PARTNERS in GROWTH Environmental, Social, and Governance Report 2020 CONTENTS

Environmental, Social, and PARTNERS in GROWTH Governance Report 2020

A Message Our ESG Policy Our ESG Integration Corporate from our CEO 3 & Program in Action Citizenship

Introduction 11 Environmental Highlights 20 Volunteer Initiatives 35 Executive Summary 4 ESG Integration Methodology 12 Social Responsibility Highlights 23 Philanthropy 37 ESG Resources 13 Governance Highlights 28 ESG Leadership & Oversight 17 Impact-Driven Company Highlights 30 Our Offices 39 ESG Relationships 18 Warburg Pincus in Brief Our People Firm Overview 7 Appendix Portfolio Overview 8 Employment Policies 32 Corporate Governance 9 Diversity Initiatives 33 Warburg Pincus ESG Investing Policy (Unabridged) 40 A MESSAGE FROM OUR CEO

“There is an aspect of responsible Dear Limited Partners reasons, too. ESG issues like In closing, as I leave you with investing already inherent in the and other stakeholders, health and safety, climate, the rest of the report to explore, diversity and inclusion, and data I want to point out that, in true We are launching this report in the growth equity model. To that, we privacy are important to all of our Warburg Pincus fashion, our midst of the COVID-19 pandemic, stakeholders. This ranges from our aim is to provide the facts, and which has caused a devastating add substantive support for our limited partners (LPs), employees, allow stakeholders to make their loss of life and livelihoods, and and management teams, to the assessment. But our commitment portfolio companies, partnering highlighted structural issues of employee base of our portfolio is this: This year our program economic and racial inequity. companies, and of course, to our is stronger than ever, but not as with them to integrate ESG best The firm has built resources surrounding communities. Being strong as it will be next year or the to help our employees and practices into their operations.” a responsible corporate citizen year after that, and so on. portfolio navigate these issues, means not only leading the way and has significantly scaled its as a firm, but also helping our charitable giving during this time. portfolio companies and LPs Importantly, our ESG program navigate these issues. continues to evolve to address the widening scope and lens on issues Our approach to supporting highlighted by this crisis. portfolio companies’ ESG efforts reflects our approach to all other Our model of growth-oriented areas: Partnership. We meet investing is designed to build company management where companies for the long term. An they are in their ESG journey, essential part of that is taking a collaborate, and deliver world-class holistic view of an . resources to help them grow and Incorporating environmental, strengthen their programs. Just as social, and governance factors leadership development, marketing, just makes sense—it is consistent digital strategy, capital markets, with more informed investing, and other services are integrated and it plays a critical role in risk into the support we provide, so is management and value creation. ESG. It’s a critical element of our Chip Kaye But we continue to expand and investment strategy. As such, it’s Chief Executive Officer strengthen our ESG program viewed as an essential ingredient to and practices for other important successful company growth.

3 EXECUTIVE SUMMARY

For our portfolio companies, we: A snapshot of this Conducted Established a Engaged one-on-one with Expanded our year’s progress COVID-19 online cybersecurity 24+ resource portal 10+ program Our ESG program continues to ESG-related educational briefings, portfolio companies on a be integrated into our operations including 20+ COVID-19 expert calls variety of strategic ESG issues and actions with our portfolio companies. In the past year, On the firm level, we: we have improved upon and expanded our efforts at the Held ESG educational briefings, Updated our Went paperless Contributed including quarterly ESG philanthropically to firm and in support of our 7+ Committee meetings, trainings ESG with our ESG report, and portfolio companies. for incoming analysts and policy put it on our website for COVID-19 associates, and ESG issue- greater transparency relief efforts focused updates to sector teams

Contributing to the responsible investment community, we:

Joined Attended industry gatherings

SASB 12+ focused on

Alliance ESG issues, and spoke at half of them

4 EXECUTIVE SUMMARY continued

Goals for the Expand support to Cybersecurity Sustainability Diversity portfolio companies year ahead on a variety of strategy and initiatives topics, including: reporting We aim to evolve and strengthen our program every year. Following are some of what we hope to achieve in 2020 – 2021.

Continue to Climate governance Portfolio New opportunities in the build our tools and metrics company global transition climate strategy considering recommendations by toolkits to low-carbon by developing: the Task Force on Climate-related energy Financial Disclosures (TCFD)

As we emerge Employee Greater out of the crisis, explore ways to health and economic, focus on: safety gender, and racial inclusion

5 WARBURG PINCUS in BRIEF

SECTION 1 FIRM OVERVIEW

Partnering with companies $ + + + for lasting growth 53 900 14 50 1 billion AUM companies global offices years firm approach Warburg Pincus is a leading global firm focused on growth investing. Our goal is to We have invested $84 Since inception, With 600 professionals Founded in 1966, We align our interests create larger, durable, thriving businesses by billion in companies Warburg Pincus has in 14 offices around Warburg Pincus is one with those of our making long-term , and our active since the firm’s invested in hundreds the world, our scale of the longest tenured management teams inception. of companies in more and footprint ensure private partnerships and Limited Partners, portfolio of more than 185 companies is highly than 40 countries, the right people, with focused on growth and are the largest As of June 30, 2020. along the spectrum of the right experience, investing around the investors in our own AUM includes diversified by stage, sector, and geography. We maturity from startup are available to every world. funds. Additionally, we uncalled capital. believe our approach not only creates value for our to well seasoned. entrepreneur and provide robust support management team. services to our portfolio limited partners and portfolio companies, but it companies at no cost also results in stronger businesses, more organic through our integrated Investment Support job growth, and, in turn, more stable economies Group (ISG). and communities. Warburg Pincus is committed to environmental sustainability, social responsibility, and effective corporate governance.

7 PORTFOLIO OVERVIEW

Investing across industry sectors, geographies, and company life stages

Warburg Pincus applies a thesis- driven approach to a diverse portfolio. Chart data as of June 30, 2020. Taking a long-term perspective, we invest in businesses at all stages Using a Thesis-Driven of development, from founding Approach % % start-ups and supporting growth in 7 % 3 % % 4 1. Develop a thesis that draws % 7 25 new and developing companies, to 29 7% upon the firm’s experience leading complex recapitalizations or and expertise. large-scale buy-outs of more mature 13 % Emerging businesses. 44% 13% Markets 2. Form a strategic view into the future of a particular Our investing professionals are % % industry or sub-sector and organized into sector groups and 13 18 % % 59 an actionable plan for value possess deep domain expertise, % 14 creation. which includes a full understanding 27 17% of their sector’s specific products, 3. Identify the platform and services, technologies, and market management team to pursue trends. This extensive sector BY STAGE BY SECTOR BY GEOGRAPHY and execute the thesis. knowledge, tailored to the local context as well as global trends, Early Stage Technology North America distinguishes Warburg Pincus as Energy a preferred partner for executives Late Stage Industrial & Business and entrepreneurs. Services All locations are based on total cost of invested capital for each stage, sector, and geographic Southeast Asia region (excludes committed but undrawn lines Healthcare Other Emerging Markets of equity). Although Warburg Pincus seeks to Includes Brazil, Israel, Poland, construct a diverse portfolio of companies in Consumer and Nigeria. WP XII, the fund has no specific allocation Real Estate requirements in this regard, other than certain broad concentration guidelines.

