bid on relevant work. We also focus on monitoring and tracking of responsible labour engagement across projects where we have meaningful influence through financial or contractual rights and interests. Between 2019 and 2024, 16 Fengate investments across North America generated over 10 million union labour hours for 14 different building trades. In 2024, Fengate’s operating assets generated over 2 million in union operations and maintenance (O&M) hours.

INTRODUCTION

OUR FIRMWIDE APPROACH

RESPONSIBLE INVESTMENT IN ACTION

APPENDICES

Through due diligence and active asset management, our teams are encouraged to identify how critical issues such as physical climate risk, health and safety, responsible labour practices, and GHG emissions can materially impact asset value and investment performance.”

In 2024 alone, extreme weather events and climaterelated disasters caused significant economic loss, totaling approximately $320 billion worldwide.1 According to the World Economic Forum, the cumulative loss from such events over the decade leading up to 2019 reached nearly $1.5 trillion.2 Asset managers need to proactively address current and future physical climate hazards through adaptation and mitigation activities. Building resilience is critical to ensure that there is uninterrupted delivery of essential healthcare services, energy, and transportation. For example, at Fengate, a physical climate scenario analysis is conducted for every investment during the due diligence phase, considering multiple climate scenarios, timeframes, and hazard types. This analysis helps identify potential impacts on business operations, heating and cooling costs, equipment life, insurance costs, and exit opportunities.

Fengate works collaboratively with our partners to manage those risks during design, construction, and renovation of our assets.

4) Energy transition needs to adopt a balanced approach The demand for energy has never been so high as in recent years due to trends in electrification, electric vehicle adoption, and most recently the rapid development of data centers driven by the adoption of AI technology. Further, increasingly warmer temperatures require significantly higher cooling loads. While industries are collaborating on ways to improve energy efficiency through optimization, electricity demand is expected to continue rising in the coming years. Fengate is actively identifying opportunities to build renewable energy capacity and investing in battery energy storage systems (BESS) across the United States to stabilize the grid during periods of wind and solar intermittency. Brownfield gas peaking assets also support grid stability by providing reliability to the grid system, while carefully managing long-term climate transition risks. In 2024, Fengate generated over 1.9 million MWh in renewable energy across nine renewable energy assets.

1 2

5) Quality over quantity for meaningful ESG data management There is an increasing need to collect and report on ESG data in a manner that is consistent with financial data. As regulators, investors, and other stakeholders begin to link ESG data with an organization’s ability to manage risks and respond to issues, companies are now under growing pressure to ensure that the information they share is traceable, transparent, and reliable. Further, comparable and consistent year-over-year data is critical to facilitate more meaningful engagement with asset managers and portfolio companies. As such, Fengate has been focused on enhancing the quality of data we collect on GHG emissions, climaterelated risks, and broader sustainability information. We are doing so by automating data flows, seeking third-party assurance, adding additional internal controls and quality assurance processes, and increasing board visibility. For example, ESG data collected is included in board materials for review. In the future, board approval will also be required for the key ESG data points collected and reported.

Fengate Asset Management | 2024 Sustainability Report

3) Climate adaptation is key for long-term value protection

Della Wang Director, Responsible Investment

Climate change is showing its claws: The world is getting hotter, resulting in severe hurricanes, thunderstorms and floods | Munich RE This is what climate change costs economies around the world | World Economic Forum

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About Fengate

Fengate Asset Management | 2024 Sustainability Report

Fengate is a leading alternative investment manager with more than $10 billion of capital commitments, focused on infrastructure, private equity, and real estate strategies. With offices and team members across Canada and the United States, Fengate leverages 50 years of entrepreneurial experience to deliver excellent investment results on behalf of its clients.

Our responsible investment values are reflected in both our investment choices and our project partnerships. We understand the privilege of being part of our communities’ fabric and strive for thoughtful delivery through partnerships with responsible labour groups, reputable design-builders and operators, and meaningful engagement with local communities.

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INTRODUCTION

OUR FIRMWIDE APPROACH

RESPONSIBLE INVESTMENT IN ACTION

Our vision

Our purpose

To be North America’s most trusted partner for private investments by putting our people, clients, and communities first.

Exceeding our clients’ objectives while improving the world through our investments.

APPENDICES

Business highlights (as of December 2024) Total capital commitments3

Executed transactions

Assets under management4

Employees

$ $

10B+ 24B+

175+

Institutional clients

70+

250+

Total capital commitments3

C$4.4B

Real Estate

C$5.4B

Fengate Asset Management | 2024 Sustainability Report

Investment areas

Infrastructure

C$0.7B

Private Equity All figures in this report are represented in Canadian dollars unless otherwise stated. USD figures converted to CAD at 1.44.

3 Capital commitments to Fengate-managed vehicles from third-party investors and General Partner.

4 Assets under management represent enterprise value adjusted for Fengate’s ownership (infrastructure and private equity assets) and project gross asset value (real estate assets), plus undrawn commitments and recallable distributions.

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About this report The 2024 Sustainability Report discloses relevant information regarding Fengate’s Responsible Investment Program.

This report highlights key initiatives we have undertaken over the 2024 period and contains forward-looking statements on our vision and direction. The report covers our three strategies – infrastructure, private equity, and real estate, along with our corporate initiatives in the U.S. and Canada. All dollar amounts are in Canadian currency, unless stated otherwise.

Established North American presence

100+

North American assets

Active Fengate markets Fengate staff Fengate offices Fengate Asset Management | 2024 Sustainability Report

Frameworks Select content within this report has been developed with reference to, but not fully aligned with, established sustainability reporting frameworks. This includes the Global Reporting Initiative (GRI), International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards, and Task Force on Climate-related Financial Disclosures (TCFD). We recognize the importance of these standards in driving transparency and accountability and will continue to refine our approach to further align with evolving best practices.

This report is provided solely for informational purposes, does not promote any business or business interest of Fengate Asset Management, and does not constitute an offer or a solicitation to buy or sell any security, product or service in any jurisdiction.

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INTRODUCTION

OUR FIRMWIDE APPROACH

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APPENDICES

Responsible investment highlights5

of renewable energy generation capacity

10M+ 5

1.9M+ MWh of renewable energy generated in 2024

$1.2B+

capital invested in green buildings backed by LEED or BOMA BEST

2

of absolute avoided carbon emissions from energy transition assets

2M+

union labour hours generated from construction projects completed from 2019 to 2024, representing over 14 different trades across 16 investments

real estate development projects planned with ground source heat exchange

1M+ tCO e

union operating & maintenance hours generated in 2024

23/29 $950M+

capital invested in energy transition assets

social and transportation assets certified or targeting LEED certified, silver, or gold

740+

hours volunteered in our communities

Fengate was proud to receive the following awards and recognition in 2024: Canada’s Best Managed Companies – Platinum Member Canada’s Top 100 Small and Medium Employers 5

Best Work Place in 8 categories Waterstone Canada’s Most Admired Culture

As of December 31, 2024.

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Fengate Asset Management | 2024 Sustainability Report

749+ MW

Our firmwide approach to responsible investment Fengate’s responsible investment mission statement For over 50 years, Fengate has led with purpose and remains committed to responsible investment practices. By investing responsibly and thoughtfully, we will deliver lasting value and meaningful outcomes to our clients and communities as we strive to become North America’s most trusted partner for private investments.

Firmwide responsible investment objectives

Fengate Asset Management | 2024 Sustainability Report 12

Assess

Quantify

Monitor

To integrate RI assessment into our investment process including origination, investment due diligence, approval, asset management, and disposition

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

To monitor and improve our RI performance in our asset management activities

01

02

03

INTRODUCTION

OUR FIRMWIDE APPROACH

RESPONSIBLE INVESTMENT IN ACTION

APPENDICES

Key terms and definitions Responsible investment Responsible Investment (RI) involves considering environmental, social and governance (ESG) issues when making investment decisions and influencing companies or assets (known as active ownership or stewardship) to achieve sustainable outcomes.

ESG Environmental, social and governance topics that can have an impact on the risk-return profile of an investment, or have a material impact on our stakeholders, communities, and the environment.

Sustainability Sustainability is the guiding outcome of our Responsible Investment Program by taking a balanced approach to environmental, social, and economic factors to achieve long-term resilient value for our investors, stakeholders and communities.

Exclusions

Promote

To report and be accountable on RI-related matters to our investors and stakeholders

To promote RI principles to our employees, partners, service providers, and investors

04

05

Fengate Asset Management | 2024 Sustainability Report

Report

In principle and fundamental to our core investment strategy, Fengate conducts an exclusionary screening that prohibits investment in assets or entities whose principal operations and revenue generation are in sectors deemed unethical, harmful to society, or in breach of laws or regulations including but not limited to tobacco, palm oil, civilian and nuclear weapons, or thermal coal power generation.

Responsible Investment Policy Fengate’s Responsible Investment Policy (the Policy) outlines our responsible investment beliefs, objectives, and approach to integrating ESG risk assessments throughout the investment process across our business units to deliver long-term sustainable returns for stakeholders. The purpose of the Policy is to define Fengate’s approach to responsible investing and stewardship activities. The Policy is updated on an annual basis, or more frequently as required.

Our Firmwide Responsible Investment Policy is available on the Fengate website.

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Material ESG topics and reference to Sustainable Development Goals (SDGs) At Fengate, responsible investment considerations include a variety of material ESG-related topics that align with our firmwide corporate culture and vision. These can have an impact on the risk-return profile of an investment, or have a material impact on our stakeholders, communities, and the environment.

In 2024, Fengate conducted a double materiality assessment to review these topics. We believe this exercise is critical to ensuring we capture risks and opportunities that benefit Fengate’s performance and societal outcomes. This undertaking is aligned to the European Union’s Corporate Sustainability Reporting Directive (CSRD) and represents best practices in sustainability management and reporting. The set of material topics below have been identified as key priorities for Fengate.

We aim to refine and update our materiality assessment annually to reflect the most up-to-date priorities based on our business strategy, stakeholder expectations, and macro trends.

E

S

Fengate Asset Management | 2024 Sustainability Report

Minimize our investments’ environmental impact while supporting global energy transition:

Amplify the wellbeing of our employees and communities, and drive inclusive economic opportunities through responsible labour practices:

Alignment to SDG:

Alignment to SDG:

3

11

12

13

15

■ GHG emissions ■ Water and waste management ■ Energy management ■ Nature and biodiversity

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3

5

8

10

■ Responsible labour ■ Human rights ■ Community relations ■ Health and safety ■ Diversity and social inclusion

INTRODUCTION

OUR FIRMWIDE APPROACH

RESPONSIBLE INVESTMENT IN ACTION

APPENDICES

Double materiality definition Financial materiality: This “outside-in” view focuses on how sustainability matters may pose either a prospective material risk or opportunity that could affect a company’s financial performance and position over the short, medium, and long term.

Impact materiality: This “inside-out” view focuses on the actual or potential short, medium, and long-term impacts on people or the environment that are directly linked to a company’s operations and its value chain. These impacts can be both positive and negative.

G

We have aligned our material topics to the United Nations’ (UN) 17 SDGs. The SDGs, also known as Global Goals, were adopted by the UN in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity.

The 17 SDGs are integrated – they recognize that action in one area will affect outcomes in others, and that development must balance social, economic, and environmental sustainability. We support and recognize the importance of contributing to the advancement of sustainable development topics within our broader corporate responsible investment strategy.

