Asset Buyout Partners Annual Report 2020

It is important for ABP to uphold its position as an attractive landlord. ABP’s value chain analysis clarified that efficient properties focusing on technological development and circular solutions are some of the most material topics to the Group and its stakeholders. SDG 9 will help ABP prioritize future work and goals to build resilient and sustainable infrastructure, while maintaining economic growth and foster innovation. A core requirement in ABP’s investment strategy is to acquire real estate and infrastructure that is resilient in terms of alternative use, but also in terms of dealing with climate change. Risks from climate change could be physical (extreme weather) as well as transitional (regulatory requirements). However, an assessment of ABP’s value chain made it clear that addressing and adapting to climate risk also can provide the Company with opportunities. These opportunities could include preparing the local community for future climate change, but also a potential to promote technology transfer and development of solutions for climate change mitigation. A top priority for ABP will always be to provide fair, safe and healthy working conditions for its employees, customers as well as contributing to economic growth and value creation in local communities. It is of high priority that the Group’s assets are physically secure, always meet the highest statutory requirements and emergency preparedness. The SDG 8 is therefore a useful tool to focus on the importance of local value creation and employment. ABP is a responsible real estate and infrastructure owner and contin- uously assesses how its assets contribute to a sustainable economy. The Company has established an ESG due diligence framework when acquiring new assets, and ABP has regular dialogue with its tenants regarding initiatives for more environmentally friendly and energy efficient solutions. New contracts contain provisions for annual mandatory environmental meetings between the Company and its tenants to discuss environmental initiatives, and energy optimization measures at a property level to support the tenants’ operations. Currently, ABP is working with tenants to replace traditional energy sources with renewable energy sources such as solar panels, sea- based or geothermal heating systems, and LED lighting. As a potential to increase the support from tenants for environmental initiatives in ABP’s existing property portfolio, ABP has started to investigate Energy Performance Contracting (EPC) as a measure. EPC is a way of financing energy efficiency measures by the future cost reductions. An EPC contract will be a three party contract involving the tenant, the EPC contractor and ABP. Early versions of EPC contracts required the landlord to finance the investments needed. ABP recently initiated dialogue with an EPC contractor considering financing the investments needed, and will continue to investigate this opportunity further in 2021. Promoting green and efficient properties and infrastructure Asset Buyout Partners | Annual Report 2020 7