sustainability report 2017 · staff members 85 140 160 725 340 2014 2,946mw 2,573mw 112mw 2,301mw...

SUSTAINABILITY REPORT

2017

02 Commitment to Sustainability 04 Equis by Numbers 06 Sustainability Metrics 08 Sustainability at a Glance10 Policies and Standards 12 Systems and Processes 14 Equis Initiatives 16 Community Initiatives18 Orbis20 Room to Read22 Portfolio Investments24 Soleq Thailand 26 Soleq Philippines 28 Japan Solar 30 Energon Soleq 32 Soleq Taiwan34 Redaya Energi 36 Energon India 38 Energon Philippines 40 Japan Wind 42 Hydreq India 44 Hydreq Philippines 46 Bioeq Energy 48 Japan Bioenergy50 Oriental Gas52 Infraedge 54 Asia Networks

CONTENTS

Equis Pte. Ltd. (“Equis”) intends that the information contained in this document is directed only at persons who are permitted to receive such information under the laws of their local jurisdiction (“Recipients”). Equis will therefore only provide this document to such Recipients. Recipients are required to keep the information contained in this document confidential and not to copy or disclose it or any part of it to any other person. Information contained in this document is believed by Equis to be accurate and correct, and statements of opinion in this document are considered by Equis to be reasonable. Equis accordingly accepts no responsibility for the consequences of any person relying on the content of this document for any purpose and Recipients should seek independent professional advice on the subject matter pertaining to legal, regulatory, tax and related investment matters as appropriate.

COVER PAGEBoys enjoy Micro Galleries Arts Festival in Jakarta, sponsored by Equis Energy. Photo credit: Teresa Schebiella

CURRENT PAGE30MW Ironman Solar Farm in Leyte, Phiippines

ASIA’S LARGEST INDEPENDENT RENEWABLE ENERGY DEVELOPER

AND INVESTOR

Equis’ investment strategy involves embedding Environmental, Social and Governance (“ESG”) considerations into investment decisions and evaluating the environmental and social sustainability of investments in parallel with managing and analysing financial sustainability and risks. Through its investment strategy, Equis has fulfilled three objectives central to how we view sustainable development and responsible investment by:

1. Providing superior risk-adjusted returns to investors;

2. Positively impacting the quality of life in the local communities where our assets are located; and

3. Contributing to the conversation and protection of the environment.

The standard definition of sustainable development is considered to be “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”. While this definition from the Brundtland Report remains pertinent 30 years after its initial publication, Equis has a broader view of sustainability

COMMITMENT TOSUSTAINABILITY

that also focuses on improving the quality of life and increasing economic growth in the communities surrounding our projects. To this end, Equis designs and implements Corporate Social Responsibility (“CSR”) programs that are developed through discussions with the community and which aim to address their social and economic concerns and requirements through-out the duration of project. The central themes of our CSR initiatives are Healthcare, Education and Infrastructure, with a specific focus on women and children, as we believe that these programs can immediately benefit the most people and have a lasting positive impact for future generations. Healthcare programs undertaken in 2017 included sponsoring medical camps for rural communities, eye check-ups for schoolchildren and feeding programmes for undernourished children. Educational initiatives which improved access to education consisted of donating desks, books and educational materials and establishing libraries. In respect to infrastructure, platforms have constructed mother and children health

Room to Read, India

Equis has been committed to sustainable development and investment since inception and in January 2018, the benefits of this strategy were realised through the sale of Equis Energy, as the largest renewable energy transaction in history. The sale demonstrated the value of building the largest Pan-Asian platform to develop, construct and operate renewable energy assets.

Zero Hunger, Soleq Philippines

centres, kindergartens and community centres and provided building materials for schools. Additionally, Equis stipulates that platforms should offer local employment opportunities during development, construction and operations if feasible, to increase economic growth for members of the communities adjacent to the assets. By implementing these programs Equis can positively contribute to the current and future prospects of the members of these communities.

We remain committed to adhering to international development and sustainability best practices as laid out by the IFC Performance Standards, the World Bank Environmental and Social Standards, as well as the United Nations Principles for Responsible Investment (“UNPRI”). Our Sustainability Report describes the incorporation of ESG standards through-out the investment lifecycle, from evaluation of investments to monitoring during asset management, and includes highlights from our CSR programs during 2017.

3E Q U I S S U S T A I N A B I L I T Y R E P O R T 2 0 1 7 2

ASSETS

792015

20162017

STAFF MEMBERS

85

140

160

725

340

2014

2,946MW2,573MW

112MW

2,301MW

121

171

115

92

127

92

857

92

833938

316

499

655

833

872867

737

301

1,817GWh

79GWh

793 GWh

339504

615

400

1,335

566

9661,130

1,207

1,272

460

2,196GWh

403

20152016

2017

2014

148

SOLAR

1,381

274

253

286

568

WIND

741

93

303

HYDRO

693

500

193

BIOENERGY

1316

125

OFFICES

20

2

4

10

4

10

19

8

42345

ASSETS UNDER MANAGEMENT

US$2.7 BILLION

RENEWABLE ENERGY GROWTH

BY STAGE (MW) AND GENERATION (GWh) 2014 - 2017

CAPACITY BY SECTOR

CAPACITY BY COUNTRY

2014 - 2017 (MW)

EQUIS BYNUMBERS

2014 2015 2016 2017 DEVELOPMENT OPERATIONAL CONSTRUCTION MWh

INDIA PHILIPPINES PHILIPPINES JAPAN

THAILAND INDONESIA TAIWAN

2014 2015 2016 2017

2014 - 2017 (MW)


PASSENGER VEHICLES TAKEN OFF THE ROAD4

HOUSEHOLDS POWERED

GHG EMISSION REDUCTIONS

WATER SAVINGS

JOBS CREATED5

TREES PLANTED

SUSTAINABILITYMETRICS

1 GHG Protocol May 2015 indicators by country2 Based on World Energy Council indicators by country3 Based on water withdrawal factors by sector compared to coal-fired power from the National Energy Laboratory

(millions tonnes annually1)

(millions annually2)

(billions of litres annually3)

(millions annually4)

TO ELIMINATE AN EQUIVALENT AMOUNT OF GHG

AND GROWN FOR 10 YEARS TO ELIMINATE AN EQUIVALENT AMOUNT OF GHG

4 EPA GHG Calculator5 Direct and indirect employment opportunities, long and short term

2014 2015 2016 2017

13,10211,61215,5596,051

2014 2015 2016 2017

151.6120.1116.279.3

2014 2015 2016 2017

4.84.74.12.2

2014 2015 2016 2017

5.84.74.53.0

2014 2015 2016 2017

6.56.05.22.5 1,251,537985,094956,538652,249

2014 2015 2016 2017


8

SUSTAINABILITYAT A GLANCE

INDIAENERGON414MW Operational848,727 tonnes GHG savings 867 megalitres H2O savings

ENERGON SOLEQ130MW Operational135MW Construction400,539 tonnes GHG savings 408 megalitres H2O savings

HYDREQ193MW Operational853,037 tonnes GHG savings 853 megalitres H2O savings

INFRAEDGE156,905 m2 Construction74,499 m2 Development211 tonnes GHG savings 243 megalitres H2O savings

THAILANDSOLEQ92MW Operational64,819 tonnes GHG savings 122 megalitres H2O savings

INDONESIAREDAYA ENERGI72MW Construction99MW Development399,484 tonnes GHG savings 466 megalitres H2O savings

SINGAPOREASIA NETWORKS300,000 m2 Operational

JAPANJAPAN SOLAR250MW Operational74MW Construction287MW Development389,509 tonnes GHG savings 666 megalitres H2O savings

JAPAN WIND120MW Development173,517 tonnes GHG savings 298 megalitres H2O savings

JAPAN BIOMASS125MW Development119,462 tonnes GHG Savings

CHINAORIENTAL GAS9,955 Operational (mil cbm)1,266,252 tonnes GHG savings

TAIWANSOLEQ10MW Operational112MW Development137,617 tonnes GHG savings 212 megalitres H2O savings

PHILIPPINESBIOEQ ENERGY6MW Construction115,715 tonnes GHG savings 248 megalitres H2O savings

ENERGON54MW Operational80MW Development64,126 tonnes GHG savings 121 megalitres H2O savings

HYDREQ500MW Development903,600 tonnes GHG savings 1,703 megalitres H2O savings

SOLEQ193MW Operational129,688 tonnes GHG savings 244 megalitres H2O savings

9E Q U I S S U S T A I N A B I L I T Y R E P O R T 2 0 1 7

30MW Ironman Solar Farm - Leyte, Philippines

EQUIS POLICIES &

PROCEDURES

IFC EHS Guidelines

UN Declaration of Human

Rights

ILO Basic Terms &

Conditions of Work

IFC Performance

Standards

World Bank E&S Standards

Bribery Act 2010 (UK))

Foreign Corrupt Practices

Act 1977 (USA)

Code of Conduct

Business Continuity

RiskManagement

Anti-Bribery &Anti-Corruption

Anti-MoneyLaundering

Data Protection &Electronic Information

Security

Environmental& Social

ResponsibilityCode

CSR Policy

OccupationalHealth &

Safety

HumanResourcesPersonal

Trading

10

POLICIES ANDSTANDARDS

ESG principles are central to our investment decision process and are considered at all stages of the investment cycle, from preliminary screening through to exit. Equis’ policies incorporate international best practice standards to form the framework which governs investment and asset management processes and policies. IFC Performance and EHS Standards, the World Bank Environmental and Social (“E&S”) Standards and the United Nations Principles for Responsible Investment are at the core of our policies and feature prominently in the Equis Investment Code and Exclusions List, Environmental & Social Responsibility policy, CSR policy and OH&S policy. All platform companies are required to adopt and adhere to these policies.