Uphold strong governance principles and ethical conduct through integrity and transparency:

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Fengate Asset Management | 2024 Sustainability Report

Alignment to SDG:

13

■ Board composition and governance rights ■ Critical incident and systematic risk management ■ Cybersecurity ■ Renumeration policies ■ Accounting and reporting integrity

Learn more about Sustainable Development Goals

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Responsible Investment Framework Fengate developed a Responsible Investment Framework (the Framework)6 in 2023 to standardize the way ESG considerations are embedded into each stage of the investment lifecycle. The Framework sets out standard governance, tools and processes across the organization, and continues to evolve with our broader strategy and key priorities. While each business unit has adopted a custom approach, Fengate has standardized material aspects of the process to consistently apply best practices and principles across all phases of the investment lifecycle.

Responsible investment process

01

03

Fengate Asset Management | 2024 Sustainability Report

Screening and Due Diligence

Investment Committee Review

Onboarding and Development

All new investments in infrastructure, private equity, and real estate are subject to mandatory RI screening.

Fengate’s RI due diligence tool focuses on capturing a standard set of material ESG topics, along with additional topics identified through a sector-specific view and supported

by Sustainability Accounting Standards Board’s (SASB) materiality map. This is to ensure that screened investment opportunities meet Fengate’s mandate and commitment to responsible investing.

The investment team prepares a summary of the RI due diligence findings, including material risks, mitigants, and opportunities to include in the proposed transaction’s Investment Committee Memo (ICM).

Fengate’s Director, Responsible Investment provides an in-depth review and sign-off on the results of the RI due diligence assessment before an investment is presented to the Investment Committee (IC) for final approvals. The Director, Responsible Investment attends all IC meetings to discuss material ESG risks and opportunities with the leadership team.

Post-closing, the investment team transitions the RI diligence findings and mitigation plan to the asset management team. Assets are also onboarded to Fengate’s centralized ESG data management tool. Where Fengate can exercise influence through its contractual rights, we establish an onboarding meeting with the relevant parties to align on key ESG risks and opportunities, identify data collection requirements and establish expectations for the management teams. Focus areas include, but are not limited to, providing local employment and engagement opportunities, exploring sustainable and low-carbon design in buildings, monitoring health and safety track records, and pursuing green building certifications where possible.

Fengate continues to review the Framework based on emerging ESG topics, and best practices on risk assessment methodologies. Where appropriate, Fengate performs deeper due diligence, working with third-party environmental and technical advisors. Climate scenario risk analysis is included in each diligence process supported by Mitiga EarthScan.

16

02

6

100%

of new investments require ESG diligence

16

mandatory ESG due diligence topics

Previously referred to as the Lifecycle ESG Engagement Program.

85+

assets under monitoring

INTRODUCTION

OUR FIRMWIDE APPROACH

RESPONSIBLE INVESTMENT IN ACTION

APPENDICES

Responsible Investment Framework

Responsible Investment Strategy & Mission Governance, Policy and Procedures

Tools and Systems Enablers

Responsible Investment Process

IC Review and Approval

Onboarding and Development

Asset Management and Monitoring

Reporting

04

05

During the asset management phase, Fengate conducts regular check-ins with asset management teams and property managers on RI performance and progress on key initiatives. We collect and monitor key ESG metrics such as energy consumption, GHG emissions, water and waste management, nature and biodiversity impact, green certifications, health and safety, union labour hours and various governance policies and procedures including cybersecurity and human rights.

Finally, the Responsible Investment Framework aims to deliver transparent reporting and disclosures to our internal and external stakeholders. We understand the importance of transparency in building trust and demonstrating accountability. We align ourselves to robust reporting frameworks such as TCFD, SFDR and ESG Data Convergence Initiative (EDCI) to provide clear, detailed and timely information about our RI activities and performance.

Internally, our ESG data management tool provides a centralized platform to review and visualize ESG metrics and year-overyear performance. Fengate will continue to share meaningful ESG data as we build up competencies around Responsible Investment Framework for all our staff and partners.

Asset Management and Monitoring

All assets are also subject to an annual climate risk scenario analysis to monitor for changes in climate risk exposure. Following data collection and review, Fengate’s RI team engages in datadriven conversations with the management teams on performance improvement opportunities and addresses any data gaps for the next reporting cycle. For assets where Fengate has limited operating control or financial interest, Fengate actively monitors the performance of the assets it manages and engages in stewardship activities within commercial reasonability to encourage positive sustainability outcomes.

Reporting

Fengate Asset Management | 2024 Sustainability Report

Screening and Due Diligence

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Governance We acknowledge and underscore that robust responsible investment governance is a shared responsibility across all our business units. Responsible investment roles and responsibilities are defined across our business functions and integrated in our broader governance framework.

EXECUTIVE OVERSIGHT OVERSIGHT COMMITTEES

Responsible Investment Committee

WORKING GROUPS BUSINESS GROUPS

Investment Committee

EBID Committee

RESPONSIBLE INVESTMENT WORKING GROUP Infrastructure

Private Equity

Real Estate

Corporate Services

ASSETS UNDER MANAGEMENT

Fengate Asset Management | 2024 Sustainability Report 18

Executive Oversight

Responsible Investment Committee

The Fengate executive team is responsible for allocating sufficient attention and budget to the Responsible Investment Working Group and Responsible Investment Committee to operationalize Fengate’s responsible investment strategy. It is also responsible for overseeing strategic responsible investment decisions that impact all business units and corporate services.

The Responsible Investment Working Group supports the executive team in monitoring and reporting progress against the responsible investment strategy. The executive team is also responsible for the final approval of any publicly disclosed sustainability reports, including disclosure topics and performance outcomes before final publication.

Fengate’s Responsible Investment Committee has oversight of the firm’s responsible investment strategy. The Committee is co-led by Kevin Reid, Executive Vice President and Head of Investor Relations, and Vernita Tsang, Chief Compliance Officer and General Counsel. The Committee is comprised of Della Wang, Director, Responsible Investment, senior representatives from each business unit, and other members of Fengate’s corporate services team. The Responsible Investment Committee is responsible for the ongoing development, monitoring and improvement of Fengate’s responsible investment activities. The Director, Responsible Investment is responsible for overseeing the firmwide implementation of Fengate’s responsible investment strategy and providing updates and decisions to the Responsible Investment Committee for review and approval.

INTRODUCTION

OUR FIRMWIDE APPROACH

RESPONSIBLE INVESTMENT IN ACTION

APPENDICES

We believe in the importance of diversity within the Executive Committee:

Executive members are women

Investment Committee The IC ensures the robust integration of ESG considerations into investment due diligence, risk assessment and investment decisions. The Investment Committee will review and provide strategic guidance on the potential ESG-related risks associated with an investment. In addition, the IC evaluates how ESG factors align with an investment’s potential risk-adjusted returns, long-term value and resilience before approvals.

EBID Committee Fengate’s dedicated Equity, Belonging, Inclusion, and Diversity (EBID) Think Tank drives our ongoing strategy to foster a diverse, inclusive, and equitable workplace.

We are committed to ensuring all backgrounds and perspectives — including race, ethnicity, culture, nationality, faith, spiritual beliefs, sex, gender identity, sexual orientation, age and abilities — are valued, sought after and celebrated at our firm.

Executive members are visible minorities

Responsible Investment Working Groups Business units have established dedicated Responsible Investment Working Groups comprised of leads from specialized areas of the business to collectively advance Fengate’s Responsible Investment initiatives. The Working Groups are entrusted with the responsibility of defining, delineating, and communicating Fengate’s overarching strategy and initiatives to the business units. They are also responsible for overseeing and supporting the business units on their respective responsible investment strategy and execution and providing practical guidance on leading practices, industry trends, key risks and opportunities. These groups meet on a regular cadence and report on the progress of business unit initiatives to the Responsible Investment Committee on a quarterly basis.

Fengate Asset Management | 2024 Sustainability Report

63%

3 of 8

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Signatories and benchmarks

SDGs – We have aligned our material topics to the United Nations’ (UN) 17 SDGs. The SDGs, also known as the Global Goals, were adopted by the UN in 2015 as a universal call to action to end poverty, protect the planet and ensure that by 2030 all people enjoy peace and prosperity.

ILPA – Fengate is a proud signatory of the Institutional Limited Partners Association (ILPA) Diversity in Action initiative. The ILPA Diversity in Action initiative brings together limited partners (LPs) and general partners (GPs) who share a commitment to advancing diversity, equity, and inclusion in the private equity industry.

TCFD – Fengate supports the recommendations of the Task Force on Climate-Related Financial Disclosure (TCFD) and is continuing to understand and address potential climate risks that Fengate may be exposed to through ongoing physical and transition risk assessments.

GRESB – We are pleased to share that we have achieved a score of 79/100 in our first public GRESB assessment in 2024, or 3 out of 5 stars, for our real estate team’s Commercial Income Fund. Key areas of progress include energy efficiency, waste management, water consumption, climate risk assessment, and reporting.

This improvement from our previous score is a direct result of the hard work and dedication to the enhancement of the firm’s sustainability and responsible business practices. We look forward to continuing improving our sustainability outcomes in the future.

Fengate Asset Management | 2024 Sustainability Report

TNFD – Fengate is pleased to announce that we became a Taskforce on Nature-related Financial Disclosures (TNFD) Forum Member in 2023. Our goal is to work alongside the TNFD to embed naturerelated risks and opportunities into our firm’s strategic planning, operations, risk management processes and asset management activities to create long-term sustainable value.

EU SFDR – Fengate Infrastructure Fund IV (Fund IV) is Sustainable Finance Disclosure Regulations (SFDR) Article 8 compliant. Fund IV promotes environmental and social characteristics but does not include the objective of sustainable investment.

CAGBC – Fengate is officially a member of the Canadian Green Building Council (CAGBC).

We join companies from across the building sector, from investors and owners to firms involved in building design, construction, operations and more.

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INTRODUCTION

OUR FIRMWIDE APPROACH

RESPONSIBLE INVESTMENT IN ACTION

APPENDICES

UNPRI – As a signatory of the UNPRI, Fengate has committed to upholding its 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: 1.

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

2.

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

3.

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

4.

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

5.

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

6.

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

5/5

achieved on Policy, Governance and Strategy for the 2024 assessment period

Key pillars

of our Responsible Investment Program Fengate continues to evaluate and prioritize key program areas that are of strategic importance to the firm, supported by our double materiality assessment.

Climate management Risk governance

Fengate Asset Management | 2024 Sustainability Report

Community impact

Nature and biodiversity

Responsible Investment Program

Workplace culture

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Indigenous reconciliation

Responsible labour

INTRODUCTION

01

OUR FIRMWIDE APPROACH

RESPONSIBLE INVESTMENT IN ACTION

APPENDICES

Climate management TCFD – Task Force on Climate-Related Financial Disclosure The warming of our climate has brought attention to issues and opportunities related to the adaptation and resilience of the built environment. Real assets, which often have a long useful life, are essential for delivering social and economic activities. Therefore, adaptation and mitigation activities are critical to ensure that assets meet their objectives in terms of serviceability, financial returns, and social outcomes.

In 2023, Fengate formally released its inaugural climate-related disclosures aligned to TCFD recommendations, structured around governance, strategy, risk management, metrics, and targets.

This section and Appendix 2 of the report is prepared in alignment with TCFD recommendations, reinforcing key strategies of our climate program while highlighting material updates in 2024.

