Transparency Report 2013-14 V02.Indd

RI TRANSPARENCY REPOR T 201 9

Affinity Equity Partners

An investor initiative in partnership with UNEP Finance Initiative and UN Global Compact

About this report

The PRI Reporting Framework is a key step in the journey towards building a common language and industry standard for reporting responsible investment (RI) activities. This RI Transparency Report is one of the key outputs of this Framework. Its primary objective is to enable signatory transparency on RI activities and facilitate dialogue between investors and their clients, beneficiaries and other stakeholders. A copy of this report will be publicly disclosed for all reporting signatories on the PRI website, ensuring accountability of the PRI Initiative and its signatories.

This report is an export of the individual Signatory organisation’s response to the PRI during the 2019 reporting cycle. It includes their responses to mandatory indicators, as well as responses to voluntary indicators the signatory has agreed to make public. The information is presented exactly as it was reported. Where an indicator offers a response option that is multiple-choice, all options that were available to the signatory to select are presented in this report. Presenting the information exactly as reported is a result of signatory feedback which suggested the PRI not summarise the information. As a result, the reports can be extensive. However, to help easily locate information, there is a Principles index which highlights where the information can be found and summarises the indicators that signatories complete and disclose.

Understanding the Principles Index

The Principles Index summarises the response status for the individual indicators and modules and shows how these relate to the six Principles for Responsible Investment. It can be used by stakeholders as an ‘at-a-glance’ summary of reported information and to identify particular themes or areas of interest.

Indicators can refer to one or more Principles. Some indicators are not specific to any Principle. These are highlighted in the ‘General’ column. When multiple Principles are covered across numerous indicators, in order to avoid repetition, only the main Principle covered is highlighted.

All indicators within a module are presented below. The status of indicators is shown with the following symbols:

Symbol Status

 The signatory has completed all mandatory parts of this indicator

 The signatory has completed some parts of this indicator

 This indicator was not relevant for this signatory

- The signatory did not complete any part of this indicator

 The signatory has flagged this indicator for internal review

Within the table, indicators marked in blue are mandatory to complete. Indicators marked in grey are voluntary to complete.

Principles Index

Organisational Overview Principle General

Indicator Short description Status Disclosure 1 2 3 4 5 6 OO TG - n/a

OO 01 Signatory category and services  Public  OO 02 Headquarters and operational countries  Public  Subsidiaries that are separate PRI OO 03  Public  signatories OO 04 Reporting year and AUM  Public  Asset mix OO 05 Breakdown of AUM by asset class  disclosed in  OO 06 How would you like to disclose your asset OO 06  Public  class mix OO 07 Fixed income AUM breakdown  n/a  OO 08 Segregated mandates or pooled funds  n/a  OO 09 Breakdown of AUM by market  Public  Active ownership practices for listed OO 10  n/a  assets OO 11 ESG incorporation practices for all assets  Public  Modules and sections required to OO 12  Public  complete Breakdown of listed equity investments OO LE 01  n/a  by passive and active strategies Reporting on strategies that are <10% of OO LE 02  n/a  actively managed listed equities Breakdown of fixed income investments OO FI 01  n/a  by passive and active strategies Reporting on strategies that are <10% of OO FI 02  n/a  actively managed fixed income Fixed income breakdown by market and OO FI 03  n/a  credit quality Breakdown of externally managed OO SAM investments by passive and active  n/a  01 strategies Breakdown of private equity investments OO PE 01  Public  by strategy Typical level of ownership in private OO PE 02  Private  equity investments OO PR Breakdown of property investments  n/a  01 OO PR Breakdown of property assets by  n/a  02 management OO PR Largest property types  n/a  03 OO INF Breakdown of infrastructure investments  n/a  01 OO INF Breakdown of infrastructure assets by  n/a  02 management OO INF Largest infrastructure sectors  n/a  03 Breakdown of hedge funds investments OO HF 01  n/a  by strategies OO End Module confirmation page  -

CCStrategy and Governance Principle General

Indicator Short description Status Disclosure 1 2 3 4 5 6 SG 01 RI policy and coverage  Public  SG 01 CC Climate risk  n/a  Publicly available RI policy or guidance SG 02  Public  documents SG 03 Conflicts of interest  Public  Identifying incidents occurring within SG 04  Private  portfolios SG 05 RI goals and objectives  Public  SG 06 Main goals/objectives this year  Private  SG 07 RI roles and responsibilities  Public  SG 07 CC Climate-issues roles and responsibilities  n/a  RI in performance management, reward SG 08  Private  and/or personal development SG 09 Collaborative organisations / initiatives  Public   SG 09.2 Assets managed by PRI signatories  n/a  SG 10 Promoting RI independently  Public  Dialogue with public policy makers or SG 11  Private    standard setters Role of investment consultants/fiduciary SG 12  Public  managers SG 13 ESG issues in strategic asset allocation  Public  SG 13 CC  n/a 

