Asset Buyout Partners Annual Report 2019

ABP plays an important role in several local communities. Mongstad supply base employs around 500 people, as part of the greater Mongstad Industrial Park area employing approximately 2,000 peo- ple from Alver Municipality. Local authorities are therefore important stakeholders for the Company, and sustainable and long-term economic growth and local value creation are of high priority for ABP. The co-operation with Alver Municipality on the Greenspot Mongstad initiative is one of the ways the Company works with municipalities to increase local value creation based on the energy transition, and thus more jobs for the community. Climate change has been a key topic for years, intensifying in strength and conviction in 2019, and it is evident that companies focusing on traditional energy sources will experience pressure and demands related to the transition to a low-carbon economy. ABP firmly believes that affordable and available energy is a corner- stone to achieve several of UN SDGs and that an efficient switch from coal to gas is an imperative strategic goal in this regard. ABP will continue to support the sustainable oil and gas production on the Norwegian Continental Shelf (“NCS”), a leader in low emission production, thus helping to reduce the overall carbon footprint of the offshore energy industry. The International Energy Agency (“IEA”) Stated Policies Scenario, based on policies announced in November 2019, predicts that oil and gas will account for nearly 50% of the energy mix in Europe in 2040. In the Sustainable Development Scenario, if the world stays below the two-degree target, oil and gas will account for 35% of the energy mix in Europe in 2040, assuming the development of affordable and energy efficient Carbon Capture and Storage tech- nology. In both these scenarios Norwegian oil and gas will continue to play a vital role in the energy mix going forward. Currently the EU is targeting 40% emissions reduction by 2030, and climate neutrality by 2050. The Paris Agreement has set goals for all countries to increase ambitions on a continuous basis. As a leading real estate and infrastructure investor in energy and maritime clusters in Norway, ABP wants to be an enabler for the best energy solutions going forward. ABP is facilitating solutions that are part of a low carbon future and the Company will continue to strive to diversify industry exposure and promote more sustainable solutions. The Company’s assets and infrastructure, such as quays, access to electricity, water and roads, are universal and may be used by a host of industries in addition to oil and gas. This includes offshore wind, aquaculture, hydrogen and biogas. The Greenspot Mongstad project is exploring opportunities in this space and has the potential to pioneer sustainable and circular industrial development in Norway. Several of the Company’s tenants have already diversified from oil and gas exposure, and now have considerable backlogs toward alternative industries such as offshore wind, hydrogen and aquaculture. Local value creation Adapting to climate risk and opportunities Asset Buyout Partners | Annual Report 2019 9