Fengate has continued to execute key areas of our climate strategy, focusing on five key thematic areas:

Integrate climate risk assessment into existing risk management process Fengate has integrated physical and transition risk assessment into Fengate’s RI due diligence tool for all new investments to identify potential exposure to climate hazards and identify necessary adaptation measures.

Firmwide climate risk assessment and reporting

Fengate partners with a third-party climate modeling software Mitiga EarthScan to conduct climate-risk exposure assessments and scenario analysis across the majority of Fengate’s investments.

Asset-level engagement and resiliency planning

Fengate Asset Management | 2024 Sustainability Report

Following our assessments, Fengate conducts asset-specific engagement to discuss any material risks and evaluate the asset’s current adaptation and resiliency measures. Reassessment is conducted periodically to reflect updated asset conditions, assessment methodologies and the latest available climate models.

Asset-level decarbonization roadmap

Fengate is currently undergoing a decarbonization study for select assets within our funds to identify the most efficient and optimal pathway to decarbonize the assets we manage and reduce the assets’ exposure to transition climate risk. Further, this exercise aims to uncover climate-related opportunities to enhance asset value.

Investment into renewable energy and low-carbon infrastructure Fengate’s infrastructure funds continue to identify opportunities to contribute to global energy transition efforts by investing in renewable energy and lowcarbon infrastructure.

Please refer to Appendix 2 for Fengate’s full 2024 TCFD report

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02

Nature and biodiversity Fengate recognizes the importance of protecting and conserving nature and biodiversity as nature loss poses significant risk to the economy and has a substantial impact on the built environment. We also acknowledge that nature and climate are inextricably linked.

Nature-based solutions offer low-cost, effective, and sustainable ways to combat climate change and mitigate the physical risks that it creates such as natural flood management, local cooling, and carbon sinks. As such, Fengate is a Taskforce on Nature-related Financial Disclosures (TNFD) Forum Member, and a Canadian TNFD Consultation Group member.

Fengate’s ongoing initiatives include:

Urban microhabitat

Nature-related

risk assessments

programs

Rooftop

beehives

Water & waste Migrating bird

Fengate Asset Management | 2024 Sustainability Report

protection

Community

gardens

management strategies

Green

cleaning

Details of Fengate’s approach to nature and biodiversity risk assessment can be found in Appendix 3.

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INTRODUCTION

OUR FIRMWIDE APPROACH

RESPONSIBLE INVESTMENT IN ACTION

APPENDICES

Responsible labour

03

Fengate was founded with a deep commitment and responsibility to community, and responsible labour principles have always been integral to the firm’s mission. The Laborers’ International Union of North America (LiUNA) and Fengate have a deep history built on a shared commitment to community building. We fundamentally believe that utilizing responsible labour promotes private capital investment and leads to enhanced risk-adjusted returns for investors, while creating economic security and employment opportunities in the regions where we invest.

In 2024, Fengate updated the firm’s Responsible Contractor Policy (RCP) for Fengate Infrastructure Fund IV (Fund IV) and Fengate Infrastructure Yield Fund (Yield Fund).

This update enhances the definition and inclusionary policies of Signatory Contractors and other Responsible Contractors (together referred to as Responsible Contractors) during construction, renovation, maintenance and operations. The updated RCP further establishes labour-related investment objectives and requirements within the funds.

01

Encouraging the use of Responsible Contractors

02

Ensuring a competitive bidding process and notifying Responsible Contractors of upcoming relevant work

03

Promoting the use of Project Labour Agreements (PLAs)

04

Utilizing Fengate’s Labour Liaison to connect internal and external parties on labour matters

05

Tracking labour hours where available

06

Reporting overall labour and economic impact

Fengate Asset Management | 2024 Sustainability Report

The RCP aims to foster a safe, healthy, and profitable business environment by:

Read our 2024 Labour Impact Report here 25

04

Indigenous reconciliation Fengate recognizes the importance of Indigenous leadership, engagement, and participation in building North America’s critical infrastructure. We are committed to continually enhancing our Indigenous Peoples and Local Community Strategy through our investments and firmwide initiatives.

Case Studies

1

Emily Carr University of Art & Design A LEED Gold Certified building with innovation in design, water use and construction waste management. The design is based on an Aboriginal Gathering Place - which hosts students, and contemporary artists.

■

Consult: Engagement with Indigenous advisors to liaise with Indigenous Peoples of the region on sustainable land use, building design, and operating considerations

■

Partner: Co-investment with Indigenous partners, and identify opportunities for Indigenous involvement and training opportunities in the design and build of greenfield investments

■

Promote: Inclusion of Indigenous values within the design and operations of Canadian infrastructure projects

Kapuskasing Hydro Projects7 Extensive diligence on sustainable power generation along with rigorous environmental diligence with First Nations Partners. Three of four facilities in Kapuskasing are co-owned with Indigenous partners.

2

Surrey Memorial Hospital Fengate Asset Management | 2024 Sustainability Report

A LEED Gold Certified building delivering 172 beds and largest emergency department in BC. Design incorporated group rooms for healing circles and smudging ceremonies based on Indigenous stakeholder engagement.

Trenton Lock 1 Hydro Project7 The project was submitted alongside Dokis First Nation as a partner. Significant environmental assessment was conducted on ecological flow value and species at risk.

7

26

Early Indigenous engagement through our investments

Corporate partnership with Gord Downie & Chanie Wenjack Fund

■

Fengate entered a partnership with Gord Downie & Chanie Wenjack Fund (DWF) in March 2022

■

DWF aims to build cultural understanding and create a path towards reconciliation between Indigenous and non-Indigenous Peoples

■

Fengate participates in DWF’s Legacy Space program as a reconciliACTION partner

■

Through the partnership, Fengate delivers ongoing training on Indigenous reconciliation to our employees

Fengate divested Kapuskasing Hydro and Trenton Lock 1 Hydro in 2024.

OUR FIRMWIDE APPROACH

Gord Downie & Chanie Wenjack Fund Legacy Spaces Partner In 2022, Fengate proudly unveiled a Legacy Space at its downtown Toronto office, in partnership with the Gord Downie & Chanie Wenjack Fund.

Dedicated to heightening awareness and providing education about Indigenous history and the path towards reconciliation between Indigenous and non-Indigenous people in Canada, the safe and welcoming Legacy Space is one of many initiatives that Fengate’s EBID Think Tank has in place as part of its commitment to promote and advance diversity and inclusion, both within the firm and the industry more broadly.

A vibrant mural by Haudenosaunee artist, Kyle Joedicke, commissioned through the Art Gallery of Hamilton, adorns the legacy room with an illustration that represents two separate cultures and ways of life, flowing in harmony together, and respecting each other’s differences. With the intention to express a grander sense of community, Joedicke’s artwork incorporates artistic elements from The Seven Grandfathers Teachings: Love, Honesty, Truth, Respect, Wisdom, Bravery and Humility, considered guiding principles and core values of Indigenous people.

As part of Fengate’s commitment with DWF, the Legacy Space acts as a permanent physical space dedicated to promoting truth and reconciliation throughout the year.

RESPONSIBLE INVESTMENT IN ACTION

APPENDICES

DWF initiatives also include: National Day for Truth and Reconciliation Employees engaged in A DAY TO LISTEN across Canada and participated in the orange shirt movement

Secret Path Week DWF uses this week to promote reconciliACTION – meaningful actions that move reconciliation forward and answer Gord Downie’s call to Do Something

Walk for Wenjack Fengate registered a corporate team for DWF’s Walk for Wenjack, in order to raise both funds and awareness

Fengate Asset Management | 2024 Sustainability Report

INTRODUCTION

27

Workplace culture

05

Diversity and inclusion continue to be tenets of Fengate’s culture. We are committed to supporting the advancement of equity, belonging, inclusion, and diversity (EBID) across our firm, with the belief that diversity of thought makes Fengate stronger and more resilient as an organization. Fengate’s EBID Think Tank, consisting of professionals from across the firm, supports the formal development and implementation of our EBID mission and strategy.

Fengate’s EBID Policy sets out our commitment to creating and continuously growing an inclusive culture and respects and promotes the diversity of our team, clients, partners, and the communities in which we operate. The policy applies to all Fengate employees. Fengate’s vendors are also expected to adhere to the EBID Policy. This EBID Policy is overseen by Fengate’s HR Department with oversight and guidance by business unit leaders.

Fengate employees 96% 90%

43%

57%

75% 2024 Employee engagement survey

63%

Governance body

37%

Age groupings 50+ Fengate Asset Management | 2024 Sustainability Report

30-50 Under 30

9% 59% 32%

Participation rate Overall engagement Industry benchmark

Responsible investment training Continuous training around our Responsible Investment Program is foundational to the successful operationalization of our RI strategy and effective management of ongoing market trends and regulatory developments. Fengate developed a firmwide RI training program in 2023 for existing staff and an onboarding RI package for new hires. Fengate’s RI training program is tailored to the unique needs of individual business units and corporate services, onboarding new employees, and professional development needs of individual staff.

28

INTRODUCTION

OUR FIRMWIDE APPROACH

RESPONSIBLE INVESTMENT IN ACTION

APPENDICES

Employee Resource Groups (ERG) To help foster an environment of inclusion and belonging, Fengate is happy to support work-related Employee Resource Groups (ERGs) that allow employees with similar interests to connect with each other.

The Women at Fengate ERG is dedicated to advancing the personal and professional development of women by building a network that supports, empowers and strengthens their ability to succeed in their roles. Through collaboration, open discussion, and innovation, the ERG will continually seek to raise awareness on the issues faced by women in the workplace and offer resources for growth, networking, and mentorship.

The Emerging Leaders: Investments Chapter brings together analysts, associates, and senior associates from infrastructure, private equity, real estate, and corporate services.

The Emerging Leaders ERG seeks to provide a platform to foster connections, improve collaboration, and drive career development among emerging leaders at Fengate.

The Next in AEC ERG is for real estate and infrastructure employees to discuss new methods, technologies, innovations, and best practices in the architecture, engineering, and construction fields.

Awards won in 2024 ■ Canada’s Best Managed Companies – Platinum Member

Fengate Asset Management was the recipient of Waterstone Human Capital’s 2022 Canada’s Most Admired Corporate Cultures™ award for a three year period. This national program, recognizes best-in-class Canadian organizations for having cultures that have helped them enhance performance and sustain a competitive advantage. Only 50 organizations are awarded this prestigious corporate culture award. Fengate is a driven, high-performance environment, and the firm takes great care to promote employee health, well-being and belonging including:

■ Canada’s Top 100 Small and Medium Employers

■ A flexible work framework allowing employees to shift their life at work to accommodate their unique life at home ■ Recharge days through a combination of the office closing on Fridays before long weekends and at noon on Fridays during the summer months ■ Regularly conducted industry benchmarking followed by remedied solutions ■ Group RRSP program for all employees with an employer match component ■ Championing Equity, Belonging, Inclusion and Diversity through the firm’s EBID Think Tank. Recent initiatives, include: creating safe spaces for prayer/employees experiencing stress or anxiety; training for all people leaders to manage hiring and interviewing biases ■ Employee Education Assistance Program to encourage eligible employees to upgrade their education and/or skills via college/university programs and courses

■ Waterstone Canada’s Most Admired Corporate Cultures

■ Best Workplaces with Most Trusted Executive Teams ■ Best Workplaces in Ontario ■ Best Workplaces in Financial Services & Insurance ■ Best Workplaces for Women ■ Best Workplaces for Today’s Youth ■ Best Workplaces for Giving Back ■ Best Workplaces for Inclusion ■ Best Workplaces for Mental Wellness

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Fengate Asset Management | 2024 Sustainability Report

A firmwide culture driving exceptional performance

06

Community impact It is an honour to be part of the fabric of the communities where we work and invest. We have a social responsibility as a firm to give back in ways that make our communities a better place to live and work. Therefore, we place emphasis on giving back to our communities through the Fengate Community Foundation (FCF), three designated volunteer days per employee each year, community events, and various sponsorships and fundraising opportunities.

