ESG Policy

As Exagen goes about its business it is committed to maintaining the highest level of environmental, social and governance standards in the conduct of its business affairs. The actions and conduct of the firm’s staff as well as others acting on the firm’s behalf are key to maintaining these standards

Understanding ESG

When developing its ESG Policies Exagen has referred to the Sustainability Accounting Standards Board policies for:

  • Solar Technology and Project Developers;
  • Wind Technology Project Developers; and,
  • Fuel Cells and Industrial Batteries

SASB standards are designed to identify a minimum set of sustainability issues most likely to impact the operating performance or financial condition of the typical company in an industry, regardless of location.

SASB standards are designed to enable communications on corporate performance on industry-level sustainability issues in a cost-effective and decision-useful manner using existing disclosure and reporting mechanisms.

Exagen has also referred to and is committed to delivering on the UN Sustainability Development Goals, in particular:

Our ESG Vision:

Environmental

The impact of Climate Change is being felt all over the world.  Business now plays an important role in mitigating the impact of Climate Change and wherever possible restoring the environment in the immediate short-term and more importantly for the long-term benefit of future generations.

Exagen is focussed on making a significant contribution in the energy and climate sector by promoting sustainable energy which has the potential to prevent climate change therefore preventing irreparable damage to the planet.  Reflecting on this, Exagen aims to be a key participant in the transition to a fossil-fuel free and low-carbon economy that requires an energy strategy containing four major elements:

  1. Improve: optimize use of renewable energy sources
  2. Reduce: reduce demand for, and more efficient use of energy
  3. Increase: increase use of renewable energy sources
  4. Advance: support the development and deployment of new technologies

Exagen aims to be a key participant in the transition to a fossil-fuel free and low-carbon economy

Exagen is focused on following laws, having clear policies and procedures and employing great people with suitable skills and experience who share our values

Social

Discrimination of any kind is abhorrent and there should be no place for it in today’s society and particularly in the business environment. It applies to our own actions and policies and the actions and policies of those we engage to act on our behalf, or with whom we transact with.

Exagen is focused on engagement with local communities, promoting employment opportunities for all, ensuring access to clean water and affordable housing for those most in need and supporting food security.

Governance

Good corporate governance is the cornerstone for eliminating fraud and corruption.  It is also critical for ensuring consistent and appropriate stakeholder engagement throughout the life cycle of the business and our projects.

Our ESG Policy

In line with the general principals outlined above we set out Exagen’s specific policies towards the Environment, Society and Governance below. This policy applies to all the entities within the Exagen group.

Environment

SPECIFIC POLICY STATEMENT

Based on the best available science, including the findings of the IPCC, on the drivers and impacts of climate change, Exagen believes there is an urgent need to accelerate the transition towards global net zero greenhouse gas (GHG) emissions and for service providers to play their part to help deliver the goals of the Paris Agreement and ensure a timely transition to a low carbon economy.

Exagen commits to work towards achieving the goal of net zero greenhouse gas emissions, consistent with a maximum average global temperature rise of 1.5°C above pre-industrial levels.

Exagen will seek opportunities to achieve positive environment, climate change and social impacts from our activities and in doing so promote responsible environmental stewardship and socially responsible development.

Exagen will:

  • Ensure it develops and manages assets in a manner that is, socially responsible and reflective of sound environmental management practices. Negative impacts on project affected ecosystems and communities will be avoided where possible.  If these impacts are unavoidable, they will be reduced, mitigated and/or compensated for appropriately.  This will include adherence to the Waste Electrical and Electronic Equipment (WEEE) Directive in respect of end of product/project life recycling.
  • Align all relevant services and products towards achieving net zero greenhouse gas emissions. Scaling and mainstreaming Paris Agreement-alignment into the core of its business.
  • Review and update such targets at least every five years with a view to increasing the proportion of services and products to achieve full Paris-Agreement alignment.
  • Build internal capability to understand the risks and opportunities of the net zero transition using best-practice net zero methodologies where they exist and, where methodologies or data are missing, proactively and collaboratively work to address those gaps.
  • Address its own operational impacts by setting science-based emissions reduction targets across all operational emissions (Scopes 1 and 2 and, where material, 3) in line with 1.5°C emissions pathways.
  • Consistently raise with its key stakeholders the importance and implications of setting net zero targets and strategies across Scopes 1, 2 and 3 emissions and understanding the impact businesses can have to help reduce GHG emissions.
  • Work to ensure all relevant services and products consider the best available climate science, including credible emissions reduction pathways to net zero.
  • Support innovation and prioritise its efforts where it has, or can have, the most significant impact.
  • Support the development of products and services supporting the net zero transition.
  • Advance its efforts by proactively engaging with stakeholders and policymakers on corporate and industry action, as well as public policies, which support a net zero transition of economic sectors in line with science and with regard to social impacts.
  • Report progress at least annually, including publishing disclosures aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and climate action plans.

