Asset Buyout Partners Annual Report 2020

ABP seeks to have a corporate culture where environmental aware- ness is strongly embedded at all levels in the organization. This is something that the Company seeks to maintain and further enhance and use as a lever in implementing an even broader environmental focus. The Company strives to ensure that all employees have the relevant knowledge and seek to influence suppliers, customers and partners to make sound environmental choices. ABP seeks to continually increase the sustainability awareness in the Company, as well as making sure that the Company has access to the best industry advisers and experts in the field. Equal opportunities and diversity are an integral part of the ABP’s personnel policy, and today 20% of total staff are female. An impor- tant factor in ensuring ABP’s success is a continued focus on diversity and gender equality. 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 people from Alver Municipality. Local authorities are therefore impor- tant 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. Culture and employee satisfaction Local value creation Climate change has been a key topic for years, intensifying in strength and conviction in 2020, 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 cornerstone 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 its efforts to reduce emissions from infrastructure supporting 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 2020, predicts that oil and gas will account for nearly 48% (1098Mtoe) 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 31% of the energy mix (979 Mtoe) in Europe in 2040, assuming the development of affordable and energy efficient Carbon Capture and Storage technology. 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 55% 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. To better be able to monitor and follow up on potential impacts, both opportunities and threats, on the Company from climate related changes, ABP is currently setting up a framework for TCFD (Task Force on Climate – related Financial Disclosures) reporting. Adapting to climate risk and opportunities Asset Buyout Partners | Annual Report 2020 9