Responsible Business
ESG R E POR T 2 0 21

RESPONSIBLE BUSINESS 2021

Contents

03

Letter from the Executive Chairman

04

Investcorp at a Glance

05

Diversity, Equity & Inclusion

06

Responsible Business Highlights

01
07

A Year in Progress

08

Taking Stock, Looking Forward

02
11

Our Approach

13

Responsible Business Framework

14

Governance15

Risk Management

16

ESG Integration in Our Global Investing Platforms

03
18

Case Studies

19

Responsible Operator

22

Responsible Employer

31

Responsible Citizen

04
44

Appendices45

SASB Disclosure

51

Deloitte Independent Assurance ReportRESPONSIBLE BUSINESS 2021

A Year in Progress

Our Approach

Case Studies

Letter from the Executive Chairman

Since Investcorp’s inception we have been committed to facilitating synergistic relationships with allof our stakeholders. We continue to invest in the best of what business and society have to offer. Our
strategic insight enables us to channel those resources toward goals that address the nuanced needs ofour fast-evolving world.
We must not discount the impact of
the shifts the world has faced in recent
years, following the Covid-19 pandemic
and its subsequent challenges. Manyorganizations and individuals have faced
innumerable losses and continue to facerisks.
However, these shifts have allowed
citizens, governments, and companies
across the globe to come together
and recognize the importance ofcollaboration. Society and its various
components function optimally when
they work together toward mutual
benefit.
The pandemic has also highlighted amyriad of strengths that have emerged
from this global community, from
adaptability to creative solutions forunprecedented challenges. While theworld has recently faced great adversity,
it is crucial that we collectively
recognize and build on the strengths
and opportunities at hand so thatsociety may thrive in the future.

While aspects of the future may beuncertain, one thing is clear — aneed for strong ESG practices among
businesses and the underlying value
they represent: responsibility. As afirm, we hold a responsibility toward
our investors and shareholders, ouremployees, and the companies inwhich we invest, and as individuals andglobal citizens, we have a collective
responsibility as members of ourcommunities.
At Investcorp, we operate with amindset of finding solutions to deliver
sustainable, long-term results that
address evolving societal and economic
goals. Over the past year, we havebuilt and implemented a new andrigorous framework to help us navigate
our business in the post-pandemic
world while continuing to engage
synergistically with our stakeholders.
This engagement enables us todetermine where we can make thegreatest impact in fulfillment of our

purpose. This ongoing dialogue is a
key part of our learning and continued
enhancement of our approach as we
progress. Global collaboration is what
positions us best to overcome the
obstacles in our journey and create
new, sustainable solutions.
We are excited about what the futureholds and look forward to continuing
to work with you to help shape it.

Mohammed Alardhi
Executive Chairman

Appendices

03

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Appendices04

Investcorp at a Glance

Investcorp is a leading global alternative investment manager for individuals, families, and institutional investors,
offering diverse strengths and proven resilience. Since our founding in 1982, we have built a global reputation forsuperior performance, innovation, and service. We continue to execute on an ambitious yet prudent growth strategy ofglobal and asset class diversification. Through a disciplined investment approach across each of our lines of business,
our focus remains on generating value for all of our stakeholders.

AUM

Fee Income

37.6B

356M

$

$

6.6B

Private Equity

Net Profit

125M

$

$

7.5B

Real Estate

All figures are as of June 30, 2021.
Please refer to our 2021 Annual Report for full context on all figures and descriptions.

$

$

14.7B

Credit Management$

Employees

Offices

427

13

7.6B

Absolute Return Investments

$

415M

Strategic Capital

$

300M

InfrastructureRESPONSIBLE BUSINESS 2021

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AppendicesDiversity, Equity & Inclusion

Embedding Diversity, Equity & Inclusion (DE&I) into our workplace culture is at the core of everything we do. This year, DE&I
became firmly embedded across all areas of Investcorp’s business and daily operations. Since our beginnings in 1982, we haverecognized that fostering an open, inclusive, and diverse culture is at the heart of our business and plays a vital role in creating
value for our clients. Our ongoing efforts to drive a corporate strategy shaped by diverse perspectives are a testament to that belief.

4
DE&I awards andrecognitions

Diverse Global Representation

32%

of our employees
are female48%

of all new hires in
2021 were female

45
nationalities are represented
across the firm

DE&I Committee
10 partners across our offices, looking at
regional and local DE&I initiatives

7
external training
workshops

27
DE&I related
event and panel
participations

Flexible

Mental HealthParenting Leave

working arrangements
implemented across the globe

awareness and support
available to all employees

given above statutory
requirement in all offices

05

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Responsible Business Highlights

RESPONSIBLE OPERATOR

We became asignatory to the

We launched a new
Responsible Business

UNPRI

Framework

We introduced asset-class specific

We published our

ESG

First

integration guidelines

SASB disclosure

RESPONSIBLE EMPLOYER

We ranked in the

We launched a new policy that requires

Top 5

50

for DE&I leadership1%of all shortlisted candidates tobe from diverse backgrounds

32%

45

78%

of our employees
are female

nationalities are
represented acrossthe firm

of our employees
have undergone
specific DE&I training

RESPONSIBLE CITIZEN

1

We switched to

We conducted ourOur staff contributed to

100%

First

26

renewable electricity
in our London officecarbon footprint
assessment

CSR initiatives
in FY21

The ranking was announced by Equality Group’s first Inclusive Top 20 PE & VC Index.

06

RESPONSIBLE BUSINESS 2021

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Appendices

01
A Year in
Progress

07

RESPONSIBLE BUSINESS 2021

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Taking Stock, Looking Forward

In our 2020 ESG Highlights Report, we made a commitment to workwith all our stakeholders to enhance the way we think about andimplement the integration of Environmental, Social, and Governance(ESG) considerations across all our lines of business and the markets
in which we operate.
This year’s report, renamed Responsible
Business, outlines the progress wehave made since that commitment
and renews our priority to deliver valuethat is sustainable, inclusive, andconsiderate of all our stakeholders.
Our new framework can be summed
up in one word: responsibility. At
Investcorp responsibility means aduty, commitment, and expectation on
the part of all Investcorp employees
to contribute toward creating a moresustainable world and building better
outcomes for all.
We do this by focusing on three coreelements of that responsibility: how
we operate as a global investment
manager, the relationship we havewith our employees, and our portfolio
companies, and how we interact withthe world and the communities in which
we operate.

This report describes in more detaileach of these three core elements andoutlines how we are delivering against
these.
We have also introduced the concept ofissues that are “universally material,”
reflecting our recognition of some ofthe defining issues of our time: climatechange, rising social inequality, and thecontinued need for better governance.
We believe that businesses that takethoughtful and decisive action on thesethree issues will outperform those that
do not over the long term, and thatis why these issues now constitute apart of minimum due diligence for allprospective investments.

At Investcorp, we have a fundamental
belief that sustainability is an
inseparable part of creating value
within our investments. Supporting themanagement teams of our portfolio
companies across their ESG and DE&I
initiatives is a critical component of our
mission toward building more resilientbusinesses that will ultimately deliver
attractive returns for our investors.
Rishi Kapoor
Co-Chief Executive Officer

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Taking Stock, Looking Forward (continued)

Over the following pages we outline
some notable milestones from our work
this year, which include:
RESPONSIBLE OPERATOR

Our public commitments
We became a signatory to the United
Nations Principles for Responsible
Investment, in recognition of the factthat applying these principles may
better align investors with broader
objectives of society.
We became a signatory to theInstitutional Limited Partners Diversity
in Action initiative, representing ourcommitment to improve diversity, equity,and inclusion in private markets.
This year, we published our firstsustainability-related corporate
disclosure in accordance with SASB’s
relevant standards for investment
managers.

the experience and expertise of ourinvestment and portfolio managers,
external sustainability experts, ourBoard of Directors, and other key
constituent stakeholders.
We introduced a new firmwide
Responsible Investment policy thatenhances our existing approach tosocially responsible investing, supported
by detailed procedural guidelines foreach of our investing platforms.
We strengthened the firm’s
governance on sustainability-related
matters by creating a new Executive
Committee for ESG, operating under acentralized governance and federated
ownership model, where newly
appointed ESG stewards across each of
our lines of business work closely with
the ESG team to strengthen existing
investing practices.

Revamping how we think about andact on sustainability

We enhanced our enterprise risk
management framework to ensure
appropriate ESG risk review occurs at
all levels of the investment process.

We designed a new Responsible
Business framework that embeds
sustainability considerations in every
part of our business, drawing on

We developed a proprietary approachto ESG integration within our credit
portfolio, moving beyond the traditional
exclusionary screening practices

1

The ranking was announced by Equality Group’s first Inclusive Top 20 PE & VC Index.

common to ESG integration withincredit investing.
RESPONSIBLE EMPLOYER

Deploying our capital to advancediversity within the investment
management industry
We completed a partnership with
Xponance to collaborate on staking andseeding of diverse and woman-owned
alternative asset managers, in order toaccelerate diversity and inclusion acrossthe investment management industry.
Reinforcing our commitments toaccelerating action on diversity, equity,and inclusion
We launched a firmwide diversity
committee, made up of representatives
from each of our offices, to ensure weenhance our efforts at the individual
office level.
We were ranked in the top five ofour peers globally as among the mostinclusive firms across the private equity
and venture capital industry.1
We became a founding memberof the not-for-profit organization
Women in Private Equity (WinPE),

representing our aim to support andpartner with industry peers in advancing
gender diversity and promoting equal
opportunity and representation of
women within the private equity andventure capital industry.
We partnered with 10,000 Black
Interns, an initiative that seeks totransform the prospects of young Black
people in the UK.
Training and development
We conducted numerous sessions for
employees across different teams on
the firm’s ESG strategy and integration
efforts globally and have initiated thedevelopment of sustainability training
based on input received during these
discussions.
We enhanced our employee
performance appraisal process by
including an additional competency
requirement to assess the commitment
and contribution of all Investcorp
employees toward better ESG andsustainability practices across the firm.

09

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Taking Stock, Looking Forward (continued)

RESPONSIBLE CITIZEN

Taking meaningful steps toward
reducing our carbon footprint
We conducted the firm’s first evercarbon footprint assessment acrossScope 1, Scope 2, and select Scope 3
emissions to understand our baseline
emissions profile.
We transitioned to 100% renewableelectricity sources in our London officeand our data centers in the US.
We initiated an environmental auditof our largest offices to determine what
measures could be implemented overtime to reduce our carbon footprint.
Engaging our portfolio on emissions
management
Our portfolio company, ABAX, theleading telematics solution provider in
the Nordics, achieved carbon neutrality
and reinforced its commitment tohelping its over 36,000 customers emit
less carbon each year.
We initiated bottom-up carbon
emissions footprint assessments of a
selection of our majority-owned portfolio
companies in North America.

We commenced a project with an
external specialist consultancy toestimate the magnitude of carbon
emissions across our entire portfolio ofinvestments and identify where more
focused attention may be required.
Participating in industry dialogue on
the future of private capital
We contributed to numerous
discussions, industry conferences, andworkshops on ESG and sustainability,
particularly as they relate to private
markets, including several hosted by theWorld Economic Forum.
We participated in The NeoRenaissance Conference hosted by the
Future Investment Initiative, where
we provided our perspectives on theimportance of taking an approachthat ensures a just transition alignedwith country- or region-specific goals
that may differ in emerging markets
compared to those in more economicallydeveloped nations.
Creating a lasting impact in ourcommunities
We announced our support for the
Bahrain Crown Prince’s International

We recognize that market volatility
brings opportunities to build forward
better, and we keep this in mind when it
comes to our commitment to work withall our stakeholders to always do better.
Habib Abdur-Rahman
Head of ESG

Scholarship Program over the next 10
years, reflecting our conviction in the
power of education as a key driver of
economic and social progress.
During the pandemic, we supported
residents of our multifamily housing
investments who were most in need,and provided over 1,000 residents
concessions on their lease terms
including payment timing flexibility andwaived fees in excess of $200k.
We instituted community scholarshipprograms across several of ourresidential investment properties,
to help students with financial needresiding in our communities.

