Green Financing Framework

Date

AUGUST 2022

Part 1 Introduction
Company Overview
AirTrunk is a best-in-class hyperscale data centre specialist creating a platform for cloud, content,and large enterprise customers across the Asia-Pacific region. The company develops andoperates data centre campuses with industry leading reliability, technology innovation and energy
efficiency.
AirTrunk is headquartered in Sydney, with regional headquarters in Singapore and Tokyo
supported by local teams. AirTrunk’s data centre platform currently includes eight hyperscale
facilities across Asia Pacific – in Australia, Singapore, Hong Kong, and Japan.
1.1 Approach to Sustainability
At AirTrunk, we’ve reimagined the data centres of yesterday to meet the needs of today’s mosttransformational companies to enable a data-driven future. We design, build, and operate thecritical infrastructure that enables our customers to drive this transformational change.
Aligned to the United Nations Sustainable Development Goals (SDGs) and the Paris Climate
Agreement, AirTrunk’s sustainability strategy is our long-term commitment to the planet, people,and progress.
a) Our Planet Commitment••

At AirTrunk, we are always looking to find better ways to reduce our impact on theplanet and manage resources responsibly.
We actively monitor our energy, carbon, water, and waste management practices
as part of our environmental conservation efforts.

b) Our People Commitment••

At AirTrunk, we work to achieve safe delivery everyday by empowering our people
and providing a safe working environment where all employees, customers andcontractors can thrive.
We believe in enhancing the lives of our team, customers and the wider community
and uplifting all people by making a positive social impact in the communities inwhich we operate.

c) Our Progress Commitment•Through innovation, growth and transparency, we’re helping to shape a progressive
and sustainable future. Based on a foundation of clear principles and soundgovernance, we’re challenging the status quo to come up with new and better ways.

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1.1.A. Our Planet Objectivesa) Energy Management
Continue to deliver the lowest PUE in the region through efficient designs, developments andoperations.
b) Carbon Management
Set emission reduction targets to align with the Paris Agreement in 2022.
c) Waste Management
To reduce the waste we generate, and the waste disposed to landfill annually.
d) Water Management
Optimise water efficiency through water conservation strategies for all operational data centres.
Setting APAC Benchmarks for Energy Efficiency
The scale of our deployments allows AirTrunk to achieve better efficiency results. We work closelywith our customers to design the electrical and mechanical configurations for optimal Power Usage
Effectiveness (PUE) performance in the local climatic conditions and, together, deliver innovation.
We have, as one example, adopted elevated supply air temperatures that reduce coolingrequirements and reduce electrical losses through efficient UPS design.
Given our exclusive focus on hyperscale deployments, the design PUE of our data centres far
exceeds common industry benchmarks. AirTrunk facilities can achieve average annual operating
PUEs as low as 1.16 as shown in the figure below. The AirTrunk PUE band shows the averageannual operating PUE values our facilities achieve. We do not report the best instantaneous
performance as this has limited influence on actual energy consumption over time. The averageannual operating PUE number will depend on several factors:•••

Utilisation;
Climatic conditions; andCustomer deployment.

These average annual operating PUE values are quoted in accordance with the Green Grid PUE
definition. This reflects the ratio of total facility energy consumption at high-voltage utility meters toIT energy consumption at low-voltage data hall meters.
It is worth noting that since AirTrunk receives power at extra high voltages through on-site
substations (usually at 66kV or higher), this average annual operating PUE calculation includes
transformation losses inside the PUE averages. Other loads that contribute to the facility energy
consumption include technical and office spaces, which are also included in the average annualoperating PUE calculations.

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1.1.B Our People Objectivesa) Environmental Health and Safety
Provide a safe working environment where all employees, customers and contractors canthrive.
b) Talent attraction and Retention
Attract, empower and grow a diverse team who is constantly raising the bar.
c) Community Engagement
Better our local communities through job creation, digital development and community
partnerships.
d) Customer Data Protection and Cyber Security
Ensure best-in-class control environment to secure and protect our customer data.
Environmental Health and Safety
AirTrunk aims to achieve the highest safety standards everyday in a way that positively impacts
the health, safety and well-being of everyone associated with our business. By fostering safe work
environments, we make a positive social impact in the communities in which we operate and havea more fulfilled and happier workforce. AirTrunk actively engages with our workers and partners tocreate a safe working environment, recognising that our people are best placed to identify andmitigate risks and hazards.
We focus on training, coaching, mentoring and oversight to ensure safe execution of our projects
and operations. Our EHS management system is aligned to the ISO45001:2018 Occupational
health and Safety standard. We conduct safety maturity modelling to inform our safety strategy andinitiatives.
Working with our people, customers, delivery partners and suppliers, AirTrunk aims to achieve
industry-leading safety performance that demonstrates EHS leadership in the data centre sector.
Our Progress Objectivesa) Innovation
Focus on innovation and growth across APAC and work across an increasing number ofmarkets.
b) Customer Experience and Satisfaction
Meet or exceed our customer commitments for projects and services while achieving thehighest quality standards.
c) Risk Management
Remain ahead of trends, proactively manage risks and take advantage of opportunities.
d) Corporate GovernanceConduct operations lawfully, ethically and responsibly in accordance with internationallyaccepted principles.

