STEP 3: Collect IRIS+ Impact Data from Portfolio Companies

● Portfolio Manager (PM) – Leads portfolio M&E and is in charge of driving the IR process, ensuring the timeliness, completeness and accuracy of the end-product. Leads the Portfolio Review Meeting(s). ● Relationship Managers (RMs) - Responsible for securing their assigned portfolio company’s quarterly financials and commentary; writing [INV./FUND MANAGER

NAME]’s commentary and financial analysis; and delivering the information to the PM; serve as a representative of their assigned portfolio company at the Portfolio Review

Meeting(s). ● Financial Accountant & Controller (FAC) - serves as the QA QC check for the draft and final versions of the financial statements; once approved, the individual enters the financials into the internal portfolio company dashboards (and/or financial statement template). They are responsible for updating and maintaining the internal portfolio company dashboards with support from R/PMs and SGS CFO; accountant for shell and

SPV companies. ● SGS Group CFO (SGS CFO) - responsible for delivering accurate financial statements to the PM for companies working in partnership with SGS; provides mentorship, advice and coaching to [FUND NAME] subsidiary companies and/or [INVESTOR NETWORK

NAME/ ACRONYM] portfolio companies’ Financial Managers (as willing/needed); participates in corrective action meetings. ● SGS Group COO (SGS COO) - external from the IR process; if deemed appropriate or required, can serve as an external check and provide QA/QC for the IRs. ● Subsidiary and/or Portfolio Company - Financial Manager(s) - responsible for updating and closing out the subsidiary / portfolio company’s general ledger on a monthly basis; producing accurate quarterly and annual financial statements; drafting financial and operational commentary per the provided commentary template (and if not capable of doing so, then elevates it to the correct individual).

ACTIVITIES

STEP 1: KICK OFF FINANCIAL REPORTING PROCESS WITH THE IM TEAM

Objective:

 To kick off the internal financial reporting process with the IM team to review the standards as outlined in this SOP, to reiterate and assign roles and responsibilities, and to ensure the team is using all of the tools and resources available to them. (Note: In discussing deadlines of activities, T=0 is the end of the quarter, so March 31, June 30, September 30 and December 31.)

Process:

1. The PM initiates the quarterly financial reporting process at T-15 (i.e., 15 days PRIOR to the end of the quarter) by sending an email to the Investment Management Division team using the Tool - Quarterly Financial Reporting Kick Off Email Template. This email ensures that all of the relevant supporting team members are included on the email

chain. The email template not only provides the required tools and resources but establishes deadlines and jumpstarts the external process with the portfolio companies. The email template should include the following tools / resources: a. SOP - Asset Management (see M&E Sub-Section) b. Tool - IR Process Tracker c. Tool - [INV./FUND MANAGER NAME] Internal Style & Formatting Guide d. Training - [INV./FUND MANAGER NAME] Internal Style & Formatting Guide e. Training - Financial Statement & Dashboard Review f. Training - Portfolio Company Dashboard Maintenance 2. If deemed necessary (e.g., new team members are being onboarded to the IR process), the PM can schedule a formal “Kick-Off Meeting” to review and discuss the items covered in the Kick-Off Email Template. 3. The PM will also schedule for and host the first Portfolio Review Meeting (i.e., PRM0) at T+1 (i.e., the first day after quarter-end), during which the PM, RMs, SGS COO, SGS CFO and Director of Asset Management will meet to determine the high-level content and outlook of the commentary for each portfolio company. a. Tool - PRM 0 POA & Running Meeting Notes

Standards:

● The Kick-Off Email should be sent at T-15 (i.e., 15 days PRIOR to the end of the quarter) to ensure we provide ourselves with enough time to gather information, generate external financials, draft value-added commentary and compile the aforementioned into a polished investor report for external stakeholders (i.e., investors). ● All team members must-use the tools included as links/attachments in the Kick-Off Email. ● The PM and the Head of Investment Management must spot check the use of the tools to ensure compliance. ● If tools are not being used as the team has been trained to do, then re-training and/or disciplinary action may need to be taken.

STEP 2: COLLECT DATA & MANAGEMENT COMMENTARY FROM PORTFOLIO COMPANIES

Objective:

 To obtain accurate and complete financial information and/or financial statements, as well as written commentary from portfolio companies in a timely manner. The information should be informative, descriptive and answer questions that [INV./FUND MANAGER NAME] and our investors will have about the financial and operational performance of the portfolio company, as well as provide a clear picture about the financial and operational performance projections for the coming quarters.