Many of our teams engaged inseveral community initiatives centeredaround education, healthcare, fighting
poverty, and the preservation of theenvironment.
LOOKING FORWARD

We have made much progress over the
past year, but we are also keenly awareof the scale of the challenge ahead ofus both in terms of our own activities
as a corporation, and also our role as aprovider of capital.
Over the coming year we will be
doubling down on our efforts,
particularly with regard to financing thedecarbonization journey, driving more
equitable and inclusive employment
initiatives, and providing more focused
support on enhancing governancepractices to those of our portfolio
companies that would benefit most fromthis in the emerging markets.
We remain agile in our approach to
how we integrate ESG considerations
across our investment processes,
to ensure we stay current and go towhere the most pressing problems andopportunities are.

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Our
Approach11

RESPONSIBLE BUSINESS 2021

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Our Approach

Our Responsible Businessframework consists of threepillars of responsibility, witheach pillar comprising five
ESG issues that we consider
to be universally importantfor our business.

R ESPON SI BI LI TY
DEFINITION
noun. A duty, commitment, andexpectation on the part of all Investcorp
employees to contribute toward
creating a more sustainable world andbuilding better outcomes for all.

Applicable to both Investcorp and ourinvestee companies, the framework
was constructed after extensive
dialogue with representatives fromall our business units, consultation
with external sustainability experts,
and a review of growing regulatory
expectations across the jurisdictions inwhich we operate.

the future success of our businesses,
Investcorp considers the impact ofclimate change, social inequality, andgovernance and business ethics asuniversally material issues, and these
therefore constitute a part of minimum
due diligence for all prospective
investments regardless of industry,
sector, or geographic location.

We recognize that our portfolio
companies are at different stages of
their respective sustainability journeys,
and this is reflected in our phased
implementation approach, where
action on issues is prioritized based onmateriality and feasibility to execute, as
well as our ability to effectively monitor
progress on an ongoing basis.

For further information, please refer to
our Responsible Investment policy.

While we consider the 15 issues
identified in our Responsible Businessframework as universally important toAppendices

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Responsible Business Framework

Tran
spa
ren
cy

Data Privacy

16 KPIsC IT IZ EN

GH

M
an
ag
em
en
t

17 KPIs

G

Em

iss

io n sE ner

Water Management

gy M

a

g
na

em

e

oc
i
lit aly

As an investment manager with a global mandate, we are keenly
aware that shifts in global climate and efficient utilization ofnatural resources bring potentially profound implications forfinancial stability and the global economy.

E MPL O Y ER

15 KPIsR E SPO NS IB L E

te
as
W

Responsible citizen

R ES P O NS I BL E

O P E RATOR

nt

Being a responsible employer is about creating an environment
where our people have access to opportunities for growth andquality training and development to build the skills they may needfor the future.

RESP O NS I B LEStera sibionrpCo espoR

Training
and Development

Responsible employer

Lab
or S
tan
and
Pra dard
cti
ce s
s

and
ce
s
an
n
r
thic
ve
sE
o
s
e
G
sin
Bu

Health, Safety,
and Wellbeing

Being a responsible operator is foundational to building trust andconfidence with all our stakeholders, and we expect the samelevel of care and rigor from our portfolio companies as we apply toourselves.

d Ser viceuct anProd
Safetynity a dQual

Responsible operator

Diver
sity,
Eq
and I
nclu uity,
sion

ment
cure
Pro

ay
le P sab
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The Responsible Business framework consists of three pillarsof responsibility, 15 dimensions, and 48 KPIs. We take a
tailored approach to the implementation of this framework, sowhile all dimensions are universally important to our business,
not all are material to all asset classes and/or investments, andsimilarly not all KPIs are applicable to all investments.

RESPONSIBLE BUSINESS 2021

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Case Studies

Governance

The oversight of ESG activities at Investcorp and across our portfolio
follows a centralized governance and federated ownership model.
The Executive Committee for ESG,
comprising Investcorp’s Executive
Chairman, the Co-CEOs, the CFO, andthe Head of ESG, sets strategy and is
the ultimate decision-making body for
all ESG matters across the firm.

enhance alignment of process andmethodology across all our investing
platforms to ultimately drive responsible
business practices across Investcorp’s
own operations as well as those of ourportfolio companies and assets.

Investcorp’s Board of Directors reviews
the firm’s approach to sustainability
and provides oversight for ESG andsustainability-related matters. The
Board of Directors receive updates
on our strategy, developments in ESG
integration across our businesses,
and information on any material ESG
considerations for the firm at least
annually.

Our centralized governance approachensures key decisions in relation to
Investcorp’s ESG strategy, policies,
and procedures – including the firm’s
approach to addressing both climateand social inequality-related risks andopportunities – align with Investcorp’s
core values and purpose and can be
efficiently cascaded throughout the firm.

Investcorp’s Head of ESG, who reports
to Investcorp’s Executive Committee andis supported by a team of professionals
from across our businesses, oversees
the implementation of the firm’s
Responsible Investment policy and ESG
strategy firmwide.
The ESG team works closely with all
investment and corporate teams to

To effect change across our investee
companies, we believe it is importantthat implementation responsibility
must rest with the investment teams
and their portfolio companies. This
federated ownership approach ensures
teams are sufficiently empowered todrive responsible business practices
within the companies that they steward,
while benefiting from Investcorp’s global
network, resources, and scale.

Our commitment to making a positive
difference in our global communities
is not a new one, but one that has been
one of our founding principles since ourformation four decades ago. By further
integrating the environmental, social,and governance principles across ourinvestment platforms, we ensure thesevalues remain core to everything we do.
Hazem Ben-Gacem
Co-Chief Executive Officer

Appendices

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Risk Management

The effective management of
non-financial risk is fundamental
to Investcorp’s enterprise risk
management culture.
Investcorp’s approach to identify,
measure, manage, and report onmaterial ESG risks that may impact thefinancial or operational performanceof our investments and/or the firmis governed by Investcorp’s risk
management framework and occurs
on two key levels: (i) at the investment
and/or product level and, more broadly,(ii) at the firmwide level.
The risk management framework is
structured across three independentlines of defense. The first line ofdefense, comprising the firm’s frontline investment teams and relationshipmanagers, assumes responsibility forowning and managing risk directly; thesecond line oversees the first line, andis responsible for setting risk policies
and procedures, defining risk tolerances,and ensuring they are met; and thethird line, consisting of internal audit,
provides independent assurance of thefirst two lines.
It is within the first line of defense

where investment-related ESG risk
reviews are conducted and in thesecond line where ESG risk implications
on Investcorp’s risk profile are assessedon an enterprise-wide basis.
INVESTMENT AND/OR PRODUCTLEVEL ESG RISK REVIEWNew investments
At the individual investment level, allinvestment proposals across our private
equity, real estate, credit, and strategic
capital businesses are subject toevaluation and due diligence, including
one or more stages of ESG risk review inaccordance with the firm’s Responsible
Investment policy as well as, where
relevant, any business-line specific ESG
policies and guidelines. The results of
the risk review are formally documented
in an investment committee
memorandum, which is presented for
discussion and debate by the relevantline of business before the investmentcommittee.
Investments and/or investment
strategies are independently evaluatedby Investcorp’s risk management team,and for investments which present
material risk to the firm, the risk
management team will also present

business-line specific ESG policies
and guidelines.
Our Responsible Business framework
evaluates ESG principles at every
stage in the lifecycle of an investment
from due diligence to exit. This allows
us to consistently identify areas for
improvement and work to build better,more sustainable investments.
Jan Erik Back
Chief Financial Officer

its findings and recommendations to
the relevant business line investmentcommittee in the form of a risk
management memorandum, which alsoseeks to cover ESG-related issues.
As an additional control, the relevant
investment committee is mandated toreview for compliance with applicable
investment processes, policies, andprocedures – including content andcoverage of investment committeematerials – and identify any material
deviations from such requirements,
including any deviations from therequired level of ESG diligence, in
accordance with any applicable

Existing deals
For all existing deals, each line ofbusiness periodically reviews theinvestment thesis of all investments thathave been made by the respective lineof business and compares them against
the pre-acquisition investment thesis,
including an assessment of any material
ESG risks and mitigating actions
identified. In case of a significant
change in the investment thesis,
including the impact of ESG factors on
the financial or operational profile of aninvestment, the line of business may
propose remedial action(s), which arethen evaluated and approved by therelevant investment committee.
FIRMWIDE ESG RISK REVIEWAt the firmwide level, Investcorp is
focused on better understanding theimpact of climate change, social
inequality, and governance and businessethics in driving more sustainable andequitable businesses. We consider
these three issues as universallymaterial across our business, bothat the corporate as well as theinvestment level.

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ESG Integration in Our Global Investing Platforms

PRIVATE EQUITY

Within private equity, the screeningstage includes assessing alignmentof the proposed investment against
Investcorp’s core values and purpose,screening against exclusions, anddetermining whether the company
raises any reputational, businessintegrity, or ESG “red flags.”
The due diligence process is led by theinvestment teams, who use SASB’s
industry-specific guidance in thefirst instance to formulate a view on
the most material ESG issues that acompany faces; it is at this stage where
universally material issues are also
assessed, which together with SASB’s
material issues considerations constituteminimum due diligence requirements.
In progressive stages of diligence,
the teams may conduct a broader
assessment based on Investcorp’s
Responsible Business framework. The
overall assessment is included in theinvestment committee memorandum,
and identifies material ESG risks, an
ESG value creation plan, and residual

Whether they are just beginning or
already carbon neutral, it’s a real
privilege to work with the managementof our portfolio companies, and toshare best practices where we can, toadvance their sustainability journeys.
Andrea Davis
Chief Operating Officer –Private Equity Europe

ESG management requirements
following a potential transaction.
Immediately after the acquisition of acompany and during the investment
hold period, Investcorp’s private equity
post-acquisition teams work closely with
our portfolio companies to establish
an appropriate governance framework
to manage ESG matters, agree on
targets for improvement across all
three pillars of Investcorp’s Responsible
Business framework with a focus on
the most material issues at first, anddetermine skills capacity requirements

at the portfolio company to ensure we
maximize the potential to generate value
from ESG initiatives.
The teams regularly monitor and trackprogress against agreed plans as part ofour standard investment review process.
At the exit stage, the post-acquisition
teams work with our portfolio
companies to prepare an ESG impact
assessment outlining key improvements
made and value generated as a direct
result of our ESG efforts.
Investcorp’s Strategic Capitalbusiness takes a similar approach to
ESG assessments when considering
minority interests in alternative
asset managers.

Appendices

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ESG Integration in Our Global Investing Platforms (continued)

REAL ESTATE

Real estate acquisitions undergo asimilar screening process to thatof private equity, where potential
investments are assessed against
Investcorp’s core values and purpose,as well as our exclusions policy, andscreened for any reputational, businessintegrity, or ESG "red flags."
The due diligence process is led by theinvestment teams, who use SASB’s
industry-specific guidance for real estate
owners, developers, and investment
trusts to formulate a view on high-risk
ESG issues; it is at this stage where
universally material issues are also
assessed. The key outcome of thisprocess is the development of an ESG
action plan, outlining key ESG risks,
issues, and mitigation strategies, as wellas any potential ESG opportunities.
Following the acquisition of a property
or origination of a loan, the real estate
post-acquisition team works closely with
our partners and management teams
to establish an appropriate governanceframework to manage ESG matters,
including a process to resolve any

outstanding ESG matters from the due
diligence process.
In preparation for the sale of an asset,
the deal team prepares an ESG impact
assessment for review by the investmentcommittee, outlining key improvements
made and value generated as a direct
result of our ESG efforts.
CREDIT MANAGEMENT

Within credit management, ESG
assessments complement our
understanding of the businesses into
which we look to invest, and is an
important element of our risk appraisal
process. We actively incorporate
ESG considerations to enhance ourestablished credit evaluation process.
Investcorp has developed a process
in collaboration with an external
party, in which we utilize external
ESG benchmarking alongside our own
detailed analysis of each prospective
borrower, to allow us to calibrate
the extent to which a prospective
borrower performs against their peers
and to identify their alignment with
Investcorp’s core ESG principles.

