Sustainability

American Industrial Partners (“AIP”) believes that establishing and incorporating environmental, social, and governance (“ESG”) principals in the investment process supports its commitment to creating sustainable industrial companies.

Core to AIP’s investment strategy is to improve the portfolio companies in which we invest, with the intent to create value by enhancing each portfolio company’s operations. AIP considers the following ESG factors in its underwriting and governance of portfolio company investments: improvement in employee health and safety, the reduction of carbon and other emissions, and the creation of jobs and strengthening of governance structures. We believe that a focus on ESG helps to increase each portfolio company’s performance and intrinsic value.

As part of AIP’s commitment to ESG, we partner with our portfolio companies to review the relevant company-level data that informs our evolving ESG principals and focus areas, and aids in identifying meaningful ESG opportunities as our portfolio companies mature.

Environmental Factors

AIP believes that attention to environmental risk factors is an important aspect of creating sustainable industrial companies. To track effort and inform decisions on environmental sustainability, AIP regularly collects and reviews data from its portfolio companies on the following industrial consumption and emission standards

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Social Factors

AIP recognizes that the health, safety and well being of the workforce at each of its portfolio companies can have a significant impact on the sustainability of a portfolio company overall. To increase awareness and protection of employee health & safety, AIP tracks job growth, total executive and non-executive compensation, retirement benefits, and safety rates at all portfolio companies with the aim to:

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Governance Factors

AIP understands the importance of ensuring compliance with all required regulations imposed on its portfolio companies and establishing sound corporate governance as part of safeguarding the sustainability of its portfolio companies. AIP undertakes a periodic, comprehensive governance review to make certain its entire portfolio is vetted for, among other issues, instances of fraud, bribery, corruption and money laundering. AIP requires its portfolio companies to comply with all relevant local and international laws, including cybersecurity and data protection directives. AIP engages in governance-related diligence prior to making an investment and thereafter tracks data that meaningfully informs our operating decisions related to each of our portfolio company’s.

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