SPECIFIC ACTIONS

  • Exagen will register annually with an appropriate recognised Carbon Neutral Certifying body such as Carbon Trust or Carbon Neutral Britain or equivalent.
  • Exagen recognises the vital role of service providers in supporting the transition to net-zero emissions and with the understanding of our clients and stakeholders, including regulators, policymakers and standard-setters, will endeavour to facilitate these objectives.
  • Exagen commits to engaging with policymakers, regulators, peers and other stakeholders, consistent with applicable law and regulatory requirements, in order to pursue the objective of net zero alignment.
  • Across all projects Exagen is committed to achieve three goals: energy generation, agricultural production and biodiversity enhancement. Early stage thought and planning is crucial in achieving these, which is why Exagen will collaborate with industry-recognised partners to survey, plan, design, implement and manage key biodiversity solutions from the outset.

Social

SPECIFIC POLICY STATEMENT

Exagen will:

  • Comply with all the applicable local and national laws and regulations on social and labour matters.
  • Identify the potential risks, impact and issues at the levels of society, stakeholders and labour and the appropriate mitigating and management measures. In particular with regards to society living conditions, labour policies and regulations, food security, supply chain practices that involve the use of labour and affects the local community, health and safety of working conditions, human rights and the stakeholder engagement process.
  • Treat all employees and contractors, fairly, and with respect, including by not employing forced labour or harmful child labour and paying wages that meet or exceed the industry or national minimum wage.
  • Take into account the possibilities of contributing positive impact to the local community and participating in community or social development programs.
  • Apply appropriate measures from best practices of social and Labour standards if the situation is considered relevant or if a project is considered to possess significant social and labour risks, even when the measures are more stringent than local and national legislation. This is especially important when a project takes place in a country that has not ratified one or some ILO Fundamental Conventions.
  • Report impact and issues on social aspects resulting from the development of projects, with particular emphasis on the ones that raise significant concerns and require greater attention.

SPECIFIC ACTIONS

  • Social Responsibility and Stakeholder Engagement – Exagen is committed to engaging fully with the communities in which its projects are located. This engagement starts at the pre-planning stage and will continue throughout the life of a project.
  • In house well-being – Exagen provides its teams with a range of well-being services to maintain and enhance the mental and physical health of its employees. None of this however is a substitute for our commitment to providing a variety of stimulating and rewarding projects on which our staff can engage.
  • Training programs – Exagen will provide a variety of internship, apprenticeship and graduate training opportunities. With a focus on career acceleration our programs will expose candidates to all aspects of the renewable energy sector.
  • Community support and local partnerships – Exagen will work alongside communities and local businesses to deliver renewable energy for all. This will include our commitment to engage with local schools and colleges to provide education and learning about this important sector and to aid communities in their own renewable energy or recycling projects.

Governance

SPECIFIC POLICY STATEMENT

Exagen will:

  • Comply with all the applicable local and national laws and regulations on transparency and corporate governance and promote the use of international best practice on corporate governance when relevant and possible.
  • Identify the potential risks, impacts and issues on governance and the appropriate mitigating and management measures, before making any project investment decision and during the project development and construction process.
  • Apply high standards of business ethics, integrity and honesty to the business and to the board of the Group and ensure no corruption, bribery, money laundering and internal misconduct activities are taking place within the business. This is especially important where a stakeholder business or project is considered to possess significant governance risks.
  • Deal with relevant stakeholders, such as regulators, tax authorities, and auditors in an open and co-operative manner.
  • Clearly define the roles and responsibilities of the business shareholding and management structures.
  • Report impact and issues on governance aspects that result from the operations of the business and projects, with a particular emphasis on the ones that raise significant concerns and require greater attention.

SPECIFIC ACTIONS

  • Exagen will appoint a suitably qualified Board of directors and senior management team and will ensure it is given the necessary resources to ensure compliance with the above policy.
  • The Chief Compliance Officer will be designated by the Board to report monthly to the Board and annually to the Group’s shareholders on adherence to this ESG policy.