Equis’ Investment Code stipulates that all employees commit to the following key principles which platforms are also required to adopt:

• Minimise adverse impacts and enhance positive effects on the environment, stakeholders and staff

• Apply the relevant international best practice standards to investments

• Commit to continuous improvements in managing ESG topics and issues

• Make efficient use of natural resources and protect the environment

• Support reducing GHG emissions, contributors to climate change

• Comply with all applicable laws• Promote social aspects of development impact from

investments• Apply management systems which address ESG risks• Realise ESG opportunities as an essential aspect of

investment value

After becoming a UNPRI signatory in 2014, Equis incorporated the Principles into the Equis Environmental and Social Responsibility Policy which outlines actions required pre and post investment, including:

• Incorporating ESG considerations into investment analysis and decision making processes

• Being active owners and incorporating ESG issues into our ownership policies and practices

• Seeking appropriate disclosure on the ESG practices of target investments

• Promoting the acceptance and implementation of the Principles within the investment industry

• Working to enhance our effectiveness in implementing the Principles

• Promoting ESG to the investment industry• Monitoring and reporting platform investment ESG

activities and progress on a quarterly and annual basis

The Exclusions List prohibits Equis from investing in a number of sectors and activities that would be in conflict with the Investment Code, including:

• Activities involving the conversion or degradation of critical natural habitats

• Gambling or casinos• Tobacco product production or trade• Commercial logging• Weapons/ammunitions production or trade• Production, storage, trade in, or disposal of,

radioactive products• Activities involving exploitative forms of labour or

child labour

Equis screens and reviews each investment prior to acquisition or development based on the eight IFC Performance Standards outlined below:

• Assessment and management of E&S risks and impacts

• Labour and working conditions• Resource efficiency and pollution prevention• Community health, safety and security• Land acquisition and involuntary resettlement• Biodiversity conservation, sustainable management

of living natural resources• Indigenous peoples• Cultural heritage

1 INVESTMENT CODE 2 ENVIRONMENTAL

& SOCIAL RESPONSIBILITY

3 EXCLUSIONS LIST 4 IFC PERFORMANCE

STANDARDS

ESG & INVESTMENT MANAGEMENT FRAMEWORK


INVESTMENT SCREENING

Exclusion List Screening & Risk Categorisation

DUE DILIGENCE & EVALUATION

Environmental & Social Impact Assessment (“ESIA”)

Environmental & Social Management Plan (“ESMP”), Corrective Action Plan (“CAP”)

PROJECT DEVELOPMENT, CONSTRUCTION &

OPERATIONSEnvironmental, Social,

Management System (“ESMS”)

Category A and B projects require an Environmental & Social Impact Assessment (“ESIA”) which is performed by an external advisor to assess potential investment impacts and provide measures to minimise and mitigate these

Following the ESIA, a Corrective Action Plan (“CAP”) and Environmental and Social Action Plan (“ESAP”) is developed, identifying actions and considerations to be incorporated into each stage of the project to mitigate risks and negative impacts

The ESMP is developed with an external consultant and incorporates issues identified in the CAP. The ESMP is used to manage environmental and social issues and risks during the investment lifecycle

The ESMS is developed based on the ESMP to ensure that each platform implements actions identified, has a clear plan to improve ESG performance over the investment lifecycle and executes community based CSR projects

OBJECTIVE Initial internal screening to

confirm the project meets preliminary

environmental, social and

governance criteria

OBJECTIVE The identification and assessment

of impacts on the physical,

biophysical and social environment

that may result from the project

OBJECTIVE The identification,

planning and management of actions to

mitigate impacts in accordance

with a hierarchical corrective action

plan (avoid, minimise, mitigate)

OBJECTIVE Establish the

framework for effective

implementation, management and enhancement of environmental, social, health &

safety performance

CATEGORY B Probable adverse social and/or

environmental impacts, which can be reversed or mitigated

CATEGORY A probable significant adverse social

and/ or environmental impacts, which are

CATEGORY C Probable minimal or no adverse

social and/or environmental impacts

Identify baseline environmental and social conditions

Identify environmental and social impacts

Identify alternatives to avoid and/or minimise impacts

Identify residual impacts

Identify mitigation and management measures / actions

Identify CSR projects following discussions with the local

community

Identify possible emergency incidents

INVESTMENT EVALUATION & DECISION

Develop Policies &

Procedures

Establish Organisational

Capacity

Implement Mitigation and Management

Measures

Monitor, report & train

Assessment Analysis &

Review

Adaptation & improvement

ESG considerations are a fundamental component of Equis’ investment decisions, portfolio development and asset management. By evaluating environmental and social impacts during each stage of the investment approval process, Equis ensures ESG is a central focus throughout the project life-cycle and we position ourselves to pro-actively manage and mitigate environmental and social risks during the development, construction and operation of investments.

SYSTEMS ANDPROCESSES

96MW Jorethang Hydro Generation - Sikkim, India

Identification and assessment of additional risks, per the FCPA

and bribery act, such as business integrity and corporate governance


EQUISINITIATIVES

All Equis staff in offices and across platforms are encouraged to become personally involved in CSR activities, whether by volunteering their time, making donations or providing monetary support. During 2017, Equis Singapore participated in several CSR initiatives including:

• Providing computer equipment with Asia Networks to help the 60 children living at the Pertapis Children’s Home further their studies and gain IT skills

• Donating funds to provide medical equipment to the Pediatric Intensive Care Unit at Singapore’s KK Women and Children’s Hospital

• Participating with their families in a Santa Charity Run to raise funds to Make-A-Wish Foundation

• Donating and wrapping Christmas presents for the Gifts of Joy which provided gifts during a Sports Day for over 360 students with disabilities at Rainbow Centre

• Helping Santa to hand out 180 Christmas presents to children and their siblings at KK Women and Children’s Hospital

• Funding the donation of new shoes for over 1,500 children in kindergarten to grade 6 at three remote schools near the Hydreq Power project in the Philippines

• Collecting used clothes, shoes and household items to be sent to families in the Philippines


COMMUNITYINITIATIVES


Equis has established a four-year partnership with Orbis in order to increase access to children’s eye health by providing comprehensive refractive error screening and correction services to school children in Karnataka, India.

In total, the project will cover around 1,680 schools located in two districts within the state of Karnataka and aims to screen and treat approximately 150,000 school children (age 18 and below).

The project is being implemented by Orbis with assistance from the project team at Bangalore West Lions Super Specialty Eye Hospital (“BWLEH”). All children who require correction will receive secondary evaluations and be provided with spectacles (free, subsidized or paid, depending on the arrangement with the school). Following initial screening in schools, children found to have other eye conditions beside refractive errors will be referred to the partner hospital for further treatment.

During the second year of the programme, school screenings were started in earnest, with the following results achieved.

teachers trained1,256

children examined38,563

received secondary screening

2,171prescribed spectacles

567corrective surgeries

performed

3

Manveeth often came home from school in tears because he was constantly teased by his friends. The ten-year-old suffered from bilateral cataracts, which means that the lenses in both his eyes were cloudy. His condition affected his daily life as he could not participate in school activities. He also did not play with his classmates because he was afraid and sad that he was often teased and bullied which lowered his confidence and self-esteem.

Manveeth underwent a successful surgery at BWLEH, fully paid for by Equis. He regained not only his vision, but also his self-confi-dence, and he now wants to be a doctor when he grows up!

Preetham’s parents noticed that unlike other children, he did not like playing outside and his teachers also informed them that he did not participate in school activities, nor show any interest in learning.

During a school screening, the four-year-old’s vision problems were identified and he was diagnosed with congenital cataracts in both eyes. Preetham’s surgery at BWLEH was covered by Equis and his parents are grateful that their child will now be able to take part in school activities and they have hope for a better future and bright career for their son.

schools covered314

IT IS ESTIMATED THAT 80% OF A CHILD’S LEARNING OCCURS THROUGH VISION. WHEN A CHILD CAN’T SEE THEIR BOOKS OR BLACKBOARD CLEARLY, THEY ARE UNABLE TO LEARN MEANINGFULLY AND THEIR SCHOOL PERFORMANCE SUFFERS.


Founded in 2000 on the belief that World Change Starts with Educated Children®, Room to Read’s innovative model focuses on deep, systemic transformation within schools in low-income countries. Room to Read partners with schools to address gaps across three areas that are critical to literacy learning:

During 2017 Equis partnered with Room to Read to sponsor two libraries at schools in Telangana, India, near Energon Soleq’s 130MW sites. The average literacy rate for Telangana is 66%, 7% lower than the national average.

The libraries will help approximately 430 children in grades 1-7 develop literacy skills and a habit of reading.

Libraries have been established in a dedicated school room and were stocked with approximately 1,400 local language books, 20% of which are published by Room to Read. The libraries are set up with shelving and furniture and are designed to ensure the children can easily access the resources provided. Walls are covered in maps, students’ work and educational posters to make the library inviting for students to visit during break-time, before and after school and during designated library periods.

BEING ABLE TO READ AND WRITE IS ESSENTIAL. WRITTEN WORDS ARE GATEWAYS TO KNOWLEDGE AND OPPORTUNITY THAT ARE ONLY ACCESSIBLE TO THOSE WITH THE ABILITY TO DECIPHER THEM.

Room to Read also conducted training for the 13 teachers at the two schools over eleven day during the set-up of the library. Topics covered included:

• The importance of libraries and reading; • Creating a child-friendly environment; • Library management; • Library period and reading activities; and • Engaging other teachers.

Teacher training and support

Quality Reading materials

Child friendly learning spaces

Despite the known benefits of literacy, 175 million young people, or one out of every four children, in low- and lower

middle-income countries are unable to read a single sentence.


PORTFOLIOINVESTMENTSSoleq ThailandSoleq PhilippinesJapan SolarEnergon SoleqSoleq TaiwanRedaya Energi Energon IndiaEnergon PhilippinesJapan WindHydreq IndiaHydreq PhilippinesBioeq EnergyJapan BioenergyOriental GasInfraedgeAsia Networks

54MW Pililla Wind Farm - Rizal, Philippines

THAILAND

ENVIRONMENTAL, SOCIAL & GOVERNANCETo date, there have been no serious injuries or fatalities at any Soleq site, nor has there been any material non-compliance with environmental or regulatory requirements. EHS policies and management are part of the O&M contract and include site specific emergency response plans and risk mitigation plans which identify high risk activities. EHS standards are managed through daily tool-box talks, near miss reporting and safety walks. Training and induction of new staff and refresher training for existing staff is held on a regular basis. Periodic safety audits are conducted with respect to safety equipment, PPE, tools calibration, disposal of hazardous materials, work permits and licenses, first-aid materials, safety signage and safe work practices.