Process:

1. Right after quarter-end and the PRM0 has been hosted (i.e., T+2) RMs are to coordinate with their assigned portfolio companies to communicate expectations on immediate next steps and deadlines using the Tool - Portfolio Company Financial Statement & Commentary Request Email Template. These immediate next steps and associated deadlines include: a. Portfolio companies are to close their general ledgers for the quarter no later than the 5th of the following month (Note: An activity that all portfolio companies are expected to do each month; this helps catch errors sooner than after quarterend). b. Portfolio companies are to generate financial statements (i.e., Balance Sheet, Income Statement, Statement of Cash Flows) no later than the 10th of the following month. (Note: An activity that all portfolio companies are expected to do each month; this helps catch errors sooner than after quarter-end). c. Portfolio companies are to deliver reviewed and finalized financial statements that tie out and are free of errors no later than the 15th of the following month. d. Portfolio companies are to deliver agreed upon impact indicators no later than the 15th of the following month (SEE STEP 3 BELOW). e. Portfolio companies are to delivery their commentary per the Tool - Portfolio Company Commentary Template no later than the 30th of the following month. 2. RMs are to follow up with their assigned portfolio companies to ensure they are following the deadlines as communicated in the Request Email; as we approach deadlines, daily emails and/or phone calls might be warranted.

Standards:

● The deadlines established in the Request Email cannot be moved and/or missed if [INV./FUND MANAGER NAME] is to hit the 45-day reporting deadline of sending out completed IRs to investors. RMs, with the assistance of the SGS team when welcomed, must work with their assigned portfolio companies to make these expected activities habitual and the deadlines second nature. ● While events do occur that are outside the portfolio companies’ control (e.g., the Financial Manager quits immediately before quarter-end), [INV./FUND MANAGER NAME] must strive to enforce financial reporting and accounting disciplines (e.g., documenting the portfolio company’s financial reporting and accounting processes within a manual and/or SOP) within the companies so that unexpected events do not completely derail [INV./FUND MANAGER NAME]’s M&E process.

STEP 3: COLLECT IRIS+ IMPACT DATA FROM PORTFOLIO COMPANIES

Note to Reader: There are several existing, noteworthy frameworks, guides and manuals on impact data collection and analysis for impact investments in portfolio companies, irrespective of country or sector in which they operate. RENEW employs the 2X Criteria harmonized GIIN

IRIS+ metric system, as you will read in the sample M&E process below. Some of the more recent publications that we also encourage you to consider include: ● The CDC Gender Toolkit section on Portfolio Measurement with an impact/gender lens (Pages 74 to 76); as well as their guide/framework on Gender Impact Measurement, which is measured against their Gender Action Plan tool/resource and seeks to weave gender outcomes throughout the investment process. Furthermore, the CDC ESG Toolkit, which provides recommendations and tools on how to weave ESG outcomes through the investment process, and their recommended approaches for monitoring ESG outcomes. ● The MEDA Gender Equality Mainstreaming (GEM) Framework, which provides instructions on how to set up an implementation, monitoring and learning loop with the intended portfolio company (Pages 100 to 115), as well as their recommended approach for impact measurement (Pages 117 to 123). ● The 2X Challenge Criteria and the harmonized Global Impact Investing Network (GIIN) IRIS+ Metrics are just two examples of standardized, impact investing industry criteria/metrics that you, as an investment/fund manager, can adopt and track for your portfolio company investments that, when measured regularly and against benchmarks, can tell you whether or not impact is being generated at the company-level. In addition to gathering and analyzing impact data, it is equally important that investment/fund managers collect qualitative narratives of impact that provide stakeholders with an inspiring update on the positive gender, environmental, social, etc. change that the portfolio company has achieved given their investment. In essence, it provides portfolio companies the opportunity to showcase the stories of impact it has created with its employees, consumers and the communities in which they operate. These stories can take shape in many forms – videos, blogs, case studies, tables or call-out boxes in quarterly investor reports, a separate impact report, etc. – and can be shared across a variety of platforms to promote the brand of both the portfolio company as well as the investment/fund manager.

