MPC CAPITAL AGESG STRATEGY |→ 02 / 2020

“RESPONSIBLE ASSET AND INVESTMENT MANAGEMENT IS AT THE CORE OF OUR COMPANY AND OUR INVESTMENTS. WE ARE COMMITTED TO INVESTING WITH CONSIDERATION OF OUR ESG PRINCIPLES THUS DELIVERING LASTINGPOSITIVE IMPACT ON THE ENVIRONMENT AND THE COMMUNITIES IN WHICH WE INVEST. OUR ESG PRINCIPLES SERVE AS A GUIDELINE TO INVESTING SUSTAINABLY AND RESPONSIBLY IN ALL OUR ASSET SEGMENTS REFLECTINGOUR COMMITMENT TO SOCIALLY AND ENVIRONMENTALLY RESPONSIBLE ACTIONS.”

// ULF HOLLÄNDER, CEO (CHIEF EXECUTIVE OFFICER)

ESG STRATEGY AND PRINCIPLESWE THRIVE FOR SUSTAINABILTY & RESPONSIBILITY IN ALL OUR INVESTMENTS |→ 2

OUR ESG GOALS

ENVIRONMENTAL RESPONSIBILITY+ Reduce environmental impact of managed

assets and corporate processes.

SOCIAL RESPONSIBILITY+ Positive contribution to communities and

individual well-being.

CORPORATE GOVERNANCE+ Maintain and develop best-in-class governance,

compliance and risk management standards.

AS PRI SIGNATORY WE EMBRACE THE SIX UN PRINCIPLES FOR RESPONSIBLE INVESTMENT*

ESG PRINCIPLESWE THRIVE FOR SUSTAINABILTY & RESPONSIBILITY IN ALL OUR INVESTMENTS |→ 3

MPC CAPITAL ESG PRINCIPLES

+ Adherence to and compliance with all relevant laws and regulations.

+ We invest with responsibility, defining measures to monitor, develop and achieve our sustainability targets in all our investments. These targets are regularly documented, reviewed and communicated.

+ Customers are our partners. We aim to provide customer satisfaction at all times by being aware of their investing requirements. We closely cooperate with our customers in order to increase quality and minimize the impact of our actions and investments on the environment.

+ The hallmark of our efficiency is marked by our well trained and competent employees as well as our social engagement.

+ Based on an open dialogue with our customers, business partners, employees, and other stakeholders we continuously improve our high quality, ecological and safety standards.

+ The trust vested in us by our customers obligates us to manage their investments in a manner that is constantly vigilant, transparent and professional. Avoiding mistakes is an important objective.

+ Providing a safe and healthy working environment for all our employees has high priority.

+ Adherence to the standards of conduct set out in the MPC Capital Code of Conduct is a binding requirement.

+ Standards that we apply to ourselves also apply to our sub-contractors. It is not they, but we who vouch for the services provided with the company’s good name.

We will incorporate ESG issues into investment analysis and decision-making processes.

1We will be active owners and incorporate ESG issues into our ownership policies and practices.

2

We will seek appropriate disclosure on ESG issues by the entities in which we invest.

3We will promote acceptance and implementation of the Principles within the investment industry.

4

We will work together to enhance our effectiveness in implementing the Principles.

5 We will each report on our activities and progress towards implementing the Principles.

6

*The Principles for Responsible Investment were developed by an international group of institutional investors reflecting the increasing relevance of environmental, social and corporate governance issues to investment practices. The process was convened by the United Nations Secretary-General.

OUR ESG GOALS IN REAL ESTATE

SUSTAINABILITY FOR EMPLOYEES AND TENANTS IMPLEMENTING ESG IN OUR ASSET UNIVERSE - REAL ESTATE |→ 4

“OUR VISION AND OUR STRATEGY IS TO CREATE BUILDINGS THAT ARE READY FOR THE FUTURE AND MEET THE DEMANDS OF THE TENANTS. WE LOOK FOR DURABILITY AS WELL AS SUSTAINABILITY, GOING FAR BEYOND TECHNICAL SUSTAINABILITY.”

