GOVERNANCE In 2021, we declined to participate in a number of transactions due to heightened environmental and social risk. For example, we passed on an opportunity related to financing of a thermal coal mining company with no public diversification strategy. With additional due diligence, we were unable to get comfortable with the company’s stated plans and declined the opportunity. As another example, we also declined to invest in an industrial steam business where the company’s supply of steam was primarily derived from coal power with no carbon capture and storage or equivalent carbon emissions reduction technologies in place. We also strive to ensure our approach to environmental and social risk management emphasizes constructive engagement. We work with business teams and our clients to help navigate considerations around environmental and social impacts, as well as community health and safety, for transactions across the firm, and we advise on best practices. We also assist with investments in companies that offer innovative technologies; provide guidance to improve environmental practices and disclosure; and advise on sustainable sourcing, supply chain standards, and other related areas. These teams and considerations were included in our review to finance a transaction for a mining company that focused on sourcing minerals critical to the transition to a low-carbon economy. We worked with the team and the company to review commitments related to water usage, as well as demonstrated commitments to engaging and consulting with Indigenous peoples. In another example, we have continued to engage with a manufacturing company on their EHS-related program over the years, which has resulted in improvements to safety performance and contamination- related issues. For our firm, putting people and practices in places that allow us to take a deliberate approach to responsible risk management across our firm is a critical driver of success. Sustainability Report 2021 Governance | 2021 Transaction Breakdown and Highlights 91