Long term investment risks and SG 14  Private  opportunity SG 14 CC  n/a 

Allocation of assets to environmental and SG 15  Private  social themed areas ESG issues for internally managed SG 16  n/a  assets not reported in framework ESG issues for externally managed SG 17  n/a  assets not reported in framework SG 18 Innovative features of approach to RI - n/a  SG 19 Communication  Public   SG End Module confirmation page  -

Direct – Private Equity Principle General

Indicator Short description Status Disclosure 1 2 3 4 5 6 PE 01 Description of approach to RI  Private   PE 02 Investment guidelines and RI  Public  PE 03 Fund placement documents and RI  Public    PE 04 Formal commitments to RI  Private  Incorporating ESG issues when selecting PE 05  Public  investments Types of ESG information considered in PE 06  Public   investment selection PE 07 Encouraging improvements in investees  Private   PE 08 ESG issues impact in selection process  Private  Proportion of companies monitored on PE 09  Public  their ESG performance Proportion of portfolio companies with PE 10  Public  sustainability policy Actions taken by portfolio companies to PE 11  Private  incorporate ESG issues into operations Type and frequency of reports received PE 12  Private   from portfolio companies PE 13 Disclosure of ESG issues in pre-exit  Private  ESG issues affected financial/ESG PE 14  Private   performance Examples of ESG issues that affected PE 15  Private   your PE investments PE 16 Approach to disclosing ESG incidents  Private  PE End Module confirmation page - n/a

Affinity Equity Partners

Reported Information

Public version

Organisational Overview

PRI disclaimer This document presents information reported directly by signatories. This information has not been audited by the PRI Secretariat or any other party acting on their behalf. While this information is believed to be reliable, no representations or warranties are made as to the accuracy of the information presented, and no responsibility or liability can be accepted for any error or omission.

Basic information

OO 01 Mandatory Public Gateway/Peering General

OO 01.1 Select the services and funds you offer

Select the services and funds you offer % of asset under management (AUM) in ranges

Fund management  0%  <10%  10-50%  >50%

Fund of funds, manager of managers, sub-advised products  0%  <10%  10-50%  >50%

Other  0%  <10%  10-50%  >50%

Total 100%

Further options (may be selected in addition to the above)

 Hedge funds  Fund of hedge funds

OO 01.2 Additional information. [Optional]

Affinity Equity Partners ("Affinity") is one of the largest independent Private Equity firms in the Asia Pacific region. Affinity started its operations (Affinity Asia Pacific Fund I) in 1998 under UBS Capital Asia, the private equity arm of UBS AG and was formed in 2002. Affinity's latest fund, Affinity Asia Pacific Fund V of US$ 6.0 billion is one of the largest in the region. Affinity has a proven track record of successful buyouts and control-oriented investments across the Asia-Pacific region.

OO 02 Mandatory Public Peering General

OO 02.1 Select the location of your organisation’s headquarters.

Hong Kong

OO 02.2 Indicate the number of countries in which you have offices (including your headquarters).

 1  2-5  6-10  >10

OO 02.3 Indicate the approximate number of staff in your organisation in full-time equivalents (FTE).

FTE

OO 02.4 Additional information. [Optional]

Affinity Equity Partners comprise a team of dedicated professionals, with members based in six offices across Hong Kong, Singapore, Seoul, Sydney, Beijing and Jakarta. The team represents a diverse background spanning financial services, operations, private enterprises and management consulting.

OO 03 Mandatory Public Descriptive General

Indicate whether you have subsidiaries within your organisation that are also PRI signatories in OO 03.1 their own right.

 Yes  No

OO 04 Mandatory Public Gateway/Peering General

OO 04.1 Indicate the year end date for your reporting year.

31/12/2018

OO 04.2 Indicate your total AUM at the end of your reporting year.

Include the AUM of subsidiaries, but exclude advisory/execution only assets, and exclude the assets of your PRI signatory subsidiaries that you have chosen not to report on in OO 03.2

trillions billions millions thousands hundreds

Total AUM 9 971 000 000

Currency USD

Assets in USD 9 971 000 000

 Not applicable as we are in the fund-raising process

Indicate the total assets at the end of your reporting year subject to an execution and/or advisory OO 04.4 approach.