This analysis is embedded within ourinvestment process, and is actively
debated, recorded, and subsequently
monitored. This level of positive
assessment, beyond the traditional
exclusionary approach, also allows
us to monitor the composition andevolution of our loan portfolios over time
and to share this information with ourinvestors.
JOINT VENTURE PARTNERSHIPS

Investcorp operates a joint venturewith Aberdeen Standard Investmentsthat focuses on investing in social andeconomic infrastructure projects in
Gulf Cooperation Council countries. We
also operate a joint venture with Tages
Group, Investcorp-Tages, a merger
between the respective absolute returns
businesses of Investcorp and Tages
Group. Both entities operate their own
ESG policies at present, which areconsistent with Investcorp’s approach toresponsible business.

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Responsible Operator

Being a responsible
operator is a foundation
for building trust andconfidence with all our
stakeholders, and we expect
the same level of care andrigor from our portfolio
companies as we apply toourselves.

We believe that business operations
with responsibility at the heart
ultimately lead to better businesses andstronger results. We continually strive toimprove business practices throughout
our organization, whether in relation
to our corporate governance practices
or investment processes, the way weprocure goods and services, or the way
we collect, process, and store dataon our clients, employees, and otherstakeholders.

ISSUES WE CONSIDER TO BE UNIVERSALLY IMPORTANT

Governance & Business Ethics
Transparency

Data Privacy

Product Service Quality & Safety

Procurement

Case Studies

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DATA PR IVA C Y

Protecting Digital Identity at Investcorp

Privacy is a fundamental
human right. In an environmentof increasing technologicalsophistication and recurring
cyber threats, the issueof data privacy has comeunder increasing scrutiny bygovernment and policymakers
globally and is now among
the most topical issues of themodern age.

The way in which organizations andindividuals interact and exchange
information has profoundly changed,
and as a result, companies havebecome increasingly reliant on thecollection, processing, and distribution– often cross-border – of large amountsof sensitive and personal data in orderto provide customers with even better
products and services. Therefore, theneed to protect the data entrusted to us
against the risk of fraud, identity theft,misuse, or abuse has never been moreurgent.
As a global investment firm, Investcorp
views the protection of the digital
identities of our investors, clients, andemployees as a strategic imperative, as
the risks of failing to get this right are
significant. The responsible collection
and use of data, the deployment of
the latest data protection practices,and continual user awareness training
and phishing simulations are thecornerstones of our approach toprotect the firm, our clients, and our
employees.

Responsible collection and use
We recognize that data is a criticalcomponent to effectively serving ourclients, and our approach to collecting
data is determined by whether a
specific piece of information enables us
to provide a better service to our clientsor fulfill a regulatory obligation. We do
not collect data for data’s sake.
Leading data protection practices
Investcorp has partnered with a Tier 1
security provider to improve detection
and response capabilities through 24x7
coverage via a Security Operations
Center to ensure we detect and deter
any threat within our environment. In
addition, we are constantly enhancing
our vulnerability management program,allowing Investcorp to protect ourphysical and logical assets from design
flaws and potential exploitation by
cybercriminals.
Furthermore, data access rights are
only provided on a need-to-knowbasis, which is why access rights are
frequently reviewed, as and when roles

and responsibilities change within thefirm.
Continual user awareness training
Most cybersecurity breaches are causedby human error, so it is incumbent
upon everyone at Investcorp to beaware of the risks, continually educate
themselves on better security practices,and ensure that they do their part toprotect the firm, each other, and ourclients.
All Investcorp personnel undergo a
rigorous continuous learning cycle,
which incorporates awareness sessions
on the management of sensitive data.
All staff are also regularly tested at
random throughout the year to react
to and identify threats in the formof phishing, vishing, or malware
simulations. This allows our employees
to stay current with the ever-changing
threat landscape surrounding them.

20

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DATA PR IVA C Y

Enabling Companies to Meet Global Data Security and Privacy Obligations

Calligo is the first global provider of end-to-end transformative dataservices serving the SME and enterprise segments globally.

INVESTMENT
Callig o
SECTOR
Tech nolo gy – Bi g Dat a
REGION
E ur ope
YEAR INVESTED
2016

Founded in 2012, Calligo’s CloudCore
solution is one of the most innovative,
secure, and high-performance public
cloud platforms available – and the firstto be designed with data privacy anddata sovereignty at its heart.
Calligo’s approach has effectively
reshaped the traditional equipmentmaintenance role of managed services
providers and has enabled their clients
to focus on their most valuable asset,
their data, while ensuring it remains
secure, available, and compliant withregulation.
The company’s business-driven
approach to overall data management
seeks to transform the way companies
do business and perform better, and

25%
more
productive

4x

more
profitable

Calligo’s research shows that companies
that take this approach are likely to befour times more profitable, 25% moreproductive, and 25% better at client
retention.
Calligo was the first to offer managed
data privacy services, and last year
launched the world’s first managed
machine learning services. Itsinnovative approach to managed dataservices has won Calligo continued
industry-wide recognition, including
Global MSP of the Year (2019),
Global Top 20 MSP (2020), and
Growth MSP of the Year (2021),
among several others.

25%

better at client
retention

Appendices

21

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Responsible Employer

Being a responsible
employer is about diverse
cultures, inclusive teams,
engaged employees, andfair and equitable pay andbenefits – we consider these
to be critical to recruiting
and retaining the besttalent.

Responsibility is also about ensuringthat our people not only feel valued but
also heard; it is not only about creating
an environment where our people haveaccess to opportunities for growth, butalso about ensuring they have accessto quality training and development tobuild the skills they may need in the
future.
Diverse and inclusive companies
outperform
The relationship between diversity
and the likelihood of financial
outperformance is now even stronger
than before, and the greater thediversity – whether in terms of gender,
ethnicity, or cultural background – thegreater the level of outperformance.1

Despite the growing body of evidence
on the impact that diverse executive
teams have on realizing real bottom-line
gains, progress on representation overallover the past five years has been slow.
That’s why we are taking a systematic,
business-led approach to accelerate not
only our own diversity and inclusion
practices across Investcorp, butalso those of investment managers
around the world, exemplified by ourpartnership with Xponance, which is
discussed in greater detail later in thisreport.
1

Diversity Wins: How Inclusion Matters, McKinsey,
May 2020

ISSUES WE CONSIDER TO BE UNIVERSALLY IMPORTANT

Health, Safety & Wellbeing
Training & Development

Labor Standards & Practices
Diversity, Equity & Inclusion

Equitable Pay & Benefits

Appendices

22

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DI VE R S I T Y, E Q U IT Y & IN C LUSI ON

Diversity, Equity, and Inclusion at Investcorp

Investcorp treats diversity,
equity, and inclusion as abusiness priority, and we arecommitted to creating an
inclusive environment where
diversity is embraced andcelebrated.

We seek to promote this environment
in the workplace, including, without
limitation, in the firm’s policies
and practices, recruitment process,compensation and benefits, professional
development and training, andadvancement and promotion decisions.
We recognize that diversity is one of ourstrengths and is a necessary elementin the success we plan to achieve. To
that end, Investcorp welcomes insightand input from all groups and prohibits
the alienation or exclusion of any group
because it may not fit a set of cultural
norms.
All Investcorp staff, regardless of
position, are expected to implement thispolicy in their day-to-day work and in
all their dealings and interactions withcolleagues and clients.
Recruitment and employment
It is the policy of Investcorp to identify,
attract, recruit, employ, train, develop,
promote, and retain the best-qualified
individuals for all positions in theorganization. Equal employment
opportunity has been and continues tobe the policy and practice at Investcorp.

Our policy of equal employment
opportunity is to:
Recruit, train, develop, and promotepersons in all job classifications without
regard to race, color, religion, national
origin, sex, age, sexual orientation,
disability, or any other status;
Ensure that promotion decisions
are in accord with equal employment
opportunity principles; andEnsure that all other human resource
actions related to, for example,
compensation, benefits, training anddevelopment, transfers, and any
social or recreational programs areadministered in accordance withthe principles of equal employment
opportunity.
Mental health and wellbeing
We continually seek to implement
initiatives that help to improve thehealth and wellbeing of Investcorp
employees, and at the height of thepandemic we rolled out Headspace,
an application that offers meditation
techniques to help improve the healthand happiness of its users, to all
employees globally, which reflects ourrecognition that the mental healthof our employees is a key priority for
Investcorp.
Last year, we also expanded telehealthoptions for employees globally andoffered all staff the opportunity to speakwith qualified clinical counselors on
personal matters that may be interferingwith daily life, on a strictly confidential
basis. In the US, we rolled out
information on available mental healthresources such as LifeWorks, Psych
Hub, and NYC Well.
In addition to a comprehensive benefits
package, including annual healthand wellness stipends, the firm alsoenhanced its maternity and paternity
benefits globally, and in all cases
above that required by law.

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DI VE R S I T Y, E Q U IT Y & IN C LUSI ON

Diversity, Equity, and Inclusion at Investcorp (continued)

Hybrid working model
There is still a level of uncertainty
around the post-pandemic future ofwork, including the implications on both
employers and staff, and we recognizethat there isn’t a one-size-fits-all
solution that entails both in-office andremote work.
We conducted an internal survey
asking all Investcorp staff their viewson the mode of work that would
enable individuals, teams, and thefirm to operate at the highest levelsof performance, and as a result ofthat process we are experimenting
with different models of flexible workthat work best for our business, ouremployees, and other stakeholders that
may be directly impacted by changes to
our working environment.
We recognize that there could be tradeoffs to remote working, particularly
when we consider potential implications
on creativity and innovation whereproximity can favor collaborative work.
What we have seen, however, is thatwith the right technologies it is possible
to reduce the productivity gap that alack of proximity may create and havemade a commensurate investment
in creating more robust digital
infrastructure across our business.
Furthermore, we believe that throughleveraging automation, artificial
intelligence, and machine learningtechnologies, our staff can focus on themost productive work, while having thebenefit of choosing how that work is
conducted.
This continues to be a high priority forus, and we are continually evaluating
progress, reviewing alternative options,and taking on board the perspectives ofour staff.
Ultimately, we believe that the flexibility
offered by a hybrid working model not
only allows us to better retain current
talent, but also enhances our ability
to expand our talent pool, allowing us
broader access to diverse talent.
Remuneration philosophy
Investcorp has a clear and well-defined
remuneration philosophy that seeks tomotivate employees to target deliveryof consistent performance in excess ofmarket benchmarks. This philosophy
is exhibited in the firm’s remuneration

programs and is reflected in annual
remuneration decisions.
Remuneration programs are designed
to meet four key objectives, which areapplicable across the entire employee
population:
Attract and retain top talent;
Deliver pay for sustainable long-term
performance on a risk-adjusted basis;
Align executive remuneration withshareholders’ and clients’ interests; andMitigate excessive risk taking andincentivize consistent outperformance
relative to market benchmarks on a riskadjusted basis.
Employee remuneration is divided into
two fundamental components: (i) fixed
remuneration, i.e., salary and benefits,and (ii) variable remuneration.
Variable remuneration, comprisedof cash and awards under deferredremuneration programs, is remunerationthat varies from year to year and theamount of which is dependent upon (i)the risk-adjusted financial performanceof the Group as a whole, (ii) therisk-adjusted performance of each

There are no boundaries to what
we can achieve as a team, andInvestcorp is committed to helping
every individual succeed.
Jordana Semaan
Diversity, Equity, andInclusion Champion

employee’s respective line of business(each line of business, an "LOB"), and(iii) the performance of the individual
employee. The term "LOB" includes
each support unit within the Group.
Recommendations for the award ofvariable remuneration to employees
within each LOB are based upon the
results of an annual performanceappraisal pursuant to which each
employee is evaluated against his/herpredetermined objectives for the year
as well as against a series of 10 corecompetencies, which are assessed on a
performance basis.
Last year, we included for the first time
two additional core competencies,

24

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DI VE R S I T Y, E Q U IT Y & IN C LUSI ON

Diversity, Equity, and Inclusion at Investcorp (continued)

requiring each employee to be assessed
for their contribution toward both the
ESG and DE&I objectives of the firm.
We continually review all applicants,
hires, promotions, separations, careerdevelopment opportunities, andcompensation to ensure equitable
treatment irrespective of gender,
religion, race, or sexual orientation.
For further detail on Investcorp’s
remuneration policies and practices,
please refer to our Corporate
Governance report.
Inclusive ownership
Almost every employee at Investcorp
is an “owner” of the firm. We believethat giving ownership to employees at
all levels through staff equity programs
better aligns their interests with thoseof management and shareholders. It
also makes for a far more engaged
workforce, committed for the long term,
while giving everyone an opportunity
to participate in the value created forshareholders.

