Extending the benefits of Green Energy beyond power generation into zero- carbon heating and cooling.

We develop projects within sectors that can simultaneously address multiple essential basic human requirements. Our aim is to create maximum impact while remaining true to our core focus of green heat energy.

We select with great care, risk-managed investments in order to deliver sustainable benefits to all our stakeholders: from investors to people benefiting from our investments over the next 10 to 15 years and beyond.

Green Tech inherits 30 years of pioneer experience in delivering green heat projects. We recognize the impact that investments in green heat have on the environment and society at large and as a result, are committed to make positive and valuable contributions. We consider it our duty to apply responsible investment practices into our business development processes and operations balancing more on the positive impact on quality of life, access to cheap energy and sustainability without ruling out the risks associated with the attachement to the old market of fosil fuels by some of the local authorities.

We do hope to see in the coming years a real change in the approach of local authorities (not only in press statements) to adhere to EU Fit for 55 rules. The implementation of environmental, social and governance (“ESG”) aspects allows Green Tech to manage associated ESG risks and leverage potential opportunities, which will continue to deliver value for our shareholders, clients, employees, the communities and societies we operate in and, as well as our investors.

This ESG policy reflects our commitment towards high ESG standards, and its purpose is to maintain proper ESG management in core investment operations and decision-making processes.

Green Tech aim to have a significant share in the efforts to build Europe’s zero carbon heating economy and delivers positive impact in the quality of food, water, air and housing for our stakeholders. At Green Tech we believe there is no contradiction between doing good in this way and delivering strong returns. On the contrary, it believes the two are inextricably linked. Its mantra is one of “green heat and power with a meaning”

Zero carbon heat infrastructure assets have long-lifespans. As a long-term player, we believe ESG integration is critical to Green Tech’s ambitions and therefore, we implement ESG factors throughout our business cycles, asset management & divestment processes to ensure long-term sustainable value.

Green Tech is committed to facilitate the zero carbon heating transition and as part of this, we aim to develop in the following sectors:

- Green District Heating - Green Food and Agriculture - Green New Real Estate Developments (including Residential, Commercial and Office) - Green Advanced Technologies

The objective of this policy is to set transparent guidelines and commitments to incorporate into our investment analysis, decision making processes.

The Paris agreement

Green Tech supports the goals set out by the 2015 Paris Agreement as amended and restated in the recent 2021 COP in Glasgow. Our focus is on projects which can create energy infrastructure to facilitate the production transmission, and consumption of renewable heat, thereby resulting in low carbon emissions.

Green Tech encourages a proactive approach towards energy policy, legislation and environmental stewardship, driving sectors to go beyond compliance to reduce the causes and impacts of global warming and climate change.

We aim to measure and monitor air quality and emissions of our projects as defined by the Green House Gas protocol.

Principles for responsible investment

Green Tech aims to become a signatory member of the United Nations Principles for Responsible Investment. As a prerequisite, we have embedded the six principles into our responsible policy. The policy is driven by its intention to systematically integrate ESG factors into the entire business process. We aim to work in concert with our investors, financing institutions, current and future portfolio companies to identify ESG value creation opportunities and minimize ESG-related risks.

i. We will incorporate ESG issues into investment analysis and decision-making processes. ii. We will be active owners and incorporate ESG issues into our ownership policies and practices. iii. We will seek to appropriate disclosure on ESG issues by the entities in which we invest. iv. We will promote acceptance and implementation of the Principles in the investment industry. v. We will work together to enhance our effectiveness in implementing the Principles. vi. We will each report on our activities & progress towards implementing the Principles.

Green Tech will comply with the SFDR, and conduct assessments into Taxonomy alignment.

Green Tech acknowledges the EU Sustainable Finance Disclosure and Taxonomy regulations and considers them leading. Core to the conduct of Green Tech’s business developments we will accept guidelines and technical standards applicable to our investment strategies and disclose related sustainability performance. We will continue to monitor developments and adjust our policy, standards and approach accordingly.

Sustainability disclosure:

Green Tech will comply with the regulation on sustainability-related disclosures (SFDR).

Green Tech will annually publicly disclose:

• Information about policies regarding integrating sustainability risks in investment decision-making • Information on the consideration of adverse impacts of its Information in remuneration policies and how remuneration policies are consistent with the integration of sustainability risks • Information as to whether and if so how, any particular investment considers principle adverse impacts on sustainability factors

Taxonomy:

The sectors in which we seek to develop are inherently focused on mitigating climate change. In time, we will conduct assessments on our portfolio investments to ensure operations positively contribute to climate change mitigation and the “do no significant harm” principle towards environmental contributions in water, circular economy, pollution and eco-systems. In principle, this allows Green Tech to pursue the marketing benefits of Taxonomy alignment.

We believe that applying strict ESG principles will create long-term value for our investors and society as a whole.

Environmental

Green Tech seeks to maximize the positive environmental impacts of our investments. We are committed to the heating transition by decarbonizing the heating and cooling industry (including hot water) and believe in leveraging our technical expertise and strategic investments to support a long-lasting positive impact on the environment. We actively seek out opportunities to support this cause, while we aim to maximize environmental performance our business by examining positive external impact, emissions of operations, the efficiency of resource use, and ecosystem impacts of current (and potential) investments.