Fengate Asset Management | 2024 Sustainability Report 30

500+

740+ 2024

2023

Hours volunteered in our communities

Fengate Community Foundation (FCF)

Zero-waste week and community clean-up

At the heart of our community efforts is the FCF, a grant of more than $2 million, created in 2010 to enhance Fengate’s philanthropic efforts and establish a more structured way of giving. Through the FCF and administered by the Hamilton Community Foundation, Fengate donates to numerous charitable organizations within Canada and abroad each year with a focus on children and youth programs.

In April during Earth Month, Fengate hosted a zerowaste week at our Toronto and Oakville Offices, resulting in a 50% reduction of landfill waste compared to average weeks.

Fengate also participated in its annual community clean-up resulting in the collection of over 12 large bags of garbage from local parks.

I’m very proud of our achievements. However, success is about more than the bottom line, it’s about giving back in ways that make our community a better place to live.

We have a social responsibility as a corporation and it is important to share our success with those who need help.”

— Lou Serafini Jr.

INTRODUCTION

OUR FIRMWIDE APPROACH

RESPONSIBLE INVESTMENT IN ACTION

APPENDICES

Toy Drive for Oakville Trafalgar Memorial Hospital

Walk for Wenjack

Ride to Conquer Cancer Fengate participates annually in the The Ride to Conquer Cancer, raising money for The Princess Margaret Cancer Centre.

Fengate Asset Management | 2024 Sustainability Report

Holiday Handbags

Holiday Helpers In partnership with Fengate Community Foundation, more than 150 Fengate employees volunteered with Holiday Helpers in 2024, an organization that brings joy and assistance to families in need during the holiday season.

31

07

Risk governance

Fengate Asset Management | 2024 Sustainability Report

Enterprise Risk Management (ERM)

Data security and privacy

Fengate’s approach to risk management is governed by our Enterprise Risk Management (ERM) framework.

In late 2024, Fengate began a firmwide initiative to enhance the firm’s ERM framework to better reflect our risk governance, risk culture, and risk management practices. The ERM framework includes five key building blocks: risk appetite, risk culture, risk taxonomy, risk management process, and risk governance and oversight, all supported by technology enablement. The ERM framework is intended to enable consistent risk definition, risk evaluation, risk management, and risk reporting across the firm.

Fengate is committed to maintaining the highest standards of data security and privacy. Our Information Security Management System is aligned with ISO 27001, ensuring that we adhere to internationally recognized best practices for managing information security. This includes policies and procedures for data protection, incident response, and continuous monitoring to safeguard the confidentiality, integrity, and availability of our information assets.

Fengate’s finance and risk committee, comprised of the Chief Executive Officer, Chief Financial Officer, General Counsel, advisory board member, and Managing Partner, provides oversight of Fengate’s risk management framework and annual financial valuations and audit activities. Further, the committee is responsible for approving risk-related mitigation measures and third-party audits and valuations.

32

Fengate also has a policy that outlines the acceptable use of generative AI tools with company data and proprietary information, including prohibited tools, data retention policy, guidelines for responsible and acceptable use, and compliance requirements. The policy aims to ensure the security and integrity of company data when using generative AI tools.

In addition, we emphasize a sustainable approach to data security by integrating environmental considerations into our IT operations. This includes partnering with technology providers like Microsoft, who prioritize sustainability, while Fengate maintains no datacenter footprint. By aligning our data security practices with sustainability principles, we aim to minimize our environmental footprint while protecting our valuable information assets.

OUR FIRMWIDE APPROACH

RESPONSIBLE INVESTMENT IN ACTION

APPENDICES

Ethics and compliance

Human rights

Fengate is committed to a safe and healthy workplace with set standards and expectations of behaviour to promote our core values and ensure a respectful work environment. Fengate’s Code of Conduct affirms our commitment to ethical conduct, complying with all applicable laws and avoiding conflicts of interest.

This policy requires our employees to observe high standards of honesty, integrity, and fairness in dealing with stakeholders, to avoid conflicts of interest, to comply with all applicable laws, regulations and policies, and to report actual or potential violations of such laws, regulations and policies.

Fengate’s Human Rights Policy sets out Fengate’s commitment to the protection and advancement of human rights, respecting all persons, and fostering a workplace environment that celebrates and embraces the unique differences of every person.

Further, Fengate’s Policy and Procedures Manual (‘Manual’) provides guidance on people practices across the company, including Health and Safety Policy, Workplace Violence, Harassment, and Sexual Harassment Policy, and Whistleblower Protection Policy. The Manual is applicable to all Fengate business and divisions, and to all controlled subsidiaries and managed affiliates globally.

This policy applies to all of our employees, and we expect our vendors to adhere to this policy as well.

It includes provisions prohibiting the use of child labour and forced labour in all its forms, including prison labour, bonded labour, and any form of human trafficking, as well as physical punishment and abuse of any employee.

Fengate Asset Management | 2024 Sustainability Report

INTRODUCTION

Please see Fengate’s Modern Slavery Report.

33

Responsible investment in action At Fengate, responsible investment principles are integrated throughout the entire lifecycle of our investments. By approaching design, development and asset management through a sustainability lens, we can proactively manage emerging risks, uncover cost savings opportunities, drive operating efficiencies, generate fair-wage jobs, and foster vibrant communities, all while delivering strong, risk-adjusted returns for our investors.

Within this section, we have highlighted case studies that demonstrate our continuous commitment to responsible investment. These case studies highlight how our sustainable practices have been successfully implemented, showcasing the tangible benefits and positive impacts on both our investments and the communities we serve.

Fengate Asset Management | 2024 Sustainability Report 34

INTRODUCTION

OUR FIRMWIDE APPROACH

01

RESPONSIBLE INVESTMENT IN ACTION

APPENDICES

Optimizing concrete use to reduce construction costs and embodied carbon

Fengate and The Hi-Rise Group (Hi-Rise) recently partnered with Structure Pal to explore opportunities to optimize the design of select development projects.

Structure Pal’s AI-based optimization tool helps to reduce the use of high embodied carbon materials, such as concrete and steel in construction resulting in direct cost savings during construction.

Fengate plans to grow the partnership with Structure Pal and identify pathways to reduce embodied carbon emissions on future development projects.

This helps future-proof the assets we manage, as we work to transition to a low-carbon future. Futureproofing helps provide long-term asset value through operational efficiencies, future regulatory compliance, and increased marketability. Furthermore, it ensures our projects remain resilient and adaptable to evolving environmental standards and market demands.

717

tonnes of avoided embodied carbon

8

Data provided by third party vendor Structure Pal

Fengate Asset Management | 2024 Sustainability Report

Fengate piloted the tool in one of our current developments at 8-16 Locust St. in Toronto, Ontario.

By integrating with Structure Pal, the proposed 37-storey purpose-built rental building achieved significant embodied carbon reductions along with cost savings by optimizing the use of concrete and steel in the early stages of the design process. The project reduced overall concrete use by 10%, which resulted in 717 tonnes of avoided embodied CO2e emissions and $1.1 million in savings.

$1.1M in hard cost reductions8

35

This project consolidates more than 20 rental car agencies into a single facility, creating a streamlined rental car experience for hundreds of thousands of travelers each year. It also eliminates approximately 3,200 daily shuttle trips, alleviating traffic congestion on local streets and around the airport’s Central Terminal Area.

02

Use of responsible labour to deliver outsized socio-economic impact at LAX ConRac

Fengate Asset Management | 2024 Sustainability Report

Responsible labour principles have been integral to Fengate’s approach since its founding. We recognize that the use of responsible labour groups, comprised of skilled craft professionals, can enable productive and safe working conditions that comply with or exceed regulatory requirements while delivering quality assets with minimized construction and operational risks. Fengate partnered with Pinnacle Economics to quantify the socio-economic impact of the Los Angeles International Airport’s Consolidated Rent-A-Car facility (LAX ConRAC) project, which uses sophisticated analytical techniques and the IMPLAN model, an economic input output modelling tool. See Fengate’s Labour Impact Report for more details on the IMPLAN model.

US$2.2B+ US$200M in total economic impact created9

The project produced strong direct and indirect economic value through a ‘multiplier effect’ across local, regional, and national economies. The total economic impacts attributed to LAX ConRAC are significant, with over US$2.2 billion in total economic impact created.

Economic impact and fiscal contributions associated with the project were provided by Pinnacle Economics and were quantified using the IMPLAN model.

Data publicly available on the Los Angeles World Airports website.

11 Labour hours were provided by contractor partner.

9

10

36

in wages for the local workforce10

LAX ConRAC was built under a Project Labour Agreement (PLA). The construction period spanned from 2018 through to mid-2024, and generated more than 5,000 jobs and US$200 million in wages for the local workforce. This resulted in more than 4.1 million union construction labour hours being generated with all the North America’s Building Trades Unions (NABTU) trades involved.11 Successes from the LAX ConRAC project demonstrate the impact of responsible labour practices for a community’s socio-economic and fiscal wellbeing.

OUR FIRMWIDE APPROACH

RESPONSIBLE INVESTMENT IN ACTION

Passive House as an innovative solution for sustainable student housing

Fengate and the University of Toronto entered into a strategic partnership to develop much needed student housing residences on their Scarborough campus.

Harmony Commons Student Residences (Harmony Commons) was the solution to this demand – a stateof-the-art purpose-built student residence with 746 beds. Sustainability was at the core of this project from the outset of development.

Not only did Harmony Commons achieve Passive House Classic certification in 2024, but it is also now the largest passive house-certified building Canada and the largest passive house dormitory in the world.12 The low carbon building does not use fossil fuels for heating or cooling. The building is so efficient that the energy it uses to make more than 3,000 meals each day in its dorms and dining hall is less than that used by two average households.12 12 13

APPENDICES

03

90%

Fengate Asset Management | 2024 Sustainability Report

INTRODUCTION

less GHG emissions per person in peak conditions

When compared to similar dormitories on the campus, Harmony Commons consumes 70% less energy and contributes 90% less GHG emissions per person in peak conditions. Energy consumption is reduced thanks to a high-performance envelope, lowenergy systems, and heat recovery from ventilation exhaust and wastewater.13

Harmony Commons becomes Canada’s largest building with passive house certification | University of Toronto Harmony Commons at the University of Toronto | Handel Architects

37

04

The new Clackamas County Circuit Courthouse in Oregon is a US$313 million public-private partnership for the design, build, finance, operation and maintenance of a new 257,000 square foot courthouse.14 The recently-opened facility addressed the urgent need to replace the existing courthouse – originally constructed in 1936 to service a population less than 50,000 – with new infrastructure that meets modern sustainability standards and is equipped to support the needs of a growing population of more than 430,000.15

440,000

union construction labour hours17

62.2%

GHG emissions reduction from baseline18

Clackamas County Circuit Courthouse wins P3 environmental award This project supports the county’s goal to be carbon neutral by 205016 by implementing photovoltaic panels to produce 33% of the building’s energy on-site and selecting climate friendly building materials such as cross-laminated timber. With these sustainable design considerations embedded in the project, this new facility is set to achieve LEED v4.1 Gold certification.