 Not applicable as we do not have any assets under execution and/or advisory approach

OO 06 Mandatory Public Descriptive General

OO 06.1 Select how you would like to disclose your asset class mix.

 as percentage breakdown

Internally managed (%) Externally managed (%)

Listed equity 0 0

Fixed income 0 0

Private equity 100 0

Property 0 0

Infrastructure 0 0

Commodities 0 0

Hedge funds 0 0

Fund of hedge funds 0 0

Forestry 0 0

Farmland 0 0

Inclusive finance 0 0

Cash 0 0

Money market instruments 0 0

Other (1), specify 0 0

Other (2), specify 0 0

 as broad ranges

OO 06.2 Publish asset class mix as per attached image [Optional].

OO 06.3 Indicate whether your organisation has any off-balance sheet assets [Optional].

 Yes  No

OO 06.5 Indicate whether your organisation uses fiduciary managers.

 Yes, we use a fiduciary manager and our response to OO 5.1 is reflective of their management of our assets.  No, we do not use fiduciary managers.

OO 09 Mandatory Public Peering General

OO 09.1 Indicate the breakdown of your organisation’s AUM by market.

Developed Markets

Emerging Markets

Frontier Markets

Other Markets

Total 100%

100%

OO 09.2 Additional information. [Optional]

The AUM referred to in OO 09.1 excludes uncalled commitments. Affinity seeks to invest in those economies of the Asia-Pacific region that it believes provide the most attractive risk/reward returns. Affinity's current portfolio companies operate in the Fund's core markets: (i) Korea, (ii) Australia and New Zealand, (iii) China, and (iv) Southeast Asia.

Asset class implementation gateway indicators

OO 12 Mandatory Public Gateway General

Below are all applicable modules or sections you may report on. Those which are mandatory to OO 12.1 report (asset classes representing 10% or more of your AUM) are already ticked and read-only. Those which are voluntary to report on can be opted into by ticking the box.

Core modules

 Organisational Overview  Strategy and Governance

RI implementation directly or via service providers

Direct - Other asset classes with dedicated modules

 Private Equity

RI implementation via external managers

Closing module

 Closing module

Peering questions

OO PE 01 Mandatory Public Descriptive General

OO PE Provide a breakdown of your organisation’s internally managed private equity investments by 01.1 investment strategy.

Investment strategy Percentage of your internally managed private equity holdings (in terms of AUM)

Venture capital  >50%  10-50%  <10%  0%

Growth capital  >50%  10-50%  <10%  0%

(Leveraged) buy-out  >50%  10-50%  <10%  0%

Distressed/Turnaround/Special Situations  >50%  10-50%  <10%  0%

Secondaries  >50%  10-50%  <10%  0%

Other investment strategy, specify (1)  >50%  10-50%  <10%  0%

Other investment strategy, specify (2)  >50%  10-50%  <10%  0%

Total 100%

Other investment strategy, specify (1)

Debt

Affinity Equity Partners

Reported Information

Public version

Strategy and Governance

Investment policy

SG 01 Mandatory Public Core Assessed General

New selection options have been added to this indicator. Please review your prefilled responses carefully.

SG 01.1 Indicate if you have an investment policy that covers your responsible investment approach.

 Yes

SG 01.2 Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types Coverage by AUM

 Policy setting out your overall approach  Applicable policies cover all AUM  Formalised guidelines on environmental factors  Applicable policies cover a majority of AUM  Formalised guidelines on social factors  Applicable policies cover a minority of AUM  Formalised guidelines on corporate governance factors  Fiduciary (or equivalent) duties  Asset class-specific RI guidelines  Sector specific RI guidelines  Screening / exclusions policy  Other, specify (1)  Other, specify(2)

SG 01.3 Indicate if the investment policy covers any of the following

 Your organisation’s definition of ESG and/or responsible investment and it’s relation to investments  Your investment objectives that take ESG factors/real economy influence into account  Time horizon of your investment  Governance structure of organisational ESG responsibilities  ESG incorporation approaches  Active ownership approaches  Reporting  Climate change  Understanding and incorporating client / beneficiary sustainability preferences  Other RI considerations, specify (1)  Other RI considerations, specify (2)

Describe your organisation’s investment principles and overall investment strategy, SG 01.4 interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

Affinity has in place a Responsible Investment Policy (the "Policy") and Guidelines on Integrating ESG Issues in Investment Process (the "Guidelines"). The Guidelines include procedures to adopt in assessing, addressing and managing ESG issues and initiatives during the investment process and post investment as well as a due diligence questionnaire on ESG issues. The Policy and Guidelines are based on sound investment principles that Affinity has historically adopted in considering and assessing all investment opportunities, and in implementing post-investment plans for the portfolio companies. Affinity believes that the assessment of ESG risks and opportunities in the investment process is essential to developing a sustainable long-term investment environment as it aligns the interests of Affinity, our portfolio companies and our investors. Affinity's approach to responsible investing has been outlined in our response to SG 01.5.

