Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Sustainable Consumption and Production
• Climate Action
• Respect for Workers
• Responsible Citizenship

Environmental Achievements

• 6.2 million MT of CO2 emissions averted by Lumileds customers in 2020 compared to conventional lighting products
• 14 million metric tons of CO2 equivalent emissions avoided over the lifetime of Apollo Infrastructure Funds I & II investments
• Coinstar's entire passenger fleet became 100% hybrid
• LifePoint Health anticipated annual utility savings of 23.7M kWh from LED lighting retrofit
• Diamond Resorts saved 66 tons of plastic by eliminating single-use plastics and installing water filters
• QDOBA reduced its environmental footprint by using 630,000 lbs of Impossible™ meat
• Bensons for Beds saved 164 tons of virgin plastic packaging by using recycled materials

Social Achievements

• Launched "AltFinance: Investing in Black Futures," a $90 million initiative to expand opportunities for HBCU students
• 81% of reporting companies implemented DE&I initiatives (up from 61% in 2018)
• Reached 30% diverse representation on US-based reporting company boards
• Hired more than 3,000 veterans through VetNet
• McGraw Hill implemented comprehensive COVID-19 response programs for employee well-being
• ADT established three new DE&I initiatives: IDB Council, BERGs, and educational opportunities
• Shutterfly launched ShuttERGroups, affinity groups focused on DE&I

Governance Achievements

• Converted from a publicly traded partnership to a corporation
• Secured inclusion in the Russell 1000 index
• Announced a path to a simpler, more transparent corporate structure
• Appointed former SEC Chairman Jay Clayton Non-Executive Chair of the board

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on businesses and employees
• Supply chain disruptions
• Climate change risks

Mitigation Strategies

• Provided support to reporting companies in navigating COVID-19 challenges
• Developed alternative sourcing strategies
• Implemented GHG emissions reduction initiatives
• Developed a proprietary ESG scoring system for credit investments

Supply Chain Management

Supplier Audits: 1,100+

Responsible Procurement

• Supplier Expectations mandate for animal welfare (QDOBA)
• ESG considerations in vendor selection (Apollo Global Management)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Renewable energy investments
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, UN Global Compact, UN Principles for Responsible Investment

Certifications: ISO 14001, ISO 50001, LEED

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 10
• Goal 13

Sustainable Products & Innovation

• Lumileds' energy-efficient LED lighting solutions

Awards & Recognition

• Best Place to Work for LGBTQ Equality (Apollo Global Management)

Environmental Metrics

ESG Focus Areas

• Environmental cost and consumption metrics
• Greenhouse gas (GHG) emissions and climate-related risk
• Diversity and inclusion
• Supply chain
• Philanthropy and volunteering
• Employee engagement
• ESG oversight
• Health and safety
• Governance policies and trainings

Environmental Achievements

• Reduced fuel consumption by 4% between 2020 and 2021 (Coinstar)
• Lumileds reduced carbon footprint by 10.8%, energy consumption by 9.7%, and water intake by 5.9%
• Lumileds averted 8.6 million MT of CO2 emissions in 2021
• Ridgeback Resources reduced fuel consumption and GHG emissions by consolidating compressors and eliminating combustion and methane venting
• Oldenburgische Landesbank reduced GHG emissions by approximately 10%

Social Achievements

• ADT contributed approximately $750,000 to more than 100 nonprofits
• Aspen Insurance contributed $1,405,000 to charitable organizations
• Athene donated €750,000 to charities
• Bensons for Beds raised £7.3 million for the British Heart Foundation and £155,810 for MIND
• CareerBuilder increased its charitable matching program to $500 per employee, resulting in $18,420 in charitable donations
• Many companies implemented various employee engagement initiatives (e.g., town halls, wellness programs, flexible work arrangements)

Governance Achievements

• Many companies established ESG working groups or committees with board oversight
• Many companies published publicly available ESG reports
• Nova KBM adopted its first ESG Strategy and incorporated ESG KPIs into performance management

Climate Goals & Targets

Environmental Challenges

• Getting complete and accurate ESG data from companies with varying levels of ESG reporting sophistication

Mitigation Strategies

• Providing resources such as guidance, tools for estimation and calculation, webinars, and hotlines to assist companies in reporting

Supply Chain Management

Supplier Audits: 256 supplier inspections in 2021 (CBR Fashion Group)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI, CDP

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Responsible Stewardship
• Supplier Diversity
• Energy Transition

Environmental Achievements

• Achieved carbon neutral AAM operations by procuring high-quality carbon removal projects and unbundled renewable energy credits.
• Apollo-managed funds deployed $6B in clean energy and climate investments across asset classes in 2022, furthering progress towards our $50B target.