The project also generated more than 440,000 union labour construction hours for the local workforce.

Notable initiatives include: 1.

Solar Photovoltaic (PV) panels

2.

Cross-laminated timber

3.

Reduction of interior and exterior lighting energy intensity

4.

Electrification of space cooling, pumps, water heating, and humidification systems

5.

Restoration of large areas of site to vegetated landscaping and tree planting

This project demonstrates how public and private sectors can come together to answer the urgent need to decarbonize infrastructure and set an example of how the rest of the county and beyond could emulate this outcome.

Fengate Asset Management | 2024 Sustainability Report

The Clackamas County Circuit Courthouse won in two 2024 P3 Awards categories: Best Social Infrastructure Project and Environmental Impact Award Board of County Commissioners to approve contract to build new courthouse | Clackamas County Replacement Courthouse Project | Clackamas County 16 Climate Action Plan | Clackamas County 17 Labour hours were provided by contractor partner.

18 Clackamas County Replacement Courthouse Project honoured with two awards at the 2024 P3 Awards 14 15

38

INTRODUCTION

OUR FIRMWIDE APPROACH

RESPONSIBLE INVESTMENT IN ACTION

FCIF achieves portfolio-wide BOMA BEST Sustainable baseline certification

APPENDICES

05

BOMA BEST Platinum 2265 Upper Middle Rd. E. 2275 Upper Middle Rd. E. 1315 North Service Rd. E.

BOMA BEST Gold 2010 Winston Park Dr. 2020 Winston Park Dr. 2060 Winston Park Dr.

Fengate Asset Management | 2024 Sustainability Report

Fengate’s Commercial Income Fund (FCIF) is part of the BOMA BEST Sustainable program, which is North America’s leading sustainable certification program for existing buildings. The program provides a roadmap on how to investigate decarbonization and improve energy efficiency, reduce water and waste consumption, identify opportunities to enhance accessibility and equity, and navigate climate risk.

Three FCIF buildings have achieved platinum certification and three buildings have achieved gold certification. All of the FCIF office, industrial, and retail buildings have also achieved BOMA BEST Sustainable baseline certification. This is a testament to the dedication from our property management team and the operations staff who continue to improve the sustainability practices at the buildings we manage on behalf of our investors. From tenant engagement to finding operational efficiencies to policy implementation, the team has used BOMA BEST as a benchmark to track and demonstrate progress year over year.

Fengate’s Multi-family Income Fund (MFIF) will be joining FCIF in the BOMA BEST Sustainable program in 2025. Two of its assets are currently pursuing certification and the rest of the portfolio will also aim to achieve BOMA BEST Sustainable baseline certification. The goal is to provide a consistent standardized sustainability approach at all the buildings we manage on behalf of our investors.

39

06

Community gardens and beehives to optimize rooftop use

Fengate Asset Management | 2024 Sustainability Report

Fengate has a firmwide approach to nature and biodiversity. As members of TNFD and the Canadian TNFD Consultation Group, we recognize the importance of the protection of our natural ecosystems. As cities continue to expand, community gardens and beehives play an increasingly powerful role in enhancing sustainability and positively impacting local biodiversity. They also provide ecosystem services that benefit tenants, residents and the surrounding environment.19 To do our part, we have five rooftop community gardens at FCIF properties through a partnership with Microhabitat. In 2024, these gardens produced 1,500 lbs of food, which was donated to

450+

pounds of honey harvested in 2024

19

40

200+

participants in beehive workshops

local foodbanks and provided to tenants. MFIF currently has a resident-run community garden at 1140 Wellington that a group of residents use to grow vegetables and herbs from May to October each year. MFIF has also recently partnered with a local Toronto company, the Backyard Urban Farm Co. One of our residential buildings is installing raised beds on the terrace and will host workshops to educate residents about urban gardening.

In partnership with Alvéole, FCIF has 11 beehives across our office portfolio located on the rooftops and at ground level. We harvested more than 450lbs of honey from the Fengate hives in 2024.

More than 10 workshops were hosted for tenants throughout the year, with strong engagement from more than 200 people who learned how bees organize their hives, the harvesting process, and the importance of local pollinators.

Ecosystem services are defined as the direct and indirect benefits to human wellbeing and have an impact on our quality of life

INTRODUCTION

OUR FIRMWIDE APPROACH

RESPONSIBLE INVESTMENT IN ACTION

Friday Harbour targets nature conservation

APPENDICES

07

Fengate remains committed to transforming Friday Harbour into a sanctuary for diverse species, a vibrant community hub, and a model of sustainable development.

The Resort was designed with an emphasis on protecting the health of the woodlands and wetlands within the site and the quality of water within Lake Simcoe. The development includes several elements designed to enhance environmental sustainability and the preservation of 200+ acres of dedicated Nature Preserve.

■ One-third of the 600-acre Resort has been dedicated as a Nature Preserve and measures have been taken to ensure minimal impacts by the Resort’s operations on the many species of flora and fauna that can be found in the Nature Preserve.

■ The butternut tree is listed as a provincially and nationally endangered species due to a decline in population resulting from an invasive fungus. An extensive planting and monitoring program for butternut trees has been implemented.

■ By enhancing stormwater management and recycling systems, as well as adding edge management areas, the Resort releases less phosphorus into the marina basin and less human-related disturbances to Lake Simcoe than the lands did before the Resort was developed.

Fengate Asset Management | 2024 Sustainability Report

Friday Harbour Resort (the ‘Resort’) is a vibrant lakeside community located in Innisfil, Ontario, on the shores of Lake Simcoe, serving as a year-round destination for visitors and residents. Friday Harbour focuses on bringing the community together through community events, outdoor activities, dining, golfing, and its nature preserve (Nature Preserve).

■ New wetlands have been created to provide enhanced habitat opportunities for a range of flora and fauna and to add ecological diversity to the Nature Preserve.

>30%

of the 600-acre Resort has been dedicated as a Nature Preserve Learn more about the trail fridayharbour.com/nature-preserve 41

08 399 tCO e 2

total emissions offset

Fengate Asset Management | 2024 Sustainability Report

We partnered with CarbonZero to offset carbon emission for the trip, including the carbon emissions from transportation, accommodations, food, and waste.

42

Fengate’s offsite event goes CarbonZero

Fengate recognizes that emissions reduction starts with our own business operations. In addition to measuring emissions from the offices where our employees work, we have also made a conscious effort to reduce the carbon impact of our internal corporate events.

In 2024, Fengate hosted an all-staff offsite retreat for strategic planning and team building. We partnered with CarbonZero to offset carbon emission for the trip, including the carbon emissions from transportation, accommodations, food, and waste. We carefully evaluated and allocated credits to two projects: ■

Great Bear Rainforest: This rainforest in British Columbia is home to the largest intact coastal temperate rainforest remaining in the world. Carbon credits are generated through avoided commercial logging that has been previously sanctioned. Stewardship jobs are created for the Indigenous communities through the credits sold.

■

Niagara Escarpment Forest Carbon Project: The Niagara escarpment stretches nearly 400km from Niagara Falls towards Tobermory. This project promotes and maintains the function and diversity of ecosystems along this escarpment. Our credits support the escarpment biosphere conservancy who are the stewards of this land.

INTRODUCTION

OUR FIRMWIDE APPROACH

RESPONSIBLE INVESTMENT IN ACTION

APPENDICES

Fengate has proudly partnered with U-PAK Emerald Energy to divert 100% of landfill waste from the office buildings we manage.

Fengate has proudly partnered with U-PAK Emerald Energy to divert 100% of landfill waste from the office buildings we manage. All materials are directed to reuse, recycle, compost or energy production through U-PAK’s Energy from Waste program. The coverage of this program has expanded from three properties in 2023 to all nine of the office assets within FCIF in 2024, and we continue to explore opportunities to expand this program at other properties we manage.

Below is a summary of the total outcomes of the program to date20:

628

2,093

100%

125 MWh

metric tonnes of waste diverted

waste diversion rate from office properties 20

Fengate Asset Management | 2024 Sustainability Report

09

Office buildings achieve zero-waste

tonnes GHG emissions avoided

of electricity generated from waste and sold to the grid

Data provided by waste hauler based on material collected from Jan – Dec 2024 at 10 Fengate office properties.

43

Looking ahead In 2024, we focused on building the foundation for a strong and adaptable Responsible Investment Program. In the coming years, we will deepen our focus on responsible labour practices, sustainability and resilience, and reporting and risk management practices.

01 Fengate Asset Management | 2024 Sustainability Report 44

Responsible labour program Fengate continues to improve our responsible labour program through deepening our in-house expertise around labour relations, increasing the scope and depth of our Responsible Contractor Policy, improving our advance notification and inclusive bidding process. Additionally, we continue to strengthen our relationship with North American Building Trades Union (NABTU) affiliated trades to reflect the values and objectives of our investors and the broader community within which we have the privilege to invest, build, and serve.

02

03

OUR FIRMWIDE APPROACH

RESPONSIBLE INVESTMENT IN ACTION

APPENDICES

Sustainability and resilience Developing and managing sustainable and resilient assets and companies remains at the core of our Responsible Investment Program. In the year ahead, we will continue to improve our approach and establish our standards for sustainable design, sustainable retrofits, climate resilience planning, resource management and nature and biodiversity initiatives into our investment lifecycle. We believe that by investing in sustainable and resilient assets, we will build investment portfolios that will withstand evolving environmental standards, mitigate against increasing climate risks, and adapt to long-term market demands and investor requirements.

Fengate Asset Management | 2024 Sustainability Report

INTRODUCTION

Reporting and risk management Transparency and consistency are key drivers to uphold Fengate’s accountability to our Responsible Investment Program objectives. We will strengthen our data management process, data review procedures, reporting frameworks, and work to align our sustainability reporting disclosures to global standards and frameworks. Additionally, in 2025 we will continue to revamp our firm’s ERM framework to enable consistent risk definition, risk evaluation, risk management, and risk reporting across the firm.

45

Appendix 1: ESG metrics GHG emissions We have calculated the Scope 1, Scope 2 (together referred to as Scope 3 Category 15 financed emissions) and Scope 4 emissions profile for our infrastructure and real estate funds, along with corporate Scope 1 and Scope 2 emissions for the 2024 period. Our GHG emissions calculations are informed by the GHG Protocol and the Partnership for Carbon Accounting Financials (PCAF) methodology, utilizing a bottom-up, activity-based approach. In addition to reporting on absolute GHG emissions, we also calculate financed emissions, emissions footprint and emission intensity to inform our GHG emissions analysis and investor reporting requirements.

