OUR BUSINESS | DIGITALBRIDGE | PORTFOLIO | CITIZENSHIP | APPENDIX | DIGITALBRIDGE.COM 20 Measuring Performance We seek to institute comprehensive portfolio n Medium Priority n High Priority company ESG reporting at the board level so that the management of ESG initiatives and issues is s Low Impact on Business High Impact on Business measured and improved upon during our ownership High Importance to High Importance to period. This ESG focus will position our companies eholderStakeholders Stakeholders well for future owners of these businesses. o Stak Establishing Common Metrics tance tn Low Priority n Medium Priority We seek to actively monitor and manage a set of High Impact on Business core key performance indicators within all of our Impor Low Importance to investments. Beginning in 2021, we expect our Stakeholders portfolio companies to set targets, measure KPIs, disclose results to their relevant board of directors and improve performance on each KPI. Reporting is Impact on Business structured to support disclosure to SASB Standards Portfolio companies are provided a materiality mapping and TCFD recommendations and provide a common template to accelerate the identification of their high data set that will facilitate our ability to manage our priority ESG issues. growing portfolio. Core ESG Key Performance Indicators depending on the company location and asset type. n We advise our companies that after conducting an Cybersecurity n initial assessment, they further investigate locations Diversity n that are deemed high risk. Finally, we also advise Employee Engagement n companies to consider potential climate impacts to Energy Consumption n their high-priority suppliers, particularly those that Greenhouse Gas (GHG) Emissions n provide power and water to high-risk sites. Workplace Health and Safety n Service Disruptions Companies are also expected to report these n Whistleblower Program company-specific performance metrics in a uniform Company-Specific Performance Indicators way to the company’s board of directors each quar- Our portfolio companies operate in different niches ter. Our intent is to obtain consistent, comparable, within the digital infrastructure ecosystem. As such, decision-useful data that can be used to monitor they are expected to also identify, manage, measure and improve ESG performance. and report on ESG metrics most relevant for their particular business. We provide a materiality assess- ALS Continue to support portfolio companies in ment template, shown above right, for companies meeting ESG expectations to use in identifying and prioritizing the ESG issues Provide tools, research and guidance on that have the greatest impact on their business and 2021 GOESG integration and reporting strategies stakeholders. We ask them to provide the results of this mapping exercise to their board of directors for Develop and support portfolio company final selection of company-specific ESG metrics. quarterly board reporting on ESG In addition, we recommend that all portfolio performance companies consider analyzing the exposure and sensitivities of their physical assets to climate risks,
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