Partners : TCFD Report 2022

TCFD Report 2022

CONTENTS

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1. Governance: page 4
2. • Board's oversight of climate-related risks and opportunities
   • Management's role in assessing and managing climate-related risks and opportunities
3. Strategy: page 7
4. • Climate-relatedrisks and opportunities identified over the short, medium, and long term
   • Impact of climate-related risks and opportunities on business, strategy, and financial planning
   • Resilience of the strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario
5. Risk Management: page 16
6. • Processes for identifying and assessing climate-related risks
   • Processes for managing climate-related risks
   • Processes for identifying, assessing, and managing climate-related risks are integrated into the overall risk management
7. Metrics & Targets: page 22
8. • Metrics used to assess climate-related risks and opportunities in line with the strategy and risk management process
   • Scope 1, Scope 2, and Scope 3 greenhouse gas (GHG) emissions and the related risks
   • Targets used to manage climate-related risks and opportunities and performance against targets

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Introduction

The health of the planet is a dominant global concern. The most critical long-term threats to the world, as well as the potentially most damaging to people and the planet, are all environmental in nature. "Failure to mitigate climate change", "failure of climate- change adaptation", "natural disasters and extreme weather events", and "biodiversity loss and ecosystem collapse" rank as the most severe risks1. Unless properly managed, these risks will have costly implications on communities, businesses, and investors.

While addressing climate change will require action from governments and society, we continue to believe that investors and investment managers are uniquely positioned to contribute to the transition to a low-carbon economy through systematic assessment and management of climate risks and opportunities.

following commitments to further mitigate investment risks resulting from climate change:

• Partners Group supports the Paris Agreement2 as an

organization3 and we are working towards achieving net-zero

emissions for our Scope 1, 2, and 3 greenhouse gas (GHG)

emissions by switching to renewable energy for our offices where

available, implementing energy reduction measures, and by using

carbon offsetting as a last resort.

• Partners Group is equally committed to managing its investment

portfolio4 towards the Paris Agreement objectives, as we

recognize our investment activity can have a positive impact

through our transformational investing strategy.

André Frei

Chairman of Sustainability

"While addressing climate change will require action from governments and society, we continue to believe that investors and investment managers are uniquely positioned to contribute to the transition to a low-carbon economy through systematic assessment and management of climate risks and opportunities."

As a responsible investor, Partners Group has been assessing and managing climate-related risks and opportunities in relation to the investments made on behalf of its clients for many years. To continue acting in the best interest of our clients and in line with our focus on generating long-term sustainable returns and positive impact for all our stakeholders, we have made the

• Partners Group became a public supporter of the Task Force

on Climate-related Financial Disclosures (TCFD) in 2020. With

this report, we seek to transparently communicate our climate

ambition to our clients and stakeholders, as well as share our

goals and milestones towards achieving a low carbon economy in

line with the TCFD's recommended disclosures.

1. According to the World Economic Forum'sGlobal Risk Report 2023.
2. UNCC'sParis Agreement's goal is to reduce anthropogenic impacts to reach a target of limiting global warming to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C.
3. Partners Group's investment portfolio, which corresponds to "category 15: investments",

is excluded at the level of the organization. See Metrics & Targets (pp. 22-29)for additional explanation.

4 For our controlled investments, we have the governance and active ownership to lead assets on their path to net zero. For our non-controlled investments, climate change considerations can be addressed through the due diligence process and engagement with business partners.

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GOVERNANCE

• Board oversight of climate-related risks and opportunities

• Management's role in assessing and managing climate- related risks and opportunities

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Governance

To ensure effective oversight and implementation of our Sustainability Strategy, we have established a clear governance structure. ESG, including climate-related issues, lies with the most senior levels of our organization. The Board of Directors is responsible for the overall strategy and

direction, at portfolio and corporate level. It also sets ESG targets. Implementation is then delegated to the Executive Team, led by the Co-Head Investments for portfolio-level and the CFO for corporate-level activities. The Executive Team mandates the Investment and Group Finance

& Corporate Development teams to execute

the Sustainability Strategy at portfolio and firm level, with oversight from the Chairman of Sustainability, who acts as a bridge between the Executive Team and the operational teams.

Our Sustainability Governance

Board of Directors

Executive Team

Portfolio level

Corporate level

Steffen Meister	Wolf-Henning Scheider	Hans Ploos
Executive Chairman	Partner, Co-Head Investments	Partner, CFO

Operational level

André Frei	Lindsay Luth	Carmela Mondino
Chairman of Sustainability	Chief Operating Officer	Head of ESG &
	Private Equity	Sustainability

• The Board of Directors is responsible for the Sustainability Strategy.
• It oversees ESG and sustainability topics at portfolio and corporate level, and sets ESG targets.

• The Executive Team is responsible for implementing and driving the Sustainability Strategy.
• It defines and controls sustainability-related roles and goals.
• It mandates the Investment and Group Finance & Corporate Development teams to execute the Sustainability Strategy at portfolio and corporate level.

• The Investment Team works with boards of portfolio companies to develop their ESG strategies, and assists with strategy implementation and reporting needs.
• The ESG & Sustainability Team develops operational governance and control frameworks, advises investment teams and portfolio companies on ESG initiatives, and drives progress.
• The Group Finance & Corporate Development Team executes the Sustainability Strategy targets at corporate level, and drives sustainability initiatives throughout the firm.

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