Social

Regarding our business developments. We support and adhere to applicable national and international labor laws as well as comply with internationally recognized human rights principles. We ensure our operations abide by fair and proper labor conditions throughout the value chain while striving for high health and safety standards, the promotion of equal rights, social inclusion, and diversity in all areas of business operations across our portfolio. We aim to maximize the development of the communities in the midst of whom our investments operate, thereby promoting sustainable, profitable growth, and external social positive impact. Once each of our projects turn positive results, we shall ensure that a certain percentage of their profits will be allocated to socially responsible projects to positively impact all local communities.

Governance

Green Tech places paramount importance on ensuring good corporate governance. We exhibit honesty and integrity while adhering to the highest standards of conduct and ethical behavior in all areas of business operations.

The execution of the ESG policy is implemented throughout our investment selection and ownership processes.

Scope and screening

In general, Green Tech seek to roll out its expertise beyond the borders of Romania into European Union countries (including the UK and Switzerland) and have a specific portfolio focus on companies and assets contributing positively to the Zero carbon-heating transition. Green Tech will conduct a pre-due diligence screening, in which an investment will be rejected if operationally or financially linked to any persons, products, companies or countries considered illegal under applicable law, banned through international convention, or registered on international sanctions lists as well as excluded sectors detailed in Annex I.

Due diligence

Diligence to determine the sustainable proposition of target investments and consider the entire value chain of the investment. This process allows the identification of key risks and opportunities within ESG assesses how the prospective investment manages key risks and opportunities. We specifically assess targets against a governance checklist. Please see Annex II for the governance checklist.

Reporting:

Green Tech intends to annually disclose on aggregated portfolio level material ESG activities and developments. Where applicable, Green Tech would seek to communicate and disclose incidents/ controversial events at investment-level and portfolio-level to shareholders, financing institutions, including remediating actions implemented. Green Tech aims to create Sustainability Reports for its investments, as well as an encompassing report, portfolio- wide. The Sustainability Report for each investment will outline the most pressing ESG risks and the performance on these risk factors, as well as ESG value creation opportunities to align business activities with a sustainable future. Following the completion of the individual company reports, findings will be aggregated on a portfolio level to illustrate the overall portfolio performance.

Monitoring of compliance to all applicable laws, regulations and conventions is a top agenda item for the Board.

Green Tech implements sound strategies for the management of risk.

Compliance

Green Tech seeks to maintain sound governance and maintain compliance. We shall create within 2022 a special position as Head of EGS & Compliance to report to the Board regarding compliance management. The Head of ESG & Compliance will perform the role with a high-level of impartiality and independence. Green Tech shall implement during 2022 robust governance policies with respect to key aspects including valuations, GDPR, IT security & disaster recover. The Head of ESG & Compliance ensures all policies are reviewed to reflect latest regulations and requirements for Green Tech.

Risk management

Green Tech will at all times regard risk management as a core discipline in relation to every portfolio company and underlying asset within its portfolio. In accordance with directive 2011/61/EU (AIFMD) Green Tech shall appoint a Chief Risk Officer (“CRO”) who will provide risk management across projects ensuring sound governance. The Green Tech team will seek to gain in-depth knowledge of an asset/project or of a portfolio company from practical experience, with the risk management focus starting from initial identification..

The CRO shall have the following powers and responsibilities:

i. Set risk policy, investment guidelines and applicable restrictions for each investment; ii. Oversee adherence of all Green Tech investment vehicles to risk policies and guidelines; iii. Propose countermeasures to market risk situations; iv. Veto or restrict new investments for reasons of risk management

Green Tech’s investment strategy is focused on zero carbon heating. Therefore we cannot, and will not engage with any companies associated with the following sectors.

Green Tech will assess acquisition targets against the following policies and risk management protocols.

i. production, trade and/or distribution of weapons and ammunition; ii. production, trade and/or distribution of tobacco products or alcoholic beverages; iii. activity of prostitution or procuring of prostitutes; iv. production, distribution or sale of pornography; v. manufacture or marketing of casinos or other gambling activities; vi. thermal coal mining and extraction vii. oil extraction.

Green Tech will also not invest in companies whose conduct systematically breaches the UN Global Compact Principles:

i. Businesses should support and respect the protection of internationally proclaimed human rights; and ii. make sure that they are not complicit in human rights abuses. iii. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; iv. the elimination of all forms of forced and compulsory labour; v. the effective abolition of child labour; and vi. the elimination of discrimination in respect of employment and occupation. vii. Businesses should support a precautionary approach to environmental challenges; viii. undertake initiatives to promote greater environmental responsibility; and ix. encourage the development and diffusion of environmentally friendly technologies. x. Businesses should work against corruption in all its forms, including extortion and bribery.

Green Tech aims to ensure good governance in its investments and will assess the following criteria.

Green Tech will assess acquisition targets against the following policies and risk management protocols.

Policies:

i. code of conduct ii. anti-bribery and corruption iii. equal opportunity/diversity/anti-discrimination iv. health, safety & wellbeing policies v. environmental stewardship vi. data protection & GDPR

Risk management protocol:

i. quality & compliance register ii. politically exposed persons iii. environmental risk assessments