8 CORPORATE GOVERNANCE

Continually striving for the highest level of integrity and ethical standards

Warburg Pincus has a rigorous Code of Ethics, Compliance Manual, Personal Trading Policy, and an Oversight Committee to assist with internal policies and procedures relating to compliance matters. Our governance practices include:

● Conducting annual training ● Not taking any deal, advisory, Warburg Pincus Code of programs and testing to ensure board, or monitoring fees.* Ethics – Key Takeaways that all employees fully comply ● Holding seats on the boards ● Act in the best interest with our Code of Ethics and of the vast majority of our of our funds and fund investors. other policies, including anti- portfolio companies and bribery regulations. ● Avoid personal conflicts encouraging best practices in of interest. ● Investing our own capital their corporate governance. alongside our investors. ● Appropriately use our position of trust.

* Any such fees received by Warburg Pincus or its employees are credited to the respective ● Protect and prevent the misuse fund as a 100% offset to management fees. of non-public information that we possess.

9 OUR ESG POLICY & PROGRAM

SECTION 2 INTRODUCTION

Warburg Pincus ESG Policy of employees to join labor or Enhancing risk management Our ESG policy incorporates the American Investment Council’s (AIC) employee organizations and/or Guidelines for Responsible Investment. These guidelines were developed engage in collective bargaining. and value creation by taking into account elements of the United Nations’ Principles for 6. Maintain strict policies that Responsible Investment and the United Nations Global Compact. prohibit bribery and other We updated our ESG Policy this year, and continue to adopt the AIC improper payments to public Warburg Pincus established its environmental, Guidelines. As such, we seek to: officials consistent with the US social, and governance (ESG) program in Foreign Corrupt Practices Act, 1. Consider relevant environmental, health, safety, and social issues, similar anticorruption laws in 2014 and remains committed to responsible public health, safety, and with the goal of improving other countries, and the OECD social issues when evaluating performance and minimizing Anti-Bribery Convention. investing. We believe that integrating ESG whether to invest in a particular adverse impacts in these areas. Click to read company or entity, as well as 7. Respect the human rights of factors into investment analysis can provide 4. Encourage governance structures Warburg Pincus’s during the period of ownership. those affected by the firm’s a wider lens on risks and opportunities that provide appropriate levels of investment activities and seek unabridged 2. Be accessible to, and engage oversight in the areas of audit, to confirm that the firm’s ESG Policy. of potential investments. Meanwhile, the with, relevant stakeholders risk management, and potential investments do not flow to increasing focus on sustainability among the either directly or through conflicts of interest, and to companies that utilize child representatives of portfolio implement compensation and or forced labor or maintain customers, employees, and communities of companies, as appropriate. other policies that align the interests discriminatory policies. of owners and management. 3. Grow and improve the companies our portfolio companies presents opportunity 8. Provide timely information to the in which the firm invests for long- 5. Comply with applicable national, firm’s limited partners on the for value creation. term sustainability and to benefit state, and local labor laws in material matters addressed herein, multiple stakeholders, including the countries in which the firm To support our deal teams and portfolio companies, we have and work to foster transparency with respect to environmental, invests; support the payment about the firm’s activities. developed a set of robust internal policies and best practices, ESG social, and governance issues. of competitive wages and expertise, and senior level oversight to set the overall strategy and To that end, the firm will work benefits to employees; provide 9. Encourage our portfolio integrate ESG effectively throughout the investment process. Our through appropriate governance a safe and healthy workplace in companies to advance these program continuously evolves as the attention to and scope of ESG structures (e.g. board of directors) conformance with national and same principles in a way that continues to expand. with portfolio companies with local law; and, consistent with is consistent with their respect to environmental, public applicable law, respect the rights fiduciary duties.

11 ESG INTEGRATION METHODOLOGY

Integrating ESG into the investment lifecycle DUE DILIGENCE OWNERSHIP

At Warburg Pincus, ESG factors ● Identification of material ESG risks. The widening landscape of ● Investment monitoring. Deal teams take an active role to ESG issues requires a perspective on past, current, and potential engage with portfolio companies through board seats and are included in the criteria we use to future areas of operational, regulatory, and reputational risks. We oversee ESG issues as they arise. As our portfolio scales, evaluate companies we are considering leverage our internal ESG due diligence guides as well as external we also use technology tools to monitor portfolio company partners, such as the Sustainability Accounting Standards Board reputational risk events. (SASB), Business for Social Responsibility (BSR), and others, to for investment. Once we’ve taken an ● Education and Engagement. Our ESG team has built inform our understanding of ESG risks relevant to each industry. ownership stake, we then provide a education tools and engages on a one-on-one basis to ● Due diligence ESG support. Certain investment opportunities advise and channel appropriate external resources to variety of resources to support them involve a higher level of ESG risk due to industry sector, location, those companies wishing to further develop efforts. or reputational concerns—including health and safety, human in their efforts to integrate ESG ● Data collection. Warburg Pincus regularly collects data rights, and environmental factors—and increasingly, climate risks. on several topics from our portfolio companies as a way best practices into their operations. For those, a deeper level of local and sector expertise is needed. to monitor and engage with them on ESG issues and Our deal teams regularly engage external experts during due practices, including: Additionally, we influence ESG practices diligence to perform a deep-dive on specific ESG considerations through our seats on their boards. We to understand the full picture of risks and opportunities. Environmental health Social anticipate a greater focus on the ESG ● ESG section in the investment memo. In order to document and safety (EHS) policies responsibility findings and illustrate a complete view of an investment’s risks and procedures initiatives efforts of portfolio companies upon exit and opportunities, deal teams include an ESG section in each as the appetite for ESG grows among investment memo. Cybersecurity/data Environmental ● Sourcing investment opportunities with impact. Market privacy policies initiatives public and private markets alike. trends such as the low carbon energy transition and the growth of supply chain regulations and cybersecurity threats Reporting on ESG Sustainability offer opportunities for our deal teams to consider potential to the board reporting investment with embedded broader societal impact.