Page | 5Innovation
AirTrunk’s vision is to continually redefine and deliver the hyperscale data centres of tomorrow.
Innovation is an imperative for us to achieve our vision. AirTrunk will continue to focus on innovationand growth throughout Asia Pacific and work across an increasing number of markets.
AirTrunk’s existing $2.5Bn+ Sustainability Linked Loan and this Framework provides it with theopportunity to embed this innovation and sustainability commitments to its funding platforms.
Sustainability Reporting
We publish a sustainability report annually, highlighting our commitment to delivering value to all
our stakeholders, and our progress towards integrating sustainable practices across ouroperations.
AirTrunk’s goals are aligned to the long-term global goals of society, as articulated in the United
Nations Sustainable Development Goals (SDGs). We aim to create long-term sustainable value,
while driving positive outcomes for business, society, and the planet. In our report, AirTrunkprovides an account of our ambitions, yearly performance, and challenges.

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Part 2 Framework
SummaryAirTrunk has created this Framework to govern potential green loans or green tranches of loans(Green Facility), that align to the four core components of the LMA Green Loan Principles (GLP),
as follows;
1.
2.
3.
4.

Use of Proceeds;
Process for Project Evaluation and Selection;
Management of Proceeds;
Reporting.

This Framework has been developed so that it may be used to govern greenfield and brownfieldprojects across APAC where standalone ring-fenced funding platforms are required, complimenting
AirTrunk’s existing $2.5Bn+ Sustainability Linked Loan (“SLL”). With this Framework alongside theSLL, AirTrunk intends to link all of its financing platforms with its sustainability commitments,encourages greater transparency and showcases its market leading design capability and data
centre sites. AirTrunk recognises sustainability is a collective responsibility and its ambition is to bea leader in sustainability financing.
2.1.1 Use of Proceeds
An amount equal to the net proceeds of any Green Facility issued under this Framework is intended
to be applied to fund or refinance1, in whole or in part, Eligible Green Projects which have a clear
and positive environmental impact. The Framework identifies three eligible green categoriesaligned with the United Nations SDGs
1. Green Data Centre;
2. Renewable Energy;
3. Water Efficiency.
The projects selected under this Framework help AirTrunk work towards its long-termsustainability commitment to the planet, people, and progress and drive positive change.

1 Look back period is maximum of two years

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GLP
Categories

GreenDataCentre

UN SDG

Eligibility Criteria

Expenditures related to the study, design, construction,financing, operations and maintenance of data centres andoffices that have recently or are expected to achieve:a) Energy-efficient data centres that achieve or are expectedto achieve site average annual operating Power Usage
Effectiveness2 (PUE) below the upper bound of theAirTrunk PUE band belowb) Water-efficient data centres that are designed to a waterproductivity threshold whereby each kilolitre of water used
reduces energy consumption by at least 15kWhcompared to a waterless solution

Renewable Energy

Expenditures and costs associated to the construction,development, acquisition, maintenance and production ofrenewable energy with GHG emissions below
100gCO2e/kWh, such as:
1. Installed solar PV;

2 12-month average annual PUE and utilisation. During construction and ramp up of the data hall to 25%

utilisation the average annual PUE of that data hall (assuming 25% load) will be applied in the calculationof the site operating PUE

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WaterEfficiency

Expenditures related to the acquisition, study, design,construction, financing and operations of data centres andoffices that contribute to an increase in water management
performance of new or existing AirTrunk sites, such as:a) Water infrastructure upgrades (including metering andreporting, upgrades and replacement of components inmechanical cooling equipment using water, control systems
and technology for water use optimisation);b) Water-efficient cooling solutions;c) Schemes that reduce the stormwater runoff: green roofs,landscape (for example, on site water storage tanks fed by
rainwater runoff), SUDs, etc;d) Rainwater capture systems.

