Meridiam - ESG Approach by Julia Prescot at GIB Summit

“Together with our investors and partners, our mission is to deliver sustainable infrastructure that

improves the quality of people’s lives”

Global Infrastructure Basel May 22 2014

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Meridiam in Brief

Meridiam is a global developer, investor and asset manager specializing in public and community infrastructure delivered through public-private-partnerships

Investing through its 25-year funds, Meridiam takes a long-term view on infrastructure investment

32PROJECTS

AROUND THE WORLD

INCLUDING 8 IN NORTH AMERICA

110EMPLOYEES

INCLUDING 50 WORKING IN PROJECT

COMPANIES

15 DIFFERENT NATIONALITIES

$3.8bnOF ASSETS UNDER

MANAGEMENT

FOR PROJECTS WORTH

$33 BILLION INVESTMENT

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• Focused exclusively on equity financing for infrastructure projects

• Aligns the interest of our investors with those of our public authority partners

• Our investors are primarily public development banks and institutional investors (e.g. pension funds and insurance companies)

Meridiam creates an alignment of interest between stakeholders

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Investment strategy

Meridiam targets investments in public infrastructure which deliver an added value to the community (typically in the form of public-private partnerships)

Investment targets

Equity shareholdings of 20% to 100% - mainly primary (greenfield) projects, including construction

Transportation Social / Public Buildings Environment

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RAILWAYROADSOCIAL ENVIRONMENTAL

CLOSED PROJECT PREFERRED BIDDER PROJECTKEY

NEAH

PRESIDIO PARKWAY

LONG BEACH COURTHOUSE

NTE SEGMENTS 3A-3B

LBJ

PORT OF MIAMI TUNNEL

CRCHUM

NORTH TARRANT EXPRESS (NTE)

A334 MOTORWAY

A66 MOTORWAY

LIMERICK TUNNEL

SCOTTISH ROADS

NOTTINGHAM TRAM

UOH STUDENTS ACCOMMODATION

LIFT

IOW ROAD MAINTENANCE

SEA HSL

VÉLODROME

CNM HSL

L2 MARSEILLE

NAVIGATION DAMS

E18 MOTORWAY

A2 PHASE 1

A5 MOTORWAY

A2 PHASE 2

R1 MOTORWAY

VIENNA RING ROAD

ADANA HOSPITAL

CHATEAUROUX GENDARMERIE

RENNES HOSPITAL

ANNEMASSE HOSPITAL

Investment Portfolio - 32 projects across three funds

WATERLOO LRT

Meridiam is committed to ESG best practice and has included ESG as part of its regular reporting to investors

Meridiam Commitment to ESG

• ESG is at the core of our investment and asset management processes

• Meridiam Sustainable Development Charter embraces:o Principles of the 1948 Universal

Declaration of Human Rights.o Principles of the International Labor

Organization.o Principles of the United Nations Global

Compact.o Equator Principleso UNPRI

• Meridiam is also committed to building long-term projects which benefit and gain support from local communities

• ISO 9001: 2008 certification achieved for responsible investment process to offer a unique investment process and principles consistent with the sustainability requirements of investors

ESG reporting policy

• An overview of ESG aspects for each project in the portfolio is included as part of the quarterly reporting

• In addition, Meridiam produces an annual ESG report which includes:

• A presentation of Meridiam’s approach and policies in this respect

• A detailed analysis of each project in the portfolio

• Going forward, Meridiam is working on including further quantitative indicators

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Evaluating ESG Risks

Summary of the integration of ESG criteria in the Investment process

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Integrating ESG into the investment process

ESG Preliminary Risk Assessment

• The projects are classified in three possible categories following their ESG preliminary risk assessment

o Low activity risk Little or limited social / environmental impact requiring no detailed due diligence or environmental and social action plan

o Medium activity risk Environmental and social impacts can be readily predicted, prevented and/or mitigated

o High activity risk Potentially high social or environmental impact requiring detailed due diligence

• Examples

o Low risk: University of Hertfordshireo Medium risk: Ijmuiden lock o High risk: SEA

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Addressing ESG issues at board level

• At each meeting of the board convened for the review of a potential investment in a project, the investment team presents an Investment Committee Note to the members that covers ESG and provides an assessment of the ESG risk (ESIRE)

o Meridiam recently made an investment into the VNF (Voies Navigable) Dams project – the ESG impact of this project was discussed at length at a recent board – not as much in relation to the pricing but the acceptability as a project investment

• At each meeting of the board convened for the quarterly asset management review, ESG high risk projects are subject to specific additional reporting focussing on ESG monitoring. The Tours-Bordeaux high speed railway known as South Europe Atlantic HSL project has been thus subject to this specific reporting to the board of Meridiam on a quarterly basis since 1 January 2013.

o An example of a recent initiative on this project is 1360 hectares being planted with trees compensate for the ones cut down, and special heat exchangers helping to reduce global energy consumption and carbon emissions

Planning of the road as a “green motorway”

• 5 green bridges for wildlife

• ecological construction: use and recycling of local wood and use of local stone

• construction of a park and ride parking at the intersection with a rail station at the main junction from Kotka

• minimization of the noise caused by traffic, by building 35km of noise barriers

• reduction of electrical consumption by means of ‘smart’ control, solar energy production and LED lighting. Utilization of geothermal energy in the heating of roadside service buildings

Example of applications in the E18 project in Finland

Actions undertaken Example of applications

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