Apollo Global Management : The ESG Reporting Supplement Report

2023 ESG REPORTING SUPPLEMENT VOLUME 15

Driving a More Sustainable Future

Table of Contents

3 INTRODUCTION

5 A Conversation with Carletta Ooton, Head of ESG for Equity

1. Equity Responsible and Sustainable Strategic Framework, Vision and Mission
2. PROGRAM SUMMARY

46 Apollo Origination Platforms

51 REPORTING COMPANIES ESG PERFORMANCE SUMMARY

52	Select Reporting	68	Select Reporting
	Company		Real Estate
	Sustainability Data		Investment Data
56	Select Reporting	71	Select Reporting Real
	Company Inclusion,		Estate Investment
	Diversity &		Environmental Data
	Community Data	71	Select Reporting
60	Select Reporting		Real Estate
	Company Responsible		Investment Efforts
	Stewardship Data

64 Reporting Companies Environmental Performance Summary

1. APPENDIX
2. Appendix A: Reporting Companies Listing
3. Appendix B: Legal Disclaimer

I N T RO D U CT I O N

PROGRAM SUMMARY

REPORTING COMPANIES ESG PERFORMANCE SUMMARY

APPENDIX

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Introduction

A C o n v e r s a t i o n w i t h C a r l e t t a
O o t o n , H e a d o f E S G fo r E q u i t y	5
E q u i t y R e s p o n s i b l e
a n d S u s t a i n a b l e S t r a g e g i c
Fr a m e w o r k , V i s i o n a n d M i s s i o n	8

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Introduction

Through our ESG Reporting Program, Apollo measures the annual progress of select portfolio companies' sustainability performance.

In 2023, we conducted our 15th ESG Reporting Program. As in previous years, we collected responses from applicable portfolio companies that meet our criteria1 (collectively the "Reporting Companies") to an in-depth questionnaire that includes more than 120 quantitative and qualitative questions. The survey is designed to provide insight into the activities, programs and progress of the Reporting Companies. The results help enable Apollo Global Management ("Apollo") and portfolio companies to track progress against goals, identify and mitigate risk, and make informed decisions - all factors that can contribute to strong financial performance.

The Reporting Companies are set forth in Appendix A. The ESG Reporting Program focuses largely on companies held by Apollo-managed private equity and real estate Funds and covers a variety of topics, including, but not limited to:

• Environmental consumption and reduction efforts
• Greenhouse gas ("GHG") emissions and climate-related risk
• Employee engagement
• Health and safety
• Inclusion, diversity and community
• Supply chain
• Philanthropy and volunteering.
• Corporate social responsibility
• Select policies and trainings

This ESG Reporting Company Supplement contains highlights for each Reporting Company that participated in Apollo's 2023 ESG Reporting Program. This supplement also features high-level analyses and anonymized Reporting Company data points collected from the 2023 Reporting Questionnaire.

1. In general, Apollo expects companies in which Apollo-managed private equity funds invest to participate in the annual ESG reporting program (the "Program") where they meet the following eligibility criteria: (1) the acquisition of the company by Apollo-managed funds has closed on or before the end of the third calendar quarter of the applicable reporting year; (2) the value ascribed to the investment is equal to or greater than $40 million; and (3) Apollo-managed funds collectively own equal to or greater than 10% of the voting equity of the company. Notwithstanding the preceding criteria, Apollo may tailor its approach depending upon the unique facts and circumstances of each investment, which may include the exclusion of a company from the Program, or the application of other, or additional, criteria; accordingly, the criteria set forth above do not represent absolute requirements and remain subject to Apollo's sole discretion.

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A Conversation with Carletta Ooton, Head of ESG for Equity

How do environmental, social and governance factors fit into Apollo's equity strategy?

Apollo's equity strategy cuts across sectors and presents many opportunities to consider sustainable value creation. Thoughtfully considering environmental, social and governance factors has helped us deliver returns for investors by helping portfolio companies create value, mitigate risks and can identify and realize opportunities that can drive positive financial and non- financial outcomes. Guided by these shared goals, we focus our work with portfolio companies

on building better businesses.

Last year was a busy one for your team. When you look back at 2023, what achievements stand out to you?

2023 was a fantastic year! We leveraged the strong foundation that was established in prior years and focused on driving progress toward our goals. Three accomplishments

are top of mind for me:

• Building and deploying capabilities that help us accelerate improvement and scale our work.
  Last year, we focused on developing robust capabilities that could be scaled as needed. For example, in 2022, we provided portfolio companies with a high- level playbook that included recommendations to advance decarbonization and exit readiness. The playbook was well-received. So, in 2023, we created a detailed decarbonization playbook to serve as a more granular tool that provides templates for key actions like current state assessments, gap analyses, strategy development, reporting and more. We also developed a stand-alone exit readiness playbook to arm companies with information on topics including evolving regulatory requirements and investor expectations, the role of ratings agencies and more.