SOLEQ OWNS 70% OF 10 OPERATING PROJECTS TOTALLING 92MW ACROSS THAILAND, WHICH HAVE BEEN OPERATIONAL SINCE 2014. IN JANUARY 2018, SOLEQ WAS SOLD AS PART OF EQUIS ENERGY.

An internal Crisis Management training was conducted during the year in order to increase emergency preparedness and mock drills are held to ensure the procedures are effective. These preparations were tested in May 2017, when four solar sites in the Kampaengphet province were hit by heavy rainstorms which caused flash flooding. The emergency response, business continuity and crisis management plans were activated and a crisis management team was established to monitor the situation, progress and guide operations on the ground. The impacted sites were evacuated and secured with the collaboration of the O&M contractor. No staff members were impacted or injured as a result of the incident .

Soleq continues to focus on waste management activities on site by organising appropriate storage areas for defective solar panels. During 2017 staff participated in an industrial waste disposal seminar regarding PV module disposal. CSR INITIATIVESSoleq continues to build on the strong relationship established with the local communities surrounding project sites by sponsoring, donating and participating in local events. 2017 CSR initiatives were focused on education and infrastructure.

EDUCATIONTo strengthen the relationship with the local community, the Soleq team arranged a site visit to the ESPP sites in Ubon Ratchatani province for local sub-districts’ administrative officers to provide them with an overview of the benefits of solar energy.

Soleq collaborated with local governments to initiate various community events. The “Big Cleaning Day” at Hat Sieaw, Sukhothai Province was one of the key projects and encourages local officers, villagers, and especially young children, to learn the importance of recycling and engaging with the community.

Additionally, during the year Soleq funded lunches for underprivileged students at local schools and sponsored a local soccer competition.

INFRASTRUCTUREFollowing the floods in May 2017, Soleq provided support and emergency supplies to the local people in the flood-affected province of Kampaengphet. Soleq has also initiated an improvement plan for public canals and drainage systems which could mitigate the risk of flooding in the surrounding villages and plantations, and in turn, reduce the risk of flooding at the sites.

1 Calculation based on the average annual consumption of 2,420kWh per Thai household according to the World Energy Council

2 Calculated based on the comparison with conventional coal power energy generation, according to the National Renewable Energy Laboratory (U.S.A.)

3 Calculated based on the electricity generated, per the greenhouse gas emission factor (0.500 tonnes of CO2eq/MWh) for Thailand according to the GHG Protocol, May 2015

4 Calculation per the EPA GHG Calculator

PORTFOLIO (MW)

OPERATIONAL

DIRECT STAFF

ANNUAL SUSTAINABILITY

METRICSBased on actual

annual generation

201753,569

Households Powered1

201657,058

Water Savings(megalitres)2

GHG EmissionReductions (tonnes)3

Passenger Vehicles Taken off the Road4

Trees Planted (thousands)4

2017122

2016130

201764,819

201669,040

201713,871

201614,568

20171,680

20161,789

2015 20172016

92 92 92

929292

2015 2017

FEMALE MALE

2016

14

6(4)

3

10

9

10

4

YearChange

YearChange

(5)

EMPLOYMENTOver the last twelve months, Soleq Thailand staff numbers have reduced slightly, with indirect staff numbers increasing over the year from 111 to 136. Soleq Thailand employs two staff members across the 10 sites who are responsible for EHS or Community Relations.


PHILIPPINES

26

ENVIRONMENTAL, SOCIAL & GOVERNANCETo date there have been no incidents of material non-compliance with health and safety, environmental or regulatory requirements at Soleq sites, nor have any serious injuries or fatalities been recorded. Self-monitoring and compliance monitoring reports are regularly submitted to the Department of Environment and Natural Resources (“DENR”). The designated Pollution Control and Safety Officers at the sites have completed the mandatory training requirements and are certified by the required Philippine agencies.

Soleq’s EHS documents and plans are in line with ISO Quality and Environmental Management Systems, OHSAS Management Systems for OHS, as well as Philippine EHS Standards. The in-house EHS team regularly monitors environmental, health and safety measures and procedures in order to ensure that the assets are compliant with environmental and regulatory requirements.

IN THE PHILIPPINES SOLEQ CURRENTLY OWNS FOUR OPERATING PROJECTS (IRONMAN, GARCIA, POLLO AND ZORRO) TOTALLING 193MW. IN JANUARY 2018, SOLEQ WAS SOLD AS PART OF EQUIS ENERGY.

At the assets, the O&M teams include a Soleq nominated on-site representative and Community Relations Officer to facilitate open communication with the local community. Where the O&M services are provided by external contractors, they will also monitor and confirm that Soleq’s standards are being adhered to by the O&M contractor.

Along with regular monitoring and reporting, pro-active measures to evaluate and mitigate EHS risks are being undertaken at the sites, including regular tool-box talks, incident reporting, hazard assessment, health and safety induction and training as well as periodic equipment and vehicle inspections. Emergency response plans are in place for all assets and drills are conducted bi-annually at each site. The robustness of these systems was tested in July 2017 following a typhoon at Garcia, which caused flooding, and an earthquake near Ironman. No staff was injured during either incident. CSR INITIATIVESSoleq consults with the communities and local leaders in order to determine initiatives that will most benefit people surrounding the assets. During 2017, Soleq focused on social, educational, infrastructure and environmental programs.

SOCIALIn 2017, several Philippine platforms, including Soleq, partnered with a local NGO to combat hunger and malnutrition through the ZeroHunger feeding programme. The program is a year-long commitment to provide over 365,000 meals for 1,073 children. Toddlers, infants and school-aged children from impoverished families near project sites are being sponsored by Soleq and provided with high-nutrition meals. Staff also participated in packing meals to be distributed to the children during outreach events.

In March 2017, Soleq sponsored a local shoe donation drive to support local families in Cadiz City, near the Pollo site.

Following a 6.5 magnitude earthquake in the Visayas, near the Ironman site, Soleq prepared an outreach program for 102 families who were displaced from their homes. Soleq and Equis Philippines staff provided mattresses, pillows, blankets and hygiene kits for the 419 individuals affected by the earthquake.

EDUCATIONDuring the year, Soleq participated in the Department of Education’s Brigada Eskwela program by donating construction materials to build elementary and high schools in rural areas near the assets.

INFRASTRUCTUREThrough-out 2017, Soleq has been providing its support to the local government units through its ER1-94 Fund with the DOE. The Fund allows host local government units to draw money to support and finance local projects such as infrastructure construction, environmental enhancement and livelihood programs.

ENVIRONMENTALAs part of a four year reforestation program, in 2016 Soleq established a seedling nursery to provide fruit-bearing and indigenous seedlings to communities adjacent to the four sites and to support tree planting activities near the assets. During the year Soleq planted over 53,500 seedlings near the Garcia site.

1 Calculation based on the average annual consumption of 2,420kWh per Thai household according to the World Energy Council


3 Calculated based on the electricity generated, per the greenhouse gas emission factor (0.500 tonnes of CO2eq/MWh) for Thailand according to the GHG Protocol, May 2015


PORTFOLIO (MW)

CONSTRUCTION

OPERATIONAL



annual generation

2017229,638

Households Powered1

2016244,797





2017244

2016260

2017129,688

2016138,249

201727,753

201629,171

20173,361

20163,583

2015 20172016

193 193 193

193 193

EMPLOYMENTDuring 2017 direct Soleq Philippines staff numbers have nearly trebled as Soleq internalised the O&M services and staff for Garcia (20MW) and Pollo (133MW), whereas indirect operational staff numbers have concurrently been reduced from 135 in 2016 to 109. Soleq employs 79 staff focused on EHS/CSR across the four sites, including 14 direct staff.

DIRECT STAFF

2015 2017 FEMALE MALE

2016

176 (3)

5

1411

52

(4)

66

7

163

30


JAPAN

ENVIRONMENTAL, SOCIAL & GOVERNANCEAll Japan Solar projects undergo initial phase environmental impact assessments in accordance with Japanese requirements. During this process, no major issues have been identified, nor have any material adverse impacts been highlighted for any site. To date, there have been no serious injuries or fatalities at any Japan Solar site, nor any material non-compliance with environmental or regulatory requirements.

During construction, and once the projects become operational, further assessments are conducted to ensure compliance with all relevant ESG requirements.

JAPAN SOLAR IS A LIMITED PARTNERSHIP WITH TOTAL COMMITMENTS OF US$721 MILLION AND A MANDATE TO INVEST INTO SOLAR GENERATION PROJECTS IN JAPAN. CAPITAL IS INVESTED INTO 27 PROJECTS DEVELOPED BY NIPPON RENEWABLE ENERGY (“NRE”). IN JANUARY 2018, JAPAN SOLAR AND NRE WERE SOLD AS PART OF EQUIS ENERGY.

EMPLOYMENTOver the last twelve months direct staff numbers increased moderately to 48 by the end of the year. Total expected indirect staff numbers decreased as construction completed on eight assets during the year. Eighteen staff are responsible for EHS across the projects.

During the year, NRE developed a Health and Safety manual for each operational site, which is in line with Japanese regulations and international standards. Internal compliance policies were also updated to improve risk management and NRE conducted EHS training for all employees and staff working at the operational sites. Additionally, NRE made improvements to the incident reporting system and educated its contractors in respect to NRE’s reporting requirements.

In 2017, NRE opted to have a third-party auditor (ERM), experienced in ESG audits, review the construction projects. No major issues were discovered during the audits and NRE has adopted the recommendations which arose from the exercise to enhance processes and procedures. ERM has also been engaged to perform monthly safety audits during visits to assets under construction to ensure compliance with the EHS documentation submitted by external contractors and to inspect the site conditions.

