Overview

Genstar Capital recognizes that a variety of considerations may be relevant when making investment decisions, including the impact upon environmental and social systems. Moreover, we believe that responsible corporate behavior with respect to environmental, social and governance (ESG) factors can generally have a positive influence on long-term financial performance; recognizing that the relative importance of ESG factors vary across industries, geography and time. In analyzing the risks inherent in any investment opportunity, we seek to identify, monitor and mitigate ESG issues that are, or could become, material to long-term financial performance.

To the extent consistent with our fiduciary duties and responsibilities, as well as any applicable investment restrictions, objectives and programs, Genstar will adhere to the Guidelines for Responsible Investment developed by the Private Equity Growth Capital Council (PEGCC) as the basis for our responsible investment policy. These guidelines are specific to the private equity industry, and reflect the values of the United Nations Principles of Responsible Investing (UNPRI) as well as the principles outlined in the United Nations Global Compact.

Responsible Investment

Historically, Genstar has invested in companies which have complied with most of these guidelines. However, we recognize the importance of a thorough investigation into each investment in order to meet our ESG goals. Genstar will investigate relevant, applicable ESG issues as part of the due diligence process for each portfolio company acquisition, with the goals being to mitigate any material investment risk while enhancing investment return wherever possible. At the conclusion of the due diligence process, any material findings will be incorporated as part of the final reporting by our deal professionals to the Investment Committee.

Genstar’s commitment to responsible investment does not end upon acquisition. During the due diligence process, we will identify opportunities where policy development and/or implementation of initiatives related to ESG issues would add material value to our portfolio company investments. We will partner with management, Boards of Directors and other appropriate stakeholders to monitor portfolio company activity and encourage adoption of policies and programs that comply with ESG policy standards for environmental stewardship, employee health & safety, stakeholder engagement as well as corporate governance.

Investor Relations & Reporting

Genstar is dedicated to transparency in the reporting to our investors of our ESG policy, its implementation and results. We value the ESG-related experience and expertise of our investors and will engage with them and solicit feedback so we may better align our responsible investing goals with theirs. To that end, we will make periodic progress reports to our investors of efforts related to our ESG policy objectives, significant milestones that have been achieved and our goals for the future.

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