Climate Change Data

Environmental Metrics

ESG Focus Areas

• Stewardship
• Carbon
• People

Environmental Achievements

• Portfolio company Vertical Bridge became the world’s first certified carbon neutral telecommunications tower company, offsetting ~23,000 tCO2e.
• Lineage and Madison Energy partnered on 12 sites with 15MW of installed solar capacity, saving Lineage ~$700,000 annually in electricity costs and reducing its CO2 footprint by approximately 20,000 tons annually.
• Lifetime carbon emissions avoided from current renewables portfolio: ~50,000 metric tons

Social Achievements

• $1 million donation to Son of a Saint, a non-profit in New Orleans working with fatherless young Black men.
• Introduced quarterly reporting to the Executive Committee on hiring, diversity, and other people initiatives.
• Announced that boards of newly acquired, majority-controlled North American and European portfolio companies will have at least one diverse board director within one year of Stonepeak acquiring a controlling interest.

Governance Achievements

• Refreshed responsible contractor and responsible investment policies; adopted a new supplier code of conduct and stewardship policy; refreshed ESG due diligence questionnaire and onboarding checklist; in the process of adopting new anti-corruption, economic sanctions, and export control investment due diligence policies.
• Became signatories to the Principles for Responsible Investment (PRI) and supporters of the Task Force for Climate-Related Financial Disclosures (TCFD).
• Joined the ILPA Diversity in Action initiative.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19.
• Need to quantify carbon footprints and develop carbon reduction strategies across portfolio companies.
• Rising expectations and evolving market practices regarding ESG.

Mitigation Strategies

• Working with portfolio companies to quantify carbon footprints and develop/pursue carbon reduction activities.
• Expanding ESG team from one to three people.
• Engaging with a specialist consultant to aggregate portfolio companies’ carbon footprints.
• Working with management teams to deepen sustainability reporting and incorporate performance against targets into executive remuneration.

Supply Chain Management

Responsible Procurement

• Supplier code of conduct and stewardship policy.

Climate-Related Risks & Opportunities

Transition Risks

• Rising cost of carbon (carbon taxes).

Opportunities

• Investment in renewables, lower-carbon forms of traditional and transition fuels, LNG transport infrastructure, renewable energy generation and storage systems, electric vehicles charging stations, renewable fuels, and hydrogen.

Reporting Standards

Frameworks Used: Principles for Responsible Investment (PRI), Task Force for Climate-Related Financial Disclosures (TCFD), Sustainability Accounting Standards Board (SASB)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 13 (Climate action)

Investments in renewable energy, infrastructure projects creating jobs, and support for the transition to a lower-carbon economy.

Awards & Recognition

• Lineage recognized by US Department of Energy for innovation in energy management for three consecutive years.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Supply Chain Integrity
• Human Rights
• Health and Safety

Environmental Achievements

• Generated ~416 million kWh of renewable energy, avoiding 180,110 tons of CO2 equivalent emissions.
• Completion of Formosa 2, the largest offshore wind project in Asia to date, with projected lifecycle avoided carbon of 18,750,000 tonnes.
• Investment in Maas Energy Works, capturing, processing, and diverting 119,873 tonnes of methane annually, equivalent to removing ~667,000 cars from the road.
• Investment in Stonepeak Island Transition LP to decarbonize electricity generation in the Caribbean and Central America, with InterEnergy aiming for 30% GHG reduction by 2025, 50% by 2030, and net-zero by 2050.

Social Achievements

• Engaged ERM to perform human rights reviews on portfolio companies, finding no major deficiencies.
• Enhanced monitoring and reporting structure on worker and contractor health and safety, instituting a firmwide systemized review process.
• Increased sustainability governance through the establishment of Sustainability Committees, key personnel hires, and ESG training in portfolio companies.
• MEI's workforce is ~43% women and racial minorities.

Governance Achievements

• Introduced a standard reporting template for quarterly reporting to the Stonepeak Executive Committee.
• Amending legal documents to include ESG and decarbonization covenants and aligning certain staff members to ESG through remuneration policies.
• Peak Energy amended its remuneration policy to be linked to ESG KPIs.

Climate Goals & Targets

Environmental Challenges

• Supply chain risks related to sourcing materials from nations with weaker labor regulations and increased risk of construction injuries.
• Increased demand for critical minerals needed for clean energy technologies, concentrated in jurisdictions with laxer labor, health, and safety standards.
• Potential for physical risks from climate change (extreme weather, flooding, drought, wildfire).

Mitigation Strategies

• Engaged with all GRF portfolio companies to construct and implement an employee code of ethics and responsible contractor policy.
• Monitoring and regular evaluation of health and safety during construction.
• Utilizing a specialist external tool to incorporate analysis of physical asset vulnerability as part of asset management and due diligence.
• Vigilant to human rights risks within supply chains.

Supply Chain Management

Responsible Procurement

• Employee code of ethics and responsible contractor policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, flooding, drought, wildfire

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs), IRIS metrics (GIIN)

Awards & Recognition

• 2022 Taiwan Sustainability Action Awards (SRE)