Social Achievements

• Completed 12,680 hours of employee volunteer service to support community partners, nonprofit organizations, and other philanthropic causes.
• Awarded nearly $3M in grants to 11 nonprofit organizations working to expand opportunity and advance economic prosperity through the Apollo Opportunity Foundation.
• Exceeded the goal of achieving more than $1B in direct and indirect spending with diverse suppliers across Apollo-managed funds’ Private Equity portfolio.
• Increased gender representation — 49% of new AGM global hires in 2022 were female.

Governance Achievements

• Established the Sustainability and Corporate Responsibility (“S&CR”) Committee at the Board level.
• Developed and adopted a new Corporate Political Activities Policy.
• Updated existing policies, including our employee Code of Business Conduct and Ethics.

Climate Goals & Targets

Environmental Challenges

• Data limitations in achieving carbon neutrality across the entire firm (only AAM achieved it).
• Challenges in collecting robust, comparable ESG data from Apollo-managed funds’ investments across asset classes.

Mitigation Strategies

• Implemented new processes to collect more robust, comparable data from Apollo-managed funds’ investments across asset classes around key sustainability topics.
• Enhanced sustainability and ESG reporting capabilities across our platform to better serve the growing expectations of our LPs and investors.
• Developed enhanced carbon assessment frameworks and ESG value creation playbooks for Private Equity, developing and applying sector-specific ESG, and impact assessment frameworks for Credit.

Supply Chain Management

Responsible Procurement

• Supplier Diversity Program (>$1B spent with diverse suppliers in 2022)

Climate-Related Risks & Opportunities

Physical Risks

• Episodic events like flooding, tornadoes, and wildfires

Transition Risks

• Risks associated with shifting to a lower-carbon economy

Opportunities

• Investing in clean energy and climate solutions

Reporting Standards

Frameworks Used: GRI Standards, UNGC, UN SDGs, TCFD, SASB Standards

Third-party Assurance: ERC Evolution (GHG emissions data)

Awards & Recognition

• Private Debt Investor’s 2022 Deal of the Year: Americas
• Newsweek: America’s Most Responsible Companies 2022
• The Human Rights Campaign Corporate Equality Index: Best Places to Work for LGBTQ+ Equality in 2022
• Mergers & Acquisitions: 2022 PE Innovators in ESG
• ABF Journal: 25 Most Innovative Companies in Specialty Finance

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Transition
• Human & Labor Rights
• Circular Economy
• Value Creation

Environmental Achievements

• Increased climate and transition, impact, and sustainability-linked assessments conducted by +283% vs. Q4 2022
• ESG assessment frameworks created for >80% of Apollo’s AUM

Social Achievements

• Expanded ESG Risk Rating framework to additional asset classes, including asset-backed finance and real estate transactions
• Established four key engagement pillars: transparency and disclosure, thematic engagement, financing the energy transition, and value creation

Governance Achievements

• Increased the number of credit funds and managed accounts receiving periodic ESG reporting by +108% vs. Q4 2022
• Appointed inaugural Chair of the ESG Integrated Disclosure Project (“ESG IDP”), a private credit initiative

Climate Goals & Targets

Environmental Challenges

• Data availability challenges within private credit
• Significant gaps in the capital markets for climate and transition financing

Mitigation Strategies

• Investing in capabilities to create value and respond to diverse stakeholder needs
• Working with teams across Apollo and origination platforms to develop a harmonized approach to ESG integration
• Leveraging ESG due diligence processes to develop and manage product solutions
• Expanding reporting capabilities to encompass more credit funds and managed accounts
• Working with third-party data providers to develop tools/platforms to aid issuers in the disclosure process

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Financing and investing in energy transition, decarbonization, and sustainability

Reporting Standards

Frameworks Used: SASB, UN SDGs

UN Sustainable Development Goals

• SDG 3: Good Health and Well-Being
• SDG 11: Sustainable Cities and Communities
• SDG 13: Climate Action

Investments are evaluated for alignment with UN SDGs