• Meeting and doubling our diverse portfolio company supplier goal.
  A robust and diverse supply chain can help unlock innovation, enable access to new markets and deliver local socioeconomic impact. In 2023, Apollo portfolio companies met and exceeded our $1B goal for spending with qualified diverse suppliers2 across our private equity funds' portfolio ahead of schedule. We then worked with portfolio companies to double the goal to $2B, continuing efforts to create differentiated value for portfolio companies through
  the supplier diversity program.
  Our team also accelerated collaboration with portfolio company procurement teams to help them identify opportunities to expand their partnerships with small and diverse-owned businesses.2 In the coming year, we plan to expand supplier diversity program scope, focus and partnerships into international markets to continue to extend access to opportunity.

2. We define diverse-owned companies as those that are certified by accredited agencies as being at least 51% owned and operated by members of ethnic minority groups, women, veterans, members of the LGBTQ+ community and people with disabilities.

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• Driving progress on decarbonization with a focus on new companies in our flagship strategy.

Driving decarbonization requires focus, data, capacity and technical knowledge. We worked closely with portfolio companies in 2023 to help them formulate detailed decarbonization roadmaps, deploy carbon accounting software, secure the budget necessary to fund ROI- positive decarbonization projects, implement corporate governance mechanisms for success and worked closely with consultants on several key projects including energy efficiency assessments.

We have continued our work with Persefoni, a carbon accounting software provider, that enables portfolio companies to gather

actionable high-quality data on a timely basis. I am pleased to say that we appear to be on track to deliver our goal to reduce the median carbon intensity of in-scope flagship strategy fund companies by 15%.

In addition to education, what role does your team play in engaging with portfolio companies on environmental, social and governance topics?

Our cross-industry experts work with portfolio companies to help them mitigate risk, achieve business goals, deliver on external commitments and create value via environmental, social and/or governance initiatives. We also help management

teams determine priorities, share best practices and assist with implementation. In 2023, we hosted multiple webinars on a range of topics including: SBTi and Carbon Accounting, EHS and Human Rights. More than 830 management team members from across the portfolio in the aggregate participated

in these webinars. We leverage these forums to help ensure portfolio companies are aware of what's

on the horizon in the evolving

landscape, can prepare for compliance, as necessary and appropriate, and have access to resources that support their continuous improvement efforts.

We have also developed nine case studies across multiple topics to bring to life the work that we do to create value and manage risk and illustrate the outcomes. As such, we have case studies from a variety of industries where we have worked with portfolio companies to develop value creation strategies, complete Scope 1 & 2 baselining and implement carbon accounting, improve an external ESG rating, develop a decarbonization strategy, drive community impact and enhance health & safety programs. These illustrate what it takes to deliver value creation across a myriad of topics and can help jump start efforts for a company who is tackling a similar opportunity.

Beyond our expertise, we look to provide value by connecting portfolio companies with experts who can support their businesses with subject matter expertise and additional capabilities. In 2024, we will host our seventh bi-annual Responsible

& Sustainable Portfolio Operations

Conference. The conference is a forum for purposeful learning and networking among portfolio company leaders from sustainability, human resources and legal functions. We believe there is no better way to build an engaged network and equip portfolio company leadership with actionable learnings to enhance their own organizations' capabilities than by convening them for deep dives on topics pertinent to their companies.

How does Apollo's support enhance and accelerate the important initiatives underway at portfolio companies?

While I would be happy to address that question myself, I think it would be more impactful to share feedback that my team has received from portfolio companies management teams:

• "Last year stood out as an opportunity to significantly advance our 2023 decarbonization goal to reduce GHG emissions by 30% by 2030. Apollo has brought a breadth of expertise to support our work
  in this area. Working side-by-side with our operations, procurement, finance and sustainability teams,

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they are helping us accelerate our energy reduction program. With Apollo's help, we have identified immediate and longer-term opportunities to increase energy efficiency with strategies that will also support our ongoing goals to improve performance and reduce costs." - Stan Bikulege, Chairman

• & CEO, Novolex

• "Over the past several years, TOPS has had the privilege of partnering with Apollo. This partnership has opened numerous doors for our organization and allowed us to grow and mature as a company. One of the many benefits this has offered is access to the Apollo ESG Equity Team. The tools and resources that we have direct access to are vastly different from those that small private companies can normally leverage. We believe the ability to pull expertise from inside Apollo and within their extended network has allowed us to perform on par with our publicly traded peers."
  - Bob Netterville, CFO, TOPS
• "Apollo provided valuable leadership and guidance as we sought to improve our focus on sustainability. Environmental, social

and governance reporting can be daunting, especially when you are trying to decide which frameworks to use. The ESG Equity Team helped us cut through the noise and develop an efficient, yet thorough Sustainability Report while making actual progress toward improving our emissions impact." - Brian Bartlett, SVP Finance, Energos