Provide a brief description of the key elements, any variations or exceptions to your SG 01.5 investment policy that covers your responsible investment approach. [Optional]

Affinity's approach to responsible investing includes: 1. Adherence to Affinity's investment negative list which prohibits investment in any company whose principal business activities are that of modern weaponry, nuclear power, pornography and vice 2. Adherence to Affinity's public policy negative list which prohibits investment in any company that, amongst others (i) engages in activities prohibited by US Trading with Enemy Act 1917 or US International Emergency Economic Powers Act 1977; (ii) conducts certain activities which materially violate local environmental laws and internationally accepted standards of environmental compliance; (iii) produces, or trade in, any product or activity deemed illegal under applicable national, state or local laws or regulations or subject to internationally agreed phase-outs or bans as defined in global conventions and agreements; (iv) has its registered office operates in any country condemned for human rights abuses by United Nations Commission on Human Rights; or (v) employs child or forced labour 3. Robust assessment and discussion of ESG risks and opportunities in the investment process 4. Active ownership and value-add in the portfolio companies, including assisting management in developing, implementing and monitoring ESG initiatives to achieve long-term sustainability, such as promoting social awareness, including occupational health and safety, competitive wages and benefits for employees, staff training and retention, etc. 5. Respecting labour and human rights, including not utilizing child or forced labour, maintaining non- discriminatory policies, etc. 6. Providing necessary training to Affinity's investment professionals to help them better understand and manage ESG issues in the investment process 7. Encouraging portfolio companies to provide similar training for their key personnel involved in ESG matters 8. Keeping abreast of developments in international best practices and ESG matters, and updating the Policy and Guidelines as and when necessary 9. Compliance with applicable national, state and local laws and regulations in the countries in which Affinity invests, and applicable international laws and standards 10. Encouraging portfolio companies to advance these same principles in a way consistent with their fiduciary duties.

 No

I confirm I have read and understood the Accountability tab for SG 01

SG 02 Mandatory Public Core Assessed PRI 6

New selection options have been added to this indicator. Please review your prefilled responses carefully.

Indicate which of your investment policy documents (if any) are publicly available. Provide a URL SG 02.1 and an attachment of the document.

 Policy setting out your overall approach

URL/Attachment

 URL

URL

http://www.affinityequity.com/home/esg/

 Attachment (will be made public)  Formalised guidelines on environmental factors  Formalised guidelines on social factors  Formalised guidelines on corporate governance factors  Asset class-specific RI guidelines  Sector specific RI guidelines  Screening / exclusions policy  We do not publicly disclose our investment policy documents

Indicate if any of your investment policy components are publicly available. Provide URL and an SG 02.2 attachment of the document.

 Your organisation’s definition of ESG and/or responsible investment and it’s relation to investments

URL/Attachment

 URL

URL

http://www.affinityequity.com/home/esg/

 Attachment  Governance structure of organisational ESG responsibilities  ESG incorporation approaches  Active ownership approaches  We do not publicly disclose any investment policy components

SG 03 Mandatory Public Core Assessed General

Indicate if your organisation has a policy on managing potential conflicts of interest in the SG 03.1 investment process.

 Yes

SG 03.2 Describe your policy on managing potential conflicts of interest in the investment process.

Affinity's compliance manual covers procedure to identify and manage conflicts of interest both within the Affinity group and with any third party (including clients or investors). Conflicts of interest of the Fund's general partner are also reviewed by the Fund's Board of Advisers who meet at least annually.

 No

Objectives and strategies

SG 05 Mandatory Public Gateway/Core Assessed General

Indicate if and how frequently your organisation sets and reviews objectives for its responsible SG 05.1 investment activities.

 Quarterly or more frequently  Biannually  Annually  Less frequently than annually  Ad-hoc basis  It is not set/reviewed

SG 05.2 Additional information. [Optional]

The progress and objectives of Affinity's responsible investment activities are discussed at least annually through internal trainings and/or meetings. The progress of ESG activities and initiatives undertaken by portfolio companies are monitored and discussed at least quarterly through the quarterly valuation reports that contain ESG matters among others.

