Beacon Fund L.P.’s ESG Philosophy

Beacon Fund L.P. strives at all times to deliver superior investment results with proprietary risk mitigation strategies while conducting our business with the highest integrity. Environmental, Social, and Governance (“ESG”) factors can directly and materially impact investment outcomes, while positively impacting our communities for a brighter future.

As long-term investors, we believe focusing on ESG throughout the investment lifecycle allows us to avoid undue risk and better identify valuable opportunities. Integrating ESG analysis into our investment process helps ensure that we are aligned with our clients, their beneficiaries, and society’s collective long-term interests. ESG fits squarely with our commitment to excellence in bottom-up investment analysis.

We invest with a sensitivity to ESG considerations. Today, Beacon Fund L.P.’s ESG approach is designed to promote integration, engagement, and transparency. We seek to continuously improve and refine our processes by actively participating in the development and implementation of new industry standards and best practices.

ESG Integration

Beacon Fund L.P.’s ESG policy applies to every investment strategy at the firm. Our approach to integration, engagement, and transparency across Beacon Fund L.P.’s multiple investment strategies can vary depending on asset class, geography, investment time horizon, and type of investment vehicle.

To address these nuances, each strategy is required to have an ESG Integration Plan that describes the team’s implementation of Beacon Fund L.P.’s ESG policy across the investment lifecycle.

Each plan describes:

Our investment professionals are directly responsible for integrating ESG analysis into their underwriting, in line with both the firmwide ESG policy and their strategy’s ESG Integration Plan. Beacon Fund L.P.’s underwriters analyze ESG considerations to determine financial materiality and integrate these assessments into the investment management process. ESG leadership and the Compliance group assess each team’s adherence to its stated ESG Integration Plan on a regular and ongoing basis.

Diligent ESG analysis is important to our investments. We tailor analysis according to our assessment of financial materiality, which may vary by industry, investment structure and company. Illustrative ESG considerations include:

Environmental	Social	Governance
Greenhouse gas emissions Resource use and efficiency (water, fuel, energy) Waste management and recycling Air pollution Noise pollution Biodiversity	Supply chain management Fair labor practices and labor relations Worker and contractor health, safety, and security Workplace diversity, equity and inclusion Community health and safety Product safety Disaster or emergency planning and response Stakeholder management (counterparties, customers, neighbors, investors, regulatory agencies) Data privacy and cybersecurity	Board composition, ownership and independent members Executive compensation Management of legal and regulatory obligations Transparency and investor reporting Conflicts of interest Auditor and financial reporting Internal controls Risk management Anti-bribery, corruption and fraud Whistle-blower protection

Governance & Oversight

Our commitment to ESG considerations begins with Beacon Fund L.P.’s Advisory board, which oversees ESG matters and climate-related risks and opportunities in our corporate and asset management activities. The Board receives annual updates on our ESG and climate strategy, objectives, and outcomes.

Beacon Fund L.P.’s chief investment officer and the ESG-sensitive board members drive the fund’s ESG strategy and help underwriters deepen their integration.

Beacon Fund L.P.’s ESG Governance Committee – comprising of advisory board members, representatives from our Legal and Risk Management identify and promote best practices. The Governance Committee reviews the fund’s ESG policy annually, and approves each ESG Integration Plan. In addition, many groups within Beacon Fund L.P. – such as Legal, Compliance, Marketing & Client Relations, and Portfolio Construction & Risk Management – contribute by advancing ESG integration efforts and helping external stakeholders better understand our ESG program.

Each team member appoints an ESG lead, a senior investment professional who works with the strategy’s portfolio manager to ensure that ESG considerations are integrated throughout the investment lifecycle.

Continuous Learning

Our investors are critical to our ESG program. Additionally, Beacon Fund L.P. with its extensive team of professionals is committed to upholding strong ethical standards.

We believe ESG considerations affect every part of our business, and all Beacon Fund L.P. team members contribute to delivering on our commitments. Therefore, all new Beacon Fund L.P. employees complete ESG training as part of their onboarding process.

Team and advisory board members are encouraged to participate in annual training to better identify, evaluate, and manage financially material sustainability information. Investment professionals certify their compliance with Beacon Fund L.P.’s ESG policy and their respective investment strategy’s ESG Integration Plan on an annual basis.