12 ESG RESOURCES

partners on best practices in companies during our annual Supporting our companies sustainability reporting and General Counsel Forum in the human rights considerations US, and we hosted an ESG in ESG best practices in supply chains. Beyond our session at a communications Green Council calls, we also workshop during which an engaged public health and external ESG expert presented We have developed a number of resources human capital experts to to approximately 50 Chinese educate portfolio company portfolio company executives. and portfolio-wide ESG initiatives to management on health and ● 1x1 ESG engagement: Since safety concerns for employees assist our portfolio companies and firm our portfolio companies span during the COVID-19 crisis. staff in their efforts to strengthen their a range of sizes and stages, ● Portfolio company forums: we have found it is important ESG-related efforts. Warburg Pincus periodically to meet companies where convenes portfolio company they are in their sustainability management in person in journeys in order to be the order to encourage greater most effective in developing Portfolio Company Advisory topics ranging from starting support, education on topics authentic and lasting programs. ● Green Council: Since 2013, a sustainability program to of interest, and collaboration This year, we engaged directly we’ve hosted periodic learning how to analyze and among companies. During In 2019, Warburg Pincus hosted an ESG session with more than 10 companies teleconferences with approach energy efficiency these gatherings, the ESG on a variety of ESG-related at a communications workshop for nearly 50 our portfolio companies projects. We often engage team updates these senior engagements, including on environmental and our collaborative partners executives on the latest Chinese portfolio company executives. building a sustainability sustainability issues. These and outside speakers to trends in responsible program, sustainability teleconferences provide share their insights. business and sustainability. reporting strategy, materiality companies with a forum Specifically this past year, For example, this past year, analyses, and ESG-related to share best practices on we hosted webinars in our ESG team presented to product development. ESG issues and discuss collaboration with our approximately 30 portfolio

13 ESG RESOURCES continued

Cybersecurity Green IT to help capitalize on energy Cyber attacks and their Since 2000, Warburg Pincus’s efficiency opportunities and Our Principles of Green IT optimize waste management. implications for data security DSI Team has assisted portfolio ● We consider the energy These initiatives relate to: and privacy are material ESG companies on issues with IT efficiency and environmental risks, particularly for companies systems, infrastructure, data ● Operation of data centers, impact of a prospective using personally identifiable centers, data flow, security, risk infrastructure, and facilities portfolio company’s IT assets information (PII) and protected management, and regulatory during our due diligence. health information (PHI). compliance. As part of this ● Design and use of general Warburg Pincus’s ESG team process, we introduce our equipment, including ● We promote environmentally has partnered with our Digital Principles of Green IT with server consolidation and sound and sustainable Strategy and Innovation (DSI) management and IT leaders virtualization, shared use, practices within the IT team to roll out a cybersecurity to elevate awareness of energy and automatic power on/off operations of our portfolio assessment program for usage and environmental issues, technology companies and encourage them to develop a plan for our portfolio companies. and assess a company’s ability ● Moving to new facilities, Green IT that is economically Through engagements with to increase efficiency in a cost- consolidating sites, integrating practicable. third-party experts, portfolio effective manner while reducing acquisitions, or refreshing companies are getting a better environmental impact. Upon technology ● We promote environmental view into their cybersecurity investment, we assist portfolio stewardship in our portfolio ● Safe disposal of e-waste posture and implications companies by providing a menu companies through for ongoing data privacy of key initiatives that can enhance procurement of products and regulation. Cybersecurity- efficiency and sustainability and services from vendors whose focused companies currently connect them with resources design and manufacturing or previously in our portfolio practices are environmentally such as BitSight, eSentire, and socially responsible. Crowdstrike, Cyren, and Through engagements with third-party experts, ● Contrast Security provide We encourage our portfolio much-needed support to our portfolio companies are getting a better view companies to monitor and companies on various aspects into their cybersecurity posture. measure progress toward of this issue—inside and achieving Green IT practices outside of our portfolio. and track the business benefits accrued from doing so.

14 ESG RESOURCES continued

Our program increases our portfolio Green Purchasing Program In 2010, Warburg Pincus established a group purchasing program companies’ access to suppliers that that utilizes a select network of preferred vendors to enable our provide environmentally friendly portfolio companies to purchase certain goods and services at products and services. discounted prices and benefit from enhanced terms and service levels. The purchasing program, in addition to enhancing value, increases the companies’ access to suppliers that use sustainable practices in their internal operations and that provide environmentally friendly products and services. Examples include: ● Real estate and environmental ● Providers of discounted pricing consultants that provide, at on LED lighting equipment. reduced fees, onsite visits ● Hybrid vehicle rentals and for energy audits, analysis fuel-efficient transportation of energy efficient capital equipment. improvement projects, green leasing options, and other low- cost opportunities to reduce energy use.

15 ESG RESOURCES continued

Inclusive Hiring ● Veterans: Warburg Pincus ● Under-represented groups: Additional ESG Resources We Provide: supports the efforts of our US- We are exploring initiatives to ● Training for incoming analysts and associates based portfolio companies to engage new workforce options on our ESG program hire and retain qualified military for portfolio companies to veterans. We believe hiring explore as they look to scale ● Sector-focused ESG due-diligence guidelines veterans is not just the right their businesses, particularly ● ESG toolkit for portfolio companies thing to do, but it is also the among historically under- ● smart thing to do for business. represented groups. For Board of directors training session for current On average, veterans rate higher example, several of our and future board members from our firm than their civilian counterparts companies have had success ● Memorandum on essential qualities of a good in terms of performance and employing disabled workers corporate board of directors and how a board can retention in civilian professions. or those from underprivileged best work with management on key issues In order to support companies backgrounds. This past year, we ● Best practices for corporate governance geared to interested in accessing more convened industry stakeholders early-stage US portfolio companies with guidance veteran candidates, we have to raise awareness and explore on timelines and program development assembled tools to translate employment opportunities military experience into civilian for impact among particularly ● Guidance on: terms, a list of organizations vulnerable groups, such as ● Foreign Corrupt Practices Act (FCPA) for sourcing military talent, refugees. and Anti-Bribery Laws and relationships with military- focused recruiters and veteran ● US Sanctions and Export Control service groups. Laws and Regulations ● Cybersecurity ● Data privacy regulation (e.g. EU General Data Protection Regulation (GDPR)) ● Workplace Values ● Sexual Harassment Policies ● Business Continuity and Crisis Management