Governance and human resources

SG 07 Mandatory Public Core Assessed General

Indicate the internal and/or external roles used by your organisation, and indicate for each whether SG 07.1 they have oversight and/or implementation responsibilities for responsible investment.

Roles

 Board members or trustees  Internal Roles (triggers other options)

Select from the below internal roles

 Chief Executive Officer (CEO), Chief Investment Officer (CIO), Chief Operating Officer (COO), Investment Committee  Oversight/accountability for responsible investment  Implementation of responsible investment  No oversight/accountability or implementation responsibility for responsible investment  Other Chief-level staff or head of department, specify Head of Portfolio Management Group  Oversight/accountability for responsible investment  Implementation of responsible investment  No oversight/accountability or implementation responsibility for responsible investment  Portfolio managers  Oversight/accountability for responsible investment  Implementation of responsible investment  No oversight/accountability or implementation responsibility for responsible investment  Investment analysts  Oversight/accountability for responsible investment  Implementation of responsible investment  No oversight/accountability or implementation responsibility for responsible investment  Dedicated responsible investment staff  Investor relations  Other role, specify (1)  Other role, specify (2)  External managers or service providers

For the roles for which you have RI oversight/accountability or implementation responsibilities, SG 07.2 indicate how you execute these responsibilities.

Affinity has in place a Responsible Investment Policy ("Policy") and Operating Guidelines on Integrating ESG Issues in Investment Process ("Guidelines"). Affinity's investment professionals are expected to adhere and comply with the Policy and Guidelines. Any non-adherence or deviation should be brought to the attention of the lead partner responsible for the investment. Approval must be sought from the Founding Chairman of Affinity for any deviation from the Policy. The Portfolio Management Group ("PMG") is responsible for monitoring adherence and compliance with the Policy.

During the investment process, Affinity's investment professionals are required to consider and assess ESG issues in accordance with the Policy. External consultants shall be engaged to assist in due diligence based on level of inherent risks. An assessment on the risks and opportunities arising from the ESG issues will be included in the investment memo prepared by the investment professionals, together with an independent memo prepared by Affinity's Portfolio Management Group. Affinity's Investment Committee will assess the ESG matters in their evaluation of the investment.

Post-investment, Affinity's investment professionals are expected to assist the portfolio companies in implementing the ESG initiatives and monitoring the progress of these initiatives. The progress of the implementation of ESG initiatives is also tracked by PMG and reported to the Portfolio Review and Valuation Committees on a quarterly basis.

SG 07.3 Indicate the number of dedicated responsible investment staff your organisation has.

Number

SG 07.4 Additional information. [Optional]

The PMG is responsible for (i) monitoring adherence and compliance with the Policy, (ii) reporting relevant ESG related information of the portfolio companies in the quarterly reports to the Limited Partners, and (ii) reviewing the Policy to incorporate the latest development in international best practices and ESG matters.

I confirm I have read and understood the Accountability tab for SG 07

Promoting responsible investment

SG 09 Mandatory Public Core Assessed PRI 4,5

Select the collaborative organisation and/or initiatives of which your organisation is a member or in SG 09.1 which it participated during the reporting year, and the role you played.

Select all that apply  Principles for Responsible Investment

Your organisation’s role in the initiative during the reporting period (see definitions)

 Basic  Moderate  Advanced  Asian Corporate Governance Association  Australian Council of Superannuation Investors  AFIC – La Commission ESG  BVCA – Responsible Investment Advisory Board  CDP Climate Change  CDP Forests  CDP Water  CFA Institute Centre for Financial Market Integrity  Code for Responsible Investment in SA (CRISA)  Code for Responsible Finance in the 21st Century  Council of Institutional Investors (CII)  Eumedion  Extractive Industries Transparency Initiative (EITI)  ESG Research Australia  Invest Europe Responsible Investment Roundtable  Global Investors Governance Network (GIGN)  Global Impact Investing Network (GIIN)  Global Real Estate Sustainability Benchmark (GRESB)  Green Bond Principles  Institutional Investors Group on Climate Change (IIGCC)  Interfaith Center on Corporate Responsibility (ICCR)  International Corporate Governance Network (ICGN)  Investor Group on Climate Change, Australia/New Zealand (IGCC)  International Integrated Reporting Council (IIRC)  Investor Network on Climate Risk (INCR)/CERES  Local Authority Pension Fund Forum  Principles for Sustainable Insurance  Regional or National Social Investment Forums (e.g. UKSIF, Eurosif, ASRIA, RIAA), specify  Responsible Finance Principles in Inclusive Finance  Shareholder Association for Research and Education (Share)  United Nations Environmental Program Finance Initiative (UNEP FI)  United Nations Global Compact  Other collaborative organisation/initiative, specify  Other collaborative organisation/initiative, specify  Other collaborative organisation/initiative, specify  Other collaborative organisation/initiative, specify

SG 10 Mandatory Public Core Assessed PRI 4

Indicate if your organisation promotes responsible investment, independently of collaborative SG 10.1 initiatives.

