We recognize that strong governance is essential to sustainable business operations and conduct our business according to the highest ethical and legal standards.

Sound governance practices guide our actions and ensure alignment with our investors. Due to both, increasing regulations and constant changes in the environment in which we operate, we regularly review evolving legislation, guidelines, and best practices for all jurisdictions in which we operate and update how we manage our compliance.

In 2020, we conducted an assessment to evaluate the impacts of the EU's Sustainable Finance Disclosure Regulation (SFDR) across our business. This assessment included a thorough review of relevant firm and product-level disclosures, with the necessary disclosures being incorporated into the private placement memorandum of the respective funds. Additionally, we initiated a dedicated project to explore the implications of the EU Taxonomy Regulation. The U.K. government has recently confirmed its commitment to implementing certain recommendations from the Task Force on Climate-related Financial Disclosures (TCFD) and is in the process of developing a U.K.-specific version of the taxonomy. However, detailed rules for implementing these measures are still pending publication. We are closely monitoring developments leading up to their implementation in the U.K. during 2022 and 2023. Our corporate governance policies and practices adhere to comprehensive standards in alignment with the guidelines for enhanced corporate governance established by the Canadian Securities Administrators and the Toronto Stock Exchange. Furthermore, we are in compliance with the requirements set forth by regulatory bodies such as the U.S. Securities and Exchange Commission, the New York Stock Exchange, and the applicable provisions of the U.S. Sarbanes-Oxley Act of 2002. We continually assess our governance practices and disclosures, with a particular focus on staying current with evolving Canadian and U.S. guidelines and keeping pace with developments in other jurisdictions where we operate.

The Arequitie Investment Asset Management Board of Directors

Strong corporate governance and the long-term interests of our investors are the focus of our Board of Directors and their commitment to our Firm.

The Board oversees management of Arequitie’s business and affairs, reviews major strategic initiatives and receives regular updates on the Firm’s ESG initiatives throughout the year. Of our 16-person Board, 10 are independent directors. Four standing committees assist in the effective functioning of the Board and comprise exclusively independent directors: Audit, Governance and Nominating, Management Resources and Compensation, and Risk Management. The responsibilities of the Board and each committee are set out in written charters, which the Board reviews and approves annually. Our activities in many global regions inform our perspective on diversity, and we believe the Board should reflect a diversity of backgrounds relevant to its strategic priorities. This includes diversity of business expertise and international experience, in addition to gender and ethnic diversity. We have adopted a Board Diversity Policy to support our goals and demonstrate our commitment to enhancing the diversity of the Board. As of 2021, women comprise 38% of our Board of Directors and 60% of our independent directors.

The Purpose of Sustainable Thematic and Impact Investing:

The driving force behind these investment strategies is to mobilize capital effectively. By directing investments into companies that offer solutions to society's challenges, we can

  • Accelerate Positive Change Sustainable thematic and impact investing accelerate the development and adoption of innovative solutions, making a tangible difference in the world.
  • Align Capital with Values Investors can align their capital with their personal values and beliefs, ensuring that their financial success contributes to a better, more sustainable world.
  • Drive Innovation Investments in companies committed to tackling societal issues encourage innovation and foster a culture of problem-solving.
  • Generate Competitive Returns These strategies have proven that it's possible to achieve financial success while doing good.

ESG Governance
Arequitie Investment’s Board of Directors has ultimate oversight of Arequitie Investment’s ESG strategy and receives regular updates on the Firm’s ESG initiatives throughout the year.

The Firm’s ESG Steering Committee is the primary decision-making body on all ESG matters and drives ESG initiatives based on business imperatives, industry developments and best practices. The ESG Steering Committee comprises senior executives from BAM and each of our business groups and maintains a direct line to the Board of Directors through its Governance and Nominating Committee, which is tasked with ensuring that all aspects of ESG are appropriately considered and reviewed by the Board and its committees. The ESG Steering Committee is assisted in executing its mandate by the ESG Working Group, which comprises operational professionals from BAM and each of our business groups.

Our approach is based on asking clients about their motivation for investing sustainably.

At Arequitie Investment, our sustainable investment strategies involve the exclusion of firms that generate a substantial portion of their revenue (5% or more) from specific business activities. These excluded activities encompass conventional weapons and firearms, tobacco, adult entertainment, and gambling. However, for both thermal coal power generation and mining, a more lenient revenue threshold of 20% is applied. It's important to note that our commitment to sustainability and responsible investing is dynamic and adaptive. Over time, we may consider lowering these revenue thresholds to align with the ongoing global transition towards a low-carbon economy. Our aim is to continually adjust our criteria to reflect evolving environmental and societal considerations.

Business Ethics

Strong ethical practices are core to our operating philosophy; honesty, integrity and respect are important elements of our Code of Conduct.

We conduct our activities to comply with all applicable legal and regulatory requirements and in accordance with our Code of Conduct. Our Code of Conduct applies to all Arequitie directors, officers, employees and temporary workers, including our wholly owned subsidiaries and any other controlled affiliates of Arequitie.

Our Code of Conduct principles include

  • *Acting responsibly in our dealings with stakeholders.
  • *Protecting the Firm’s assets, resources, and data.
  • *Ensuring accuracy of books and records and public disclosures.
  • *Providing a positive work environment for our employees.
  • *Complying with laws, rules, regulations, and internal policies :
    The Board annually reviews the Code of Conduct and considers any necessary changes in the Firm’s standards and practices. The Risk Management Committee of the Board monitors compliance with the Code of Conduct and receives regular reports on any compliance issues from the Firm’s internal auditors. Arequitie is committed to an environment where open and honest communications are the expectation, not the exception

We uphold a strict policy of zero tolerance towards bribery, which encompasses facilitation payments. Our commitment to this principle is underscored by the requirement for all Arequitie Investment staff to undergo annual anti-bribery and corruption (ABC) training, certifying their adherence to our ABC Program. Moreover, our ABC Policy is seamlessly integrated into our investment underwriting, decision-making, and execution procedures, ensuring its consistent alignment with our ethical standards.

Our ethics hotline, managed by an independent third party, is available 24 hours a day, seven days a week to facilitate the reporting of suspected unethical, illegal or unsafe behavior anonymously.

In addition to Arequitie Investment’s ethics hotline, we require all portfolio companies in which we have a controlling interest to adopt our Code of Conduct or ensure that existing practices are consistent and equal in substance. We also require portfolio companies to implement an ethics hotline that is accessible to full-time employees, contractors and temporary workers within six months of acquisition. In addition to the ongoing and timely independent review of employee reports, any significant hotline reports are brought to the attention of Arequitie Investment’s senior management and relevant committees of the Arequitie Investment Board of Directors on a quarterly basis at a minimum.