16 ESG LEADERSHIP & OVERSIGHT

Senior-Level Expertise Giving ESG the organizational Given the intertwined nature of public policy, political risk, and ESG Our ESG Committee concerns—particularly in a global portfolio—our dedicated team by the Numbers attention and structure it deserves comprises expertise on all three. They use their deep knowledge and experience in public policy and sustainability to manage firm-level ESG issues. They also coordinate with investment professionals on Our commitment to and value of environmental material ESG issues and above-ground risks during due diligence Total sustainability, social responsibility, and corporate and with portfolio company management teams post investment. 22 Members governance is evident in where the practice Jonathan Finer Leela Ramnath Senior Vice President Director resides within our organization—and how Global Public Policy Environmental, from the directly it is integrated into the support & Political Risk Social, and Executive Governance 4 Management we provide our companies. Group Portfolio ESG Strategy Development & Governance Company Our ESG program is part of The Warburg Pincus ESG Committee meets quarterly to discuss and our Global Public Policy and review our internal activities and those of our portfolio companies. key support Warburg Pincus's It formulates the firm’s strategic approach to ESG issues, including Political Risk group, which is Investment Support Shared Services functions one of six service areas that setting priorities and engaging the firm’s investment teams to 7 Group (ISG) make up our Investment Capital Markets promote our ESG strategy. Members of the Committee seek out Support Group (ISG). ISG opportunities to enhance their own knowledge and familiarity with ESG issues by attending conferences, holding meetings with is overseen by the firm’s Communications & Marketing regions Chief Administrative Officer, investors and management teams, and reviewing written materials. 5 represented a member of the firm’s Global Public Policy & Political Risk / ESG Our ESG Committee comprises professionals from across the Executive Management firm, including investment professionals representing each of the Group. Digital Strategy and Innovation geographies and sectors in which we invest, and members of our key support functions. sectors Leadership Development/Organizational Effectiveness 5 represented

17 ESG RELATIONSHIPS

* New this year. Reaching beyond our Membership in leading networks * provide important subject firm to make our ESG matter expertise on sustainability practice stronger frameworks and trends.

To enhance our expertise and Collaboration with think tanks resources in addressing ESG issues, and nonprofits provide important foreign policy contexts for operating we actively engage with industry businesses globally. organizations, sustainability consultants, and policy experts. Founding membership and leadership positions in venture * capital and private equity industry networks give us access to ESG best practices as well as the opportunity to shape the conversation.

Participation in bilateral business and policy-focused organizations provides important insights into India and China, countries in which we have over two decades of investing experience.

18 OUR ESG INTEGRATION in ACTION

SECTION 3 ENVIRONMENTAL HIGHLIGHTS

Innovating packaging solutions

Pregis is a leading vertically integrated Under the inspyre pillar, Pregis supports communities COMPANY: provider of protective packaging solutions through education, advocacy, and social responsibility. to e-commerce, consumer products, Through partnerships with the Alliance to End Plastic electronics, home goods, automotive, Waste, Sustainable Packaging Coalition, How2Recycle®, industrial and other end markets. Warburg and other organizations, Pregis is helping to increase Pincus has partnered with Pregis since awareness around giving packaging materials a second LOCATION: 2019 to support and expand the company’s life through recycling. holistic approach to sustainability through In support of their goal to positively impact 50,000+ its three pillars to “protect, preserve, and inspyre.” lives each year, Pregis donates to Uzima (a nonprofit that Pregis helps customers protect their products, brand, and manufactures and distributes water filters globally to bottom line. Pregis’s proprietary EcoGauge tool helps educate people without access to clean drinking water) for every customers by calculating the environmental impact of roll of its HC Inspyre packaging product sold. This is product damages. Combined with a consultative approach to coupled with employee- and employer-sponsored giving Pregis developed the recommending the proper protection and packaging processes, back programs that further contribute to Uzima, as well EcoGauge app to help its Pregis helps companies protect against damage, one of the most as community organizations such as local food banks. customers use their own data to accurately measure significant tolls on the environment. the environmental impact Pregis helps customers preserve natural resources and the of their damaged products. environment by designing products for the circular economy and through operational excellence. Its diverse product suite of high-quality products ranges from Renew-branded recyclable and recycled content portfolio to Forest Stewardship Council®- certified paper products.

20 ENVIRONMENTAL HIGHLIGHTS continued

Expanding solar adoption

CleanMax Solar is India’s leading COMPANY: sustainability partner for corporations, supplying solar electricity to commercial and industrial customers through long- term (10 – 25 years) power purchase agreements. Based in Mumbai, the LOCATION: India company seeks to help its customers across India, Middle East North Africa (MENA) and South East Asia (SEA), meet their green targets with zero upfront capital, prices lower than grid tariffs, and a commitment to safety. The company installs its solar projects either on the customer’s rooftop or through its CleanMax’s solar electricity network of private solar farms, using grid infrastructure to supply power to its customers. Established in 2011, CleanMax generation abates approximately Solar has successfully completed more than 400 projects for 150+ corporates across India. The company currently operates 550 MWp of projects through its rooftop and solar farm solutions, generating 825 GWh of solar electricity units per year. CleanMax Solar is the first Indian company to 792,000 win “Transformational Business Award 2018” by Financial tons of carbon dioxide Times (UK) / International Finance Corporation (IFC) in the “Transformational Infrastructure Category.” Warburg emissions annually. Pincus has partnered with the company since 2017 to scale the business, representing one of the firm’s investments in renewable energy.

21 ENVIRONMENTAL HIGHLIGHTS continued Velvet Energy Preserving fresh water eliminated the need for

Velvet Energy Ltd. is a Calgary, Alberta- COMPANY: based oil and gas exploration and production company focused on the Western Canadian 73,800 Sedimentary Basin. In 2017, the company set out to eliminate freshwater usage in truckloads of water in 2019. hydraulic fracturing operations at its Gold LOCATION: Canada Creek asset. Through the deployment of infrastructure and technology, including a continuous transition to produced water reuse, the company achieved 100% freshwater replacement in four wells in November 2020 Winner 2019, reducing the demand for freshwater in for Project hydraulic fracturing. As a result, the company Excellence eliminated 73,800 truckloads of water for the year and reduced its air emissions and land transportation impacts, all while realizing significant operational cost savings. Further, this allowed for the development of a safer and more environmentally sustainable water operation in the Gold Creek area—an innovation that can be applied to future development opportunities across the company.

22 SOCIAL RESPONSIBILITY HIGHLIGHTS

Taking a collaborative Providing essential medical services response to the CityMD / Summit priority throughout the crisis, with personal COMPANY: Medical Group protective equipment (PPE) available for (US), as ’s every staff member: masks for every person COVID-19 pandemic largest urgent care and full gown, gloves, and face shields company, is uniquely for those with direct patient interaction. On March 11, 2020, the World Health Organization declared a novel positioned to meet a Through mid-May, more than 3 million coronavirus, COVID-19, a pandemic. The virus caused countless deaths public health crisis, pieces of PPE had been procured so that the and devastated economies worldwide. The resulting global health and even one as challenging team could address the crisis safely. Once economic crisis further highlighted the important role that businesses play in protecting their workers and supporting communities. as COVID-19. At the the outbreak peaked and testing became height of the crisis in early April 2020, widely available in , CityMD People first. From the onset through the height of the crisis, Warburg CityMD served as a vital healthcare performed more than 520,000 PCR and Pincus set up calls with leading health experts to brief staff internally and senior executives at portfolio companies on the evolving COVID-19 provider, diagnosing thousands of antibody tests (through May 31, 2020) and situation. The firm leveraged legal, operations, and crisis management COVID-19 cases and serving as an partnered with the New York City Mayor’s experts to share best practices and insights on topics that included emergency care provider when hospital Office to ensure every patient who needed a navigating health and safety of workers, employee communication and emergency rooms were overflowing. Safety test could get one—including the uninsured. engagement during remote work, cybersecurity considerations, the for its front-line caregivers was a top- importance of mental health, and return-to-work strategies. The firm also shared these and other resources to portfolio companies through a COVID-19 online portal, which was frequently updated to reflect the evolving challenges from the crisis.