 Yes

Indicate the actions your organisation has taken to promote responsible investment independently of collaborative initiatives. Provide a description of your role in contributing to SG 10.2 the objectives of the selected action and the typical frequency of your participation/contribution.

 Provided or supported education or training programmes (this includes peer to peer RI support) Your education or training may be for clients, investment managers, actuaries, broker/dealers, investment consultants, legal advisers etc.)  Provided financial support for academic or industry research on responsible investment  Provided input and/or collaborated with academia on RI related work  Encouraged better transparency and disclosure of responsible investment practices across the investment industry

Description

To promote transparency and disclosure of our responsible investment practices, Affinity reports the progress of ESG activities and initiatives undertaken by our portfolio companies in the quarterly report to the Limited Partners. Upon becoming aware of any material ESG issues that may have occurred, Affinity will also inform the Limited Partners as soon as practicable.

In portfolio companies in which the Fund has majority ownership, Affinity will be in the position to set ESG guidelines and will provide guidance to the management on ESG matters. In portfolio companies in which the Fund has minority ownership, Affinity encourages these companies to adopt ESG guidelines that are in line with the industry standards and international best practices.

Frequency of contribution

 Quarterly or more frequently  Biannually  Annually  Less frequently than annually  Ad hoc  Other  Spoke publicly at events and conferences to promote responsible investment  Wrote and published in-house research papers on responsible investment  Encouraged the adoption of the PRI  Responded to RI related consultations by non-governmental organisations (OECD, FSB etc.)  Wrote and published articles on responsible investment in the media  A member of PRI advisory committees/ working groups, specify  On the Board of, or officially advising, other RI organisations (e.g. local SIFs)  Other, specify  No

Outsourcing to fiduciary managers and investment consultants

SG 12 Mandatory Public Core Assessed PRI 4

New selection options have been added to this indicator. Please review your prefilled responses carefully.

SG 12.1 Indicate whether your organisation uses investment consultants.

 Yes, we use investment consultants  No, we do not use investment consultants.

ESG issues in asset allocation

SG 13 Mandatory Public Descriptive PRI 1

Indicate whether the organisation undertakes scenario analysis and/or modelling and provide a SG 13.1 description of the scenario analysis (by asset class, sector, strategic asset allocation, etc.).

 Yes, to assess future ESG factors  Yes, to assess future climate-related risks and opportunities  No, not to assess future ESG/climate-related issues

SG 13.3 Additional information. [OPTIONAL]

ESG issues are taken into consideration in asset allocation to avoid investments in sectors or geographies posing a high risk of ESG issues. Included in the Responsible Investment Policy are specific sectors which are prohibited by Affinity, such as companies involved in nuclear power and modern weaponry, and companies that:  Engages in activities prohibited by US Trading with Enemy Act 1917 or US International Emergency Economic Powers Act 1977  Has its registered office in any country condemned for human rights abuses by United Nations Commission on Human Rights  Has principal part of its business engaged in production and/or sale of chemicals or pesticides that constitute material violation of locally applicable environmental laws and internationally accepted standards of environmental compliance  Produces goods if the process results in hazardous waste that require transportation and disposal in a manner that would materially violate locally applicable environmental laws and internationally accepted standards of environmental compliance  Produces, or trade in, any product or activity deemed illegal under applicable national, state or local laws or regulations or subject to internationally agreed phase-outs or bans as defined in global conventions and agreements  Produces, or trades in, radioactive materials and/or unbonded asbestos fibres  Employs child or forced labour.

Communication

SG 19 Mandatory Public Core Assessed PRI 2, 6

Indicate whether your organisation typically discloses asset class specific information proactively. SG 19.1 Select the frequency of the disclosure to clients/beneficiaries and the public, and provide a URL to the public information.

Caution! The order in which asset classes are presented below has been updated in the online tool to match the Reporting Framework overview. If you are transferring data from an offline document, please check your response carefully.