Policies, programs, andpartnerships
Recruitment – all open positions
globally are required to shortlist atleast 50% of candidates from diverse
backgrounds.
Training and development – allemployees and new hires undergo
mandatory unconscious bias, diversity,and inclusion training on an annual
basis.
Diversity committee – as part ofour commitment to creating an open,
inclusive, and diverse culture, each of
our regional offices has an appointed
diversity representative to help progress
Investcorp’s DE&I objectives.
Employee competencies – every
employee receives a rating on both
ESG and DE&I as part of the annual
performance appraisal process, inwhich individuals are assessed for theircontribution toward achieving the firm’s
objectives.

Partnerships – we maintain close
partnerships with a number of
DE&I-focused partners including
the GCC Chapter of the 30% Club,
Level 20, 100 Women in Finance,
10,000 Black Interns, Women in PE(WinPE), ILPA, and CEO Action for
Diversity & InclusionTM (CEO Action),and continually look for ways to use
our influence to help advance DE&I
at Investcorp, within our portfolio
companies, and across private
markets.
CEO
FOR DIVERSITY& INCLUSION

Appendices

25

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Appendices

26

D I VE R S I T Y, E Q U IT Y & IN CLUSI ON

Investing in Woman- and Minority-Owned Alternative Asset Managers

WOMAN- AND MINORITY-OWNEDPRIVATE EQUITY FIRMS1
502
394
312
240
150

2015

DIVERSE AND EMERGING MANAGERPERFORMANCE VS. MARKET 2
23.3%
21.7%
18.0%

20.5%
18.7%

4.2%

3.8%

Gross IRR

18.6%

7.4%

1.6%

3.2%
0.6%
'09 - '11

'12 - '14

Diverse Managers
Non-Diverse Managers'15 - '17

'17 - '19

Differential in Performancebusiness structures, support vertical or
horizontal expansion, and seed adjacentstrategies.

180

110

2014

David Lee, Partner in Investcorp’s
Strategic Capital Group: “We have beenhighly attuned to the growing appetite
for capital within the diverse manager
community, which has expanded at
a higher rate than the overall private
equity and private credit market overthe past few years, despite traditionally
being underserved and undercapitalized.
At the same time, there is mounting
interest from investors in gaining
exposure to diverse managers. Throughthis partnership with Xponance, we aredelighted to be able to connect with abroader group of stakeholders to create
what we believe to be sustainable value
for the managers and our investors.”

Non-Diverse Performers

By building on the strengths of ourown extensive alternatives experienceand Xponance’s 25-year track recordin pioneering efforts in the seeding
and funding of strategies offered bydiverse and woman-owned managers,
our partnership offers investors
greater access to best-in-class private
capital GPs.

Delta Between Diverse andIn April 2021, we partneredwith Xponance, a $12 billion
multi-strategy investment
firm, to collaborate on General
Partnership (GP) staking andseeding interests in diverse
and woman-owned alternative
asset managers.

2016

2017

2018

2019

2020

The universe of woman- and minorityowned private equity firms has morethan quadrupled since 2014, and ourpartnership with Xponance acts as a"force multiplier" to expand opportunity
for innovative investment strategies
offered by diverse and woman-owned
firms and industry professionals.

Diverse GPs in the mid-market spacehave historically been overlooked,
despite recent data showing thatdiverse managers have consistently
outperformed the market, with themagnitude of this outperformance also
increasing over time.
We believe that our approach will
help to further accelerate this trend byincreasing access to the type of strategic
capital and other resources needed tohelp these firms further optimize their

1

Fairview Capital 2020 Market Review of Woman andMinority Owned Private Equity Firms (Dec 2020).
Note: Based on institutional quality private equity andventure capital firms that are 50%+ owned by women
and/or ethnic minorities (as defined by the US Census
Bureau) and based/primarily investing in the US.

2

HarbourVest: Data as of June 30, 2019. IRR
represents cash flows in investments in US Buyout
and Venture fund managers with vintage years within
the three-year time periods across the HarbourVest
portfolio. Diversity defined as 25% or greater of seniorlevel team identifying as female, belonging to anunderrepresented minority, or both.

RESPONSIBLE BUSINESS 2021

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Appendices

H E ALTH, SA F E T Y & WE L L B EI N G

Driving Continuous Improvement in Health & Safety Standards

INVESTMENTRoadSa fe
SECTOR
In dustr ial Ser vi c es
REGION
Nor th Ameri c a
YEAR INVESTED
2021

RoadSafe is a leading providerof roadway safety services
supporting the maintenance of
critical infrastructure in civil,
utility, and railroad end markets
in the US.
Headquartered in Chicago with over
1,700 employees located across over
20 states and 50 branches, RoadSafe
offers traffic management and roadinfrastructure services, as well as
specialty distribution of products to its
customers nationwide.
RoadSafe’s culture and mission put
safety first. Its focus on continuous
improvement across key safety metrics– including Total Recordable Incident
Rate (TRIR) and Lost Time Incident
Rate (LTIR) – has earned the company
an industry-leading safety track record.
The company’s holistic incident
management and accident investigation
program – no matter how minor theincident – which is supported by a
dedicated five-person national safety

team as well as branch-level safetyadvocates, enables rapid tracking,analysis, and resolution of safety issues.
Its safety program is designed to work
across multiple states and locations
and has resulted in RoadSafe’s TRIR
dropping 25% from 3.21 to 2.56 (3 isthe industry average per the US Bureauof Labor Statistics) between 2019 and2020, while its LTIR fell 40% from0.83 to 0.59 (1 is the industry average)over the same period.
Launched in 2019, RoadSafe University
created a proprietary curriculum to drive
improvements in safety and enhance
the wellbeing and advancement of its
employees.
In addition, RoadSafe partners withexternal safety agencies, such as
the Occupational Safety and HealthAdministration and the American Traffic
Safety Services Association, for ongoing
employee certification. Focus on safety
begins with a five-day onboarding
training program and is thereafterincorporated into every training at
every level.

Branch, district, and company-levelsafety results are part of the annual
management incentive plan; achieving
targets results in an above-baseline
bonus, and failing to achieve targets
results in a penalty.
TRIR dropped by25%

between 2019and 2020

LTIR fell

40%

between 2019and 2020

27

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Appendices

H E ALTH, SA F E T Y & WE L L B EI N G

Safeguarding the Wellbeing of Students Both Online and Offline

INVESTMENT
Im per o
SECTOR
Tech nolo gy – Sec uri ty

Impero is the UK’s number one
provider of online student safety,
classroom, and school network
management safeguarding
software, helping schools,
colleges, and multi-academy
trusts to meet safeguarding
responsibilities – both online
and offline.

REGION
Un ite d K i ngdom
YEAR INVESTED
2017

Impero’s comprehensive classroom
software allows schools to improve theteaching environment and maximize
efficiency for school network managers.
The company’s recent acquisitionof Netop, a Danish-headquarterededucation software business with asignificant presence in the US, hasmore than doubled Impero’s presence inthe US, while also accelerating productdevelopment, including the company’s
safeguarding and wellbeing solutions.
Impero’s wellbeing software allows
customers to monitor threats caused byan increasingly digital environment andproactively analyze behavioral patterns
to enable early intervention where
needed on mental health and otherwellbeing issues.

Impero’s software is accessed by

The software is mission critical given
increased concerns regarding the impact
of digital exposure on mental health.
Research indicates that in the UK one
out of six children in school suffers froma mental health problem, two children
in each UK school are at risk of physicalabuse or neglect, and 15 million sickdays per annum are lost due to stress.
Furthermore, the wider cost of mental
health problems in the UK is estimatedat £100 billion per year.

Globally, Impero’s software is accessedby over 2 million devices in over 80
countries, including schools in morethan 700 US districts.

Impero has>

35%share of the UK secondary
school market
Serving more than

1,050
secondary schools in the UK>

2M devices

Impero is also focused on improving
ESG issues in their workplace, andhas launched several environmental,social, and local initiatives to support
that effort, including a cycle-to-work
scheme, a supplier vetting process
to ensure each of its suppliers
meets Impero’s standards, as wellas enhanced corporate governanceprocesses.
We’re particularly proud of Impero’s
approach to diverse representation
across the workforce, where women
represent 35% of the total workforce
and 25% of the senior leadership team.
Furthermore, Impero’s engineering teamhas twice as many women compared tothe industry average.

28

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EQU I TAB L E PAY & B E N E F I T S

Enabling More Equitable Pay in Germany

INVESTMENT
sof tg ar d en
SECTOR
Tech nolo gy – HR Sof t ware
REGION
E ur ope
YEAR INVESTED
2018

Headquartered in Berlin,softgarden is a fast-growing
provider of human resources
software, which uses principles
from e-commerce to serve morethan 3,000 corporate customers
throughout Europe, primarily in
the DACH region.
Through digitizing recruiting processes,
softgarden’s Talent Acquisition Suite
gives its customers the basis toobjectively review and analyze their
recruiting and hiring practices andensure a level playing field for all
candidates.
softgarden’s Talent Acquisition Suite
helps companies attract and hire thebest candidates through tools thatallow employers to expand reachand attract the attention of more job
seekers. softgarden’s Feedback Solution
enables and encourages applicants andemployees to publicly review companies
online, which seeks to create a more

complete picture of potential employers.
Feedback collected from both accepted
and rejected candidates, as well as fromcurrent employees, provides invaluable
insights to HR departments.
Furthermore, softgarden also provides
its customers with unique sets ofproprietary data for benchmarking
purposes, such as salary data. The
company has collected more than
400,000 proprietary salary data points– both expectations from candidates aswell as actual salaries – which represent
the most complete, reliable, and upto-date salary database in the DACH
region. This has enabled companies toensure pay and benefits for candidates
and existing employees are competitive,
equitable, and fair – not only whenbenchmarked internally, but also
externally.
During 2020, softgarden launcheda free job portal (www.jobs2live.de)for essential jobs such as caretakers,
nurses, and social workers to support
Germany’s response to the Covid-19
crisis.