// DR. LUDWIG VOGEL, MRICSMANAGING DIRECTOR OF MPC REAL ESTATE SOLUTIONS

+ Reduce regional carbon footprints

+ Build energy efficient properties only

+ Consider work place health management with office buildings

+ Reduce waste during development and after

+ Barrier-reduced living

+ Healthy living and working

+ Comply with MPC Code of Conduct

Logo Name Description

Healthy Workers

|→ healthyworkers.nl

MPC Capital, via its wholly-owned Dutch subsidiary Cairn Real Estate, partners with HealthyWorkers, a company in the Netherlands supporting healthy work and healthy work environment.

Breeam Award

|→ breeam.com/awards/

BREEAM awards sustainability performance during planning, design, construction, operation or refurbishment, helping to lower running costs, maximise returns through market value and attract and retain tenants with desirable places to live and work.

Well Certification

|→ wellcertified.com

WELL is the leading tool for advancing health and well-being in buildings globally. The global community of WELL accredited Professionals are leading the movement to make buildings healthier for all. 3,454 projects encompassing over 416 million square feet are applying WELL across 55 countries.

REAL ESTATE ESG AWARDS AND PARTNERSIMPLEMENTING ESG IN OUR ASSET UNIVERSE - REAL ESTATE |→ 5

A LANDMARK GOES GREENCASE STUDY |→ 6

KEY FACTS+ Partner of Healthy Workers

+ BREEAM Label *** very good and Energy Label A

+ WELL GOLD Certificate

+ Highly insulating Facades

+ Thermal storage and district heating

+ Climate Ceilings

+ Water saving sanitary facilities

BLAAK16, ROTTERDAMBlaak16, a centrally located landmark building in Rotterdam, was converted into a modern office building with a focus on sustainability. The social added value lies in the sustainable character of the redevelopment, resulting in the BREEAM Excellent certificate and WELL GOLD certificate.

|→ BLAAK16

HEALTHY WORKING FOR HEALTHY EMPLOYEESCASE STUDY |→ 7

THE CLOUD, AMSTERDAMThe Cloud was an old office building in the heart of Amsterdam that was fully transformed into the work place of tomorrow. Next to being a sustainable building, The Cloud is equipped with facilities that are important for employee happiness and performance like social interaction in common spaces.

|→ THE CLOUD

KEY FACTS+ Green Building

+ BREEAM Label *** very good and Energy Label A

+ Solar Panels in the Atrium Roof

+ Heating and cooling through thermal heat storage

+ Electric car-chargers in the parking garage

+ New high-insulation façade

+ Energy saving LED lighting in the corridors and sanitary areas

GREEN FAMILY LIVING IN HAMBURG CASE STUDY |→ 8

HEIDBROOK PLATEAU, HAMBURGA new built residential quarter in the green outskirts of Hamburg that MPC Capital sold beginning of 2020. The property covers ESG criteria and is especially attractive for modern families, combining environmental aspects like reduced energy consumption with the social aspects of family life like Kindergarden and schools nearby.

KEY FACTS+ KFW 55 standard in terms of energy consumption

+ Electrical charging columns in/at the objects

+ Energy-efficient technical building equipment

+ Energy consumption of at least 95% of the common areas from renewable energies

+ Low CO2 emissions

+ Partly barrier-reduced living

+ Public transport, kindergartens, schools and/or playgrounds within a defined distance

OUR ESG-GOALS IN SHIPPING

SUSTAINABILITY FOR THE SHIPPING INDUSTRYIMPLEMENTING ESG IN OUR ASSET UNIVERSE - SHIPPING |→ 9

+ Reduce emissions

+ Reduce waste

+ Protecting health and safety of employees and partners

+ Comply with MPC Code of Conduct

“WITH IMO 2020 THE ISSUE OF SUSTAINABILITY HAS REACHED THE MERCHANT SHIPPING SECTOR. WE ARE COMMITTED TO THE GOALS OF THIS REGULATION AND STRONGLY SUPPORTED IT FROM THE START. OUR SOLUTION WITH SCRUBBER TECHNOLOGY WILL BE A FIRST STEP IN THE RIGHT DIRECTION.”