Leading with purpose. In addition to prioritizing the health and safety of workers first and foremost, several portfolio companies provided a range of healthcare and other services to help combat the spread of the virus and reduce its impact on communities and businesses. Given the firm’s global footprint, many of these companies were on the front lines in New York City, the hardest-hit area of the United States (as of May 2020), and China, which was impacted early on.

23 SOCIAL RESPONSIBILITY HIGHLIGHTS continued

Supporting health systems and front-line healthcare workers

Alignment Healthcare (US), a consumer-centric Medicare COMPANIES: Advantage plan, launched a COVID-19 risk assessment tool available to the general public. It has also leveraged telemedicine and meal delivery programs as part of its virtual and concierge care model to provide care and support to the most vulnerable members of its population. Outset Medical (US) supplied many of the nation’s major hospitals with mission-critical, next-generation dialysis machines. Healthcare IT companies Experity, Modernizing Medicine, Qualifacts, SOC Telemed, and WebPT (all US) each developed tools and expanded access to real-time audio and video telemedicine capabilities, allowing healthcare professionals to treat patients while minimizing the spread of COVID-19. Apteki Gemini (Poland) collaborated with the Polish Ministry of Health to procure masks for hospitals treating COVID-19 patients, donating 25,000 masks to eight hospitals in Poland. Sunsea Parking (China) provided free parking for medical workers and disease relief volunteers in its facilities nationwide. Aion (Belgium) provided its AI-powered digital banking services for free to Belgium’s front-line healthcare workers to help with their daily finances.

24 SOCIAL RESPONSIBILITY HIGHLIGHTS continued

Delivering and protecting food and supplies

ZTO Express (China), a leading express delivery COMPANIES: company, formed a special task force to deliver more than 700 tons of critical supplies to Hubei Province for free. The company set aside RMB100 million to reimburse its employees infected at work. Hygiena (US) and Certified Laboratories (US/ Canada) supported food and beverage clients with increased product release testing to keep stores in operation and help consumers secure access to food and beverages as they sheltered at home.

25 SOCIAL RESPONSIBILITY HIGHLIGHTS continued

Reducing rent for affected residents

Mofang and Ziroom (both China), leading COMPANIES: rental apartments, cut rents for tenants who delayed their plans to return home after the Chinese New Year due to travel restrictions. Mofang also offered rooms in Shanghai at a discount to companies whose employees needed to be self-quarantined for 14 days before returning to work. Ziroom provided free stays for medical workers in Wuhan City.

26 SOCIAL RESPONSIBILITY HIGHLIGHTS continued

Enabling and providing online education

Yuanfudao and Zhangmen, COMPANIES: (both China), leading online education companies, provided free online courses to students nationwide. Yuanfudao donated RMB10 million in cash.The companies promised 11,000 new jobs in Hubei Province (6,000 by Zhangmen and 5,000 by Yuanfudao). Aixuexi (China), a K-12 education services company, offered free courses on its own platform and provided free access to its B2B online platform to more than 10,000 partner education institutions to provide online courses to students.

27 GOVERNANCE HIGHLIGHTS

Assessing cybersecurity risk

BitSight is a Boston-based company COMPANY: transforming how organizations manage cyber risk with security ratings. The BitSight platform applies sophisticated algorithms to produce daily security ratings that range from 250 to 900, LOCATION: United States helping companies manage third-party risk, underwrite cyber policies, benchmark performance, conduct M&A due diligence, and assess aggregate risk. With more than 2,100 customers and the largest ecosystem of information and engaged users, BitSight is the most widely used security ratings platform. BitSight now counts more than 50 government agencies— including global financial regulators, national security agencies, and critical infrastructure regulators — as customers. Warburg Pincus invested in 2018 to scale the business, understanding that cybersecurity risks have increasingly become a boardroom issue.

28 GOVERNANCE HIGHLIGHTS

Supporting supply chain transparency and regulatory compliance

Fortius is a one-stop network for supply COMPANY: chain risk management for companies and industry organizations, primarily in the construction, facilities management, transport, and energy end markets. The Fortius offering is underpinned by a SaaS LOCATION: United Kingdom supplier management system and an extensive pre-existing network of over 50,000 suppliers (providers of services) and 4,000 buyers (procurers of services). Fortius enables buyers to identify, vet, and engage with a pool of 50,000+ pre-qualified suppliers, who have been vetted by Fortius in accordance with a range of industry standards and regulations. Buyers can utilize the platform to assess suppliers on a variety of risk criteria, including health and safety incidents, environmental policies, anti-bribery/corruption protections, modern slavery policies, financial profile, and more. In doing so, buyers optimize the efficiency of their supply chain management processes, while mitigating financial, reputational, and regulatory risks.

29 IMPACT-DRIVEN COMPANY HIGHLIGHTS

GOOD HEALTH DECENT WORK AND Supporting businesses AND WELL-BEING ECONOMIC GROWTH whose positive impact is Alignment Healthcare (US) is a GO-JEK (Indonesia) helps small mission-based Medicare Advantage businesses in Indonesia scale their built into their models insurance company. operations. Rivigo (India) is radically improving GENDER the lifestyles of truck drivers in India. Some companies in Warburg Pincus’s portfolio drive societal EQUALITY impact as an intrinsic part of their business strategy. In the last few years, we have invested more than $2 billion in such Fusion Microfinance (India) provides REDUCED opportunities. Many of these companies address several of the small-ticket loans to exclusively female INEQUALITIES United Nations Sustainable Development Goals (UNSDGs) as microentrepreneurs in rural India. Varo Money (US) is advancing part of their business models. Here are a few highlighted. financial inclusion in the US. AFFORDABLE AND CLEAN ENERGY RESPONSIBLE Mosaic (US) provides financing solutions CONSUMPTION AND for residential solar. PRODUCTION CleanMax Solar (India) is advancing Assent Compliance (Canada) and solar power for commercial and industrial Fortius (UK) provide technology tools (C&I) customers. to help companies manage supply chain risks. Scale Microgrid Solutions (US) is focused on delivering fully financed Monolith Materials (US) is using cleaner, cheaper, and more reliable power innovative technology to responsibly solutions to C&I customers throughout produce industrial materials. North America.