Private equity

Do you disclose?

 We do not disclose to either clients/beneficiaries or the public.  We disclose to clients/beneficiaries only.  We disclose to the public

The information disclosed to clients/beneficiaries is the same

 Yes  No

Disclosure to public and URL Disclosure to clients/beneficiaries

 ESG information in relationship to our pre-investment  ESG information in relationship to our pre- activities investment activities  ESG information in relationship to our post-investment  ESG information in relationship to our post- monitoring and ownership activities investment monitoring and ownership activities  Information on our portfolio companies’ ESG  Information on our portfolio companies’ ESG performance performance  Other  Other

Specify

Description of our ESG approach to potential investments and portfolio companies is provided on Affinity’s website

Frequency Frequency

 Quarterly or more frequently  Quarterly or more frequently  Biannually  Biannually  Annually  Annually  Less frequently than annually  Less frequently than annually  Ad-hoc/when requested  Ad-hoc/when requested

URL http://www.affinityequity.com/home/esg/

Affinity Equity Partners

Reported Information

Public version

Direct – Private Equity

Overview

PE 02 Mandatory Public Core Assessed PRI 2

Indicate whether your organisation’s investment activities are guided by a responsible investment PE 02.1 policy / follow responsible investment guidelines.

 Our investment activities are guided by a responsible investment policy

Describe how your organisation outlines expectations on staff and portfolio companies’ PE 02.2 approach towards ESG issues in investment activities.

Affinity has in place the Policy and Guidelines described in PE 01.1, which investment professionals are expected to comply with. The Guidelines are supplementary to the Policy to guide Affinity's investment professionals on integrating ESG issues in the investment process, including:  Procedures to adopt in assessing, addressing and managing ESG issues and initiatives during the investment process  Guidance on initial assessment of inherent risks and suggested action plans for due diligence  List of common ESG issues and sector specific ESG considerations when assessing in an investment opportunity  Due diligence questionnaire on ESG issues.

Post investment, the Policy requires investment professionals to take active ownership and assist management of portfolio companies to address ESG issues. Affinity's representation on portfolio companies' Board of Directors enables regular supervision of management's commitment in addressing ESG issues. Management of portfolio companies are expected to report to the Board, on a regular basis, on the progress of the Company's ESG initiatives. Major developments of adverse nature must be reported quickly to the Board and management must have in place contingency plans to deal with such developments. Progress on the implementation of ESG initiatives by the portfolio companies are tracked by Affinity's Portfolio Management Group.

 Our investment activities are not guided by a responsible investment policy  We do not have a responsible investment policy

Fundraising of private equity funds

PE 03 Mandatory Public Core Assessed PRI 1,4,6

Indicate if your most recent fund placement documents (private placement memorandums (PPM) PE 03.1 or similar) refer to responsible investment.

 Yes

Indicate how your most recent fund placement documents (PPM or similar) refer to the PE 03.2 following responsible investment:

 Policy and commitment to responsible investment  Approach to ESG issues in pre-investment processes  Approach to ESG issues in post-investment processes  Approach to ESG reporting

Describe how your organisation refers to responsible investment in fund placement documents PE 03.3 (PPMs or similar). [Optional]

Affinity's policy and commitment to responsible investment are outlined under the Policy and Guidelines as described in PE 01.1.

For investment targets whose operations are assessed to have adverse environmental and social impact or where there are concerns over governance risks, Affinity engages external advisors to conduct due diligence (at the pre-investment stage) to assist the investment professionals in identifying risks and value creation opportunities. The due diligence findings are taken into account in the investment decision.

Post-investment, in the portfolio companies where Affinity has control, Affinity is in a position to set ESG guidelines in line with the Policy. In portfolio companies where Affinity is a minority shareholder, the firm encourages the portfolio companies to adopt ESG guidelines that are in line with industry standards and international best practices.

The progress of ESG initiatives is monitored independently by the Portfolio Management Group ("PMG"). PMG, which is the independent risk management and portfolio monitoring group within Affinity, is responsible for monitoring adherence and compliance with the Policy, and the progress on the implementation of ESG initiatives by the portfolio companies. The investment professionals together with PMG prepare quarterly valuation reports that contain, among others, the ESG activities and initiatives undertaken by the portfolio companies.

During Affinity's quarterly portfolio review and valuation meetings, the Affinity Partners will discuss ESG issues as part of the quarterly review of their portfolio companies.

