Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Uncertainty arising from the UK leaving the European Union.

Mitigation Strategies

• The long-term impact on the portfolio from Brexit has been considered. While difficult to quantify, it is not believed to fundamentally impact the business of the Company or make the sector any less attractive as an investment.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Social Achievements

• Pharmakon is committed to working to continuously develop an organization that is diverse, equitable and inclusive.

Governance Achievements

• Admission to premium segment of Main Market of the London Stock Exchange
• Amendment of revolving credit facility with JPMorgan Chase Bank on more favorable terms.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic temporarily affecting sales of some borrowers.
• Uncertainty arising from Brexit.
• Potential impact of COVID-19 and other geopolitical and social risks (including the invasion of Ukraine) on economic indicators and market valuations.

Mitigation Strategies

• Monitoring the situation and informing shareholders of any material changes.
• Review of the long-term impact of Brexit on the portfolio.
• Review of the impact of COVID-19 and the invasion of Ukraine on credit quality of loans; ongoing monitoring and investor updates on material changes.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: AIC Code of Corporate Governance

Certifications: ISO 14001

Third-party Assurance: PricewaterhouseCoopers LLP

Environmental Metrics

ESG Focus Areas

• GHG Emissions
• Green Building Standards
• Handling Hazardous Materials
• Waste Creation & Management
• Responsible Vendor Management
• Labour Practices
• Cyber Security
• Employee Engagement
• Diversity
• Job Growth and Turnover
• Supporting Communities and Research
• Risk Management
• IP Protection
• Compliance with Regulatory Standards (i.e., FDA)
• Board
• Purpose & Affiliations

Environmental Achievements

• Plans to reduce environmental footprint

Social Achievements

• Focus on human capital and Diversity, Equity and Inclusion (DEI)
• Commitment to philanthropy
• Supporting communities through philanthropy by engaging on critical health and social needs to promote access to health care and health equity

Governance Achievements

• Independent board and fund advisory committee
• BioPharma Credit PLC has a 100% independent board
• Executive-level oversight of ESG
• CEO led ESG committee responsible for ESG strategy and disclosure
• ESG committee meets on no less than a quarterly basis
• 100% of employees participate in ESG related strategy and implementation
• Robust governance policies and practices
• Culture of compliance and accountability
• Additional ethical safeguards include our whistleblower policy
• 100% of employees receive and are expected to sign the Employee Handbook
• 100% of employees participate in compliance and ethics training, and cybersecurity training
• 100% of employees and investors have access to grievance channels

Climate Goals & Targets

Environmental Challenges

• Limited ability to influence portfolio companies regarding ESG issues.
• Global pandemics may affect the operation and performance of the Company
• The effects of major geopolitical and social risks, including the invasion by Russia of Ukraine, may have economic consequences that extend beyond the short term.

Mitigation Strategies

• Applying those elements of ESG policy that are practicable given limited ability to conduct diligence or influence portfolio companies.
• Investment Manager and current service providers have hybrid and well established virtual working arrangements that have not impacted operations.
• The Company does not have any direct investments with Russia. The situation is being monitored, and shareholders will be informed of any material changes.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: PRI’s Six Core Principles, 17 SDGs (Sustainable Development Goals)

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 10 (Reduced Inequalities)
• SDG 17 (Partnerships for the Goals)

Supporting clinical trials and research, providing debt capital to life sciences companies, and promoting access to healthcare.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Maintained and strengthened social and human capital policies and practices, including attracting, retaining, and developing top talent; fostering a highly engaged, team-oriented culture; promoting diversity, equity, and inclusion; and engaging and developing employees.
• Supported various communities through philanthropy, promoting access to healthcare and health equity, and providing internships and mentorship to college-age students interested in life sciences investing.

Governance Achievements

• BioPharma Credit PLC has a 100% independent board; executive-level oversight of ESG; CEO-led ESG committee responsible for ESG strategy and disclosure; quarterly ESG committee meetings; 100% employee participation in ESG strategy and implementation; robust governance policies and practices; culture of compliance and accountability; whistleblower policy; 100% employee participation in compliance and ethics training, and cybersecurity training; 100% employee and investor access to grievance channels.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Responsible Vendor Management

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: PRI’s Six Core Principles, UN SDGs (3, 9, 10, 17)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 3
• 9
• 10
• 17

Pharmakon's investments in life sciences research and development contribute to these goals by expanding health access and opportunity.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• GHG Emissions
• Green Building Standards
• Handling Hazardous Materials
• Waste Creation & Management
• Responsible Vendor Management
• Labour Practices
• Cyber Security
• Employee Engagement
• Diversity
• Job Growth and Turnover
• Supporting Communities and Research
• Risk Management
• IP Protection
• Compliance with Regulatory Standards (i.e., FDA)
• Board Diversity
• Purpose & Affiliations

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• BioPharma Credit PLC has a 100% independent board
• Executive-level oversight of ESG
• CEO led Investment Manager ESG committee responsible for ESG strategy and disclosure
• ESG committee meets on no less than a quarterly basis
• 100% of employees participate in ESG related strategy and implementation
• Robust governance policies and practices
• Culture of compliance and accountability
• Additional ethical safeguards include our whistleblower policy
• 100% of employees receive and are expected to sign the Employee Handbook
• 100% of employees participate in compliance and ethics training, and cybersecurity training
• 100% of employees and investors have access to grievance channels

Climate Goals & Targets

Environmental Challenges

• Consistent with challenges seen across the market, the Company’s shares have traded at a discount to NAV throughout the period.
• The LumiraDx loan had gone into administration on 29 December 2023.

Mitigation Strategies

• The Company has purchased 104,043,060 shares during 2024, including 83,579,397 shares during the first six months of the year.
• Pharmakon Advisors, LP, the Company’s investment manager continued to work diligently in seeking an optimal outcome for the investment in LumiraDx.
• On 29 July, the Company announced the successful closing of the acquisition of a majority of LumiraDx’s assets by a subsidiary of Roche Diagnostics Limited.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 10 (Reduced Inequalities)
• SDG 17 (Partnerships for the Goals)

By delivering value for our partners and their patients, we contribute positively to multiple SDGs, including those that focus on expanding health access and opportunity.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed