Responsibility KSL Capital Partners Responsible Investment Policy Introduction The purpose of this Responsible Investment (“RI”) policy is to define KSL’s approach to integrating environmental, social and governance (“ESG”) risks and opportunities into investments made through its private equity funds. We are committed to exhibiting leadership in corporate citizenship throughout our business operations. Throughout our history of investing exclusively in travel and leisure businesses, we have considered ESG issues that may affect our prospective investments and the surrounding communities. We believe that effective management of ESG issues is critical to preserving and creating long-term value for investors, operators, employees, guests and communities. We continually seek opportunities to improve our ESG approach and policies. Responsibility Investment Policy We will consider and manage material ESG risks, opportunities and impacts within our firm and throughout the diligence, stewardship and exit of our investments. We strive to operate in accordance with industry standards such as the United Nations Principles for Responsible Investment and American Investment Council Guidelines for Responsible Investment while complying with all applicable laws and regulations. This policy will apply to all private equity investments made by KSL, and it will be interpreted in accordance with local laws and regulations. In accordance with our fiduciary duties to our clients, this investment policy provides that we: Maintain the highest standards of ethical conduct to ensure excellence in KSL’s daily operations. This includes ensuring that all employees receive this policy and related ESG information, providing opportunities for employees to engage in ESG training and education, and encouraging all employees to be good citizens in their communities by supporting their charitable efforts. Identify material ESG issues using internal and external resources throughout the due diligence process to avoid or mitigate substantial risk, as well as to capitalize on opportunities that also further our ESG goals. Work with our portfolio companies during our ownership period to identify and support improvements in ESG issues during the life of our investments and beyond. Maintain and enhance resources to support our ESG commitments. This includes developing internal resources and collaborating with leaders in sustainable business and investment. Encourage dialogue with our limited partners and other stakeholders regarding how we can better address ESG issues in accordance with their core values and investment initiatives. Promote transparency and accountability. Include ESG matters at least annually in quarterly reports to limited partners. RI Governance and Management and Training In order to support the implementation of this RI policy, we have internal resources that will enhance the efficacy and overall incorporation of ESG issues into our investments and business practices. We seek to foster a corporate culture that engages employees in our ESG goals by doing the following ESG Considerations in Investment Analysis and Due Diligence ESG issues present regulatory, market, reputational and operational risks and opportunities that should be considered when analyzing a prospective investment. To ensure compliance with our fiduciary duties, our process for identifying ESG risks and opportunities prior to committing to a potential investment is as follows: Use the following as a non-exhaustive guide for relevant considerations of a target investment’s ESG risks and opportunities: Environmental Issues: Pre-existing environmental conditions, climate change, greenhouse gas emissions, pollution generation, energy sources (or energy generation), water sources and supply, waste generation and management, recycling programs, resource conservation, energy efficiency, chemical safety and potential impact of natural disasters. Social Issues: Equal employment and labor laws, political risks and involvement, fair compensation, worker health and safety, human rights abuses, charitable contributions and community relations. Governance Issues: Transparency, accountability, internal controls, risk management, executive and management compensation, organization structure, diversity of workforce, conflicts of interest and legal and regulatory compliance. ESG Considerations for Portfolio Companies Our consideration of ESG risks and opportunities continues through the life of an investment as necessary. In accordance with the plan established during the investment analysis process, our asset managers will work with each portfolio company’s management team to increase awareness, mitigate ESG risks and create value through ESG opportunities. This is done by the following: Provide ESG policies and other ESG information to portfolio companies’ management teams when relevant. Ensure that the risks and opportunities are properly documented throughout the investment and mitigated or capitalized to the fullest extent possible. Encourage and empower portfolio company management teams to advance their own independent, robust approaches to ESG and sustainability management. Support and monitor each portfolio company’s management team to identify any new ESG risks and opportunities as they may arise with changing circumstances in the community, environment and nature of the company. Global Leadership in Travel & Leisure © 2021 KSL Capital Partners, LLC. All Rights Reserved. Legal Disclaimer