// CHRISTIAN RYCHLYMANAGING DIRECTOR OF MPC MARITIME HOLDING

Name Description

DNV-GLISO 9100 und 14001 forAhrenkiel Steamship

|→ dnvgl.com

Leading provider of risk management and quality assurance services to the maritime, oil and gas and industries.

Eco partnership Hamburg forAhrenkiel Steamship

|→ dnvgl.com

The Eco-Partnership Hamburg is a strategic initiative. The Eco-Partnership is part of the mission to create the “Growing City” and an important foundation for further development, since its aims are to preserve the quality of life, the vitality of business and to secure the future of the City. The Eco-Partnership is intended to spark innovation in both economic and environmental matters. That makes it an important element of any policy designed to secure the City’s future as a business location.

Clean Shipping Alliance 2020

|→ cleanshippingalliance2020.org

The Clean Shipping Alliance 2020 (CSA 2020) represents a group of leading companies from the commercial shipping and cruise industries that have been leaders in emission control efforts and have made significant investments in research and analysis, funding and committing resources to comply with 2020 fuel requirements through the development and use of Exhaust Gas Cleaning Systems (EGCS).

Container Ship Safety Forum

|→ cssf.global

Launched in 2014, the Container Ship Safety Forum (CSSF) is a globalbusiness-to-business network that improves safety performance andmanagement practices in the container shipping industry.

Trident Alliance |→ tridentalliance.org/

The Trident Alliance is a coalition of shipping owners and operators who share a commoninterest in robust enforcement of maritime sulphur regulations and are willing to collaborate to help bring it about.

SHIPPING ESG AWARDS, MEMBERSHIPS AND PARTNERSIMPLEMENTING ESG IN OUR ASSET UNIVERSE - SHIPPING |→ 10

SHIPPING FUEL OF THE FUTURE: LNG CASE STUDY |→ 11

WES AMELIE, LNG-POWERED CONTAINER SHIPWes Amelie was the first container ship of its kind in the world to betransformed into a liquiefied natural gas (LNG) powered vessel. The dual-fuel vessel meets the emission requirements set by the International Maritime Organisation (IMO). It also achieved a significant reduction in particulate and CO2 emissions and will be compliant with future stringent regulations set by the IMO. The project was realised in cooperation with Wessel Marine (member of MPC Group).

KEY FACTS+ LNG is the cleanest burning fossil fuel

+ LNG reduces Sulphur oxide emissions by more than 99%

+ LNG reduces Nitrogen oxide emissions Sulphur oxide by approximately 90%

+ LNG contains up to 20 % less Carbon dioxide

+ LNG conversion supported by German government

OUR ESG-GOALS IN RENEWABLEENERGIES

ENVIRONMENTAL+ Contributing to sustainable and climate-friendly energy supply

SOCIAL+ Support positive links and a sustainable relationship with the

surrounding communities where renewable projects take place

+ Protecting health and safety of employees and partners

GOVERNANCE+ Comply with MPC Code of conduct

CLEAN AIR FOR FUTURE GENERATIONSIMPLEMENTING ESG IN OUR ASSET UNIVERSE - INFRASTRUCTURE |→ 12

“INCREASING THE USE OF RENEWABLE POWER IS ONE OF THE MOST IMPORTANT WAYS TO FIGHT CLIMATE CHANGE AND TO REGAIN CLEAN AIR FOR FUTURE GENERATIONS. OUR COMMITMENT LIES ESPECIALLY WITH REGIONS THAT STILL RELY HEAVILY ON FOSSIL FUELS.”

// MARTIN VOGTMANAGING DIRECTOR OF MPC RENEWABLE ENERGIES

Logo Name Description

IIGCCInstitutional Investors Group on Climate Change (IIGCC)

|→ iigcc.org

Institutional Investors Group on Climate Change (IIGCC) is a platform for European institutional investors launched in 2001. The IIGCC pursues its objective of contributing to a low carbon economy by engaging with investors, companies and policy-makers on different working areas, including climate-related risks.