NRE’s project managers visit and inspect sites periodically to ensure that the rules stipulated are being properly followed and to evaluate any potential health and safety risks.

CSR INITIATIVESThrough sponsorship of activities and donations to local organisations, NRE’s CSR initiatives have positively impacted over 16,000 people throughout Japan in 2017.

EDUCATIONNRE continued to support the recipient of the inaugural NRE Solar Scholarship during her third year of college.

During the year NRE visited a local high school in Aomori and introduced students to the importance of renewable energy. Students interested in employment opportunities in the solar sector were offered an interview with NRE.

INFRASTRUCTUREIn April 2017, NRE formally handed over the solar street lights, which had been donated to Kunimi Town last year, at a ceremony at Kenpoku Junior High School. The lights will increase safety in the community and showcase the benefits of solar energy and were donated following consultation with the town. NRE installed eight street lights which are composed of five normal street lights and three solar lights on the street in front of local junior high school in Kunimi Town, which previously had no lighting.

HEALTHOver 2017, NRE continued to focus on promoting active and healthy lifestyles in project communities through sponsoring various sporting events and tournaments including:

• The Sannan City half marathon in Hyogo Prefecture• The Tamba City family marathon race in Hyogo Prefecture• The Junior High School Kendo Tournament in Aomori Prefecture• Tochigi’s local Junior Golf Association

SOCIALFollowing local hiring campaigns in 2016, NRE, together with NREO implemented a local hiring initiative in 2017 through employment centres in communities near project sites. NREO hired nine full-time employees in 2017, who are residents of the local town where NRE operates. NRE will continue to source employees from communities surrounding project sites where feasible.

NRE offered its support to local communities in 2017 by sponsoring and actively participating alongside the community in three local festivals. By actively participating in community activities NRE is able to demonstrate their commitment to becoming part of the community.

1 Calculation based on the average annual consumption of 5,275kWh per Japanese household according to the World Energy Council


3 Calculated based on the electricity generated, per the greenhouse gas emission factor (0.551 tonnes of CO2eq/MWh) for Japan according to the GHG Protocol, May 2015


28

PORTFOLIO (MW)

2015 20172016

404 519 611


METRICSBased on actual and projected

annual generation

2017134,012

Households Powered1

2016114,478





2017666

2016569

2017389,509

2016332,722

201783,355

201670,206

201710,095

20168,623

INDIRECT STAFF

2015 20172016807

(196)

837

(1,190)

4,667

DIRECT STAFF

2015 2017

FEMALE MALE

2016

25

133

1

28

14

32

16

YearChange

YearChange

YearChange

YearChange

41

6,053

30

5,857

399

SHORT TERM LONG TERM

DEVELOPMENT

CONSTRUCTION

OPERATIONAL

185

195

24

235

167

117

287

74

250


ENVIRONMENTAL, SOCIAL & GOVERNANCETo date there have been no serious injuries or EHS incidents, nor has there been any material non-compliance with environmental or regulatory requirements. During the year, over 1.6 million safe man-hours were completed without any lost-time incidents.

ENERGON SOLEQ CURRENTLY HAS TWO SOLAR ASSETS IN THE STATE OF TELANGANA, AGGREGATING TO 130MW, WHICH BECAME OPERATIONAL IN 2017, AND IS FINISHING CONSTRUCTION ON ONE 135MW SOLAR ASSET IN KARNATAKA. IN JANUARY 2018, ENERGON SOLEQ WAS SOLD AS PART OF EQUIS ENERGY.

PwC conducted full ESG due diligence and prepared a detailed ESIA for both sites. The ESIAs identified and reviewed all applicable local, state, national and international environmental and social regulatory frameworks and conducted a full environmental and social baseline study of the sites, which included:

• Water, soil, ambient air and noise quality and ecological baseline studies;• Primary and secondary surveys to assess flora and fauna;• Detailed surveys regarding environmental and social characteristics of the

local communities; and• Discussions with the local community to identify key issues and concerns

during all phases of the project.

The ESMS for both sites, which includes measures to mitigate identified adverse impacts based on the ESIA, is in place. Policies and procedures covering ESG and H&S have been established and are in line with Equis’ requirements and IFC standards and are linked with ISO 9000 and OHSAS 18001 standards.

On-site EHS representatives were appointed from PwC for Telangana and TATA for Karnataka during construction, with responsibility for reporting and monitoring occupational and community health and safety. Additionally, environmental impact factors including soil erosion and contamination, waste generation and disposal, ambient air and noise quality and impacts on water sources were monitored.

Daily tool-box talks focusing on safe work practices, including electrical safety, PPE, working at height are held, in addition to induction and training of new staff and refresher training for current staff. Near miss and incident reporting are in place, as well as regular safety walks to ensure health and safety procedures on site are effective. Mock drills covering emergency evacuation procedures are held periodically.

CSR INITIATIVESEnergon Soleq’s CSR programs consider the concerns raised by the local community during the ESIA preparation. The key issues raised during consultation with the communities are in respect to education, access to healthcare and creating employment opportunities for the local community.

EDUCATIONIn 2017, through Room to Read, Energon Soleq helped to sponsor the set-up of two libraries at schools near the Telangana sites. The libraries have been stocked with local language books and new furniture. A further six schools near the sites have been provided with new benches for their classrooms, benefitting approximately 1,150 students and encouraging their studies.

In order to promote and advance the education and careers of women, the company successfully implemented an internship program to provide paid, on-the-job training to underprivileged female students. One engineering student has benefited from the program during the year is currently a full-time employee with Energon Soleq.

HEALTHCAREIn order to support access to healthcare, Energon Soleq sponsored a medical camp in November 2017 which offered primary health screening, free treatment and eye check-ups to over 400 members of the local community near the Sadashivpet sites.

1 Calculation based on the average annual consumption of 1,079kWh per Indian household according to the World Energy Council


3 Calculated based on the electricity generated, per the greenhouse gas emission factor (0.926 tonnes of CO2eq/MWh) for India according to the GHG Protocol, May 2015


30

INDIA


METRICSBased on projected annual generation

2017400,878

Households Powered1

2016394,532





2017408

2016401

2017400,539

2016394,198

201785,715

201683,176

201710,380

201610,216

PORTFOLIO (MW)

2015 20172016

130 260 265

DEVELOPMENT

CONSTRUCTION

OPERATIONAL

130

130

135

130

130

DIRECT STAFF

2015 2017

FEMALE MALE

2016

910

YearChange

YearChange

2

4

1

5

22

EMPLOYMENTOver the last twelve months direct and indirect Energon Soleq staff have remained stable. Indirect short-term staff decreased by the end of 2017 as construction for the Karnataka asset was close to completion. Approximately 500 staff were employed for construction through-out 2017, with priority given to local workers. Energon Soleq has one employee dedicated to EHS at the Telangana sites.


TAIWAN

ENVIRONMENTAL, SOCIAL & GOVERNANCETo date, there have been no serious injuries or fatalities at any Soleq Taiwan site, nor has there been any material non-compliance with environmental or regulatory requirements.

Soleq Taiwan engaged ERM to complete ESDD reports for Davis, Coltrane and Brubeck to ensure that the assets are compliant with local environmental and social regulations and with IFC standards. No major EHS concerns were identified during due diligence and an ESAP has been formulated with respect to action items identified, which include soil erosion and contamination, waste generation and disposal, ambient air and noise quality, impact on water sources, occupational and community health and safety.

SOLEQ TAIWAN INVESTS IN THE DEVELOPMENT, CONSTRUCTION AND OPERATION OF SOLAR GENERATION PROJECTS IN TAIWAN, WITH TWO ASSETS TOTALLING 10MW IN OPERATIONS. IN JANUARY 2018, SOLEQ TAIWAN WAS SOLD AS PART OF EQUIS ENERGY.

The land identified for the projects is not protected by environmental laws and has been heavily disturbed by farming activity for many years. Land lease contracts were reviewed by ERM to ensure that the land acquisition process has been properly defined and is transparent.

In collaboration with ERM, Soleq Taiwan has implemented an EHSMS for Davis which will form the basis for the EHSMS for all assets, to ensure that environmental, health and safety measures and policies are implemented and monitored. These policies cover occupational health and safety, human resources, waste management, emergency preparedness, security and a community health and safety plan. In conjunction with Soleq Taiwan’s internal EHSMS, the company imposes contractual obligations on external counterparties related to project agreements, which include detailed ESG and health and safety issues requirements, including labour conditions.

Soleq arranged induction and training courses for staff during 2017, including Health, Safety and Environment training for employees at the sites under construction to reinforce the importance of safe work practices and increase safety awareness. EHS metrics are being tracked for each site and incident reporting procedures are in place. CSR INITIATIVESSoleq Taiwan has consulted with the communities and local leaders as part of the development process and to allow any concerns to be raised, as well as to determine which CSR initiatives would most benefit people surrounding project sites.

Soleq Taiwan is formulating educational and social initiatives which will be tailored to local requirements. Programmes that are being reviewed include providing sponsorship for local sports games and festivals, donating a van to the local township office, as well as providing health awareness seminars to the elderly.

EDUCATIONSoleq Taiwan is working on plans to build an educational facility at the Mingus site which will provide information to the community on the environmental benefits of solar energy. Design planning is currently in progress and the site is expected to be open before the end of 2018.

SOCIALTo demonstrate their support of the local community, Soleq Taiwan will provide donations to local county governments to host festivals during public holidays, including Chinese New Year, Mid Autumn Festival and Mother’s Day. Additionally, Soleq Taiwan is planning to host health awareness seminars at the Kouhu Office for elderly people and donate a van to the local township office.

1 Calculation based on the average annual consumption of 6,958kWh per Taiwanese household according to the World Energy Council


3 Calculated based on the electricity generated, per the greenhouse gas emission factor (0.6120 tonnes of CO2eq/MWh) for Taiwan according to the GHG Protocol, May 2015




201732,317

Households Powered1





2017212

2017137,617

201729,450

20173,566

PORTFOLIO (MW)

20172016

5 122

DEVELOPMENT

OPERATIONAL

112

10

DIRECT STAFF

2016 2017

FEMALE MALE

13

YearChange

13

3 5

5

2

EMPLOYMENTOver the last twelve months, Soleq Taiwan staff numbers increased moderately. Approximately 80 indirect staff were employed in 2017 for the construction of Davis and Brubeck (10MW), with four O&M staff expected to be employed in 2018, including one employee responsible for EHS.