Table 1: GHG emissions (tCO2e)

Fengate Asset Management | 2024 Sustainability Report

Fengate corporate emissions

2023

2024

Scope 1 - Direct emissions Stationary or mobile combustion Scope 2 - Indirect emissions from purchased energy Location-based Market-based

31.0 31.0 42.0 42.0 -

12.7 12.7 45.8 45.8 -

Total

73.0

58.4

Fund-level financed emissions

2023

2024

Scope 1 - Direct emissions Infrastructure21 Yield Fund Fund IV Fund III Real estate22 FCIF MFIF Fengate Realty Retirement Fund LP LPF Barrie Scope 2 - Indirect emissions from purchased energy Infrastructure21,23 Yield Fund Fund IV Fund III Real estate22 FCIF MFIF LPF Realty Retirement Fund LP LPF Barrie

390,523 387,431 8,463 379 378,590 3,092 3,092 n.a. n.a. n.a.

4,056 3,586 1,627 909 1,051 470 470 n.a. n.a. n.a.

579,441 569,711 6,101 176,375 387,235 9,730 3,217 716 2,228 3,552 15,945 13,520 2,619 6,310 4,590 2,425 540 92 1,756 37

Total

394,580

595,386

Scope 4 - Absolute avoided emissions Real estate Infrastructure24

846,422

1,092,500

Total

846,422

1,092,500

Within real estate, the increase in FCIF’s financed Scope 2 emissions is primarily driven by adjustments in attribution percentage, driven by Fengate’s equity share as a percentage of total investment.

On an absolute basis, excluding consideration of Fengate’s equity interest, emissions rose by 6% year-over-year, largely due to tenant activity. In 2024, Fengate expanded its emissions tracking to include MFIF, Seasons and Friday Harbour.

Therefore, year over year comparisons will be available in Fengate’s 2025 Sustainability Report.

Infrastructure GHG inventory includes operating assets within Yield Fund, Fengate Core Infrastructure Fund III, and Fengate Infrastructure Fund IV Real Estate GHG Inventory includes operating assets within Fengate Commercial Income Fund, Multi-Family Income Fund, LPF Realty Retirement Fund LP, and LPF Barrie.

23 This table excludes financed emissions associated with the following investment funds: Everest Continuation Vehicle, Co-investments, LPF Infrastructure Fund (International Assets), and TCPP Infrastructure Fund. Limited Partners in these investment vehicles may request GHG emissions reporting directly from Fengate.

24 2023 infrastructure absolute avoided emissions have been retroactively adjusted to reflect more accurate jurisdictional emissions factors in the U.S. based on EPA figures.

21 22

46

Within infrastructure, the increase in Fund IV’s Scope 1 and 2 emissions is primarily attributable to recent acquisitions made within the Fund, most notably Morris Cogeneration, a 177-MW combined heat and power facility, acquired in 2023. This acquisition has expanded the Fund’s operational boundary and financed GHG emissions as a result. Similarly, the increase in Yield Fund’s Scope 2 emissions is primarily attributable to recent acquisitions made within the Fund, increasing the Fund’s operating boundary and financed GHG emissions. The increase in scope 4 absolute avoided emissions is driven by a new wind asset coming online in 2024, along with more granular e-grid emissions factors applied to U.S. renewable energy assets, based on U.S. Environmental Protection Agency (EPA) figures for 2024.

INTRODUCTION

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Table 2: Other metrics 2023

2024

247 62

267 63

33% 57% 11%

32% 59% 9%

67%

67%

90% 89% 500

96% 90% 740

Infrastructure

2023

2024

Energy consumption (GWh) Direct Indirect25 Renewable energy consumed Energy production (GWh) Non-renewable energy26 Renewable energy Building certifications27 - social and transportation assets (#) LEED Certified LEED Silver LEED Gold BOMA BEST

8,999 8,604 395 7,109 5,466 1,643

10,819 10,004 803 12 10,887 8,893 1,994

2 8

2 9

11

12

FCIF

2023

2024

Energy consumption – Landlord controlled (GWh) Direct Indirect Energy consumption – Tenant controlled (GWh) Direct Indirect Total energy intensity (KWh/sqft/yr) Resource consumption Water withdrawn (m3) Landfill waste - Landlord controlled (Tonnes) Landfill waste - Tenant controlled (Tonnes) Total building certifications (% of GAV) BOMA BEST Energy Star

19.7 5.5 14.2 34.2 20.6 13.6 20.1

18.5 4.8 13.6 34.3 20.1 14.2 19.7

118,211 8,616 n.a.

130,261 n.a.

37% 100%

100% 100%

Employees Total number of permanent employees # of new hires Total employees by age Under 30 years 30 – 50 years Over 50 years Senior leadership % of female representation in senior leadership Employee engagement survey Participation rate Overall engagement Volunteer days

4

4

The increase in indirect energy consumption is primarily attributable to new acquisitions, which have expanded the Fund’s operational boundary and overall energy consumption 26 The increase in non-renewable energy production is primarily attributable to the inclusion of newly acquired co-generation assets within the operating boundary 27 The building certification figures for 2023 have been retroactively updated to reflect 21 assets with LEED certifications. This adjustment reflects the exclusion of Prince George County Public Schools (PGCPS) as the asset is designed to LEED Silver standards but is not pursuing LEED certification.

Fengate Asset Management | 2024 Sustainability Report

Firm metrics

25

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Appendix 2: TCFD report At Fengate, we recognize that climate change presents both risks and opportunities for the built environment.

As a responsible investor and asset manager, we are committed to integrating climate-related considerations into our decision-making processes to ensure long-term resilience and sustainable value creation.

This report aligns with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and provides transparency into our governance, strategy, risk management, and metrics related to climate impact. By proactively assessing climate-related risks and embracing innovative opportunities, Fengate is dedicated to driving responsible investment practices that benefit our stakeholders and the broader global transition to a low-carbon economy.

Strategy Fengate has established a thoughtful climate strategy on managing physical and transition climate risks and opportunities, focused on decarbonization, physical climate risk management, and investment in renewable and low-carbon infrastructure. Our decarbonization strategy is rooted in bottom-up approach, leveraging detailed asset-level analysis to assess emissions baselines and identify viable pathways for reducing our carbon footprint. In 2024, Fengate conducted bottom-up analysis of asset-level decarbonization readiness based on the baseline of GHG emissions profile across Fengate’s real estate and infrastructure assets, and the commercial and technical feasibility of decarbonization for each asset.

Fengate Asset Management | 2024 Sustainability Report 48

INTRODUCTION

OUR FIRMWIDE APPROACH

RESPONSIBLE INVESTMENT IN ACTION

APPENDICES

Real estate Retrofit strategy Fengate Real Estate continues to adopt a data-driven approach to assessing the evolving physical and transition-related climate risks across the real estate assets that we manage. This includes an annual benchmarking of property-level energy and GHG emissions information, including an assessment of GHG intensity against the Carbon Risk Real Estate Monitor’s (CRREM) Global Decarbonization Pathways which allows Fengate to prioritize assets for decarbonization efforts.

In 2024, Fengate was focused on the identification of asset-level decarbonization levers to identify opportunities to decarbonize the operating assets we manage while optimizing energy efficiency, equipment life, tenant comfort, and financial performance. We have also strategically selected assets across our commercial and multi-residential portfolio to complete net-zero decarbonization studies, based on emission intensity, geographic carbon exposure, and equipment life. The recommended decarbonization levers and capital investment timeframes inform practical and cost-effective asset and portfolio-level decarbonization roadmaps. Levers include:

1

Energy efficiency and load reduction

2

Low-carbon fuel selection ■ Equipment upgrades

■ Energy profiles ■ Equipment upgrades

3

■ BAS upgrades

On-site renewable power

■ Tenant building criteria

■ Evaluation of on-site solar where feasible Fengate Asset Management | 2024 Sustainability Report

■ Smart building technology

Looking ahead, Fengate will focus on the expansion of net-zero studies to develop a feasible decarbonization pathway at the portfolio level, including the establishment of an optimized capital allocation forecasts and the setting of absolute and intensity-based targets where possible.

100% of our commercial portfolio has at least one building certification.

49

Real estate decarbonization roadmap We are currently engaged in a thoughtful and strategic process to determine viable transition pathways for the properties that we manage in FCIF and MFIF. The following represents our decarbonization roadmap and may evolve as we progress.

1

Develop baseline GHG emissions ■ Develop a baseline emissions forecast for the assets we manage under our current operating scenario​ ■ Define our base year for target-setting purposes​ ■ Review available science-based targets to understand plausible pathways for select assets in the portfolio​

2

Identify potential abatement levers ■ Identify an array of GHG abatement levers for Scope 1 and 2 emissions within select assets ■ Conduct a cost-benefit analysis based on the quantification of marginal abatement cost (MAC) for each opportunity​ ■ Prioritize abatement opportunities based on MAC curve analysis under different climate scenarios​

3

Fengate Asset Management | 2024 Sustainability Report

WE ARE HERE

Develop a decarbonization pathway and set targets ​ ■ Based on the prioritized set of abatement opportunities, develop a feasible decarbonization pathway at the asset and portfolio levels ​ ■ Determine capital requirements and optimize capital allocation for investment opportunities ​ ■ Set absolute and intensity-based targets where applicable

4

Monitor and report on our progress ■ Disclosure of Scope 1 and 2 emissions for assets in our decarbonization strategy​ ■ Report on our progress on an annual basis against our targets​ ■ Identify additional opportunities during our transition journey

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INTRODUCTION

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APPENDICES

Sustainable design in real estate

Geothermal systems

Solar ready

Geothermal provides sustainable, low carbon energy to efficiently heat and cool buildings. Fengate investigates the feasibility of pursuing geothermal on our development projects with five real estate projects that have opted for a geothermal system with heat pumps.

The installation of solar panels supplies clean energy to tenants, therefore, reduces reliance on natural gas and can also provide significant financial benefits. We prioritize solar-ready design at our industrial development projects to help our future tenants meet their sustainability goals, reduce operational emissions and create independence from the grid.

2. Fuel-switching

3. Sustainable design parameters

Heat pumps

Guideline for sustainability

As Fengate seeks to transition towards a lower carbon future, heat pumps play an important role in working towards decarbonization. Heat pumps are significantly more efficient than alternative heating methods and help us transition away from natural gas usage. Fengate’s preferred heating and cooling system are heat pumps because of their exceptional energy efficiency, GHG reductions and opportunity for cost savings for future tenants.

Fengate is in the process of rolling out minimum sustainable design standards for all real estate projects where Fengate has controlling interest. The sustainable design parameters outline our approach to embedding sustainability throughout the entire development process. These parameters provide a holistic approach to help future-proof our assets, focusing on 10 key areas, which include: reducing operational and embodied carbon emissions, selecting healthier materials, enhancing biodiversity, and addressing climate resilience. The parameters will launch in Q4 2025 and will serve as a comprehensive guide to align projects with Fengate’s sustainability targets.

Fengate Asset Management | 2024 Sustainability Report

1. On-site renewable energy

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Infrastructure Fengate recognizes the importance of decarbonizing our infrastructure funds and is taking a thoughtful and pragmatic approach to transition planning at the asset level. Fengate’s transition strategy is informed by current leading target-setting frameworks in private markets, including the Institutional Investors Group on Climate Change’s (IIGCC) Net Zero Investor Framework (NZIF). In addition, we are also referencing Bain’s Private Markets Decarbonization Roadmap (PMDR) developed by the Initiative Climat International (iCI) and the Sustainable Markets Initiative’s Private Equity Task Force for guidance where applicable.