30 OUR PEOPLE

SECTION 4 EMPLOYMENT POLICIES

Equality in the Workplace It is our policy to ensure equal pregnancy, genetic information, Support for the Whole Person Investing in our greatest We are committed to a work employment opportunity to or any other protected We invest in our people and strive environment in which all all employees and applicants characteristic as defined by to promote their well-being and asset: our employees individuals are treated with without regard to their race, applicable federal, state, or safety by offering opportunities respect and dignity, free of color, creed, religion, national local law in all personnel for advancement, generous health discrimination and harassment, origin, alienage, ancestry, matters including, without benefits, robust wellness programs, Warburg Pincus strives to attract, including sexual. There is no citizenship status, age, sex, limitation, recruiting and hiring, and a comfortable and safe work tolerance of harassment of any physical or mental handicap or compensation, opportunities environment. develop, and retain the best talent to kind of any employee by another disability, marital status, sexual for advancement (including support our differentiated investments employee, partner, supervisor, orientation, veteran status, promotion and transfers), business associate, customer, gender identity or expression evaluation, training, discipline, and to build our portfolio companies client, or guest of the firm. (including transgender status), and termination. into world-class organizations. We believe that creating a workplace that values and fosters equality and diversity is essential to achieving this goal.

32 DIVERSITY INITIATIVES

An Increased Focus holds periodic events throughout Out4Undergrad is a conference Fostering diversity on Diversity the year, and creates a forum for LGBTQ+ undergraduates Warburg Pincus is committed where female professionals at interested in careers of all kinds, Warburg Pincus discuss topics including those in finance. We are % to recruiting, retaining, and 50 Diversity of thought, experience, and developing a diverse talent pool related to their profession, a Platinum sponsor and employ background is an important component of across our 14 global offices. And relevant firm and industry news, several alums from this program. and the long-term retention of while we still have much work Sponsors for Educational women female professionals. differentiated decision making and creative to do, gender diversity across Opportunity (SEO) is a our professional investing and investing. At Warburg Pincus, we look for Partnerships for nonprofit organization focused % operating roles has been an area 50 Greater Diversity on educational and career diversity in all candidates in order to find, and in which we’ve made substantive programs for young people The firm supports and utilizes strides over the past decade. from underserved communities. then retain, the best investing and operating the following organizations that men The firm works with SEO on its provide mentoring, training, and talent from every population around the globe. In 2020, we formed a Council on Alternative Investments program, Makeup of our professional education to our Diversity & Inclusion to actively which specifically seeks to diverse professionals, as well as 2019 and 2020 For the past decade, we have taken steps to address issues of access and increase diversity in the private access for the firm to potential representation in our portfolio equity industry. We provide US associate address gender diversity and have created candidates. companies, in our business, and financial sponsorship, educational in our firm. The Council is led classes and 2018 a number of partnerships to help us find, Declare provides mentoring pods and mentoring opportunities, by Chip Kaye, our CEO, and Tim and monthly educational lectures and actively seek and recruit and 2019 US develop, and retain talented colleagues. Geithner, our president. Chaired on topics relevant to Warburg’s promising candidates affiliated by Harsha Marti, our deputy analyst classes women investing professionals. with SEO. general counsel, it comprises colleagues across the firm. Girls Who Invest is an Level 20 is a nonprofit of our operating organization that provides organization founded in 2015 50% groups are run by Women@Warburg mentoring, coaching, and to inspire more women to join In 2015, we established the internships to college level and to succeed in the private women. Operating Women@Warburg Network. women to expose them to equity industry. The firm provides groups account for Currently led by two senior investing as a career. Warburg financial sponsorship and our 67% of the firm. investing partners, Stephanie Pincus has sponsored Girls Who female professionals in Europe Geveda and Ellen Ng, this group Invest scholars as investment are members of the organization. analyst interns.

33 CORPORATE CITIZENSHIP

SECTION 5 VOLUNTEER INITIATIVES

Warburg Pincus Community Volunteer Week Investing time in Our citizenship program, We launched this initiative in 2015 Warburg Pincus Community, to highlight the importance that our communities provides opportunities for we and our portfolio companies employees to participate in place on being responsible a range of volunteer projects community members, and to give As a firm, Warburg Pincus is committed through the nonprofits we back to those communities in a partner with. It begins during meaningful way. In May 2019, we to being a responsible member of the our annual orientation process: held our fifth annual Volunteer communities in which we operate. We all incoming professionals Week with more than 50 of our spend a day participating in a portfolio companies taking part. encourage and support our employees in volunteer activity. And a number These companies, along with donating time to nonprofit organizations, of employees participate in employees from our various other such activities throughout offices, participated in a variety while we also contribute financial the year. Since Warburg Pincus of volunteer activities across Community was initiated in four continents. In 2020, due to resources. Importantly, we support our November 2014, more than 100 social distancing constraints, we portfolio companies in their citizenship Warburg Pincus professionals launched a portfolio company have taken part. Projects have donation matching program to and philanthropic activities, too. included hosting field days for support philanthropic efforts in elementary school students local communities, and ideas for to encourage physical fitness, virtual volunteering. providing financial literacy and career planning courses, and taking children on field trips to local museums.

35 VOLUNTEER INITIATIVES continued

Our Nonprofit Partners New York Professional Advisors Hudson River Park Friends is Student Leadership Network Warburg Pincus has partnered for Community Entrepreneurs an independent nonprofit supports several public secondary with and supported a number of (NYPACE) connects its dedicated to the completion, schools in the New York area that organizations through financial network of volunteer business care, and enhancement of the focus on empowering students support, board membership, advisors with entrepreneurs Hudson River Park in New York to break the cycle of poverty and volunteer opportunities of in underserved communities, City. Warburg Pincus partners through education. Programming its employees. Here are some providing them with expertise in with the organization on supports competence in college of our key nonprofit partners. accounting, business strategy, volunteering activities. and career awareness, STEM finance, marketing, social (science, technology, engineering, Partnership for New York City media, and strategic planning. Impetus is a private equity and math), leadership fosters ties between the private Warburg Pincus has been an foundation that brings development, and health and and public sector to promote active supporter of NYPACE, and strategic resources to nonprofit wellness. Warburg Pincus has economic growth and maintain employees have held senior board organizations working to improve partnered with the organization New York City’s position as positions and volunteered directly. the lives of disadvantaged through volunteer mentorship a global center of commerce children and young people in activities for high school students. New York Cares is the largest the UK. Its three-part package and innovation. Through the volunteer organization in Partnership Fund for New York of support includes funding, New York City. It develops and management support, and City, the organization contributes runs hands-on, meaningful directly to projects that create specialized pro bono expertise, volunteer projects for 1,275 and has been proven to amplify jobs, improve economically nonprofits, public schools, and distressed communities, and the impact of the organizations city agencies to provide support it supports. Warburg Pincus stimulate new business creation. to vulnerable children, adults, Warburg Pincus was among provides financial support to and communities throughout the organization. the first private equity firms to the five boroughs at no cost become a member, and several of to the recipient organizations. our professionals have served in Warburg Pincus partners with its leadership. the organization to develop, plan, and implement unique corporate volunteering activities.