ENVIRONMENTAL, SOCIAL & GOVERNANCE

WindConstruction for Tolo 1 started in Q2 2017 and to date there have been no accidents or serious injuries and the site has passed 556,000 man-hours without any lost-time injuries recorded. Additionally, there have not been any instances non-compliance with local laws or EHS regulations at the site.

Tolo 1 completed an ESIA report in accordance with IFC Performance Standards, the World Bank EHS Guidelines, and ADB Safeguard Policies. A dedicated EHS team from Redaya and the EPC contractor have been actively managing, implementing, and monitoring environmental and social parameters outlined in the ESIA and AMDAL (Indonesian EIA) documents, as well as the project specific EHS management plans. The results from the regular monitoring conducted show that all EHS and social parameters are in compliance with the mandated requirements.

REDAYA ENERGI STARTED CONSTRUCTION OF ITS FIRST RENEWABLE ENERGY PROJECT, THE 72MW TOLO 1 WIND FARM, DURING 2017 AND IS IN THE ADVANCED STAGES OF DEVELOPMENT FOR 99MW OF SOLAR ASSETS. IN JANUARY 2018, REDAYA ENERGI WAS SOLD AS PART OF EQUIS ENERGY.

EMPLOYMENTRedaya staff numbers continue to grow with over 61 staff employed at the end of 2017. A dedicated ESG Manager oversees environmental permitting and ESG for all projects and 15 staff, including 9 direct staff, are dedicated to ESG and CSR.

Tolo 1’s EPC contractor employs 599 workers on site, of which over 40% are sourced from local community. The solar projects are expected to employ over 400 workers during construction. The wind and solar assets are forecast to hire approximately 100 staff once operational.

The project’s E&S Manager has actively managed the stakeholder engagement and grievance mechanism plans to ensure stakeholders are appropriately engaged and grievances from the community are properly registered and promptly addressed.

SolarIn 2017, Redaya completed the Indonesian EIA for four solar sites. The EIAs have been approved by the relevant authority through the issuance of an Environmental Permit.

Redaya engaged ERM to complete an ESIA for the four solar projects. No significant potential adverse impacts were identified. Impacts specific to solar farms identified in the EIA and ESIA will be appropriately managed and monitored on a regular basis. EHSMS and ESMP documents for the four solar projects have been established and communicated to the EPC contractor. These documents will form the basis for the EPC contractors in formulating their site specific EHS management plans and to ensure they adhere to Redaya’s EHS and ESG requirements.

CSR INITIATIVESRedaya establishes open communication with the local community from the early stages of development by hiring experienced Community Liaison Officers who are present and active in the community from the start of project development, and establish a direct line of communication between Redaya, the people in the communities adjacent to the site and the relevant stakeholders.

CSR programmes are formulated based on input and feedback from the local community, as well as Redaya’s internal analysis of the community’s needs and potential impacts of the proposed program. The majority of the CSR activities carried out in 2017 targeted the four villages near the Tolo 1 wind asset, with over 1,500 people benefitting from programmes during the year.

HEALTHCARERedaya provided a free medical check-up program for a village near the Tolo 1 site, with 316 people receiving medical attention from 18 doctors, 34 nurses and 10 pharmacists. This initiative was well received and is planned to continue in 2018 and will be expanded to the solar projects as well.

INFRASTRUCTUREDuring 2017, Redaya built four integrated health centre for maternal and children health (Posyandu), for a village close to the Tolo 1 site. Construction of the facilities was completed in May 2017. Each centre will provide regular prenatal care and check-ups for mothers, babies and toddlers and the program is expected to benefit between 100 to 300 women and children per site.

Redaya secured land to provide four villages with a dedicated multipurpose public space. Communal facilities (including sports and health facilities) will be provided at each public space and the facilities are expected to be completed in Q1 2018.

Redaya has also supported the community in one of the villages by refurbishing their community centre. The centre will facilitate and host trainings for the community and in April 2017 training for SMEs was held for 120 landowners and sharecroppers affected by the Tolo 1 land acquisition.

A ground-breaking ceremony was held in November 2017 for a kindergarten near the Tolo 1 site, with the school expected to open in Q1 2018. Redaya is sponsoring training and capacity building for the teachers who will be teaching in the kindergarten which is expected to provide education for 50 students a year.

SOCIALRedaya has provided a total of 25 different donations in 2017 to the local community surrounding the Tolo 1 site to fund community events and contribute to the community’s infrastructure and facilities, as well as to individuals requiring support.

In 2017, Redaya supported Micro Galleries, a street-art event in Jakarta. The event was attended by 2,000 visitors with over 200 pieces of artworks exhibited from 55 artists. The two-week event took place in one of the urban slum areas of Jakarta.

As local employment is one of the issues that is frequently raised by the community, Redaya is partnering with Sinergi Foundation to provide training and certification on PV module installation and O&M in Q1 2018 to 60 local people in Lombok who would later be considered for employment during the construction and operation of the solar farms.1 Calculation based on the average annual consumption of 1,723kWh per Indonesian household according to the World

Energy Council 2 Calculated based on the comparison with conventional coal power energy generation, according to the National

Renewable Energy Laboratory (U.S.A.)3 Calculated based on the electricity generated, per the greenhouse gas emission factor (0.809 tonnes of CO2eq/MWh) for

Indonesia according to the GHG Protocol, May 20154 Calculation per the EPA GHG Calculator

DIRECT STAFF

2015 2017 FEMALE MALE



2017286,593

Households Powered1

2016178,606





2017466

2016291

2017399,484

2016248,961

201785,490

201652,531

201710,353

20166,452

INDONESIA

PORTFOLIO (MW)

DEVELOPMENT

CONSTRUCTION

2016 2017

115 171

115 99

72

2016

83

17

3

23

6

16

45

22

10


ENVIRONMENTAL, SOCIAL & GOVERNANCEDuring the year no lost-time incidents, serious injuries or fatalities occurred at any of the seven sites, nor has there been any non-compliance with environmental regulatory requirements.

Monthly audits are in place to keep a continuous check and ensure that the latest EHS standards are adhered to and these are complemented by daily safety audits on equipment, PPE, tools calibration, hazard disposal, working license, work permits, first aid materials, safety signage and safety work instructions, as well as by monthly operational hazard training at all sites. Safety training is being regularly conducted, and includes daily tool-box talks, as well as induction training for new staff and monthly refresher training for existing staff.

The O&M contractor is monitored to ensure adherence to the policies and procedures,

IN INDIA, ENERGON CURRENTLY OWNS A PORTFOLIO OF SEVEN OPERATIONAL ASSETS, TOTALLING 414MW. IN JANUARY 2018, ENERGON WAS SOLD AS PART OF EQUIS ENERGY.

and is responsible for identifying high risk activities, preparing risk assessment, and mitigation plans and site specific emergency response plans. Periodic mock drills are implemented to ensure the effectiveness of these plans. Equis’ Regional Security Manager visited India in May to perform site inspections and security assessments and to provide training to operations staff in security and hazard identification and emergency response procedures.

Secondary containers for the storage of waste oil are placed at all sites to minimise any potential spills or contamination and to ensure that waste oil is being disposed of properly.

ENVIRONMENTAL

Tree Planting During 2017, Energon monitored and watered the 6,000 saplings planted in 2016 in villages surrounding the TGP 1&2 sites. The regular watering, using licensed water tankers, is expected to ensure the saplings are healthy and well established following planting.

Bird and Bat StudyFollowing the completion of the bird and bat study at the Patan site, mortality mitigation measures were implemented based on the recommendations provided. Bird guards were installed on all towers of the transmission line and low level shrubs were cleared near the turbines to deter birds from nesting. The year-long survey was required due to the site’s proximity to a migratory bird reserve and sanctuary. While minimal mortality rates were observed for birds and moderate rates for bats, the mitigation measures are expected to reduce these further.

CSR INITIATIVESEnergon India, in association with Gamesa, the O&M contractor, frequently consults with local communities near the assets to identify and implement CSR initiatives that meet their needs.

EDUCATIONAL & SOCIALDuring the year, Energon distributed school supplies, including school bags, books and stationery to children at government schools around the TGP 1&2 sites in order to support them in their studies.

In partnership with Gamesa and an NGO called “”Slum Soccer””, Energon started a soccer league in 2015 that sponsors teams of local boys and girls from villages surrounding the TGP 1&2 sites. Trophies were distributed to the winners and runners-up of the football tournament organised by Energon for government school children.

HEALTHCAREThe medical van operated in co-ordination with the NGO “Helpage” is continuing to operate in Madhya Pradesh. The service offers primary healthcare to 10 remote villages near the Fatanpur and Jamgodrani sites. As rural communities generally have more limited access to basic healthcare or preventative screening than urban communities, the free medical treatment, medicines and counselling provided are very well received. Staff at the Mangoli site have engaged with the District Commissioner to plan activities in the four villages near the site. Identified potential projects include constructing sanitary facilities for girls in local schools and increasing the community’s access to potable water.





PORTFOLIO (MW)

2015 20172016

414 414 414

CONSTRUCTION

OPERATIONAL

414 414

154



annual generation

2017849,446

Households Powered1

2016931,040





2017867

2016952

2017848,727

2016931,040

2017181,628

2016196,449

201721,996

201624,129

EMPLOYMENTOver the last twelve months, while Energon India staff numbers have remained stable, indirect operational staff numbers increased significantly. The number of employees dedicated to EHS increased from four to six during the year.

INDIRECT STAFF

2015 20172016

35

DIRECT STAFF

2015 2017

FEMALE MALE

2016

38

5 3

41

5

40

9

YearChange

YearChange

YearChange

YearChange

4

225

16

276

LONG TERM

260

241

INDIA


PHILIPPINES

ENVIRONMENTAL, SOCIAL & GOVERNANCEThere have been no incidents, serious injuries or fatalities at the Pililla site, nor any material non-compliance with environmental or regulatory requirements since the start of operations in June 2015.

