Salient Responsible Investment Policy

Overview

Salient Partners, L.P. (“Salient” or “Firm”) is an asset management boutique and leading provider of real assets, tactical equity alternatives, and private solutions for institutional investors and investment advisors. We offer strategies that span midstream energy, master limited partnerships (MLPs), real estate, and public and private equity, differentiated through our focus on challenging common practices in the market.

Our investment approach is defined by how Salient provides unique perspectives and uncommon insights to challenge common practices. Our core values – authenticity, creativity, stewardship and excellence – allow us to be faithful stewards of our client’s financial resources. These values coincide with our commitment to evaluating Environmental, Social, and Governance (“ESG”) risks within our own business policies and practices as well as our investment strategies. By challenging ourselves and our portfolio companies to look beyond the commonplace, we enable teams to think bigger and do better in a way that benefits the greater good.

Salient became a signatory to the United Nations Principles for Responsible Investment (“UNPRI”) in April of 2022 as an outward demonstration of our commitment to furthering our ESG practices. Our signatory commitment is supplemented by our adoption of specific UN Sustainable Development Goals as frame of reference for establishing key performance indicators (“KPIs”) for our ESG metrics.

Purpose

This Responsible Investment Policy (“Policy”) defines Salient’s approach to examining relevant, material ESG risks and opportunities. Recognizing that industry standards and best practices with respect to ESG topics are evolving, this Policy’s structure and associated procedures will be reviewed from time to time and updates will be made accordingly, as necessary.

Application

This Policy applies to investment opportunities directly managed and considered by Salient’s Investment Committee, to the extent practicable and in accordance with our fiduciary duties and the investment mandates. While Salient may inquire about the status of a sub-advisory firms’ ESG program, management of ESG practices for sub-advised assets is left to the discretion of the sub-advisory firm.

ESG Integration

Due diligence

Subject to a determination of what is reasonable and appropriate for each prospective investment, Salient’s investment professionals incorporate review of ESG risks and opportunities in the due diligence stage of the investment process. This review consists of identification of potentially material ESG factors based on publicly available data and sector and/or industry specific ESG standards. Results are aimed at screening out any opportunities that conflict with Salient’s ethics and values and identifying ESG topics likely to be material to the investment.

Materiality of ESG risks and opportunities are defined by the level of impact a particular factor may have on the financial performance of an investment opportunity and may be unique to the investments’ sector or industry. ESG factors considered could include environmental topics such as air emissions, water quality and waste management, social topics such as workforce diversity and health and safety, and governance topics such as cybersecurity and compliance management.

Monitoring

Material ESG risks and opportunities are regularly monitored, and relevant updates to the ESG Steering Committee semiannually, where the investment strategy allows, as appropriate.

GOVERNANCE

Salient’s ESG Steering Committee (the “Committee”) is appointed by Salient’s Board of Managers and includes personnel from various backgrounds and disciplines within the Firm. The Committee is chaired by the Firm’s Chief Executive Officer and also includes designees from the Firm’s Midstream Energy and Real Estate divisions.

The Committee is responsible for setting policies and procedures as well as the associated implementation tools necessary for executing responsible investment practices in keeping with this Policy. The Committee meets at least quarterly and periodically as needed and shall hold additional special meetings as any member may deem necessary or as may be requested by the Board of Managers.

Implementation of this Policy within the investment process is the responsibility of the investment team, with the Committee providing guidance and oversight to validate consistent and high-quality implementation. The Committee meets with the investment team on at least an annual basis to provide updates and/or training on Salient’s responsible investing processes, guidance and tools.

TRANSPARENCY & REPORTING

Salient is dedicated to transparency and incorporates reporting to investors on relevant or material ESG topics, where applicable and upon request.