Our ability to pursue decarbonization opportunities within our infrastructure portfolio is dependent on various factors such as the asset type, Fengate’s level of operating control, and commercial structure among other considerations. For example, the majority of social assets we manage such as hospitals, courthouses and schools have been built to standards such as LEED silver and gold certified, where energy efficiency has been optimized based on technically and commercially feasible energy solutions. Beyond that, further decarbonization of social assets poses a unique challenge due to the operational demand of critical healthcare services, and therefore must be evaluated on a case-by-case basis.

Analyze and prepare Not aligned

Transition

Preparing to align or Decarbonization strategy in place

Committed to Aligning

Aligning towards a net zero pathway

Aligned to a net zero pathway

Achieving net zero

Based on our assessment, most operating assets are not yet aligned, some assets are preparing to align through the exploration of a transition plan, and several have commitments to align. The majority of our renewable assets are well-positioned to be net-zero with minimal transition efforts given the nature of their operations.

With Fengate’s ongoing engagement, select assets are undergoing or planning for an Science-based Targets Initiative (SBTi) alignment exercise, with the focus on setting long-term net-zero targets. Energy efficiency projects, electrification of major heating and cooling systems, and on-site renewable energy are examples of initiatives taken where there are technically and financially feasible pathways.

Fengate Asset Management | 2024 Sustainability Report

38%

AUM with decarbonization and/or net-zero targets in place

14%

AUM of renewable energy assets with minimal scope 1+2 GHG emissions

10%

AUM with energy efficiency targets through LEED Silver or Gold certification28

63%

AUM with decarbonization considerations29

79% of our social and transportation portfolio is at a minimum LEED certified .

30

This figure excludes AUM that have established decarbonization and/or net-zero targets.

It represents only other assets that have achieved LEED certification without such commitments.

29 Based on Fengate’s equity value as of December 31, 2024 30 Based on asset count 28

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INTRODUCTION

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APPENDICES

Governance Our climate governance model aims to ensure that climate-related risks and opportunities are integrated into all levels of leadership and management activities, and are addressed throughout the entire investment lifecycle. Our climate governance approach aligns with our firmwide Responsible Investment governance framework as described in the Responsible Investment Governance section of this report. The framework on this page highlights key functions within our broader Responsible Investment governance structure and their climate-specific roles and responsibilities.

Executive Oversight Provides overall strategic direction and oversight on key climate topics and issues ​

Responsible Investment Committee

Investment Committee

Leads the development and implementation of our climate strategy including assessment of material risks and opportunities and their potential impact on our investment and broader firm objectives​

Reviews and provides strategic guidance on potential climate-related risks and opportunities associated with an investment, which are identified during due diligence, prior to approvals

Responsible Investment Working Group

Fengate Asset Management | 2024 Sustainability Report

Designs and coordinates the strategy and execution of climate-related initiatives

Business Units The leads within each business unit oversees the implementation of climate-specific initiatives within their portfolios, aligned with their mandate. Leads will collaborate with specific functional teams within a business unit, such as the investment, development and asset management teams to execute on climate-specific priorities for the assets they manage or potential investments

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Risk management Fengate’s climate risk management includes physical and transition risk assessment at the asset level and strategic level. Changes in climate patterns, market shifts, technology advancement, and jurisdictional nuances of climate regulations require ongoing monitoring of climate risks and opportunities and a strong understanding of how they may impact investment and asset management activities. Since 2023, we have continued to follow a six-step process on climate risk management.

01

02

Define scope (time horizon and climate scenarios)

06

Ongoing monitoring and reporting

Fengate Asset Management | 2024 Sustainability Report

Inform and educate

05

Define physical and transition risks and opportunities

Risk management

Climate risk scenario analysis

03

Asset-level engagement

04

Fengate continues to monitor assets in higher risk locations and regularly updates the assessment based on changes in industry best practices, TCFD recommendations, climate data improvements, and internal capabilitybuilding measures. In 2024, Fengate conducted over 40 new physical climate risk assessments through Mitiga EarthScanTM as part of new investment due diligence, with results informing investment strategy, construction design, and post-acquisition capital requirements.

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1. Define scope Time horizon Fengate conducts climate risk scenario analysis over three time periods, including short (2025-2030), medium (2030-2040), and longer-term periods (2040-2050). Real assets have long lifespans and are essential to economic and social welfare. An extended temporal scope ensures a thorough and forward-looking evaluation that considers the potential impacts of climate change across the entire lifecycle of these assets, thereby enhancing the resiliency and sustainability of the assets during both the holding period and the future operating assumptions at the point of exit and beyond.

Climate scenarios Climate scenarios are projections of future GHG emissions, used to explore the potential impacts of climate change under different socioeconomic conditions.

The EarthScan climate scenarios are based on the climate scenarios developed by the Scenario Model Intercomparison Project (ScenarioMIP). ScenarioMIP climate scenarios are part of the Coupled Model Intercomparison Project Phase 6 (CMIP6) and inform the basis of the Paris Climate Agreement by the UN Framework Convention on Climate Change (UNFCCC), as well as the Sixth Assessment Report published in 2021 by the Intergovernmental Panel on Climate Change.

Scenario

Description

SSP

RCP

Business as usual

Worst-case scenario

SSP5-8.5

RCP-8.5

Emissions peak in 2040

Intermediate scenario

SSP2-4.5

RCP-4.5

Paris aligned

Best-case scenario

SSP1-2.6

RCP-2.6

Fengate Asset Management | 2024 Sustainability Report

Fengate stress-tests the assets with all available scenarios to understand resiliency under the below climate scenarios.

These scenarios combine Shared Socioeconomic Pathways (SSPs) and Representative Concentration Pathways (RCPs): SSPs are scenarios that describe possible social and economic development between now and 2100

RCPs describe how GHG emissions interact with the climate system, based on climate science and atmospheric physics

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2. Define climate-related risks and opportunities Physical Risks Physical risks refer to the physical impacts of climate change. Physical risks include acute risks, such as the increased severity and frequency of extreme weather events, and chronic risks, such as longer-term increases in average temperatures and changes to local ecosystems.

Examples of the climate hazard categories and related physical metrics are outlined below: Heat stress Extreme precipitation

Acute – wind, flood, precipitation, heatwave, wildfires, storms

Drought Extreme wind

Chronic – long-term shifts in climate

patterns, rising sea levels, increase mean temperatures

Flooding (coastal and riverine) Wildfire

Transition risks

Fengate Asset Management | 2024 Sustainability Report

Transition risks refer to the impact of various potential market changes during the global transition to a low-carbon economy. Transition risks include policy, legal, technology, commercial and reputational changes. Fengate may be exposed to a variety of transition risks. Primarily, these involve government commitments (e.g., climate action, net zero, energy transition). We also seek to address the evolving preferences and expectations of our key stakeholders.

Policy

Technology

Market

Reputation

Transition opportunities The transition to a low-carbon economy presents many opportunities, including resource efficiency and clean energy sources, new products and services, and access to new markets. Fengate continues to invest in transition opportunities such as energy transition technology, low-carbon buildings and climate-resilient assets. We also recognize that Fengate can play a significant role in the transition by spurring innovation, improving resiliency and increasing the focus on the social impacts of climate change.

Resource efficiency 56

Markets

Resilience

Product and services

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APPENDICES

3. Climate risk scenario analysis Physical risk assessment Fengate examined the potential exposure and vulnerability of our infrastructure and real estate portfolios to a range of climate hazards that represent the range of potential occurrences of climate-related physical events that may cause damage or loss. We assessed the assets’ potential impact from physical climate risks over a short, medium and long-term timeframe under different climate scenarios. This assessment was supported by our partnership with Mitiga’s EarthScan tool and its associated risk rating methodology, utilizing multiple futures models such as CMIP6 published by IPCC. For each scenario and timeframe, Fengate screened potential exposure across the assets by considering two dimensions: Exposure to six physical climate hazards through Mitiga EarthScan Vulnerability based on asset type and asset-specific resilience measures

Exposure assessment

Vulnerability assessment

Through Mitiga EarthScan, asset locations are first assigned an EarthScan Rating from A (very low climate-related exposure) to F (extremely high climate-related exposure) for each hazard category.

Ratings are calculated based on a suite of climate hazard exposure metrics, which are generated by applying statistical modeling approaches to exposure metrics to describe how climate hazard probabilities change for a given location over time and across future emissions scenarios.

Using Mitiga EarthScan, Fengate can extract a range of quantitative forecasts to assess the preparedness and resilience of an asset. Asset management teams are engaged and provided with the relevant projections to identify whether there are additional commercially and technically viable measures to enhance asset resilience if required. The underlying physical metrics are also shared with the investment team and technical advisors at the due diligence stage to confirm climate resilience within the design and technical specification of the asset.

EarthScan Ratings, rooted in impact quantification based on physical buildings, are not directly applicable to non-built asset types such as wind and solar assets.

As a result, the ratings are supplemented by underlying physical metrics such as flood inundation depth or heatwave length as the primary source of valuable data for risk assessment for non-built assets.

Fengate understands that there are known and unknown limitations to conducting climate risk assessments, and is committed to evolving our approach and methodology as additional information, tools, climate data and best practices become available. We aim to highlight all key assumptions and known limitations throughout the report, where relevant and applicable.

Exposure: Is the source of risk or opportunity due to climate change (e.g., exposure to extreme heat, carbon prices or renewable energy

Fengate Asset Management | 2024 Sustainability Report

1.

2.

Vulnerability: Refers to how the asset is impacted by the changing exposure

Transition risk assessment The transition to a low-carbon economy is underway – driven by intensifying climate policy, changing investor sentiment, technological advances and fundamental shifts in market demand. Fengate understands the risks and opportunities of climate transition on asset performance, and considers them critical components of sound risk management practices. Across the business units, Fengate is actively monitoring jurisdiction-specific carbon policies, sector-specific regulations, market trends, and assets’ operations – including an annual assessment of asset-level GHG emissions and carbon intensity – to evaluate our potential exposure to transition risks in the short, medium and long-term.

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Climate risk assessment findings for real estate Fengate conducted a physical climate risk assessment through Mitiga EarthScan’s Climate Risk Tool across FCIF, MFIF and Master Development Fund (MDF). The methodology for Fengate’s physical climate risk assessment can be found in the risk management section of the report on page 55. Based on our physical climate risk assessment, assets have relatively low exposure to climate-related hazards within the next 5-20 years. This is primarily a result of the geographic locations of the properties we manage, which are primarily in suburban and industrial areas of southern Ontario.

Chart 3.1: Real estate assets’ exposure to climate risk under business as usual scenario in 2030 – location-based distribution

Flooding

Wind risk

Heat stress

Precipitation risk

Drought

Wildfire

Fengate Asset Management | 2024 Sustainability Report

0%

10%

20%

30%

40%

Low exposure

50%

60%

70%

Medium exposure

80%

90%

100%

High exposure

Using the tool, Fengate can obtain a range of quantitative climate forecasts under multiple climate scenarios and timeframes. For any high-risk locations, Fengate shares the risk ratings and projected hazard exposure metrics (i.e., max temperature in Celcius and precipitation levels in millimetre) with the asset management team to understand asset resiliency and explore adaptation strategies. No high-risk locations are identified for FCIF, MFIF, or MDF.

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INTRODUCTION

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RESPONSIBLE INVESTMENT IN ACTION

B

asset locations evaluated

APPENDICES

0%

overall risk exposure

of assets are in highexposure locations by 2040

Fengate views the physical risk associated with climate change and the necessary steps for adaptation and resilience to have the same importance as other investment risk categories. On an ongoing basis, risks and opportunities presented by the physical impacts of climate change are integrated into Fengate’s existing risk assessment and management processes and will continue to evolve with industry standards, climate data improvements, and internal capability-building measures.