>1M

applications processed every
year through softgarden’s TalentAcquisition Suite

>

400K

proprietary salary data points
collected in the DACH region

29

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T R AI N I N G & DE V E LO P M E N T

Building World-Class Dialysis Talent in India

INVESTMENT
Neph r oP l us
SECTORHea lth care
REGION

NephroPlus is India’s largest
dialysis network and has 260
centers across 160 cities and 22
states in India. Each NephroPlus
center is a "one-stop shop"
for all dialysis needs. With astrong commitment to quality,
NephroPlus is spearheading achange in the way dialysis isdone in India.

In diaYEAR INVESTED
2019

Delivering high-quality affordable care
Through extensive value engineeringand bulk procurement, NephroPlus canoffer affordable dialysis care at around$25 per session, compared with global
averages of $200 per session.
The company also has a strong focus on
patient-centric care where each patientis treated as a “guest.” One of the main
goals at NephroPlus is to enable dialysis
guests to lead lives as close to normal
as possible, and it strives to ensure that
dialysis sessions remain a small partof a guest’s life, encouraging them todo things everyone does – work, travel,
and have fun. It is the only dialysis
network in India to have holiday dialysis
capabilities with 15 tourist destinations
across the country including in Agra,
Goa, Srinagar, Dehradun, Rishikesh,
Tirupati, and Varanasi. It is also the only
network in the world which conducts a
Dialysis Olympiad every two years.
The company also set up a Covid-19
assistance fund for dialysis patientsaffected by the pandemic, raising INR
3 million from investors, management,
and team members. A mechanism of
selecting genuinely needy people wasput in place, resulting in the initiative
helping a total of 57 guests overapproximately 2,400 sessions.
Building world-class dialysis talent
NephroPlus launched Enpidia, a stateof-the-art dialysis training academy,
focused on developing leading dialysis
technicians and nurses in the industry,
alleviating the severe shortage of trained
and certified dialysis staff across India.

Enpidia is also the only academy inIndia to partner with the Board of
Nephrology Examiners Nursing andTechnology (BONENT) to provide
internationally recognized accreditationthat enables dialysis technicians topractice globally.
Additionally, Enpidia offers dialysis
courses in association with Bharat
Sevak Samaj, the Indian national
development agency for vocational
training. The company has trained
over 200 technicians over the last
three years.

+

1.7M

dialysis sessions conducted
over FY21
The company has trained>

200

technicians over the last
three years

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Responsible Citizen

As an investment manager
with a global mandate,
we are keenly aware thatshifts in global climate
bring potentially profound
implications for financial
stability and the global
economy.

We therefore have a responsibility
to not only understand the risks thatclimate change poses to our portfolio– and develop solutions to address
such risks – but to also build a greater
understanding of the impacts that our
portfolios have on the world.
Responsible citizenship is not justabout limiting and reversing harm to
the natural world – it is also about
our relationship with the communities
in which we work, invest, andlive. We believe that strengthening
those communities and giving backstrengthens us as investors and as
people.

ISSUES WE CONSIDER TO BE UNIVERSALLY IMPORTANT

GHG Emissions
Water Management

Energy Consumption

Waste Management

Corporate Social Responsibility

Case Studies

Appendices

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G H G E M IS SIO N S

Investcorp’s Emissions Performance

Our total GHG emissions
dropped by 50% in FY21,
driven largely by a decreasein business travel due torestrictions imposed as a resultof the coronavirus pandemic
as well as partial closures ofour offices.

GHG EMISSIONS

tCO2e

FY21

FY20

FY19

Scope 1

95.9

130.2

115.3

Scope 22,884.4

3,018.9

3,011.5

Scope 3 (select)

2,020.9

6,830.9

7,164.9

Total

5,001.2

9,980.0

10,291.7

11.8

22.2

24.6

Emissions intensity1
1Electricity from carbon-intensive
electricity grids in certain jurisdictions,as well as business travel, together
constitute the bulk share of the firm’s
total emissions.
As restrictions are lifted globally, we
anticipate emissions to return to levels
experienced in prior years, while
we concurrently continue our work
to implement energy reduction andefficiency initiatives globally.

Emissions intensity per full-time equivalent (FTE) for Scope 1, Scope 2, and select Scope 3. Total number of
FTEs are based on year-end numbers extracted from internal HR systems.
Deloitte & Touche (M.E.) has provided limited assurance for these indicators for FY19, FY20, and FY21.
Deloitte’s assurance statement can be found on pages 51 – 53 of this report, and the Reporting Criteria are
available on pages 33 – 34 of this report.

Appendices

32

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AppendicesG H G E M ISSIO N S

Reporting Criteria

This section has been preparedin alignment with the GHG
Protocol’s Corporate Accounting
and Reporting Standard,
the Corporate Value Chain(Scope 3) Accounting andReporting Standard, andthe Technical Guidance for
Calculating Scope 3 Emissions.
During the year to June 30, 2021, ourmeasured Scope 1, Scope 2, and select
Scope 3 emissions totaled 5,001 tCO2e,which is equivalent to 11.8 tCO2e per
FTE based on the year-end number of
FTEs for the offices considered in thisassessment.1
We have taken an operational control
approach when consolidating ourorganizational boundary, accounting
for GHG emissions from operations
over which Investcorp has operational
control.2 The GHG categories andassociated activity data that constituteour operational boundary for each of
the three years presented are outlined
below.

SCOPE 1SCOPE 3

Activity data

Definition

Definition

Natural gas combustion within boilers
and fuel combustion within leased andowned vehicles.

Category 3: well-to-tank (WTT)
emissions of energy sources for
categories captured under Scopes 1
and 2, which account for greenhousegases emitted during the extraction andtransportation of fuels from the source
to the point of supply – this covers
natural gas, oil, and fuels used in thegeneration of the electricity;

Category 3: the base data captured
under Scope 1 for natural gas
combustion within boilers is applied
to emissions factors covering WTTemissions;

Activity data
Gas consumption (in kWh) is received
directly from suppliers’ invoices, andfuel consumption (in liters) for eachcompany vehicle is based on total
spend on fuel extracted from theGroup’s internal systems and average
cost of fuel per liter in each location permonth.
SCOPE 2

Definition
Purchased electricity for our own use.
Activity data
Electricity consumption (in kWh)is received directly from suppliers’
invoices.

Category 4: transmission anddistribution (T&D) emissions, which
account for the greenhouse gases
associated with electricity lost duringtransmission on the national grid;
Category 6: business travel using air,rail, and taxi;
Category 7: employee commuting
and homeworking to account for
remote working activities occurring at
employees’ homes in the light of thecoronavirus pandemic; andCategory 8: emissions from the use ofleased data centers.

Category 4: the base data captured
under Scope 1 for purchased electricity
for our own use is applied to emissions
factors covering T&D emissions;Category 6: the distance traveledin kilometers for air and rail travelis received directly from travel logs
received from suppliers; where distancetraveled is not available, as in the caseof business travel using taxis, emissions
are estimated based on spend on
land transportation extracted from theGroup’s expense systems;
Category 7: emissions for employee
commuting are based on estimatedannual emissions for an average
employee based on the Quantis GHG
Protocol Scope 3 Screening Tool,3which is then applied to the number of
employees per office;4 an estimate of
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G H G E M IS SIO N S

Reporting Criteria (continued)

is arrived at by subtracting the numberof staff onsite in any one office (basedon building access logs maintainedby building security personnel, whereavailable) from the total number of staff
employed in that office;5Category 8: total power consumption
in kWh is calculated6 based on actual
installed power capacity purchased by
Investcorp from the supplier and notactual usage, given the unavailability ofusage data at the time of data collection– actual energy consumption is therefore
likely overstated.
Emissions are estimated by multiplying
activity data with corresponding relevant
emissions factors.7 All emissions arethen converted into tons of CO2e (tCO2e)
using the global warming potential
factor to express GHG emissions in
a comparable manner and enableconsistency in reporting over time andfor different emissions sources, globally.
The emissions factors used to estimate
emissions are either country-specific orbased on regional or global averages,
and therefore emissions are intended
to represent a relevant estimate of

the firm’s carbon footprint. Note thatthe general approach to estimating
emissions for each fiscal year considers
activity data split across two calendar
years, but only the latest available
emissions factor for any one fiscal year
(e.g., for FY21, emissions factors forthe calendar year 2021 were used,
and where this was unavailable thelatest available emissions factors wereapplied).
1

Total number of year-end FTEs are based on numbers
extracted from internal HR systems.

2

Offices with fewer than four employees have been
excluded from the organizational boundary this year.
A newly launched office in Beijing has also been
excluded from the perimeter, given limited operations
this year, but will be included in future assessments,
and activities of Mercury Capital Advisors have been
excluded this year based on unavailability of data.

3

For further information, refer to the Quantis GHG
Protocol document "Documentation of the data andcalculations to support the Greenhouse Gas Protocol
Scope 3 Screening Tool."4

The emissions related to employee commuting havebeen calculated on a basis of 47 working weeks per
year, excluding the number of weeks worked at home.
The Quantis tool estimates that the average employee
emits 1,700 kgCO2e/year.

5

Homeworking emissions are only accounted for the
18 months commencing January 2020 throughJune 2021, which corresponds to the onset of thepandemic, and relates to the second half of the FY20
reporting period and the entire FY21 reporting period,

respectively. Emissions related to homeworking havebeen estimated in accordance with the methodology
outlined in EcoAct’s "Homeworking Emissions
Whitepaper 2020," which includes emissions
from office equipment, heating, and cooling where
geographically relevant. Homeworking emissions havebeen estimated for our operations where data wasavailable, which includes London, New York, andBahrain only.
6

Power consumption (in kWh) is calculated bymultiplying the power capacity (in kW) of our data
center power circuits (running at 30A and 208V) by
the number of hours in one year (i.e., 8,760 hours).

7

Emissions factors have been sourced from thefollowing databases: the UK’s Department forEnvironment, Food and Rural Affairs (DEFRA), theInternational Energy Agency, and Exiobase.

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E N E R GY C O N SU M P T IO N

Transitioning to Lower-Carbon Operations in Our Offices

We are actively making changes
across the firm to continually
improve current practices
and the firm’s impact on theenvironment.

Reducing our direct impact on theenvironment
Investcorp operates out of 13 offices
globally, with the majority of ouremployees based out of our London,
New York, and Bahrain offices.
While we recognize that our directenvironmental impact is relatively
low given most of our operations are
office-based, we are nonethelessactively making changes across thefirm to continually improve current
practices and the firm’s impact on theenvironment.
Over the past few years, we have
implemented a number of initiatives toaddress our emissions related to energyuse, waste production, and businesstravel. These include:
Recycling and plastic reduction efforts
across all offices, including graduallyphasing out the use of plastic bottles
and disposable paper cups and/or
cutlery;
Programming air conditioning systems
to switch off during periods when theoffices are unoccupied;

Increasing the use of motion sensor
technology to save energy, or at the very
least ensuring lights are switched off
manually at the end of every day;Accelerating the replacement of all
fluorescent and halogen-based lightingwith LED lighting;
Where possible, reducing nonessential business travel including theuse of air travel, taxis, and privatecars, with a commensurate increase ininvestment on video conferencing andsimilar technologies;
Increasing cycle rack capacity in our
London office, which in conjunction
with our cycle-to-work scheme provides
staff with an alternative to using public
transport;
Where possible, limiting the useof printed materials and increasing
the provision of recycled printing
paper, with a commensurate increase
in investment in digital interfacing
technology and cloud-based productivity
solutions;
Significantly reducing the number ofprinted annual reports; andWhere possible, ensuring food anddrink are locally sourced, and wastage
is minimized and disposed of in asocially responsible manner.

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Transitioning to Lower-Carbon Operations in Our Offices (continued)

Environmentally aware office
by designand ensure the wellbeing of the project
team.