Process for Project Evaluation and Selection
Projects funded and/or refinanced, in whole or in part, with net proceeds from Green Facilities areevaluated and selected by AirTrunk’s sustainability committee based on the Eligible Green Project
criteria above. AirTrunk’s sustainability committee consists of leaders from the Technology,Operations, Energy, Sustainability, Innovation, Development, Health & Safety, Legal, People andCulture, Treasury, and Risk function, and is chaired by our Head of Risk & Sustainability, whoreports directly to AirTrunk’s Chief Executive Officer, Chief Operating Officer, Chief FinancialOfficer, Chief Technology Officer and the Board. The Sustainability Committee will manage any
future updates to the Framework including any extension to the list of eligible categories andchanges in market developments and oversee its implementation. The Sustainability Committee
meets on a monthly basis, with more frequent meetings possible depending on specificcircumstances.
Prior to each project, AirTrunk conduct an in-depth environmental and social assessment withqualified and reputable expert. Depending on the site and region, the scope will differ slightly but
usually covers: environmental impact, waste impact, ecological sustainable development, GHG
efficiency and cultural heritage. The assessment is performed during due diligence at first stage
and continuously monitored throughout the project as part of our ongoing risk management
process.
Depending on the results from this initial assessment process and any identified risks AirTrunk may
engage further due diligence. All mitigating controls in place are documented in a project risk
register and action plans are implemented to manage both existing and emerging risks throughout
the project delivery. Example of mitigating control include:- Environment: Assessment of the air quality impacts of the development during
construction and operation, prepared in accordance with the relevant Environment
Protection Authority guidelines.
- Water: Assessment of potential surface and groundwater impacts associated with thedevelopment, including potential impacts on watercourses, riparian areas, groundwater,and groundwater-dependent communities nearby- Ecologically Sustainable development: Principles of ecologically sustainable
development incorporated in the design, construction and ongoing operation of thedevelopment- GHG and energy efficiency: Assessment of the energy use and all reasonable andfeasible measures that would be implemented on site to minimise the GHG emissions.

Page | 9-Cultural Heritage: Identify and Document Aboriginal cultural heritage values that exist
across the development site in an Aboriginal Cultural Heritage Assessment Report(ACHAR)

At a minimum AirTrunk complies with all local regulations in the geographies it operates, and forcore areas of focus such as Health and Safety implements the highest standards of safety
practices.
Management of Proceeds3
To ensure complete transparency and accountability AirTrunk’s sustainability committee will
monitor all Green Facility proceeds for Eligible Green Projects in accordance with the Eligibility
Criteria. With Green Facilities expected to be raised for designated purpose projects with separatebank accounts a robust and transparent framework should ensure the management of proceeds tothe highest standard.
Pending allocation, or in the event of unallocated proceeds, AirTrunk may temporarily use
unallocated net green proceeds in accordance with the Company’s general liquidity measures until
re-allocation to Eligible Green Assets. AirTrunk intends to re-allocate any proceeds within 12
months, and to report on the balance on any unallocated proceeds as part of the commitment toreporting. Where possible sustainability committee monitoring process will be reconciled against
Independent Engineering reporting for a particular project.
Reporting
Reporting will detail both the allocation of proceeds and the potential impact of the Eligible GreenProjects. Further recognising the importance of transparency and disclosure has on influencing
positive change, AirTrunk plans to continue undertake this reporting whilst the Green Facility isoutstanding.
Allocation report
AirTrunk intends to report on the allocation of net outstanding Green Financing proceeds to alloutstanding Eligible Green projects to the respective financiers, including:••••

Total net allocation to Eligible Green Projects;
Percentage of financed versus refinanced Eligible Green Projects;
Breakdown of Eligible Green Projects by GLP Category; andAny balance of unallocated proceeds.

Impact Reporting
Where feasible, AirTrunk intends to report on the impact of the Green Facilities, including:••A description of each Eligible Green projects;
Metrics regarding the Eligible Green projects’ positive environmental impacts, as outlinedin the table below.

GLP Categories

Examples of Impact Metrics

Green Data Centre••

Average annual site PUE
12-months average annual operating site PUE

3 All green proceeds will be allocated to Green Eligible projects within a 12-month period

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Water Efficiency••

During construction and ramp up of each data hall up to25% utilisation the average annual design PUE of that data
hall (assuming 25% load) will be applied in the calculationof the site average annual operating PUE
Total estimated energy savings through the use of water (inkWh/m3)•Percent renewable energy for green project portfolio (MWhrenewable / MWh electricity consumption)
Annual GHG emissions reduced/avoided (mtCO2e)••

Water savings (m3/year)
Reclaimed (greywater or rainwater) water used (litres)

External Review
Second Party OpinionThis Green Finance Framework has been reviewed by Sustainalytics who has issued a Second
Party Opinion. The Second Party Opinion and this Framework are available via AirTrunk’s
website https://airtrunk.com/
Verification (post-issuance)
AirTrunk intends to request, in the first Sustainability Report reporting period after issuing eachGreen Facility, and annually until the respective maturity or the respective loan is repaid, limited
assurance by its external auditor or other third party of a management statement on the allocationof the Green Facility net proceeds to the Eligible Green Projects. AirTrunk will be disclosing
allocation and external assurance in a separate independent report. Where possible, AirTrunk may
also seek a review of any impact metrics reported from a qualified third party.

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