36 PHILANTHROPY

Making meaningful COVID-19 Philanthropy contributions The firm has made significant ● Resources to address hunger donations to a number of and domestic violence organizations globally aimed nationwide and globally. at helping individuals impacted Through the Warburg Pincus Foundation, Given the stress of COVID-19 on financially or physically by the the overall nonprofit sector, the our firm supports a wide variety of charitable, COVID-19 pandemic. They firm has significantly increased include those providing: educational, and community organizations its employee matching program with a combination of time and financial ● Support for frontline during this time as well. We also healthcare workers. initiated a donation matching contributions. Since 2007, the Warburg ● Emergency cash to the program to support portfolio most financially impacted. companies’ charitable efforts in Pincus Foundation and Warburg Pincus LLC their own communities. have donated to more than 700 nonprofit ● Proactive healthcare to aid the most vulnerable (Medicaid/ organizations globally. uninsured) in their homes.

We seek opportunities where our partners who serve on the addressing a range of issues grassroots groups to the largest To combat COVID-19’s stress on nonprofits, our resources can help nonprofit boards of these organizations. including education and community global charities, the organizations we have significantly increased our employee organizations grow and make The Foundation provides matching development, environmental we support reach nearly every a positive change in the grants to employee donations to conservation, medical research, region of the world—from Asia donation-matching program and initiated a communities they serve. Many of charitable and educational causes. homelessness, and the arts. to Africa, across Europe, and in matching program to support portfolio companies’ the firmʼs senior employees also It has contributed funds during The nonprofit organizations that North and South America. become meaningfully involved emergency and disaster relief we work with reflect the firm’s charitable efforts in their own communities. in the leadership of nonprofit efforts, and supports organizations diversification by geography and organizations, including many of areas of service. From innovative

37 PHILANTHROPY continued

Partnering with The Nature Conservancy

Since 2012, Warburg Pincus has made several multi-year grants to The Nature Conservancy in an effort to preserve and protect land and water systems critical to the ecological health and biodiversity of North America. To date, our philanthropy has protected more than 406,000 acres of land.

The first grant, initiated in 2012, conservation project needed to The second grant, initiated in of plants and animals. The . This grant was a Room to Read supports the conservation of protect the 10 million-acre Crown 2014 in conjunction with our Cheat also serves as a popular significant contribution to protect In 2020, Warburg Pincus initiated 400,000 acres of Canadian of the Continent, the vast area then portfolio company Antero recreation area for people across 2,576 acres encompassing the a partnership with Room to Read wilderness in the North Fork of of mostly wild lands along the Resources, helps to preserve West Virginia and the eastern Sawtooth Mountain and its to advance a significant girls' the Flathead River Watershed in continental divide. The 80-mile- the Cheat Canyon Conservation United States. surrounding land in the Davis education program in India. Room British Columbia. Flowing from long valley is considered to be Area in the State of West Virginia. Mountains of West Texas. This to Read is a global organization British Columbia southward into vital for wildlife connectivity The Conservation Area, which In 2016, we initiated our third area, which is widely considered transforming the lives of millions Montana along the western flank between the western United encompasses nearly 4,000 acres grant to The Nature Conservancy, to be one of the most scenic in of children in low-income of Glacier National Park, the States and Canada, and is a along a seven-mile stretch of the in conjunction with our portfolio Texas, is also one of the state’s communities in the developing North Fork is one of the wildest major tributary to the Cheat River, contains ecologically companies Brigham Resources, most biologically diverse areas. world by focusing on literacy and river systems in North America Flathead Basin. significant forests, streams, and Laredo Petroleum, Zenith Energy, gender equality in education. and the largest remaining wetlands, and a high diversity and our then portfolio company

38 OUR OFFICES

New York Hong Kong Mumbai Shanghai Administrative Offices Warburg Pincus LLC Warburg Pincus Asia LLC Warburg Pincus India Pvt. Ltd Warburg Pincus Investment Amsterdam 450 Lexington Avenue Suite 6703 Express Towers, 7th Floor Consulting Company Ltd. Warburg Pincus B.V. Warburg Pincus LLC is a leading New York, NY 10017 8 Finance Street Nariman Point Shanghai Branch global private equity firm Atrium, Strawinskylaan 3051 focused on growth investing. United States of America Hong Kong Mumbai 400021 45/F, HKRI Center One 1077 ZX Amsterdam India HKRI Taikoo Hui The firm has more than $53 Phone: +1 (212) 878 0600 Phone: +852 2536 6183 The Netherlands billion in private equity assets No. 288 Shimen Yi Road Fax: +1 (212) 878 9351 Fax: +852 2521 3869 Phone: + 91 (22) 6650 0000 under management. The Shanghai 200002 Phone: +31 (20) 301 2197 firm’s active portfolio of more Fax: + 91 (22) 6650 0001 Beijing Houston China Fax: +31 (20) 301 2202 than 185 companies is highly Warburg Pincus diversified by stage, sector, and Warburg Pincus LLC San Francisco Luxembourg Investment Consulting Phone: +86 (21) 6069 7388 geography. Warburg Pincus 4400 Post Oak Parkway Warburg Pincus LLC Warburg Pincus S.A.R.L. is an experienced partner to Company Ltd. Fax: +86 (21) 6069 7310 Suite 1900 One Market Plaza 46A, Avenue J.F. Kennedy management teams seeking to 26/F, China World Tower A Houston, TX 77027 Spear Tower, Suite 1700 Singapore Luxembourg build durable companies with 1 Jianguomenwai Avenue sustainable value. Founded in United States of America San Francisco, CA 94105 Warburg Pincus Singapore Pte 1966, Warburg Pincus has raised Beijing 100004 United States of America Ltd Phone: +352 (26) 005 744 Phone: +1 (713) 325 5360 19 private equity funds, which China 50 Collyer Quay Fax: +352 (26) 005 827 Fax: +1 (713) 583 9309 Phone: +1 (415) 796 5200 have invested more than $84 #06-04, OUE Bayfront billion in over 900 companies Phone: +86 (10) 8529 2688 Fax: +1 (415) 659 0045 Mauritius in more than 40 countries. The Fax: +86 (10) 8529 2677 London Singapore 049321 Warburg Pincus Asia Ltd. firm is headquartered in New Warburg Pincus International LLC São Paulo 8th Floor, Newton Tower York with offices in Amsterdam, Berlin Phone: +65 6320 7500 Almack House Warburg Pincus do Brasil Ltda. Sir William Newton Street Beijing, Berlin, Hong Kong, Warburg Pincus Deutschland Fax: +65 6634 0119 28 King Street, St. James’s Av. Brig. Faria Lima 2277– 9. Port Louis Houston, London, Luxembourg, GmbH Mumbai, Mauritius, San London SW1Y6QW andar Mauritius Francisco, São Paulo, Shanghai, Fasanenstrasse 65 United Kingdom Jd. Paulistano and Singapore. For more 10719 Berlin 01451-001 São Paulo – SP Phone: +230 208 2008 Phone: +44 (20) 7306 0306 information please visit Germany Brazil Fax: +230 208 3108 www.warburgpincus.com. Fax: +44 (20) 7321 0881 Phone: +49 (30) 700 149 148 Phone: +55 (11) 3096 3500 Fax: +49 (30) 690 88 891 Fax: +55 (11) 3096 3509