We are particularly proud of ourprogress toward lower-carbon
operations in India. The design andfit-out of the firm’s new office in
Mumbai has sustainability and thehealth and welfare of Investcorp’s staff
at its core. The office’s biophilic design,
installation of recyclable and energyefficient LED lighting, and considered
use of environmentally friendly materials
throughout (e.g., "Green Label Plus"certified Tuntex carpets, recyclable
drywall gypsum partitions, andHaworth furniture that embeds circular
design thinking) demonstrate theimportance we place on conservationof the environment and the continued
wellbeing of our employees.

Switching to green energy in London
and New York

Furthermore, during the fit-out of ourIndia premises, which is located in the
LEED Platinum-certified Godrej buildingin the Bandra Kurla Complex, we
worked closely with our project manager
to ensure that the execution of the fitout itself employed sustainable practices
to reduce waste, manage energy use,

This year, Investcorp switched to 100%
renewable electricity in our London
office and completed LED lighting
upgrades throughout the building. We
also completed the decommissioning ofa hot water cylinder in the London office
to reduce overall energy consumption.
In New York, emissions related toour data centers are also now
carbon-free, given the use of 100%
green electricity.

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AppendicesG H G E M ISSIO N S

ABAX Goes Carbon Neutral

INVESTMENTABAXSECTOR
Bu s in e ss Ser vi c es
REGION
E ur ope
YEAR INVESTED
2017

Founded in 2003, ABAX isthe leading telematics solution
provider in the Nordics anddevelops sophisticated fleet
tracking, electronic triplogs, andequipment and vehicle control
systems.
Headquartered in Larvik, Norway,
the company has approximately 340
employees and operations across theNordic region as well as in Poland, theNetherlands, and the UK.
ABAX committed itself to achievecarbon neutrality by early 2022 but
managed to beat that target by two
years. In 2020, the company became
carbon neutral through implementing
carbon reduction activities. These
included switching to an electric
corporate fleet and more sustainablesources of electricity at the locations
in which they operate, and offsetting
the remaining emissions with PAS
2060-certified carbon projects that

support local communities in central
Africa. The company recently extended
its commitment to carbon neutrality bytargeting a green supply chain by 2022.

36,000

ABAX is also assisting its customers
to reduce their carbon emissions byproviding them tools to monitor driving
behavior and idling time of their fleets,in order to manage their assets more
efficiently.

51%

ABAX has worked extensively with
WeForest, an international nonprofit
organization, on reforestation initiatives
to reduce the carbon emissions alreadyin the atmosphere. Recently, thecompany partnered with Empower,a Norwegian enterprise building a
blockchain-powered global plastic
waste ecosystem, to help developing
countries establish effective recycling
solutions. Together, they have alreadydirectly financed solutions that will in
effect help to remove 1,000,000 plastic
bottles that would have otherwise been
sent to landfills or ended up in theenvironment.

customers emit less with ABAX

reduction in Scope 1 andScope 2 emissions

44%

reduction in businesstravel emissions

10-15%
reduction in mileageand corresponding
environmental effects

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WAS TE M A N A GE M E N T

Reducing Waste Through Leveraging AI and IoT Technology

INVESTMENT
Fr e sh ToHome
SECTOR
Consu m er
REGION
In diaYEAR INVESTED
2020

FreshToHome.com is one of
the leading direct-to-consumer
online meat brands in India,
focused on providing a wide
variety of fresh and hygienic
seafood and meat at theconvenience of doorstep delivery
to the consumer.
Founded in 2015, FreshToHome
manages the entire supply chain
for seafood and meat from direct
procurement from fishermen to lastmile delivery through its innovativetechnology platform.
Using artificial intelligence, IoT
technology, and just-in-time supply
chain practices, the company managed
to reduce meat wastage by 80 tons
per month in the year ending March

2021, with an average waste yield ofapproximately 1.5% compared with anapproximate 15% industry standard.
The company has also helped create
17,000 jobs in the last five years.
Furthermore, by eliminating middlemen
and directly procuring from fishermen
via its tech-enabled platform,
FreshToHome has increased fishermen’s
income by approximately 20% throughhigher realization for fishermen.
The company has been recognized byPrime Minister Narendra Modi as astart-up positively impacting the lives offishermen and farmers in India.

17,000jobs created in the last five years

1.5%

average waste yield versus a
15% industry standard
Reduced meat wastage by

80 tons
per month

Increased fishermen’s
income by

20%

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COR POR AT E SO C IA L R E S P ON SI BI LI T Y

Making Car Rentals Inclusive and Accessible to All

INVESTMENTTh e eb Rent a C ar
SECTOR
Consu m er Ser vi c es
REGIONME NA
YEAR INVESTED
2013

Theeb is a leading player in the
car rental and leasing market in
Saudi Arabia with a total fleet ofover 18,000 cars, and operates
a nationwide network of 48
branches, 10 in-house vehicle
maintenance centers, and two
used car sales centers.
In an effort to make its services more
inclusive, Theeb recently launched
the “Rahati” initiative, which provides
vehicles specially designed andequipped to serve the elderly and thosewith special needs, such as wheelchairadapted family cars, at no additional
cost.
This service forms a part of Theeb’s
broader social responsibility program
through which it not only seeks to makeits services more accessible, but also
aims to generate a positive impact in
the communities in which it operates.

The company has also recently
implemented the “Theeb Al Khair”
program, sponsoring charitable societies
in the Kingdom, which this year
included the Charitable Foundation forOrphan Care “Ekhaa.” This sponsorship
includes an annual care program for
30 orphans, providing for all their dailyneeds.
Furthermore, Theeb’s recent
sponsorship of the “Create to Learn”
project for female graduates of theCollege of Health and Rehabilitation
Sciences at Princess Noura University
seeks to enhance the role ofoccupational therapy in recreational
activities within schools and thereby
improve the mental, physical, andsocial wellbeing of students.

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COR POR AT E SO C IA L R E S P ON SI BI LI T Y

The Contribution We Make to Our Communities

Investcorp continually seeks
to implement initiatives
that improve our impact
on the environment, thewellbeing of our employees,
and the advancement of thecommunities in which we
operate.

The firm’s corporate social responsibility
initiatives are focused on four areas ofstrategic importance, which together
seek to deliver on Investcorp’s
overarching corporate purpose ofenriching the lives of future generations.
These focus areas are education,
healthcare, fighting poverty, and thepreservation of the environment.
Some recent programs include:
STRENGTHENING OURCOMMITMENT TO EDUCATION

Building financial literacy among
young people

Investcorp has a longstanding
commitment to education, and ourpartnership with INJAZ Al-Arab is one
such example. INJAZ is the regional
hub in the Middle East for Junior
Achievement Worldwide, a nonprofit
organization that provides educationand training in workforce readiness,financial literacy, and entrepreneurshipto hundreds of young people each year.
Operating in 13 countries and working
with over 4,000 schools and 300
universities, INJAZ is now the largest
nonprofit organization dedicated toovercoming unemployment in the
MENA region, having engaged 3.7
million students since inception.
Two years ago, we strengthened ourcommitment to this initiative andlaunched the Investcorp Value Creation
Award, where Investcorp investment
professionals devote time to facilitate acase study for participating university
students on value creation initiatives
undertaken at one of the firm’s portfolio
companies.

INJAZ Al-Arab is an important part ofour contribution to our community andour role as a responsible citizen – webelieve that through strengthening ourcommunities, we strengthen ourselves
as investors and as people.
Ramzi AbdelJaber
Chief Administrative Officer

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The Contribution We Make to Our Communities (continued)

Bahrain Crown Prince’s International
Scholarship Program (CPISP)In May 2021, we announced ourcontinued commitment to support the
Bahrain Crown Prince’s International
Scholarship Program (CPISP) over the
next 10 years.
This not only reflects our conviction in
the power of education as a key driverof economic and social progress,
but also the pivotal role that CPISP
plays in providing top educational
scholarship opportunities to young
outstanding Bahraini students.
We’re also proud of the fact thata number of our staff members at
Investcorp graduated from worldclass universities with the support of
CPISP, and we have seen firsthandhow crucial such education-based
initiatives are not only to thedevelopment and future success of
CPISP scholars, but importantly to theKingdom of Bahrain.

It was a privilege to be handpicked
for the Crown Prince’s International
Scholarship Program. It motivatedme to pursue excellence throughout
my university education and later in
professional life.
The program goes beyond providing
financial support and really seeks toensure scholars are provided withall the tools they need to become
accomplished and active contributing
members of society.
The CPISP put me on a path thateventually led to Investcorp, and I
am delighted that Investcorp is now
perpetuating the virtuous cycle bysupporting the same program to
put young Bahrainis on the path tosuccess.

I was one of a lucky few to have beenoffered the opportunity to be part of the
Crown Prince’s International Scholarship
Program (CPISP) early in its inception,
almost 20 years ago.
I owe much of the person I am today,
both personally and professionally,to the experiences and opportunities
throughout that journey: living in newplaces, meeting people with different
backgrounds, and understanding
differing viewpoints, which provided amuch-needed global perspective in an
increasingly globalized world.
Twenty years later, I am very proud tofind myself a partner at Investcorp, anorganization which continues to invest
in and share many of the same values
as those championed by the CPISP.

Khulood Ebrahim

Ali AlRahma

Real Estate
Product Specialist

Private Equity
Product Specialist

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The Contribution We Make to Our Communities (continued)

BRINGING STATE-OF-THE-ART
MEDICAL TECHNOLOGY TO THE
PEOPLE OF BAHRAIN

Royal Medical Services
As part of our commitment tosupporting healthcare and enhancing
the wellbeing of our local community,
we donated one of the world’s mostadvanced CT machines (GE NM/CT 870
DR SPECT/CT machine) to the Royal
Medical Services Hospital in Bahrain.
“This is a crucial step in upgrading
our X-ray department with the latest
technology and will support our rolein maintaining and strengthening ourposition as one of the major healthcare
providers in the region,” said Major
General Professor Sheikh Khalid bin Ali
Al Khalifa, Commander of the Royal
Medical Services.
The Royal Medical Services Hospital
was established in 1968 as a small
clinic. In 1979, the hospital grewfrom a small operation into a 120-bed
hospital and has since continuously
grown and expanded its services,

becoming the second largest hospital in
Bahrain with 483 beds to date.
SUPPORTING OUR COMMUNITIESIN THEIR TIME OF NEED

Assisting our tenants in the US
During the pandemic, Investcorp
provided over 10,000 meals toresidents of many of our multifamily
housing investments throughout
approximately 40 of our communities
in the US.
We took decisive action as we sensed
that our communities were in need.
Whether it was the inability to travel,
medical concerns, or just an overallneed to socialize with members of
their own community, it was critical toprovide our residents with something
they could smile and feel good about.
Some days it was ice cream for the kids
and other days it was pizza Fridays or
taco Tuesdays. But the biggest smiles
were reserved for the hundreds offood trucks that we dispersed to ourcommunities to make a small difference
in a very difficult time.

In addition to the free meals, Investcorp
also provided direct tenant assistance.
Since the beginning of the Covid period,
over 1,000 residents were provided
concessions on their lease terms,
including payment timing flexibility andthe waiving of fees totaling in excess of$200,000 in concessions across theportfolio. Many of these tenants werelongstanding residents that had had norecord of payment issues, and we werewilling to assist in this time of need.
This flexibility also allowed us to retain
a large percentage of our tenants who
remain tenants to this day.
Scholarship program
We instituted a tuition scholarshipprogram across our residential
investment properties, where we offer
scholarships totaling $10,000-$20,000
to help students with financial needresiding in our communities. The
scholarships are intended to assist withvocational training, trade and technicaleducational programs, and skills-basedlearning.