Objectives:

 [INV./FUND MANAGER NAME] employs IRIS+ metrics to measure the impact generated and outcomes achieved for our portfolio companies. IRIS+ is the generally accepted impact accounting system that leading impact investors use to measure, manage, and optimize their impact. Proper use of the IRIS+ system ensures a minimum level of consistency in a user’s impact claims and performance, which makes it easier for investors to analyze and extract useful information for decision making. Use of IRIS+ also facilitates the comparison of impact information across and within an investment portfolio.  IRIS+ metrics are designed to measure the social, environmental and financial performance of an investment. To use IRIS+ metrics - and the resulting data - as part of the investment management process, IRIS+ metrics should be used and analyzed in generally accepted sets and according to well-defined objectives.

 Individual IRIS+ metrics are numerical measures used in calculations or qualitative values to account for the social, environmental and financial performance of an investment. The full catalog is offered in both a searchable and downloadable format to enable search and discovery of individual metrics. The GIIN offers the IRIS+ Catalog of Metrics as a public good.  In terms of data collection methods, [INV./FUND MANAGER NAME] uses a standardized template (Tool - Impact Data Collection Summary) that the portfolio companies complete (i.e., the portfolio company self-reports) on a quarterly basis; each template is electronically signed and dated by the portfolio company. Other methods that can be employed include feedback forms and/or surveys or company visits; these methods are typically used on an annual basis to verify and/or audit the self-reported impact metrics provided by the company.

Process:

1. As indicated in STEP 2 above, RMs are to collect the IRIS+ impact metrics from the portfolio companies no later than 15 days after the quarter ends. 2. RMs are to send the Tool - Impact Data Collection Summary to the companies as part of the Kick-Off email that is sent at T+2 with definitions for each metric and instructions on how to complete (i.e., the portfolio company self-reports on the impact metrics achieved over the course of the quarter): a. If the portfolio company is confused about the definitions or how to collect the impact information from HR records and/or the financial statements, then the RM should schedule a call/meeting to sit down with the company and go over them. b. Historically, there have been times when the RM and/or the PM has set up a phone call with the portfolio company representative, gone through the tool and completed the Impact Data Collection Summary on behalf of the company while on the phone. 3. Once the Impact Data Collection Summary has been completed for each company no later than T+25, the documents must be sent to the FAC, who in turn will enter the IRIS+ impact metrics into the Tool - [INV./FUND MANAGER NAME] Portfolio Company Dashboard that is maintained for each portfolio company (see STEP 4 below). 4. Copies of the Tool - Impact Data Collection Summary will be saved in the Quarterly Impact Metrics folder.

Standard:

 [INV./FUND MANAGER NAME] uses the following IRIS+ metrics as part of our ongoing M&E of portfolio companies impact performance and outcome achievement. All metrics collected must be disaggregated by gender.

2X CRITERIA HARMONIZED IRIS+ METRICS2

2X Direction Criterion 2X Direct SubCriterion 2X Challenge Indicator IRIS+ Aligned Metrics

1. Entrepreneurshi p 1A. Share of women ownership

1B. Business founded by a woman

2. Leadership 2A. Share of women in senior management 1A. Percent of female ownership

1B. Percent of company founder(s) who are female

2A. Percent of senior management who are female

2B(i). Share of women on the

Board 2B(i). Percent of Board who are female

3. Employment 3A. Share of women in the workforce 3A. Percent of employees (FTE) who are female

3B. Quality indicator beyond compliance 3B. Investee has initiative in place to specifically advance women in the workforce (Y/N) Percent Female Ownership (OI2840)

Founders: Female (OI8197) Founders: Total (OI2209)

Full-time Employees: Female Managers (OI1571) Full-time Employees: Managers (OI8251)

Board of Directors: Female (OI8118) Board of Directors: Total (OI1075)

Permanent Employees: Female (OI2444) Permanent Employees: Total (OI8869) Temporary Employees: Female (OI6978) Temporary Employees: Total (OI9028)

Women’s Career Advancement Initiative (OD4232) + one or more from the list below (disaggregated where needed by using the Target Stakeholder Demographic (PD5752) metric): Gender Wage Equity (OI855) Diverse Representation Policy

2 This table is adopted from Table 2. IRIS Equivalent Metrics published by the CDC, 2X Challenge and GIIN, publicly available here: LINK