Metrus ESG and Responsible Investment Policy

Founded in 2009 to provide energy efficiency financing solutions, Metrus is a purpose-driven company focused on helping large organizations decarbonize faster and at scale. Our pay-for-performance model, in which customers benefit from the clean energy solution without having to own the equipment, launched the Energy as a Service industry. We fund, implement and own energy and water efficiency retrofits, and partner with leading ESCOs to install and maintain best-in-class equipment. Our comprehensive, climate-positive financing solution pays for all upfront and ongoing project costs, enabling upgrades to aging infrastructure, improving equipment resiliency, and lowering carbon emissions without the capital expense.

We recognize both the challenges our customers face when fighting climate change and our own responsibilities as an industry leader. We believe that considering Environmental, Social, and Governance (ESG) factors is part of our obligation to stakeholders. By integrating these factors into our business approach and investment decisions, we aim to create positive impacts across everything we do.

Environment

Sustainability is at the core of our business model. Our commitment to the environment is demonstrated through how we make our investment decisions, how we report on what we do, and how we act as a business. We seek customers and partners that are like-minded in supporting climate action, and we prioritize the minimization of our own carbon footprint.

We’re committed to transparent reporting for our projects and our organization in a manner consistent with the Science-Based Targets initiative (SBTi). Our publicly-available annual Impact Report tracks avoided emissions for projects implemented at customer sites as well as for Metrus’ own business operations. For customer projects, we track Scope 1 and 2 GHG emission reductions as well as performance against projected savings. For Metrus’ business operations, we track our own Scope 1, 2 and 3 CO2 emissions on an annual basis. All CO2 emissions are calculated using geographically based data from the EPA, and these reports are publicly available on our website.

Social

As a business, we consider the impact of socially-related issues in how we make our investments and operate our business. Metrus is dedicated to creating a work environment that reflects our commitment to diversity, equity, inclusion, and anti-racism. We respect and learn from different viewpoints and lived experiences. We welcome, support, and benefit from the perspectives of all people regardless of age, race, color, culture, religion, sex, sexual orientation, gender identity, national origin, veteran, or disability status. We believe that having diverse employees, business partners, and community relationships is vital to delivering our services and achieving our mission of bringing energy efficiency and clean energy projects to life. At Metrus, diversity of thought and experience is respected and viewed as essential to excellence.

We put this into practice by ensuring that our hiring procedures consider all these factors, and we look to work with a diverse range of individuals. We also partner with a wide range of companies and aim for our partners to uphold these values as well. We ensure that any partner that we implement a project with prioritizes the ethical treatment of their employees and the environment.

Governance

We have policies in place that codify our beliefs on ESG matters as it relates to our business and our investments. We look to balance ESG considerations and carbon reduction with financial returns to create projects that are mutually beneficial for customers, partners, and Metrus.

Metrus will only finance climate-positive projects that have a net negative emissions profile, defined as a reduction in Scope 1 and 2 emissions for our customers. We firmly believe in reducing the impacts of climate change, and our capital allocation is exclusively focused on energy efficiency, water efficiency and clean energy projects. Every investment we make is first analyzed by an investment committee to calculate CarbonCount using Hannon Armstrong’s methodology: measuring the carbon impact by calculating the annual metric tons of carbon emissions offset and evaluating its relative environmental impact. Our participation in RFPs and other procurement bidding processes is transparent and in accordance with our Employee Code of Conduct.

We adhere to all applicable laws, regulations, and standards in the countries and regions in which we operate. This includes, but is not limited to, labor laws, intellectual property rights, and fair competition laws. We have a zero-tolerance policy for corruption and bribery.

This ESG policy and other matters are reviewed by the board on an annual basis.

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