Climate Action 100+

|→ climateaction100.org

Climate Action 100+ is an investor initiative launched in 2017 to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change.

The Clinton Foundation

|→ clintonfoundation.org

The Clinton Foundation is a non profit organization founded in 1997. Through its Climate Initiative, the Clinton Foundation collaborates with world-class partners to increase the resiliency of communities facing climate change, and create replicable and sustainable models for others to follow.

Solar Head of State

|→ solarheadofstate.org

Solar Head of State (SHOS) is a non-profit organization formed by a worldwide team of grassroots activists aligned with solar energy social entrepreneurs from around the globe. SHOS works towards increasing global awareness of solar energy’s potential and inspire mass adoption with innovative efforts to reduce greenhouse gas emissions.

INFRASTRUCTURE ESG AWARDS, MEMBERSHIPS AND PARTNERSIMPLEMENTING ESG IN OUR ASSET UNIVERSE - INFRASTRUCTURE |→ 13

CLEAN AIR FOR PORTUGAL CASE STUDY |→ 14

280million tons

CO2avoided

Contributes over€1 billion to Portugal’s GDP

500 Jobs already created

200 permanent local jobs

1.000+ jobs at construction

€540mill

Reduced energy dependence and structural trade deficit

Reducedelectricityimports

KEY FACTS

ÂNCORA WIND FARMS, PORTUGAL With a total capacity of 171.6 MW, Âncora Wind farms are the 4th biggest wind farm in Portugal. Today Âncora delivers clean electricity to power 125,000 homes. The project is the perfect illustration of value creation in Portugal. The nacelles and hub were assembled in OIiveira de Frades, the blades produced at Ria Blades in Vagos. This project also covers the local sourcing of towers, electrical components, civil works and electrical works.

|→ ÂNCORA WIND

THE SUN ALWAYS SHINES ON THIS INVESTMENT CASE STUDY |→ 15

KEY FACTS – PARADISE PARK

0 Serious accidents registered since beginning of construction

303 Temporary jobs created in Jamaica between 2018 and 2019

18,592tons

CO2avoided per year 0 Serious accidents registered

since commercial operations

11 Permanent workers in 2018

4,915tons

CO2avoided per year

CARIBBEAN CLEAN ENERGY FUNDThe Caribbean Clean Energy Fund was launched in 2017 with a target volume of approx. USD 100 m and seed assets in Jamaica (37 MW Photovoltaic Park “Paradise Park”) and Costa Rica (21 MW Wind farm “Tilawind”) . MPC Capital will expand the strategy with a current pipeline comprising 14 projects accounting for approx. 320 MW.

|→ CARIBBEAN CLEAN ENERGY

KEY FACTS – TILAWIND

ELBSTIFTUNG: SUPPORTING YOUNG PEOPLE'S EDUCATION CASE STUDY |→ 16

FOUNDATION “ELBSTIFTUNG”For 15 years, MPC Capital has been supporting educationally disadvantaged young people with its Elbstiftung foundation. Within the ElbstationAkademie project, young people rehearse plays, produce radio features and make movies, which are then presented in theatres throughout Hamburg.

|→ ELBSTATION AKADEMIE

KEY FACTS+ 450+ youth enrolled the Elbstation program since 2006

+ 200+ participants stayed involved in the program for up to six years

+ 150+ volunteers supported the youth

+ 21 awards for outstanding performance

+ 36 plays, 46 films and 49 radio features were created

+ 15 cooperation partners (schools, theatres etc.)

+ Elbstation was the only German partner in “Adobe Project 1324”. Supported by Adobe funding program: Adobe Employee Community Fund

BUNDESWETTBEWERBJUNGER FILMBronzemedaille

2016

FINK FERNSEHPREIS2015

HAMBURGERAUDIOWETTBEWERB

Hinz&Kunzt