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The Contribution We Make to Our Communities (continued)

Some other contributions we made overthe past year:

in support of the programs of theEisenhower Fellowships for 2020.

Our Asia team took part in avoluntary beach clean-up in Coney
Island, on the east coast of Singapore.

We contributed to the Green Future
Project, which supports reforestation
projects to help corporations offset theircarbon footprint and support local jobs,
in order to reverse the effects
of climate change and preserve theplanet for both current and future
generations.

We supported the President’s Special
Initiatives Fund at Brookings, whichenables investments in new researchand empowers Brookings to respond
nimbly to fast-moving events.
We contributed toward the "Chrysalis
Night In" virtual gala honoring
TruAmerica’s Bob Hart, the CEO of oneof Investcorp’s operating partners in ourReal Estate business; the organization
is a nonprofit dedicated to creating selfsufficiency for homeless and low-income
individuals.
We donated to the virtual gala dinnerof the New York Police & Fire Widows’
and Children’s Benefit Fund.
We contributed toward the AY21 giftof Harvard Kennedy School’s Center for
Public Leadership.
We made an annual contribution

Case Studies

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S AS B D I S C LO SU R ETransparent Information & Fair Advice for Customers

This is our first time reporting
against the SASB disclosure
framework. The discussion that
follows details our disclosure
against the Asset Management
and Custody Standard as it
most closely aligns with ourbusiness.

For the year ended June 30, 2021

FN-AC-270a.3

FN-AC-270a.1

Description of approach to informing
customers about products and services.

(1) Number and (2) percentage ofcovered employees with a record ofinvestment-related investigations,consumer-initiated complaints, private
civil litigations, or other regulatory
proceedings.1
To our knowledge, there have been
no covered employees with a recordof investment-related investigations,consumer-initiated complaints, private
civil litigations, or other regulatory
proceedings.

FN-AC-270a.2
Total amount of monetary losses as aresult of legal proceedings associatedwith marketing and communication offinancial product-related information to
new and returning customers.
To our knowledge, Investcorp did
not sustain any monetary losses in
the reporting period as a result oflegal proceedings associated with its
marketing and communications tocustomers, as described above.

When communicating with clients
about our investment management
services and specific products, we aresubject to various laws and regulations,as well as Investcorp’s own policies,
procedures, and guidelines requiring
our communications to be clear, fair,and not misleading. Additionally, we
consider the nature of the audience towhich our communications are directed
and provide the appropriate details andexplanations.
1‘Covered employees’ is defined by SASB as employees
subject to filing the following forms: Form U4 with
the Central Registration Depository (“CRD”) of the
Financial Industry Regulatory Authority (“FINRA”);
Form U5 with the CRD of the FINRA; Form U6 with
the CRD of FINRA, Form BD with the Investment
Adviser Registration Depository (“IARD”) of the U.S.
Securities and Exchange Commission (“SEC”); andForm BDW with the IARD of the SEC.

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S AS B D I S C LO SU R E

Employee Diversity & Inclusion

FN-AC-330a.1
Percentage of gender and racial/ethnic group representation for(1) executive management, (2)non-executive management, (3)professionals, and (4) all other
employees.
For details on how we foster equitable
employee representation across ourglobal operations, please see pages
23 – 25 of this report.

Gender Representation of Global Employees (%)
FemaleMale

N/A*

Executive Management

7%

93%

0%

Non-Executive Management

21%

79%

0%

Professionals

31%

69%

0%

All Other Employees

67%

33%

0%

Total

32%

68%

0%

* N/A = not available or not disclosed by Investcorp employees.

Racial/Ethnic Group Representation of US Employees (%)
AsianBlack/African
AmericanHispanic/
LatinoWhite

Other^

N/A*

Executive Management

23%

0%

0%

77%

0%

0%

Non-Executive Management

35%

0%

2%

63%

0%

0%

Professionals

29%

2%

2%

66%

0%

0%

All Other Employees

18%

24%

0%

59%

0%

0%

Total

29%

4%

2%

66%

0%

0%

^Other includes the classifications: Native American or Alaska Native, Native Hawaiian or Pacific Islander, and“Two or More Races.”* N/A = not available or not disclosed.
Figures may not reconcile due to rounding.

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Incorporation of ESG Factors in Investment Management & Advisory

FN-AC-410a.1
Amount of assets under management,by asset class, that employ (1)integration of ESG issues,(2) sustainability themed investing,and (3) screening.
Investcorp’s Responsible Investment
policy provides a broad framework for
Investcorp’s approach to integrating ESG
considerations across our investment
businesses, including our screening
practices. The policy applies to alllines of business where we have soleoperational control, which constitutes
the majority of our total assets undermanagement.
Investcorp operates a joint venture withAberdeen Standard Investments (ASI)
that focuses on investing in social andeconomic infrastructure projects in Gulf
Cooperation Council countries, andanother joint venture with Tages Group,
Investcorp-Tages, a merger between therespective absolute returns businessesof Investcorp and Tages Group. While
our Responsible Investment policy is
not directly applicable to these businessinterests, the framework described
therein is not inconsistent with existing

ESG policies and processes currently
in effect in these businesses on astandalone basis.
As of June 30, 2021, Investcorp had$37.6 billion in total assets undermanagement.

FN-AC-410a.2
Description of approach toincorporation of ESG factors ininvestment and/or wealth management
processes and strategies.
At Investcorp, responsible investingmeans building sustainable businesses
through strengthening corporate
governance practices; driving solid
partnerships with employees,
customers, and communities; andmanaging the impact of business
operations on the environment.
Investcorp’s approach to responsible
investing across the investment process
focuses on identifying and managing
ESG issues that we believe have thepotential to create, protect, or erodevalue for ourselves and our beneficiaries(“material issues”).
Given the differences in the businessmodels of our varying investing lines ofbusiness, Investcorp takes a bespoke
approach to the integration of ESG
factors within each of our asset classes,
whether these are negative or positive
screening practices or the systematic
inclusion of material ESG factors into
investment analysis and investment
decisions.
Our tailored approach is detailed ininternal procedural documents foreach asset class, which inter alia
outlines roles and responsibilities
for the incorporation of ESG factors,
approaches to target setting andcompetency building within portfolio
companies, the governance framework
for incident management, and ongoing
management of ESG issues, as well as
investor reporting.
We note that Investcorp’s ability toassess and influence ESG issues inpractice may vary by investment. We
would generally expect to be able toundertake more due diligence andinfluence future changes in relation
to identified ESG-related matters forcontrol investments than when we planto acquire a minority equity position
or where we act as a minority lender.

Nonetheless, while our focus areas andability to influence decision-making
will vary on a case-by-case basis, ourgeneral approach is primarily focusedboth on managing risk and seeking
opportunities for value creation throughthe effective management of ESG
issues.
Our Responsible Investment policy is
publicly available on our website, andfor further details on how we integrate
ESG considerations by asset class,please see Section 2 of this report.

FN-AC-410a.3
Description of proxy voting andinvestee engagement policies andprocedures.
In relation to unquoted investments,
the Group’s approach is to seek to add
value to the businesses in which theGroup invests through its extensive
experience, resources, and contacts
and through active engagement withthe boards of those companies. In
relation to quoted investments, ifany, the Group’s policy is to exercise
voting rights on all matters affecting its
interests.

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Business Ethics

FN-AC-510a.1
Total amount of monetary losses as aresult of legal proceedings associatedwith fraud, insider trading, anti-trust,and anti-competitive behaviour, market
manipulation, malpractice, or otherrelated financial industry laws or
regulations.
Investcorp did not sustain any monetarylosses in the reporting period as a resultof legal proceedings associated with theconduct as described above.

FN-AC-510a.2
Description of whistle-blower policies
and procedures.
The Board of Directors of Investcorp
Holdings B.S.C. (the “Boardof Directors”) has established
Whistleblowing Procedures (the“Procedures”) to:
1. Encourage reporting by staff ofgenuine concerns by disclosing to therelevant person under these Procedures
information which a member of staff
reasonably believes tends to showthat any wrongdoing either has beencommitted, is being committed, or may
be committed by Investcorp or its staff.
Wrongdoing may include:
Criminal activity;
Breach of Investcorp’s internal
policies and procedures, including theInvestcorp standards;
Failure to comply with any applicablelaw or regulation or other legal
obligation, including but not limited tohealth and safety laws and regulations;
Financial fraud or other actions thatraise questions regarding the integrity ofInvestcorp’s financial statements or its
accounting, auditing, internal control,
and reporting practices;
Bribery, fraud, or corruption;
Discrimination of any nature;
Harassment or intimidation;
Danger to health and safety;
Damage to the environment;
Miscarriages of justice;

Serious negligence; or
The deliberate concealment of any of
the above matters.
2. Reassure staff that they should be
able to raise genuine concerns without
fear of reprisals, even if they turn out tobe mistaken; and3. Ensure that such concerns arepromptly and properly investigated andaddressed.
Investcorp also makes available ananonymous Whistleblowing Hotline
and reporting website, which isadministered on behalf of Investcorp byan independent external third party.

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RESPONSIBLE BUSINESS 2021

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S AS B D I S C LO SU R E

Systemic Risk Management

FN-AC-550a.1

FN-AC-550a.3

Percentage of open-end fund assets
under management by category of
liquidity classification.

Total exposure to securities financing
transactions.

We recognize that there is an active
standard-setting project related tothis industry standard, including apreliminary decision by SASB to remove
this accounting metric from the AssetManagement & Custody Activities
Standard. We have therefore chosen
not to disclose information for thisaccounting metric.

FN-AC-550a.2
Description of approach toincorporation of liquidity risk
management programs into portfolio
strategy and redemption risk
management.
Almost all of Investcorp’s assets undermanagement are invested in private
market strategies, characterized byclosed-end partnerships that are
not subject to rolling subscription
and redemption windows, but thatare rather managed over multiyear
timelines incorporating defined periods
for the commitment, investment, anddistribution of capital.

As of June 30, 2021, the net exposure
to securities financing transactions
amounts to $192m. This comprises
investments in collateralized loan
obligations of $238m net of secured
financing through repurchaseagreements of $46m.

FN-AC-550a.4
Net exposure to written credit
derivatives.
As of June 30, 2021, the net onbalance sheet exposure to written
credit derivatives amounts to $24m.
The notional value of these derivatives
amounts to $897m.

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49

RESPONSIBLE BUSINESS 2021

S AS B D I S C LO SU R E

Activity Metrics

FN-AC-000.A(1) Total registered AUM and (2) Total
unregistered AUM.
(1) Total registered AUM wasapproximately $49 million as of June30, 2021. Our registered AUM includes
funds subject to the Undertakings forCollective Investment in Transferable
Securities (UCITS) Directive.
(2) Total unregistered AUM wasapproximately $37.6 billion as of June30, 2021. Our unregistered AUM
equals total AUM minus total registered
AUM.

FN-AC-000.B
Total assets under custody andsupervision.
As of June 30, 2021, Investcorp had
total assets under management of$37.6 billion. Please refer to our2021 Annual Report for further
information on Investcorp’s total assets
under management.

A Year in Progress

Our Approach

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Case Studies

Appendices

Deloitte Independent Assurance Report

Independent limited assurance
report to Investcorp Holdings
B.S.C. (“Investcorp” or “theCompany”) on the compilationof selected sustainability
performance indicators (“KPIs”)
presented in Investcorp’s 2021
Responsible Business report.
An overview of the scope of our
assurance work
We have been engaged by Investcorp
Holdings B.S.C. (“Investcorp” or“the Company”) to perform a limited
assurance engagement on thecompilation of selected sustainability
performance indicators (“Subject
Matter”) for the years ended 30 June
2019, 30 June 2020, and 30 June
2021. The assured data appears in
the 2021 Responsible Business report(“Report”).

