Sustainability-Related Disclosures

Rationale for voluntary disclosures

Energy Infrastructure Partners AG (“EIP”) considers it necessary to assess and manage sustainability factors across each transaction investment cycle. As per Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (the “SFDR”), sustainability factors are defined as environmental, social and employee matters, respect for human rights, anti-corruption and anti-bribery matters.

Sustainability factors and risks can present both risks and opportunities that need to be first identified, assessed and then monitored, managed and/or capitalized upon, as applicable.

As part of EIP’s commitment towards sustainability and robust ESG management across the funds for which EIP has assumed the portfolio management function, the following disclosures are made. Whilst the SFDR at the entity level do not directly apply to EIP, we consider that the SFDR provides a relevant framework to provide appropriate sustainability-related disclosures, particularly considering EIP’s function as a delegated portfolio manager for EU-domiciled funds.

Transparency of sustainability risk policies

EIP established its Sustainability Risk Policy to integrate sustainability risks into its investment decision-making process.

EIP has a fully dedicated and experienced in-house ESG function that works closely with other teams to ensure robust management of ESG and sustainability factors and risks at due diligence and asset management phases.

The applicability and materiality of sustainability factors and risks will vary across investment opportunities and assets. Therefore, key sustainability factors are identified, assessed and managed to ensure that the due diligence and asset management phases are appropriately scoped, prioritized and conducted effectively in relation to these sustainability factors.

EIP will assess and monitor at the due diligence and asset management stages, respectively, the target company’s / portfolio company’s performance and, as appropriate, uses its leverage (which will vary across the portfolio) to take steps to enhance ESG performance in accordance with good international industry practice.

For more information on how sustainability risks are integrated into EIPs investment-decision-making process, please find here a summary of EIP’s Sustainability Risk Policy.

Transparency of adverse sustainability impacts

EIP considers adverse sustainability impacts across its managed portfolios and throughout the investment lifecycle, from the early due diligence stage to asset management and exit stages.

Transparency of remuneration policies in relation to the integration of sustainability risks

EIP’s Remuneration Policy does not reward any excessive risk taking, including sustainability risks, and seeks to encourage the alignment of the risks taken by EIP (and the decisions of employees and managing partners) with those of the assets it manages and the interests of underlying investors.