Nexxus' responsible investment policy is applicable to both equity investments through private equity funds and provision of financing solutions through mezzanine debt.

In Nexxus we believe that the incorporation of social, environmental and good corporate governance (Environmental, Social and Governance or ESG) factors in our investment and financing processes, as well as in the management of our portfolio companies, contributes to the creation of value, besides being an effective way to manage risk in our investment activity.

We acknowledge that acting as responsible investors is part of our fiduciary duty in a context where our investors actively work to align their financial and sustainability objectives. We understand that acting as responsible investors is a gradual process of incorporating best practices and a process of continuous improvement to which we are committed.

In addition, we believe that our activity must actively contribute to achieve the Sustainable Development Goals (SDGs) and we will seek to align our activities to make this possible, with strongly emphasis on Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9) and Reduce Inequalities (SDG 10).

When it comes to investment, we aim to comply with best practices as responsible investors and have made public our commitment to responsible investment by adhering to the United Nations Principles for Responsible Investment.

In order to provide an effective response to the commitments assumed as a responsible investor it is necessary to have an adequate ESG governance structure. For this purpose: (i) we provide training to the investment teams in ESG matters, (ii) we have appointed senior members of both México and Spain, as ESG responsible and (iii) we have hired the services for expert advice of an ESG consultant. We also engage with the portfolio companies to promote the implementation of ESG policies as well as the appointment of an ESG responsible that coordinates the company's ESG activity.

To our portfolio companies we request a periodic report of the ESG activities carried out during each year.

We act as responsible investors in our day to day, integrating ESG factors in each of the phases of our investment and financing process:

1. Pre - Investment / Financing: we have decided to exclude from our investment and financing universe a number of activities that are contrary to our principles and involve high reputational risk.

2. Evaluation: companies that meet our investment/financing criteria are subject to a preliminary screening that includes major ESG risks and opportunities.

3. First Investment/Credit Committee, Negotiation of the Memorandum of Understanding and Approval of the Due Diligence Budget, including ESG DD.

4. Due Diligence includes a specific ESG due diligence process, performed by an external service provider in order to (i) review if the target companies meet ESG requirements, as provided in the Responsible Investment Policy; and (ii) identify short and long-term ESG risks and opportunities. The results of the analysis are included in a conclusions and recommendations report. This report contains details of the most relevant issues from an ESG perspective, to be taken into consideration when making an investment or taking a financing decision. In addition, the report includes recommendations to mitigate the identified ESG risks and identifies the potential ESG opportunities to be tapped during the investment or financing period.

5. Investment Committee or Credit Committee Approval: once the transaction team is satisfied with the results of the Due Diligence analysis, the relevant team will prepare the Investment Memorandum and submit it to the Investment or Credit Committee for the final approval of the transaction. The Investment Memorandum shall include, at least, a specific section devoted to the main ESG risks and opportunities identified in the Due Diligence. In the same committee, a 180-day plan (the "Plan") is also presented, which includes some recommended actions in the Due Diligence. The Plan will include at least good corporate governance and business continuity measures in order to align and retain key talent.

6. Value Creation: during the investment phase, at least one of the senior members of the investment team joins the board of directors of the portfolio company. He is involved in key operational and strategic decisions and ensures the implementation of the following ESG measures:

(i) Adherence of the portfolio company to Nexxus' ESG policy;

(ii) Appointment of an ESG responsible at portfolio company level;

(iii) Inclusion of the ESG issues in the agenda of at least two meetings of the Board of Directors per year;

(iv) Approval of ESG measures within the framework of the Plan, Value Creation Plan and Business Plan; and

(v) Definition and calculation of Key Performance Indicators (ESG KPIs).

In the debt financing processes, the credit agreement and other transaction documents include the obligation of the borrower to comply with ESG issues in connection with Nexxus' Responsible Investment Policy. Likewise, the borrower will be requested to prepare a recurring report on the compliance with such obligations.

7. Exit or mezzanine debt maturity: we aim to prove that Nexxus has contributed to the creation of a more sustainable company, from a social and environmental point of view with the implementation of ESG matters.

We will provide regular and transparent ESG information to our investors and stakeholders by completing the UN PRI Transparency Report on a yearly basis.

In addition to all of the above, we consider essential to lead by example and we try to apply ESG best practices in our operations as an alternative asset manager, for instance within our internal corporate governance structure, in the relationship with our investors and stakeholders and with the private equity industry and society as a whole.