Selected Subject Matter for assurance
The Company’s reported performance
during the given reporting period
for selected key sustainability
performance indicators (“KPIs”)
presented on page 32 and denoted withthe symbol in the Report. The KPIs
comprised of:
Scope 1;
Scope 2;
Scope 3 (select);
Total; andEmissions intensity.
Reporting criteria
The above Subject Matter has beenassessed against the reporting criteria
shown in pages 33 - 34 of the Report(“Reporting Criteria”).
What standards we used: basis of our
assurance work and level of assurance
We carried out limited assurance

procedures over Investcorp’s selected
Subject Matter in accordance with theInternational Standard on Assurance
Engagements 3000 (Revised)“Assurance Engagements other than
Audits or Reviews of Historical Financial
Information” (“ISAE 3000”) and with
the International Standard on Assurance
Engagements 3410 “Assurance
Engagements on Greenhouse Gas
Statements” (“ISAE 3410”). To achieve
limited assurance, ISAE 3000 and
ISAE 3410 require that we review theprocess, systems, and competencies
used to compile the Report, on which
we provide limited assurance. It does
not include detailed testing for each of
the KPIs reported, or of the operating
effectiveness of processes and internal
controls.
The procedures performed in a limited
assurance engagement vary in natureand timing from, and are less in extent
than for, a reasonable assurance
engagement. Consequently, the levelof assurance obtained in a limited

assurance engagement is substantiallylower than the assurance that would
have been obtained had a reasonableassurance engagement been performed.
Consequently, our conclusion is not
expressed as an audit opinion.
What we did: key limited assurance
procedures
To form our conclusion, we undertook
the following procedures:
Interviewed management tounderstand the process of identification,
data collection, consolidation, andreporting for each of the selected KPIs.
Reviewed and evaluated theReporting Criteria for measurement andreporting for each of the selected KPIs
against the actual calculation performedby the Company to support the numbersof the selected KPIs disclosed in theReport.
Agreed the selected KPIs to theCompany’s internal calculations andsupporting documentation.

51

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Case Studies

Deloitte Independent Assurance Report (continued)

Compared the content of theReport against the findings of theaforementioned procedures.

In relation to our work performed on
the selected subject matter, we note thefollowing specific limitations:

Inherent limitations

Our assurance procedures did notinclude detailed testing of IT controlsof the underlying systems used by
Investcorp to collate and report data forthe environmental metrics.

The process an organization adopts todefine, gather, and report information
on its non-financial performance is not
subject to the formal processes adopted
for financial reporting. Therefore, dataof this nature is subject to variations
in definitions, collection, and reporting
methodology, often with no consistent,
accepted external standard. This may
result in non-comparable information
between organizations and from year
to year within an organization as
methodologies develop. To support
clarity in this process, Investcorp
has developed a Reporting Criteria
document for the years 2019, 2020,
and 2021 which defines the scope ofeach assured metric and the method of
calculation. This is available in pages
33 – 34 of the Report and should beread together with this report.

With the exception of the KPIs
denoted with the symbol in theReport, our testing did not include
assurance of, or detailed testing of theunderlying data for each of the KPIs
reported, or of published assertions.
As such, our work does not involve
procedures to verify the accuracy ofthe performance data or assertions
published.
Our independence and quality control
In carrying out our work, we havecomplied with the independence andother ethical requirements of the Codeof Ethics for Professional Accountants
issued by the International Ethics

Standards Board for Accountants(IESBA Code), which are founded on
fundamental principles of integrity,
objectivity, professional competence
and due care, confidentiality andprofessional behavior, and the ethicalrequirements that are relevant in the
UAE. We have fulfilled our other ethicalresponsibilities in accordance with theserequirements and the IESBA Code.
In performing our work, we applied
International Standard on Quality
Control 1 and accordingly maintaina comprehensive system of quality
control including documented policies
and procedures regarding compliancewith ethical requirements, professional
standards, and applicable legal andregulatory requirements.
Roles and responsibilities
Investcorp
The Company is responsible forthe calculation of the selected KPIs
in accordance with the Reporting

Criteria. Specifically, the Company
is responsible for ensuring thatthe information provided under
the selected sustainability KPIs is
properly prepared in accordance with
Investcorp’s calculation methodologies
and confirming the measurement or
evaluation of the subject matter against
the applicable Reporting Criteria.
Management is also responsible
for establishing and maintaining
appropriate performance management
and internal control systems from which
the reported information is derived.
Deloitte
Our responsibility is to provide a limited
level of assurance on the subject
matters as defined within the scope ofwork above to Investcorp in accordancewith our letter of engagement, andreport thereon. In conducting ourlimited assurance engagement, we havecomplied with the Code of Ethics forProfessional Accountants issued by theInternational Ethics Standards Board for

52

RESPONSIBLE BUSINESS 2021

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Deloitte Independent Assurance Report (continued)

Accountants (IESBA Code).
We confirm that we apply International
Standard on Quality Control 1 andaccordingly maintain a comprehensive
system of quality control including
documented policies and procedures
regarding compliance with ethicalrequirements, professional standards,
and applicable legal and regulatory
requirements.
Our work has been undertaken so that
we might state to Investcorp thosematters we are required to state to themin this limited assurance report and forno other purpose. To the fullest extent
permitted by law, we do not accept orassume responsibility to anyone otherthan Investcorp for our work, for thisreport, or for the conclusion we haveformed.
Conclusions
Based on our limited assurance
procedures performed and evidence
obtained, subject to the limitations

mentioned above, nothing has cometo our attention that causes us tobelieve that the selected KPIs for theyears ended 30 June 2019, 30 June
2020, and 30 June 2021 have notbeen prepared, in all material respects,
in accordance with the Reporting
Criteria.

Deloitte & Touche (M.E.)
28 November 2021

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53

RESPONSIBLE BUSINESS 2021

54

Important Information

This Responsible Business report (the“Report”) is being made available
regarding Investcorp Holdings B.S.C.
(together with its subsidiaries andaffiliates, “Investcorp”) and its efforts onenvironmental, social, and governance(“ESG”) performance. This Report
should be read in conjunction with
Investcorp’s 2021 Annual Report
and the information and disclosurescontained therein.
The information contained in this Report
may not necessarily be complete andmay change at any time without notice.
Investcorp undertakes no, and expressly
disclaims any, obligation to update,amend, or clarify any statements madeor information provided, whether as aresult of new information, subsequent
events, or otherwise.
By accessing this Report, you agree
that this material is the intellectual
property of Investcorp and that you will
not directly or indirectly copy, modify,
recast, publish, or redistribute thisReport and the information contained
herein, in whole or in part, or otherwise
make any commercial use of thismaterial without Investcorp’s priorwritten consent. All rights reserved.
Select portfolio investments
This Report contains descriptions andanalysis of select portfolio company
investments, and does not containan analysis for all Investcorp portfolio
investments. No assumptions should
be made that these investments wereor will be profitable. Not all Investcorp
portfolio investments had or have thecharacteristics, prospects, performance,or projected successes highlighted inthis Report.
References to the portfolio companies
are intended solely to illustrate theapplication of some of Investcorp’s
investment process only and should
not be viewed as a recommendationof any particular security or portfolio
company, or used as an indicationof the current or future performanceof Investcorp’s portfolio companies.
The investments described in theselected case studies were made bydifferent investment funds, vehicles,
accounts, or other investment products
managed, sponsored or affiliated withentities controlled by Investcorp (eacha “Fund”), and do not represent all

the investments purchased or soldby any such Fund. The information
contained in this Report is not intended
to address the circumstances of any
particular entity or individual andis solely intended to summarize forillustrative purposes the ESG processes
and strategies previously used by
Investcorp or its portfolio companies.
This Report should not be relied upon
for any other purpose. Investment
professionals, portfolio managers, andportfolio companies may use some or
all of the techniques and/or processes
described herein, which remain subject
to change. Moreover, the Report does
not summarize investment performance,
and the specific transactions andportfolio companies described inthis Report do not represent all thetransactions or portfolio companies
engaged in, purchased, sold, or
recommended by Investcorp.
Source of information
Certain information contained in thisReport was obtained from publishedand nonpublished sources, including
Investcorp’s internal analysis andinformation provided by the applicableportfolio companies described herein.
Such information, including the impacts
of Investcorp’s ESG initiatives, contains
estimates that have not been verified
by Investcorp or an independent third
party, and neither Investcorp nor any
such portfolio company guarantees,assumes responsibility for, or makes any
representations or warranties (express or
implied) with respect to, the accuracy,
adequacy, or completeness of suchinformation (or for updating the Reportbased on facts learned following its
publication). The impacts described
may also reflect the influence of external
factors such as macroeconomic orindustry trends that may be unrelated
to the ESG initiative presented. Thereis no guarantee that results shown will
be replicated in the future, and actual
results may be better or worse in futureyears.
Past performance
Any performance data or comments
expressed in this Report are an
indication of past performance. Past
performance is neither indicative
nor a guarantee of future results andshould not be relied upon as such; no

RESPONSIBLE BUSINESS 2021

55

Important Information (continued)

representation is being made that any
investment will or is likely to achieve
profits similar to those achieved in
the past, or that significant losses canor will be avoided. There can be noassurances that Investcorp’s or any
Fund’s investment objectives will beachieved or that any of its respective
investment programs will be successful.
Similarly, there can be no assurancesthat the ESG processes and strategies
previously used by Investcorp’s
portfolio companies will continue orwill achieve any particular desired
outcome. Readers should not assume,and no representation is being made,that any investment or transaction
involving the portfolio companies
identified and discussed herein, or any
other investment made, was or will be
profitable or will not incur significant
losses.
No offer or solicitation
This Report and the information
contained herein are for informational
purposes only and are not intended tobe, do not constitute, and should not
be relied on in any manner as, advice
or an offer to sell, or the solicitation of

an offer to buy, any security or otherownership interest (including interests
in any Fund), product, or service, or
to participate in any trading strategy
with or alongside any Fund, nor shallthe Report or the fact of its distribution
form the basis of, or be relied on inconnection with, any transaction or
investment decision. If any such offering
is made, it will only be made by meansof a final prospectus, confidential
private placement memorandum,
or other such offering document (asamended and/or restated from time totime), which would contain material
information (including associated risksof an investment and certain conflictsof interest) not contained in this Report
and which would supersede andqualify in its entirety the information
set forth herein. No part of this Reportconstitutes, and should not be relied
on in any manner as, investment, legal,tax, regulatory, accounting, or otheradvice of any kind.
Forward-looking statements
The contents of this Report may
represent, contain, or be based
upon forward-looking statements

or information that is based on
management’s beliefs, assumptions,current expectations, estimates, andprojections about the financial industry,the economy, Investcorp itself, or its
investments. All statements otherthan statements of historical facts,
including those regarding expectations,beliefs, projections, future plans
and strategies, anticipated events ortrends, and similar expressions areforward-looking statements, and may
be identified by the use of terminology
including, but not limited to, “may,”“will,” “should,” “expect,” “anticipate,”“target,” “project,” “estimate,” “intend,”“continue,” or “believe,” or the negatives
thereof, or other variations thereon,or comparable terminology. Forwardlooking statements are inherently
uncertain, and changing factors, suchas those affecting the markets generally,or those affecting particular industries or
portfolio companies, may cause eventsor results to differ from those discussed.
Accordingly, these statements are notguarantees of future performance,
results, or courses of action andinvolve certain risks, uncertainties,
and assumptions that are difficult topredict with regard to, for example,

timing, extent, likelihood, and degreeof occurrence. Moreover, actual events,
results, and outcomes may materiallydiffer from what may be expressedor forecasted in such forward-looking
statements, and undue reliance should
not be placed on such statements or theconclusions drawn therefrom.

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