At site, a dedicated EHS officer monitors and manages any potential EHS issues and liaises with the local community and stakeholders. A full-time Safety Officer and Pollution Control Officer is present on site and have completed the mandatory training requirements for certification by the required Philippine agencies. These officers are appointed to monitor the activities of the O&M contractor and ensure compliance and reporting are performed in line with local, national and municipal regulatory requirements.

IN THE PHILIPPINES, ENERGON HAS INVESTED IN THE 54MW PILILLA PROJECT, WHICH IS OPERATIONAL, AND THE SEMBRANO PROJECT (UP TO 80MW), WHICH IS BEING DEVELOPED. IN JANUARY 2018, ENERGON WAS SOLD AS PART OF EQUIS ENERGY.

Energon Philippines holds regular safety meetings and provides periodic training to minimise safety risks to staff and the public. Standard training topics included safe work practices, working at heights, first aid and basic life support. In addition, fire prevention training, testing and drills, as well as first aid, emergency and disaster response preparation are performed on a regular basis. Procedures are in place to ensure that the storage of hazardous waste adheres with the local authority specifications and used oil and grease are disposed of in accordance with local regulations.

During the year, Energon Philippines conducted a disaster risk management and reduction seminar at the Pililla site in cooperation with the Metropolitan Manila Development Authority. The seminar was also attended by local government officials from the Province of Rizal. Security assessments and site inspections were performed during the year and Energon Philippines held coordination meetings with local government officials and police forces to discuss any relevant security issues, including informal settlements and trespassing, as well as the mitigation measures put in place to address these. CSR INITIATIVESEnergon Philippines CSR initiatives focus on offering livelihood, employment to the community to help increase income levels for residents near the site from below the regional poverty thresholds. Promoting renewable energy through education is also at the core of Energon’s CSR program.

EDUCATIONAL & LIVELIHOODThe wind farm continues to be a prime tourist destination, visited by approximately a quarter of a million people annually. Energon Philippines has maximised on this opportunity to reach a large audience and educate them about the benefits of renewable energy. Following the establishment of an educational visitors centre at the site, which was built in partnership with the World Wildlife Fund in 2015, during 2017, Energon Philippines implemented a tourism information project. This project complements the vistor centre, which hosts an educational exhibit on renewable energy and wind farms, a tourist information desk and a handicrafts display corner, by hosting tours of the site and increasing the site’s media coverage. The project was further enhanced by arranging contests, educational group tours and promotional activities with the local government tourism board. All of these efforts continue to boost tourist activity at the site.

The tourist boom in turn generates additional livelihood opportunities for the local residents who offer souvenir items, food and beverages at the site. Energon Philippines continues to support residents from the local community who received training in bamboo handicrafts in 2016 and assessed the success of the participants in 2017.

INFRASTRUCTURE & HEALTHCAREEnergon Philippines is participating in the DOE’s Brigada Eskwela programme by donating construction materials for building schools near Pililla and is providing support to the local government through the DOE’s initiative to fund local CSR projects. Donations of assorted medicines and medical supplies were made during to year to support the local government’s outreach for medical missions.

ENVIRONMENTALDuring 2017 Energon Philippines supported a bamboo planting activity in the local province which focused on riverbanks, streams and waterways and aims to facilitate soil erosion control.

1 Calculation based on the average annual consumption of 1,125kWh per Philippine household according to the World Energy Council


3 Calculated based on the electricity generated, per the greenhouse gas emission factor (0.502 tonnes of CO2eq/MWh) for the Philippines according to the GHG Protocol, May 2015


PORTFOLIO (MW)

2015 20172016

139 134 134

DEVELOPMENT

OPERATIONAL

85

54



annual generation

2017113,548

Households Powered1

2016108,616





2017121

2016116

201764,126

201661,341

201713,723

201612,943

20171,662

20161,590

EMPLOYMENTSince 2016, Energon Philippines staff numbers have remained stable. Staff numbers include three indirect staff providing O&M services, one dedicated EHS Officer and a full-time CSR Manager.

DIRECT STAFF

2015 2017

FEMALE MALE

2016

24

3(10)

(1)

14

2 (1)1

13

3

80

54

80

54

YearChange

YearChange


ENVIRONMENTAL, SOCIAL & GOVERNANCEJapan Wind and NWE have implemented policies and procedures that are in line with local best practices in order to ensure compliance with Japanese environmental laws.

Japan Wind and NWE have held multiple information sessions in the communities surrounding the projects in order to allow stakeholders to review and provide feedback on the project as well, as to educate the community on wind projects.

JAPAN WIND IS A LIMITED PARTNERSHIP WITH A MANDATE TO INVEST INTO WIND GENERATION PROJECTS IN JAPAN. CAPITAL IS INVESTED IN PROJECTS DEVELOPED BY NIPPON WIND ENERGY (“NWE”), A TOKYO-BASED WIND UTILITY BUSINESS FOCUSED ON OWNING, DEVELOPING, CONSTRUCTING JAPANESE WIND FARMS. IN JANUARY 2018, JAPAN WIND AND NWE WERE SOLD AS PART OF EQUIS ENERGY.

As the development of the projects progresses, NWE is consulting with local residents and government units in respect to CSR initiatives to undertake which will be tailored to local requirements.

NWE is a full member of the Japan Wind Power Association, which promotes the development of environmentally sustainable wind power projects.

ENVIRONMENTAL IMPACT ASSESSMENTPer Japanese regulations, an EIA is required for all wind farms over 10MW, and on a case-by-case basis for wind farms above 7.5MW.

The EIA takes approximately three years to complete and involves five stages of information which are submitted to the regulator for review, as detailed below. The process requires at minimum a year-long assessment of flora and fauna to account for seasonality. The process relies heavily on inputs from experts, local residents, government authorities in the project area and other stakeholders.

Nakadomari (36MW) is presently the most advanced in the EIA process and has nearly completed the Junibisho stage, whereas Kainan (54MW) is in the Hohosho phase. While the other four assets are not required to complete the EIA process outlined below, NWE has engaged a consultant to conduct a self-assessment for these projects and no issues have been identified.

Hairyosho - Solicits public opinions and gauges project feasibility (completed in 4-6 months)

• Broad explanation of project size and location; • Submitted to local, prefectural and national governments;• Presented to local residents; and• Experts consulted, including local representatives of the Wild Bird

Association, authorities in local flora and fauna and others as required.

Hohosho - Documents methodology and addresses concerns (completed in 5-6 months)

• Responds to concerns and comments raised in the Hairyosho; • Subject to review by stakeholders;• Contains any amendments to scope and/or methodology for the

assessment; and• Discussed with national and prefectural governments before submission.

Junbisho - Draft EIA (completed after a year-long study with a maximum 9 month review period)

• Subject to review and comments from the relevant stakeholders;• Required to address all the criteria and recommendations made by the

regulator; and• Must be completed before the project can apply for the tariff from a

designated electricity supplier.

Hyoukasho - Final EIA (completed in 2-3 months)• Submitted to the various governmental bodies for review and comments;

and• Final stage required ahead of construction, as this is required as part of the

construction approvals process.

Houkokusho - Formal completion of EIA• Occurs after commissioning; • Notification to the regulator from the developer on any operational

guidelines or practices advised in the EIA; and • Covers any reporting recommended in the EIA.



3 Calculated based on the electricity generated, per the greenhouse gas emission factor (0.551 tonnes of CO2eq/MWh) for Japan according to the GHG Protocol, May 2015


JAPAN



201759,699

Households Powered1

201661,112





2017298

2016305

2017173,517

2016177,625

201737,133

201637,479

20174,497

20164,603

PORTFOLIO (MW)

2015 20172016

95 147 120

DEVELOPMENT

95

147120

EMPLOYMENTNWE nearly doubled employment in 2017, growing to nine dedicated staff members, and is expected to continue to increase as the first project starts to move into the construction phase.

DIRECT STAFF

2016 2017

FEMALE MALE

5

2

7

Year Change

2

2


INDIA

ENVIRONMENTAL, SOCIAL & GOVERNANCEDuring 2017, there was no material non-compliance with environmental, regulatory or health and safety requirements, nor were there any reportable injuries or incidents at any Hydreq India site. At the end of 2017, Hydreq had completed nearly 25.5 million safe man-hours across the two sites, including over 770,000 in 2017.

Site specific EHS plans, which include emergency contact numbers and evacuation procedures, are in place at both sites and are regularly monitored. Hydreq has formulated flood protection, evacuation and emergency preparedness plans to minimise risks to workers and the public and these are tested periodically.

IN INDIA, HYDREQ HOLDS AN OWNERSHIP INTEREST IN DANS ENERGY, WHICH HAS DEVELOPED TWO RUN-OF-RIVER HYDROELECTRIC POWER GENERATION FACILITIES IN SIKKIM, NORTH EAST INDIA. JORETHANG, WITH A CAPACITY OF 96MW HAS BEEN OPERATIONAL SINCE SEPTEMBER 2015. TASHIDING (97MW) BECAME OPERATIONAL IN NOVEMBER 2017.

EMPLOYMENTDirect staff numbers are stable, whereas indirect staff numbers have decreased since 2015 following the completion of construction for the two assets. Hydreq India has one employee responsible for EHS across both sites.

Safety Induction and EHS meetings have been carried out, along with mock drills to create a culture of safety awareness. Health and safety training is provided at both sites through daily tool-box talks and formal training sessions covering topics such as:

• Safe work practices and usage of vehicles;• Electrical safety; • Proper use and the importance of PPE;• Working at heights;• First aid and basic life support; and • Fire prevention and fire drills.

Measures to mitigate adverse impacts as identified in the ESIA have been implemented and all items in the CAP have been completed. During construction, environmental protection measures implemented on site to minimise impacts included monitoring and reporting of water and ambient air quality, trash collection, material recycling and reduction in noise and dust levels.

