As a family office, we are prudent investors with a unique vantage point and flexibility to respond to market conditions and evolve our approach. We are initially focused on two themes, climate transition and diversity, equity, and inclusion (DEI), that we believe pose material risk and opportunity for us as investors and the companies in which we invest. We evaluate additional themes where they can have a material effect on our portfolio. When assessing a sustainability theme, we develop a perspective and an approach to integrate the theme into our investment process via bottom-up analysis and partnership within the investment team. 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. We release an annual Progress Report that provides an update on our implementation.