• "Apollo brought incredible insights and expertise on best practices gained from across their portfolio that helped us advance our environmental, social and governance strategy, and specifically, our decarbonization program. We partnered with them to elevate our reporting practices and ensure we are taking a broad lens to the data points and measurable outcomes that we capture and track. Overall, we have greatly benefitted from our close engagement with Apollo as we work to drive our corporate strategy to make sustainability a competitive commercial advantage." - Richard Broekman, Chief Commercial Officer & Head of Sustainability, Atlas
• "From day one of integration, Apollo has worked to understand and support Univar Solutions' global sustainability journey. It

has been encouraging to have Apollo recognize the progress we have made and to have their implicit support on next steps. Apollo's experts have shared knowledge and materials to help deepen our strategy. We believe they will continue to be a great asset in helping us deliver on our sustainability goals."

• Liam McCarroll, Sustainability Director - Global, Univar

It has been over two years since you joined Apollo. In that time, you have played a crucial role in defining how the Firm leverages environmental, social and governance criteria to create value. Now that much of the foundational work has been done, what excites you most about this next chapter?

We have made great progress, and I'm excited about how much more we can do! We continue to develop new capabilities that help accelerate the critical processes that portfolio companies have underway and can make a difference in the communities where we operate. For example, a few months before this report was published, we launched an employee health and safety ("EHS") playbook

that provides portfolio companies with tools to improve EHS processes at various stages throughout their program development journeys. This playbook is just one example of the meaningful assistance we continue to provide.

Overall, I am very proud of our accomplishments and feel excited about what comes next.

In all respects, our success can be attributed to the members of the ESG Equity Team, who I believe are among the best in the industry.

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Equity Responsible and Sustainable Strategic Framework, Vision and Mission

In early 2022, the ESG Equity Team developed and deployed our Vision, Mission and Strategic Framework. In 2023, the team focused on refining what we built in the prior year, operationalizing efforts and adding capacity and capabilities accordingly.

Responsible and Sustainable Vision for Equity	Responsible and Sustainable Mission for Equity
Apollo is committed to building better	We partner with portfolio companies, leveraging
businesses that create shareholder value	subject matter expertise, data and education to
by driving measurable improvements in	create value by helping them identify and execute
sustainability, inclusion, diversity & community	opportunities that minimize their resource-use
and responsible stewardship resulting in a	footprint, maximize operational efficiencies,
positive impact on people, the planet and	improve safety and encourage diverse workforces
the communities in which we operate.	and supply chains, among other initiatives. We
	strive to be the most responsible stewards of our
	Funds' assets.

Met goal; continuously monitoring

Goal publicly stated; on path to delivery

GOAL	$2B by 2025

Commitment

	New Goals Launched in 2022
BOARD DIVERSITY	CLIMATE	SUPPLIER DIVERSITY
30% diverse board representation	15% reduction in carbon footprint	>$1B spent with diverse suppliers
Reduce median carbon intensity by 15% over
Realize 30% diverse representation on boards	Achieve more than $1B direct & indirect spending
the projected hold period for new majority equity
with majority voting interest, as defined in	with diverse firms across the portfolio with
investments by Apollo's flagship private equity
each respective region (racial / ethnic and	a focus on like-for-like impact growth
strategy, except when a portfolio company beats
gender diversity for US companies and	of portfolio companies, targeting 20%
the sector benchmark by 10% or emissions
gender diversity in non-US companies)	year-over-year growth in diverse spend
are deemed de minimis.

Status

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Program

Summary

A p o l l o O r i g i n a t i o n P l a t fo r m s

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ABC Technologies

Accent

ABC Technologies Inc., together with its affiliates (collectively, "ABC", "ABC Technologies"), is a provider of automotive systems and components manufacturing for the global automotive industry.

• Increased EcoVadis sustainability score by eight points and achieved a silver rating status.
• Achieved ISO 45001:2018 occupational health and safety management systems certification for Tier 1 ABC legacy sites.
• In 2023, ABC Technologies legacy facilities achieved the best Total Recordable Incident Rate ("TRIR") in company history and surpassed its previous best by 20.2%.
• ABC plastic recyclability stands at 96.5%, a result of the company's dedication to using recyclable materials in its manufacturing processes.
• In the first half of 2023, ABC had a minority supplier spend of over $29M from 81 certified suppliers.

Accent is a distributor and manufacturer of baling wire and wire-tier equipment.

• In 2023, Accent launched a broad-based equity ownership program shortly after acquisition by Apollo-managed Funds. The plan was formulated in collaboration with Ownership Works.
• Accent's building products division has established a program to donate excess building material items to Habitat for Humanity, a nonprofit organization that is a leader in building affordable housing.
• Accent leveraged a third party to assess its operational Scope 1 & 2 emissions and craft a go-forward emissions reduction plan, guided by annual targets.

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