Both Jorethang and Tashiding are registered under the United Nations Framework Convention on Climate Change as Clean Development Mechanism projects. Additionally, written confirmation has been issued by the Indian Designated National Authority confirming that the projects satisfy the National Sustainable Development Criteria for India. CSR INITIATIVESThe Hydreq and DANS Energy CSR program was designed to take into consideration the requirements of the local communities surrounding the project sites, specifically during the construction phase.

Over the past years Hydreq has contributed to improving education in communities near the sites by establishing a computer learning centre in a local school, contributing funds for the construction of a new building for government secondary school and by encouraging students in their studies by distributing awards to top students.

To improve infrastructure in the communities Hydreq and DANS have:

• Constructed 10 sanitation facilities to improve hygiene and reduce the risk of disease in the community:

• Provided construction materials to repair the roof of a local monastery;• Improved access to the main road from four local villages by constructing

concrete pathways; and • Built water storage tanks and a pipeline water supply for four local villages

to provide them with potable water.

ENVIRONMENTAL & SOCIALTashiding observed World Environmental Day in June 2017 by planting 885 saplings around Adit-I, the surge shaft road and barrage site of the project. Tashiding continued the plantation drive in July by planting 2,600 saplings in areas near the projects. Several varieties of fruit-bearing and flowering saplings, including guava, mango, orange and bottle brush, have been planted to prevent erosion and protect the rivers from excess sedimentation. Over the past three years, close to 20,000 saplings and various species of fast-growing ground cover and plants have been planted around the project sites to provide slope control.







annual generation

2017835,744

Households Powered1

2016772,938





2017853

2016789

2017835,037

2016772,284

2017178,698

2016169,952

201721,641

201620,015

PORTFOLIO (MW)

INDIRECT STAFF

2015 20172016

200 261 198 66

DIRECT STAFF

2015 2017

FEMALE MALE

2016

159

14 (24)

135

11

YearChange

YearChange

YearChange

YearChange

3

750

22

SHORT TERM LONG TERM

138

11

(194)

(489)

2015 20172016

193 193 193

CONSTRUCTION

OPERATIONAL

97

96

97

96 193


ENVIRONMENTAL, SOCIAL & GOVERNANCE

Environmental & Social Impact AssessmentHydreq Power engaged specialist consultants ERM and Apercu to undertake a comprehensive ESIA of the project area in accordance with Philippine regulations and international standards. Completed in Q3 2017, documentation of these impacts is listed in the ESIA Report and the ESMP, in order to ensure the project is compliant with the requirements of Philippine law, the Equator Principles for international project finance and the IFC Performance Standards for Sustainability.

Resettlement Action Plan & Livelihood Restoration Plan (“RAP-LRP”)Cardno is performing a RAP-LRP study which will harmonise corporate standards with industry guidelines, Philippine law and IFC requirements. The study, which started in Q4 2016, will engage Project Affected Persons (“PAP”s) to build support and create guidelines for land access and resettlement compensation and assistance. In 2017 a household census and survey that identified a total of 399 potential PAPs comprising 25 households and 374 crop claimants was completed, as well as a crop valuation and a land and asset valuation study.

HYDREQ POWER IS DEVELOPING A 500MW WAWA PUMP STORAGE PROJECT ON LUZON ISLAND IN THE PHILIPPINES. IN JANUARY 2018, HYDREQ POWER WAS SOLD AS PART OF EQUIS ENERGY.

EMPLOYMENTOver the last twelve months, Hydreq Philippines staff numbers have remained stable. Four staff are focused on ESG and CSR, joined by five indirect staff members who work alongside the project team covering the reforestation activities, community relations and as on-site representatives.

The project is expected to require approximately 3,000 staff during construction and 150 staff during operations.

Public Disclosure & Stakeholder EngagementIn Q1 2017 Hydreq Power conducted public disclosure and multi-level stakeholder activities in support of the RAP-LRP, including:

• Initial scoping consultations with local officials to identify potential PAPs;• Public dialogue with over 150 PAPs; and• Two meetings with the Resettlement Oversight Committee, composed of key

government stakeholders, to discuss study updates and local resettlement policies.

After sign-offs are secured, the implementation of the RAP-LRP will be led by the local government, in accordance with Philippine law.

Free, Prior and Informed Consent (“FPIC”)Hydreq Power has completed an FPIC process with the National Commission on Indigenous Peoples. This process included a series of consultative community assemblies for the IP Dumagat-Remontado tribes over 2015-2016 and resulted in signed agreements with the IPs in Q2 2016. In Q2 2017, after a year-long review of the FPIC documentation by both the regional and national offices of the agency, Hydreq Power was awarded a Certification Precondition for the Wawa project. This is the final permit to certify the consent bestowed by the IP tribes for the project, subject to the terms of the signed agreements. CSR INITIATIVESFollowing consultation with the Dumagat-Remontado tribes and over 88 stakeholder groups in the host community, Hydreq Power and its local partner have agreed a long-term ESMP to support the community, which will start in tandem with site preparation works and project construction. Due to the remoteness of the project area, healthcare and education (including livelihood training) have been identified as core components of the plan.

ENVIRONMENTAL & SOCIALIn continuation of the reforestation initiative started in 2015 in support of the Philippine government’s National Greening Program, and in partnership with six local people’s organisations (“POs”), maintenance and monitoring work continued throughout 2017. This included replacement planting by the POs to meet target survival rates. In total, approximately 230,000 seedlings of indigenous tree species have been planted over 230 hectares.

The reforestation initiative provides a sustainable livelihood for approximately 300 people in the IP and local communities through the seedling nursery, and by generating income from the planting and maintenance activities. This initiative also increases environmental awareness and highlights the importance of watershed conservation and management as an alternative to slash-and-burn agriculture and charcoal making.

In Q1 2017, Hydreq Power organised onsite EHS training workshops for the POs on Job Hazards Analysis, Basic Life Support & Emergency Response, and Basic Occupational Safety & Health. Hydreq Power has also provided group term life insurance coverage for the PO members involved in the reforestation activities.

HEALTHCAREBased on feedback from the local tribes, Hydreq Power has committed to arrange medical missions to provide health care services to the 2,300 members living in the project area. These will be provided in partnership with a local medical organisation, with the programme formulated using health data collected during the ESIA.

EDUCATIONHydreq Power provided coordination and ground support for a Christmas Shoe Drive in December 2017 which was sponsored by Equis. Equis and Hydreq representatives were joined by government officials for a gift-giving ceremony held at three elementary schools in the project’s host communities. Over 1,500 pupils receiving brand-new school shoes from Equis.



3 Calculated based on the electricity generated, per the greenhouse gas emission factor (0.502 tonnes of CO2eq/MWh) for the Philippines according to the GHG Protocol, May 2015


PHILIPPINES



20171,600,00

Households Powered1

20161,600,000





20171,703

20161,703

2017903,600

2016903,600

2017193,670

2016190,660

201723,418

201623,418

PORTFOLIO (MW)

2015 20172016

600 500 500

DEVELOPMENT

600500 500

DIRECT STAFF

2015 2017

FEMALE MALE

2016

6

1

5

2

6

3

YearChange

YearChange

1(1)

11


PORTFOLIO BENEFITSThe Lobo Lobo bio-refinery is designed to produce bio-ethanol that will be blended with gasoline per the government mandated 10:90 ratio and used to fuel vehicles.

Lobo Lobo is a zero waste facility, as spent wash from the distillery undergoes a bio-digestion process in which methane produced is used as boiler fuel, and the remaining waste is evaporated (with condensate recycled for use in the plant, reducing water consumption), and composted with fly ash from the boiler and mud press from the mill. The compost will be distributed to the corporate farm as fertiliser, reducing the need for chemical fertilizers.

ENVIRONMENTAL, SOCIAL & GOVERNANCETo date there have been no serious EHS incidents at the farm or bio-refinery, nor has there been any material non-compliance with environmental or regulatory requirements. Bioeq Energy’s commitment to a safe work environment is validated through the project’s safety record, as the bio-refinery project had completed more than four million safe man-hours by the end of 2017, while the farm is nearing two million safe man-hours.

Over 460 health and safety inductions were held during the year, in addition to the standard tool-box talks and refresher training. Safety training relating to the following topics was rolled out during the year:

• Working at heights; • Working in confined spaces;• Hot Works; and• Hand Tools.

BIOEQ ENERGY CURRENTLY OWNS AND IS CONSTRUCTING A VERTICALLY INTEGRATED BIO-REFINERY AND IS DEVELOPING A 2,500HA CORPORATE FARM THAT WILL SUPPLY SUGAR CANE TO THE REFINERY.

EMPLOYMENTOver the last twelve months, Bioeq Energy staff numbers have decreased, from a peak in 2016 when farmers from outside the cooperative were included in staff numbers. Indirect construction staff continued to increase during the year and there are now 29 EHS and Community related staff employed covering the project.

Strong control measures have been implemented to protect the environment and conserve natural resources, with air, noise and water effluent emissions monitored to ensure they do not exceed the standards required during construction. Bioeq Energy liaises with the relevant government agencies and local government units on a regular basis to satisfy regulatory requirements, securing the necessary permits and documenting compliance with local and national standards and regulations.

Bioeq Energy is targeting to be certified with an integrated management system consisting of ISO 9001, 14001 and 45001 within the two to three years following the start of commercial operations. Environmental, Safety, Health and Quality policies have been prepared to be compliant with these certifications.

Qualified local residents have been given priority during the employment process. The project is not only providing economic growth in the area through employment at the construction site and farms - local residents have set up stalls and provide goods and services to the workers on-site, thereby increasing their incomes.

Regular public consultations have been undertaken by Bioeq Energy to address local concerns and present the potential risks that may be introduced once the project becomes operational so that the community is prepared for any issues, should they arise.

CSR INITIATIVESBioeq Energy’s close relationship with the local community is built on frequent communication and continued participation in community events through sponsorship of local foundations, festivals, gatherings and school activities.

SOCIALBioeq Energy donated raffle prizes for an event celebrating the 101st anniversary of the establishment of the Magallanes town, as well as donating signage and road barriers to schools in the local area in order to increase road safety. In Q2 2017, Bioeq Energy competed additional road improvements in Cavite and participated in tree planting activities at site for World Environment Day.

