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Environmental, Social, and Governance Report 2020 CONTENTS

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Environmental, Social, and Governance Report 2020 CONTENTS 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 investment. 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 private equity 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 investments, 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 Growth Capital Energy China a preferred partner for executives Late Stage Industrial & Business Europe and entrepreneurs. Services India All locations are based on total cost of invested Financial Services 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
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