Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Employee well-being
• Environmental sustainability
• Responsible investment

Environmental Achievements

• Achieved ENERGY STAR certification and WELL designation for New York headquarters
• Encouraging green building certification at headquarters
• Reimbursing Citi Bike memberships for employees to encourage carbon-free commutes
• Installing water fountains to support reusable water bottles

Social Achievements

• Launched employee learning and development program with 100% of initial participants finding it useful
• Offered 16 weeks of parental leave for the primary caregiver and 4 weeks for the secondary caregiver
• Maintained a voluntary and involuntary turnover rate of 3.4% each in 2021
• 100% of employees completed annual compliance training in 2021
• Donated $5.3 million to support COVID-19 research between 2020 and 2021
• Donated over $700,000 to six organizations in 2021

Governance Achievements

• Completed a materiality assessment in 2022, consulting investors, employees, senior management, and the board of directors
• Adopted a robust Cybersecurity and Personal Data Breach Policy
• Implemented a strong compensation recovery (“Clawback”) policy for the Manager and executive officers
• Adopted proxy voting policies and procedures in accordance with Rule 206(4)-6 of the Investment Advisers Act
• Implemented a Whistleblower Hotline hosted by an independent third party

Climate Goals & Targets

Environmental Challenges

• Risk of scams and security breaches
• ESG-related risks associated with portfolio companies

Mitigation Strategies

• Security measures in place to ensure data security and protection
• Robust due diligence process for new investments, including ESG and reputational risk assessment
• Engagement with subject-matter experts and special advisors as needed

Supply Chain Management

Responsible Procurement

• Royalty Pharma Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• ESG Governance
• Responsible Investment
• Access to Health and Medicine
• Diversity, Equity and Inclusion
• Human Capital Management

Environmental Achievements

• Reduced operational footprint through energy-efficient office lighting and water filtration system.
• Published Greenhouse Gas emissions (GHG) data for 2021 and 2022 with limited assurance from Ernst & Young LLP.

Social Achievements

• 11.9% headcount growth in 2022 with 5.6% total turnover.
• Donated and pledged approximately $29 million in 2022 to non-profits focused on health equity and underserved communities.
• Launched a matching charitable donation program in 2022.
• Expanded opportunities for employee professional development.
• Improved the comprehensive benefits offered to employees.

Governance Achievements

• Conducted first materiality assessment.
• Improved transparency through publication of ESG fact sheet and 2021 GRI and SASB Summary.
• 90% of Board is independent.

Climate Goals & Targets

Environmental Challenges

• Measuring and reducing Scope 3 emissions.
• Addressing systemic inequities in healthcare access.

Mitigation Strategies

• Expanding Scope 3 emissions measurements and creating a framework to reduce impact.
• Established partnerships with organizations focused on health equity research (e.g., Mount Sinai, Leukemia & Lymphoma Society).

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct (addresses ethical and labor concerns).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Third-party Assurance: Ernst & Young LLP (limited assurance for GHG emissions)

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)

Funding innovation in biopharmaceutical industry and treating diseases.

Environmental Metrics

ESG Focus Areas

• Responsible Investment
• Access to Health and Medicine
• Diversity, Equity and Inclusion
• Human Capital Management
• Corporate Governance

Environmental Achievements

• Provided online training on sustainability and recycling efforts and procedures.
• New York City office is Energy Star certified and WELL designated.

Social Achievements

• Formed a Diversity, Equity and Inclusion (DEI) Task Force.
• Conducted employee engagement survey.
• Offered two internship programs.
• Donated $7.5 million to non-profit organizations.
• Low employee turnover (6.2% average total turnover past three years).

Governance Achievements

• Implemented Responsible Investment Policy.
• Expanded Board of Director Oversight on Sustainability and Responsible Business-Related Topics.
• Published inaugural Corporate Responsibility Report.
• 100% of employees certified compliance with Code of Business Conduct and Ethics.
• 100% of employees completed mandatory ethics training.

Climate Goals & Targets

Environmental Challenges

• Sustainability and responsible business risks and opportunities extend beyond our immediate operations as they are also manifested in our partners’ businesses.
• Scope 3 emissions related to portfolio investments are the most material emissions category.

Mitigation Strategies

• Published Responsible Investment Policy to further formalize robust due diligence process.
• Incorporated human rights considerations into investment practices.
• Calculated Scope 3 Category 15 GHG emissions by disaggregating portfolio and applying emission intensity factors.
• Expanded Scope 3 emissions measurements.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Third-party Assurance: Apex Companies, LLC

UN Sustainable Development Goals

• SDG 3

Social Bond Framework contributes to SDG 3.