The ESG initiatives and activities of the portfolio companies are included in the quarterly reports for the LPs. Affinity will also engage with LPs, upon their requests, on matters relating to responsible investment and ESG. Should there be material ESG incidents that have occurred, Affinity will inform the LPs as soon as practicable.

 No  Not applicable as our organisation does not fundraise

Pre-investment (selection)

PE 05 Mandatory Public Gateway PRI 1

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

 Yes

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

Affinity's investment professionals are expected to consider and assess ESG issues in the investment process. The Guidelines includes a list of common ESG issues and sector specific ESG considerations to be taken into consideration in an investment opportunity.

For investment targets whose operations are assessed to have adverse environmental and social impact or where there are concerns over governance risks, Affinity engages external advisors to conduct due diligence to assist the investment professionals in identifying risks and value creation opportunities. The due diligence findings are taken into account in the investment decision.

Affinity's Policy prohibits investment in (a) any company whose principal business activities are that of modern weaponry, nuclear power, pornography and vice, and (b) any company that, amongst others (i) engages in activities prohibited by US Trading with Enemy Act 1917 or US International Emergency Economic Powers Act 1977; (ii) conducts certain activities which materially violate local environmental laws and internationally accepted standards of environmental compliance; (iii) produces, or trade in, any product or activity deemed illegal under applicable national, state or local laws or regulations or subject to internationally agreed phase- outs or bans as defined in global conventions and agreements; (iv) has its registered office in any country condemned for human rights abuses by United Nations Commission on Human Rights; or (v) employs child or forced labour.

 No

PE 06 Mandatory Public Core Assessed PRI 1,3

Indicate what type of ESG information your organisation typically considers during your private PE 06.1 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

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

Affinity takes into consideration various ESG risks in every investment opportunity and across every geography and sector that the Fund invests in. ESG risks are assessed on deal-by-deal basis depending on the type of business, sector and location.

Initial identification and assessment of ESG risks are conducted by investment professionals and PMG. Where necessary, Affinity would hire consultants to conduct thorough due diligence. For example, a target company whose operation is assessed to require environmental impact study would trigger the necessity to engage an environmental consultant to conduct due diligence and assess relevant risks and/or opportunities.

Due diligence findings are incorporated into investment memos which are submitted to the Investment Committee. Every investment memo includes a section on ESG that highlights the ESG risks and opportunities, and action plans. PMG will independently review each new transaction and summarise its views and analysis in a "PMG memo". The PMG memo that is submitted to the Investment Committee ("IC") will also comment on ESG matters. Members of the IC will take these into consideration and deliberate on them during the IC meetings.

Post-investment (monitoring)

PE 09 Mandatory Public Gateway/Core Assessed PRI 2

Indicate whether your organisation incorporates ESG issues in investment monitoring of portfolio PE 09.1 companies.

 Yes

Indicate the proportion of portfolio companies where your organisation included ESG PE 09.2 performance in investment monitoring during the reporting year.

 >90% of portfolio companies  51-90% of portfolio companies  10-50% of portfolio companies  <10% of portfolio companies

(in terms of total number of portfolio companies)

Indicate ESG issues for which your organisation typically sets and monitors targets (KPIs or PE 09.3 similar) and provide examples per issue.

ESG issues  Environmental

List up to three example targets of environmental issues

Example 1

Reduction in energy consumption

Example 2 (optional)

Waste minimisation and management

Example 3 (optional)

Compliance with applicable laws and regulation  Social

List up to three example targets of social issues

Example 1

Employee health and safety

Example 2 (optional)

Fair labour practices and employee engagement

Example 3 (optional)

Community engagement  Governance

List up to three example targets of governance issues

Example 1

Transparency, disclosure and reporting

Example 2 (optional)

Corruption and bribery

Example 3 (optional)

Engagement with external stakeholders  We do not set and/or monitor against targets  No

PE 10 Mandatory Public Core Assessed PRI 2

Indicate if your organisation tracks the proportion of your portfolio companies that have an PE 10.1 ESG/sustainability-related policy (or similar guidelines).

 Yes

Indicate what percentage of your portfolio companies has an ESG/sustainability policy (or PE 10.2 similar guidelines).

 >90% of portfolio companies  51-90% of portfolio companies  10-50% of portfolio companies  <10% of portfolio companies  0% of portfolio companies

(in terms of total number of portfolio companies)

 No

PE 10.3 Additional information. [Optional]

For the purpose of this question, Affinity has included all existing and new portfolio companies during the reporting year and defines "ESG policy" as policies that relate to any environmental, social, and/or governance issues material to the respective portfolio companies.