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Transparency of sustainability risk policies

SFDR Article 3

Hvitsten has been appointed to provide portfolio management and risk management services to the Fund in relation to the management of the Fund's portfolio. The Fund has been established with the sole purpose to co[1]invest with Fred. Olsen Renewables AS in certain existing and future wind farms. The disclosures herein therefore set out information on some of Hvitsten's policies on the integration of sustainability risks when Hvitsten – in its capacity as AIFM – assist relative to and monitor investments. These activities forming part of the portfolio management and risk management services provided to the Fund will collectively be referred to as "investment management".

Hvitsten believes that the integration of sustainability risks1 is an important part of risk management and embeds sustainability risk considerations into its investment management as appropriate. The sustainability risk considerations form part of the general sustainability analyses that Hvitsten conducts as part of its investment management in relation to the Fund's contemplated and completed investments. Such integration is in line with Hvitsten's belief that a focus on sustainability supports the financial objective of investment strategies by furthering the long-term economic performance of investments and reducing financial risks.

Examples of ESG events or conditions considered where relevant, include, inter alia, controversial business activities, adverse climate impacts, biodiversity impacts, water and waste management, social and employee matters, human rights, health & safety impacts, product impacts and supply chain impacts. Hvitsten seeks to disclose likely impacts of ESG events or conditions on the financial returns graded in a qualitative manner on a "low – medium – high"-scale and may make cash flow adjustments in financial models as appropriate.

Hvitsten also, as the case may be, integrates sustainability risks through active engagement with portfolio companies. Hvitsten will, throughout its investment management, focus on being in a position to provide portfolio companies under its management with appropriate tools and guidance required to assess and manage sustainability risks. Hvitsten will use this position to support portfolio companies to enhance and further develop their ESG related achievements and disclosures.

The current aim of providing such tools and guidance as part the investment management is to reduce the Fund's portfolio's exposure to sustainability risks. Moreover, Hvitsten seeks to mitigate the potential negative impact of ESG-related events or conditions on the Fund's returns by taking both environmental, social and governance considerations in its investment management in the manner described below.

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Environmental considerations:

Investments under management are focused on renewable energy assets, including onshore wind farms. Onshore wind farms have a significantly lower carbon footprint compared to fossil fuel-based energy sources, contributing to greenhouse gas emissions reduction. In its investment management, Hvitsten prioritizes investments in projects that adhere to stringent environmental standards, considering factors such as land use, biodiversity, and the potential impacts on local ecosystems. Wind farm projects are evaluated based on their environmental characteristics, including their contribution to climate change mitigation, resource efficiency, and environmental impact assessments. Such considerations mitigate exposure to sustainability risks.

F O Sustainability 03

Social considerations:

Hvitsten recognizes the importance of social considerations in its investment management. By investing in onshore wind farms, the Fund actively contribute to local communities and promote sustainable economic development. The Fund will as appropriate through Hvitsten engage with stakeholders, including local communities, to foster positive relationships and address any concerns or impacts associated with its investments. Governance considerations: Governance considerations play a critical role in Hvitsten's investment management. Hvitsten assesses the governance practices of the companies and projects in which the Fund invests, and investments in entities that demonstrate robust corporate governance, ethical business practices, and transparent reporting are prioritized. Additionally, Hvitsten will engage as appropriate with the Fund's investee companies to encourage responsible corporate behaviour, including strong ESG policies, board diversity, and effective risk management.