As prudent investors, we integrate environmental, social and governance (ESG) factors to capitalize on benefits and manage risk. We explore a core set of ESG themes and drive targeted improvements through our company and third-party manager engagement. Our approach to ESG integration intends to support healthy and resilient social institutions and natural systems and foster strong corporate governance and ethical culture. We aim to avoid investments in designated areas that are in direct conflict with Open Society Foundations’ priorities. In August 2020, SFM committed to transition to a net zero greenhouse gas emissions portfolio as rapidly as possible, and no later than 2040.

We will achieve a net zero emissions portfolio by:

• Reducing the carbon intensity per dollar invested by at least 25% by 2025 and 60% by 2030
• Ending all investments in new fossil fuel companies by no later than 2025 and divesting
  existing exposure
• Taking an active role engaging companies and sectors to accelerate their climate transition
  business models
• Investing in climate solutions

The specific steps we are taking in support of this commitment are highlighted in our Climate Action Strategy. Our 2021 Climate Progress Report provides an update on our implementation.