AGREEN CAPITAL ESG POLICY

This document includes the policy Agreen Capital Sagl (“Agreen Capital”) has in place to incorporate Environmental, Social and Governance (“ESG”) considerations in its role as Club Deal arranger, and Advisor within the Food & Beverage industry.

PRELIMINARY CONSIDERATIONS

Creating value for members and investors requires forward-looking thinking. Agreen Capital believes that the ability to identify, assess and manage ESG considerations can provide sustainability and a positive ethical impact on investments and corporate performance.

ESG considerations are fundamental for the advisory activities and investments decisions of Agreen Capital.

Agreen Capital Club Deal aims to invest in companies that take a responsible approach towards the environment, society and corporate governance.

Agreen Capital excludes investments contravening the EU, USA and/or UN Trade sanction lists, and investments in industries related to illegal drugs and alcohol.

AGREEN CAPITAL ESG CORE PRINCIPLES

Agreen Capital ESG core principles are set out below. Agreen Capital is committed to:

  • Ensure that it takes a responsible approach throughout its investment cycle and recognise the potential impact of businesses on the environment, workers, communities and society, as well as the potential impact of climate change on the businesses in which Agreen Capital invests
  • Ensure that Agreen Capital and companies in portfolio always respect human rights and ensure no exploitation of child labour
  • Act with integrity
  • Be non-discriminatory
  • Act responsibly with respect to the environment, aiming for a sustainable approach to the use of resources, avoiding irresponsible disposal of products and unnecessary waste

Agreen Capital is a Principles for Responsible Investment (PRI) signatory. The PRI is supported by the United Nations, being the world’s leading proponent of responsible investment. It works to understand the investment implications of environmental, social and governance (ESG) factors, and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions.

Currently, more than 3,000 investors, managers and professional services firms have committed to the PRI.

As a signatory, Agreen Capital is committed to the following principles:

  • Incorporate ESG issues into investment analysis and decision making processes
  • Be active owners and incorporate ESG issues into ownership policies and practices
  • Seek appropriate disclosure on ESG issues by the entities in which Agreen Capital invests
  • Promote acceptance and implementation of the Principles within the investment industry
  • Work together to enhance effectiveness in implementing the Principles
  • Report on activities and progress towards implementing the Principles

AGREEN CAPITAL ESG PRINCIPLES ON FOOD & BEVERAGE INDUSTRY

For Agreen Capital is fundamental how the companies in the Food & Beverage Industry produces, and distributes the products.

The production and consumption of Food & Beverage products triggers ESG implications.

To ensure long term sustainability, the Food & Beverage industry shall improve ESG performance of their products and processes, and meet the consumers’ needs for food safety, nutrition, health, life style, and product choice.

The five pillars on which Agreen Capital focuses its specific assessment on the Food & Beverage sustainability are:

  1. Resources efficiency and waste management
  2. Energy efficiency
  3. Sustainable water consumption
  4. Packaging impact / recyclability
  5. Transport and distribution responsibility

CLUB DEAL APPROACH

Agreen Capital and the Club Deal integrate the ESG and sustainability strategy along the entire investment cycle, from origination / screening activities to the development and exit phases.

Origination / screening phase

• Assessment on the target status on ESG and sustainability areas, including due diligence on internal competences, commitment of shareholders and management

• Assessment on the value creation perspectives of the industry, market, company, and products, related to the ESG and sustainability areas

• Market, sector, industry and company risks assessment related to the ESG and sustainability areas

Portfolio management and development

• Affiliation to UN PRI

• Key ESG responsible for each Club Deal investment

• Identification of metrics, benchmark, and goals

• Identification and implementation of an ESG tailored strategy

• Continuous reporting and interaction with Agreen Capital ESG Team

• Measurement of performance and results

Exit

Agreen Capital Club Deal structures investments in the Food of the Future. The Vision of Agreen Capital is “Better Food, Better World, Better Peformance”.

Agreen Capital is firmly convinced that the successful implementation of the above ESG tailored strategy will consistently improve the performance and the marketability of the Club Deal portfolio, and therefore the value and the attractiveness of the participations for IPOs, secondary, and trade sale.