Table 3.1: Example of FCIF’s fund-level exposure to physical risk across multiple climate scenarios and time horizons.

Time Horizon

SSP1-2.6

SSP2-4.5

SSP5-8.5

EarthScan RatingsTM

2030 2040 2050 2030 2040 2050 2030 2040 2050

A

Excellent

Flooding

A

A

A

A

A

A

A

A

A

B

Good

Wind risk

B

B

B

B

B

B

B

B

B

C

Moderate

Heat stress

B

B

B

B

B

C

B

B

C

D

Poor

Precipitation

A

A

A

A

A

A

A

A

B

Drought

A

A

A

A

A

A

A

A

A

E

Very poor

Wildfire

A

A

A

A

A

A

A

A

A

F

Extremely poor

Fengate Asset Management | 2024 Sustainability Report

Scenario

Looking forward to 2050, heat stress will experience a slight increase across the portfolio of assets under two of the more carbon-intensive climate scenarios as global temperatures rise. As we continue to respond through targeted asset-level assessments and engagements, our current assets’ geographic locations provide a significant risk mitigation measure against future climate hazards. Further, asset-level adaptation strategies that are currently in place help to temper certain extreme outcomes.

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Climate risk assessment findings for infrastructure Fengate conducted a physical climate risk assessment through Mitiga EarthScan’s Climate Risk Tool across its standing assets, including Fund III, Fund IV, and Yield Fund. The methodology for Fengate’s physical climate risk assessment can be found in the risk management section of the report on page 55.

Across Fengate’s infrastructure funds, assets have relatively low to moderate exposure to climate-related hazards within the next five to 20 years. Looking forward to 2030-2050, heat stress will experience a slight increase across the portfolio of assets under two of the more carbon-intensive climate scenarios as global temperatures rise. Assets located in certain southern U.S. locations are expected to be more exposed to temperature increases over the next decade, while assets in Western Canada are expected to experience higher precipitation risk.

Chart 4.1: Infrastructure assets’ exposure to climate risk under business as usual scenario in 2030 – location-based distribution

Flooding

Wind risk

Heat stress

Precipitation risk

Drought

Fengate Asset Management | 2024 Sustainability Report

Wildfire

0%

10%

20%

30%

40%

Low exposure

50%

60%

70%

Medium exposure

80%

90%

100%

High exposure

Using the tool, Fengate can obtain a range of quantitative climate forecasts under multiple climate scenarios and timeframes. For any high-risk locations, Fengate shares the risk ratings and projected hazard exposure metrics (i.e., max temperature in 0C and precipitation levels in millimetre) with the asset management team to understand asset resiliency and explore adaptation strategies.

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C

asset locations evaluated

APPENDICES

97%

overall risk exposure

assets have low to medium exposure

Fengate views the physical risk associated with climate change and the necessary steps for adaptation and resilience to have the same importance as other investment risk categories. On an ongoing basis, risks and opportunities presented by the physical impacts of climate change are integrated into Fengate’s existing risk assessment and management processes and will continue to evolve with industry standards, climate data improvements, and internal capability-building measures.

Table 4.1: Example of Fund III’s portfolio-level exposure to physical risk across multiple climate scenarios and time horizons.

Time Horizon

SSP1-2.6

SSP2-4.5

SSP5-8.5

EarthScan RatingsTM

2030 2040 2050 2030 2040 2050 2030 2040 2050

Flooding

A

A

A

A

A

A

A

A

A

Wind risk

B

B

C

B

B

C

B

B

C

Heat stress

B

B

C

B

B

C

B

B

C

Precipitation

B

B

B

B

B

B

B

B

B

Drought

A

A

A

A

A

A

A

A

A

Wildfire

A

A

A

A

A

A

A

A

A

A

Excellent

B

Good

C

Moderate

D

Poor

E

Very poor

F

Extremely poor

Fengate Asset Management | 2024 Sustainability Report

Scenario

Based on Fengate’s review, assets situated in higher-risk locations all currently have adequate structural adaptation or commercial arrangements in place for resilience. Fengate will continue to monitor the assets and its resilience plans periodically to identify opportunities for additional adaptation measures.

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4. Asset-level engagement Following asset-level assessments, Fengate conducts asset-specific engagement with asset managers to discuss any material risks and evaluate the asset’s current adaptation and resiliency measures. Reassessment is conducted periodically to reflect updated asset conditions, assessment methodologies and climate models.

5. Inform and educate Fengate incorporates physical and transition climate risk analysis into every due diligence process to inform investment decisions or design considerations. Fengate has incorporated climate risk management into the ongoing RI curriculum for our investment and asset management teams.

6. Ongoing monitoring and reporting Fengate will continue to monitor assets in higher risk locations and regularly update the assessment based on changes in industry best practices, TCFD recommendations, climate data improvements, and internal capabilitybuilding measures. Fengate will continue to disclose the climate risk analysis findings in our TCFD reports.

Fengate Asset Management | 2024 Sustainability Report 62

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APPENDICES

Metric and targets Portfolio emissions Following a GHG inventory review in 2023, Fengate continues to focus on the completeness and quality of GHG data gathered and reported in 2024. This includes increasing the scope of emissions quantification to include additional funds and engaging with portfolio companies on third-party GHG data assurance. Fengate measures Scope 1, Scope 2 and Scope 3 Category 15 Financed Emissions as part of its emissions inventory, following GHG protocol and PCAF methodology. Please see exhibit 1 for Fengate’s 2024 GHG emissions report.

Fengate

Scope 1, 2 emissions (corporate operations) Scope 3 financed emissions

Scope 3 emissions

Portfolio company A

Portfolio company B

Portfolio company C

Scope 1, 2 emissions

Scope 1, 2 emissions

Scope 1, 2 emissions

Fengate Asset Management | 2024 Sustainability Report

Scope 1 emissions represent direct emissions from sources owned or controlled by the asset. Scope 2 emissions represent indirect emissions from purchased electricity or steam consumed by the asset. We have calculated our emissions profile for infrastructure and real estate for the 2024 period, including Fengate Core Infrastructure Fund III (Fund III), Fengate Infrastructure Fund IV (Fund IV), Fengate Yield Fund (Yield Fund), Fengate Commercial Income Fund (FCIF), Multi-family Income Fund (MFIF), LPF Barrie, and LPF Realty Retirement Fund LP (Seasons).

Please refer to Appendix 1 – GHG Emissions for further details regarding Fengate’s 2024 emissions profile.

Data management In 2024, Fengate added additional measures to improve our data quality. This includes additional signoffs on utility data gathered and submitted, refinement of CO2e emissions factors for assets operating in the United States, and year-over-year comparisons for trend analysis.

FCIF received independent third-party verification with limited level of assurance on its 2024 GHG emissions inventory, in accordance with ISO 14064-Part 3 verification standard, and the International Standard on Assurance Engagement (ISAE) 3000.

As the quality and quantity of our data increase, we expect our annual GHG emissions reporting to improve over time. Fengate will commit to being transparent on any adjustments to methodology or retroactive adjustments to reported emissions as we refine our approach and maturity of GHG emissions reporting.

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Appendix 3: Our firmwide approach to nature and biodiversity In the wake of the UN Biodiversity Conference (COP15) in 2022, 190 states committed to a set of ambitious goals and targets under the Global Biodiversity Framework. Biodiversity loss is also now recognized by the world’s central banks as a source of systemic risk alongside climate change. Fengate recognizes the significance of the protection and conservation of nature and biodiversity. We also acknowledge that nature loss poses a large risk to the economy as a whole and has a substantial impact on the built environment.

Fengate Asset Management | 2024 Sustainability Report

As such, Fengate officially became a Taskforce on Nature-related Financial Disclosures (TNFD) Forum Member in 2023. Fengate is also a Canadian TNFD Consultation Group member. The purpose of the consultation membership under the Institute for Sustainable Finance and CPA Canada as co-conveners is to bring together interested and knowledgeable parties including Taskforce members, government representatives, TNFD forum members, and TNFD early adopters. Our goal is to work alongside the TNFD to embed nature-related risks and opportunities into our firm’s strategic planning, operations, risk management processes and asset management activities to create long-term sustainable value.

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Fengate’s approach to biodiversity risk assessment As part of our investment process, Fengate conducts location-specific nature and biodiversity risk assessment prior to an investment decision, following the framework recommendations put forth by TNFD. During the due diligence process, the investment team overlays the investment’s operating locations with geospatial data, including data from existing market tools, which can assist in mapping terrestrial, freshwater and ocean biomes and ecosystems, as well as their integrity and resilience. For this exercise, we used the WWF Risk Filter Tool with underlying data from the Integrated Biodiversity Assessment Tool (IBAT) to identify where assets have potential overlap with areas of high biodiversity importance using two metrics: the World Database of Protected Areas (WDPA) and locations with potential overlap with Key Biodiversity Areas (KBA). TNFD disclosure framework recognizes these tools as part of the nature and biodiversity risk screening methodology.

This is accompanied by an Environmental Site Assessment (ESA) at the site level to identify the existence and scope of soil or groundwater contamination.

INTRODUCTION

OUR FIRMWIDE APPROACH

RESPONSIBLE INVESTMENT IN ACTION

APPENDICES

What is TNFD? The TNFD is a market-led, science-based and government-supported global initiative.

Fengate conducts water risk assessment during due diligence to determine the investment’s potential exposure to areas with potential water scarcity risk.

Fengate also evaluates the asset’s dependency and impact on local water sources. We rely on WWF’s Water Risk Filter Tool, which defines water scarcity by indicators including aridity index, water depletion, and projected change in drought occurrence. Risk level is determined based on a 5-point scale with scores under 2 ranking as very low to low risk. We will continue to monitor water risk across the assets we manage.

Looking forward, Fengate seeks to become a TNFD adopter and publish our nature-related disclosures using the TNFD recommendations as we continue to refine and adapt our approach to nature and biodiversity risk management.

Governance

Strategy Fengate Asset Management | 2024 Sustainability Report

In addition, Fengate considers the impact on local wildlife by the assets we manage. During the due diligence and asset management phases of the investment, Fengate engages third-party experts in wildlife monitoring and environmental studies where relevant and invests in prevention and mitigation measures such as anti-bird strike films, rehabilitation of local vegetation and introduction of droughtresistant species, where possible.

The recommendations and guidance provide organizations with a risk management and disclosure framework to act on evolving nature-related dependencies, impacts, risks and opportunities. The TNFD disclosure recommendations are structured around four pillars, consistent with TCFD and the International Sustainability Standards Board (ISSB).

Risk & impact management

Metrics & targets They accommodate the different approaches to materiality in use currently and are aligned with the goals and targets of the KunmingMontreal Global Biodiversity Framework.

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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 Report for informational purposes only. The information contained in the Report 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 Report. *Important Disclosures For illustrative purposes only. The views and statistics included are for informational purposes only and are not intended to serve as a forecast, a guarantee of future results, or investment recommendations.

This report is provided solely for informational purposes, does not promote any business or business interest of Fengate Asset Management, and does not constitute an offer or a solicitation to buy or sell any security, product or service in any jurisdiction.

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Designed and produced by Fengate in June 2025.

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