39 APPENDIX

“material” ESG issues are Reasonable efforts will be made the development and 4. Goals ● Grow and improve the Warburg Pincus defined as those issues that to encourage these portfolio implementation of this policy Warburg Pincus is a member companies in which the Environmental, Warburg Pincus, in its sole companies to consider relevant at the Firm and may propose of the American Investment firm invests for long-term discretion, determines have, ESG-related principles and to for consideration and approval Council and has adopted the sustainability and to benefit Social, and or have the potential to have, a support their implementation.) by the ESG Committee edits, Guidelines for Responsible multiple stakeholders, including direct and substantial impact on updates, or enhancements to Investment (“Guidelines”) taking with respect to environmental, Governance Policy 3. Roles and Responsibilities a respective portfolio company’s the policy, from time to time. into account, among other social, and governance issues. The Warburg Pincus ESG Last Updated May 22, 2020 ability to create, preserve, or The ESG Team is overseen by inputs, the UN Principles for To that end, the firm will Committee formulates the erode economic value, as well as the Firm’s Chief Administrative Responsible Investment and the work through appropriate 1. Overview Firm’s strategic approach to environmental and social value Officer, a member of the Firm’s UN Global Compact and the governance structures (e.g. The following outlines the ESG issues, including setting for itself and its stakeholders. Operating Management Group. principles derived thereof. board of directors) with portfolio environmental, social, and ESG priorities and supporting companies with respect to governance (ESG) policy of 2. Scope the Firm’s investment Warburg Pincus's investment In the spirit of these Guidelines environmental, public health, Warburg Pincus LLC (“Warburg This policy will apply to teams in the promotion and professionals, in collaboration and subject to the scope safety, and social issues, Pincus” or the “Firm”). The Firm investments by funds managed implementation of our ESG with the ESG and Legal & outlined in Section 2 above, with the goal of improving considers material ESG issues by the Firm following the date strategy. The ESG Committee Compliance teams, will seek Warburg Pincus seeks to: performance and minimizing in the course of its due diligence hereof and be administered is comprised of professionals to ensure that ESG issues are ● Consider relevant adverse impacts in these areas. and its monitoring of portfolio in accordance with local laws from across the firm, including considered throughout the environmental, public health, company investments to the and regulations. The Firm may investment professionals investment process. When ● Encourage governance safety, and social issues when extent reasonably practical update this policy in the future, representing the geographies appropriate, the Investment structures that provide evaluating whether to invest under the circumstances, as appropriate. and sectors in which we invest Management Group will be appropriate levels of in a particular company or subject, in any event, to the and senior members from our informed of material ESG oversight in the areas of (Warburg Pincus is often a non- entity, as well as during the provisions of the operative key support functions. considerations as they arise. audit, risk management, control investor in our portfolio period of ownership. agreements of the funds and potential conflicts of companies and may have a The Firm’s ESG Team, Where additional subject matter concerned, and in a manner ● Be accessible to, and engage interest, and to implement limited ability to influence and which functions within the expertise is needed, the teams consistent with its fiduciary with, relevant stakeholders compensation and other control the integration of ESG Warburg Pincus Investment may utilize external resources duties to its investors. For either directly or through policies that align the interests considerations in an investment. Support Group, facilitates as appropriate. the purposes of this policy, representatives of portfolio of owners and management. companies, as appropriate.

40 APPENDIX

● Comply with applicable national, to confirm that the firm’s material ESG issues during the During Ownership: Subject 5. Reporting, Stakeholder state, and local labor laws in investments do not flow to due diligence process. During to the Firm’s determination Engagement and the countries in which the firm companies that utilize child due diligence, investment of what is reasonable and Collaboration invests; support the payment or forced labor or maintain professionals may access appropriate for each investment The Firm will seek to of competitive wages and discriminatory policies. relevant expertise through as described in Section 2 be transparent in its benefits to employees; provide several channels, including by above, the Firm will work with approach to incorporating ● Provide timely information a safe and healthy workplace in referencing sector-specific ESG portfolio company management ESG considerations in its to the firm’s limited partners conformance with national and due diligence guides created by teams to encourage and investments, including on the material matters local law; and, consistent with the ESG Team, consulting with support best practices in by reporting to investors addressed herein, and work to applicable law, respect the rights the ESG Team on deal-specific environmental sustainability, annually, and by request, on foster transparency about the of employees to join labor or issues, and seeking advice from social responsibility, and its progress and outcomes. firm’s activities. employee organizations and/or expert consultants and advisors. corporate governance, This Where appropriate, the Firm will engage in collective bargaining. ● Encourage the firm’s portfolio In developing the sector-specific may include members of the engage relevant stakeholders companies to advance these ESG due diligence guides, firm’s ESG Team engaging and support local communities, ● Maintain strict policies that same principles in a way that the ESG Team has referred to with and providing resources including through partnerships prohibit bribery and other is consistent with their the Sustainability Accounting to portfolio companies seeking with nonprofits. improper payments to public fiduciary duties. Standards Board (SASB) and to advance their ESG practices. officials consistent with the US Warburg Pincus collaborates other resources to help define When appropriate, the Firm Foreign Corrupt Practices Act, 4. Implementation with industry organizations material ESG risks and areas may access third-party tools similar anticorruption laws in During Due Diligence: Subject and nonprofits to promote of concern for stakeholders. to monitor its investments for other countries, and the OECD to the Firm’s determination responsible investment practices Investment teams are expected potentially material reputational Anti-Bribery Convention. of what is reasonable and and is a member of Business for to include a section in their risks. The Firm may also appropriate for each investment Social Responsibility (BSR), the ● Respect the human rights of internal investment memoranda consider ways to mitigate as described in Section 2 American Investment Council those affected by the firm’s discussing ESG considerations. potential ESG risks or explore above, the Firm takes steps to and the SASB Alliance. investment activities and seek ESG opportunities as investors incorporate considerations of during ownership.

41 CONTACT

Warburg Pincus is proud of and committed to its work in the ESG area

We will continue to look for opportunities to expand upon the initiatives that we have undertaken and to work with our portfolio companies on these issues. We would be pleased to discuss these matters further with interested parties. Please reach out to [email protected] or email [email protected].

42