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Pollen Street Capital

PRI reporting framework 2020

Basic information [OO 01 - 09] Asset class implementation gateway indicators [OO 10 - 12] Peering questions [OO LE 01 - HF 01]

Strategy and Governance

Investment policy [SG 01 - 04] Objectives and strategies [SG 05 - 06] Governance and human resources [SG 07 - 08] Promoting responsible investment [SG 09 - 11] Outsourcing to fiduciary managers and investment consultants [SG 12] ESG issues in asset allocation [SG 13 - 15] Asset class implementation not reported in other modules [SG 16 - 17] Innovation [SG 18] Communication [SG 19]

Direct – Private Equity

Overview [PE 01 - 02] Fundraising of private equity funds [PE 03 - 04] Post-investment (monitoring) [PE 09 - 13] Outputs and outcomes [PE 14 - 15] Communication [PE 16]

Confidence building measures

Confidence building measures [CM1 01 - 07]

Export Public Responses

You are in Direct – Private Equity » Pre-investment (selection)

Pre-investment (selection)

PE 05. Incorporating ESG issues when selecting investments

05.1. During due-diligence indicate if your organisation typically incorporates ESG issues when selecting private equity investments.

Yes

05.2. Describe your organisation`s approach to incorporating ESG issues in private equity investment selection.

Deal teams are required to undertake pre-investment ESG due diligence for each new investment made by its funds. Drawing on the UN Sustainable Development Goals, the due diligence is based on a detailed questionnaire which seeks to identify both potential ESG risks and opportunities for improvement and enhancement of practises.

The findings of this due diligence exercise are reviewed by the Head of ESG and incorporated into the final investment recommendation, which is reviewed and ultimately signed off by Pollen Street's Managing Partner, General Counsel and Head of Risk prior to the completion of any transaction.

Where ESG improvement areas are identified during the due diligence process, these will be fed into an improvement plan, alongside input from the management teams, to be actioned shortly thereafter.

05.3. Additional information. [Optional]

PE 06. Types of ESG information considered in investment selection

06.1. Indicate what type of ESG information your organisation typically considers during your private equity investment selection process.

Raw data from target company

Benchmarks against other companies

Sector level data/benchmarks

Country level data/benchmarks

Reporting standards, industry codes and certifications

International initiatives, declarations or standards

Engagements with stakeholders (e.g. customers and suppliers)

Advice from external resources

Other, specify

We do not track this information

06.2. Describe how this information is reported to, considered and documented by the Investment Committee or similar.

Pollen Street investment professionals undertake pre-investment ESG due diligence for each new investment made by the Funds. The focus of the due diligence may vary but, in all instances, covers the ESG areas that Pollen Street believes are key to understanding the ESG profile of the particular company.

The findings of this due diligence exercise are reviewed by the Head of ESG and incorporated into the final investment recommendation. Key ESG issues are highlighted as part of this process and, alongside input from portfolio company management teams, are fed into an improvement plan post-investment with progress tracked as part of Pollen Street’s ongoing investment monitoring process.

PE 07. Encouraging improvements in investees (Private)

PE 08. ESG issues impact in selection process (Private)

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