HEALTHCAREDuring 2017, through a local government unit, Bioeq Energy conducted a medical mission focusing on cancer awareness and prevention in partnership with Rotary Club of the Philippines. The mission provided medical assistance to approximately 100 members of the local community and allowed them to access to appropriate medication free of charge.

Since 2015 Bioeq Energy’s corporate farm has provided group term life and medical health insurance to all 235 members of the cane farmer cooperative contributing to the farm. In an expansion of the programme, personal accident cards and medicash assistance cards for dengue have been given to 126 farmer landowners who have leased their properties to Bioeq Energy for cane planting.

EDUCATIONBioeq Energy held a Farmers Festival in January 2017 to encourage sugarcane farmers in the province to support the ethanol industry and deliver their cane to CBPI once operational. The festival allowed Bioeq to demonstrate the capabilities of its proprietary seedling project, which has produced a disease-free seed cane for the community at minimal cost.

During the year, Bioeq Energy donated educational electronic equipment to two public elementary schools in the area surrounding the bio-refinery. Through this donation over 1,300 students have access to modern learning equipment, which will allow them to improve their education and career prospects.


2 Amount of waste saved through condensate recycling versus a normal bio-ethanol facility3 Calculated based on electricity generated, per the greenhouse gas emission factor (0.502 tonnes of CO2eq/MWh) for

the Philippines (GHG Protocol May 2015) and net savings between life cycle CO2 emissions of gasoline as published by the Energy Information Administration of the US Department of Energy and the savings and sugar cane base bio-ethanol (78% reduction per the US Department of Energy Bioenergy Technologies Office). The life cycle CO2 emissions include the emissions from extracting, transporting and production of the gasoline of bioethanol

4 Calculation per the EPA GHG Calculator5 Based on average car fuel tank size of 40 litres

PHILIPPINES



201733,571

Households Powered1

201633,571



Passenger Vehicles Replaced by Bio-fuel (petrol replacement)5


2017248

2016248

2017115,715

2016115,715

20171,000,000

20161,000,000

20172,999

20162,999

INDIRECT STAFF

2015 20172016220

627847

375

1,222

DIRECT STAFF

2015 2017

FEMALE MALE

2016

653

128

867

223

17122

YearChange

YearChange

YearChange

YearChange

(696)

(201)

214

95

CONSTRUCTION LONG TERM

5252

168

220


JAPAN

JAPAN BIOENERGY L.P (“JBLP”) WAS FORMED TO INVEST IN BIOENERGY PROJECTS IN JAPAN. THE PROJECTS WILL BE OWNED, DEVELOPED AND MANAGED BY NIPPON BIOENERGY (“NBE”), A BIOENERGY DEVELOPER, OPERATOR AND OWNER BASED IN TOKYO, JAPAN.

THE SEED PROJECT IS A 50MW BIOMASS FACILITY IN TOYAMA PREFECTURE WHICH IS EXPECTED TO START CONSTRUCTION IN Q2 2018. THE TEAM IS ALSO DEVELOPING A 75MW ASSET IN ICHIHARA.

ENVIRONMENTAL, SOCIAL & GOVERNANCEThe Toyama site is located on a reclaimed piece of land and is currently being reclassified from Port-related to Industrial land. While an EIA is not required for the projects under Japanese regulations, NBE engaged ERM to provide the EIA for the Toyama project. No material environmental issues were identified, nor were any potential contamination sources detected. ERM additionally confirmed that the project’s technical specifications will comply with the relevant emissions regulations. ERM is also conducting the EIA for the Ichihara project.

Japan Bioenergy has implemented policies and procedures to meet Japanese environmental requirements, which are consistent with the IFC standards. As per Equis’ requirements, health and safety and ESG related policies will be put in place to govern work practices at the project sites, which all employees will be required to follow. In conjunction, the EPC and O&M contractors and sub-contractors will also be required to adhere to these policies and undertake all work in compliance with Japanese EHS and employment regulations.

Japan Bioenergy is applying for the relevant permits required for the projects, which will cover noise levels, impacts on air quality, emissions and any addtional potential environmental impacts. Predicted air emissions for the facility (NOx,SO2 and particulate matter) have been guaranteed by the EPC contractor to be in line with local regulations. Forecasted emissions were also verified against IFC EHS guidelines and the project is expected to deliver lower emissions to air than prescribed by the IFC guidelines.

The biogenic CO2 emissions resulting from power generated through biomass are generally counted as zero, as the use of sustainable biomass is considered to be carbon neutral at the point of combustion. This methodology originates from the United Nations Framework Convention on Climate Change (UNFCCC).

NBE is agreeing a long-term fuel supply contract for wood pellets from sustainable sources. In order to qualify for the Japanese FiT, the wood pellets must comply with the Forest Stewardship Council’s certification for sustainability, which will be contractually agreed in the fuel supply contract. The agreed fuel supplier will also be required to comply with the relevant ISO standards for safe handling and logistics, in order to ensure fire safety requirements are met. The facility and fuel handling systems, will also be subject to the requiste hazardous operations studies in compliance with health and safety standards.

CSR INITIATIVESJapan Bioenergy is committed to have a positive social impact in the communities in which it operates and establishes open and regular dialogue with members of the local communities and stakeholders. Japan Bioenergy is currently evaluating CSR initiatives in order to integrate into the local community and is proposing to sponsor several initiatives in the Toyama and Ichihara area in 2018, including:

• Sponsorship of the local crab festival; • Sponsorship of the annual town festival; and • Establishment of a scholarship fund for local students.


2 Calculated based on the electricity generated, at 78% of the greenhouse gas emission factor (0.551 tonnes of CO2eq/MWh) for Japan according to the GHG Protocol, May 2015


PORTFOLIO (MW)

2017

125

DEVELOPMENT



2017186,825

Households Powered1




2017119,462

201725,565

20173,096

125

EMPLOYMENTNBE doubled its staff numbers in 2017, growing to six dedicated staff members, and is expected to double staff numbers again in 2018 as the assets move into the construction phase.

Approximately 200 indirect staff are expected to be employed for the construction of Toyama, with 15 staff forecast to be hired for the operations.

DIRECT STAFF

2015 2017

FEMALE MALE

3

1

2

4

YearChange

2


CHINA

ENVIRONMENTAL, SOCIAL & GOVERNANCEOriental Gas conducts regular and stringent internal audits with respect to safety management at all subsidiaries, including checking rules, procedures, training, maintenance and risk management plans. To date, there have been no fatalities or serious injuries at any Oriental Gas site, nor has there been any material non-compliance with environmental or regulatory requirements.

ORIENTAL GAS IS A DEVELOPER AND OPERATOR OF NATURAL GAS DISTRIBUTION ASSETS IN CHINA. ORIENTAL GAS CURRENTLY OWNS 13 GAS DISTRIBUTION PROJECTS ACROSS SIX PROVINCES, SUPPLYING PIPED NATURAL GAS, COMPRESSED NATURAL GAS AND LIQUID NATURAL GAS TO RESIDENTIAL, INDUSTRIAL, COMMERCIAL, TRANSPORTATION CUSTOMERS AS WELL AS LOCAL GAS DISTRIBUTION COMPANIES.

Requisite operational safety training and improvements were completed during 2017. Oriental Gas also conducted fire drills and other safety measures as part of its community protection and business continuity plans.

Significant staff resources are designated to appropriately manage any EHS risks. Robust policies and procedures and comprehensive safety management systems are in place to ensure the safety of the employees, clients, and the general public. Key measures implemented to assure safety include:

• Ensuring the safe handling, transportation, storage and disposal of hazardous materials;

• Minimising construction impacts by monitoring noise, ambient air and water quality levels;

• Preparing mock-drills and communication related to emergency preparedness and response plans;

• Providing qualified security personnel at project facilities; and• Implementing grievance channels and incident management logs.

In 2017, Oriental Gas employed 32 Safety Inspectors and Managers across the portfolio who have responsibility for monitoring operations, providing health and safety training and supervising compliance with safety policies and procedures. The Dazhou and Hukou branches have received awards from the local government due to their excellent safety management and process capabilities.

In 2017, Oriental Gas ensured the public safety by closely monitoring construction at assets in Hukou, Dongxiang and Duchang and also organised environment protection and cleaning of the areas surrounding gas facilities.

Additionally, Oriental Gas continued its commitment to being a responsible and stable contributor to the local labour market in 2017 - the Dongxiang asset again received the “Stable Labour Employer” award from the county government in recognition of Oriental Gas’s stable employment record. CSR INITIATIVESOriental Gas understands the importance of protecting the environment, saving energy and community service and takes an active role in supporting communities surrounding project sites. During the year Oriental Gas contributed to social and educational programs.

SOCIALOriental Gas staff offered their assistance to the community by volunteering time to visit disabled and elderly people in nursing homes. Staff conversed and interacted with the elderly residents, providing care and compassion for those in need.

Oriental Gas volunteered to provide local road traffic coordination during key public events near some assets and provided safety education to the public during county events such as “Safety Day”. Additionally, Oriental Gas assisted the government in environmental conservation activities and provided food and medicine to environmental sanitation workers.

EDUCATIONOriental Gas will continue to support underprivileged students at a primary school in the remote area of Duchang, Jiangxi province by providing additional donations of funds and books to help increase literacy levels.

1 Calculation based on coal and natural gas emissions data from the 2006 IPCC guidelines for National Greenhouse Gas inventories, on the basis that the use of natural gas is displacing an equivalent energy amount that would otherwise be burned by coal for industrial or power generation


PORTFOLIO (MW)

CONSTRUCTION

OPERATIONAL


METRICSBased on annual volumes

20171,266,252

GHG EmissionReductions1

2016523,697

SO2 EmissionReductions (tonnes)1

NOx EmissionReductions (tonnes)1



201778,306

201632,386

201739,153

201616,193

2017270,978

2016110,500

201732,816

201613,572

EMPLOYMENTOriental Gas staff numbers decreased marginally during the year, nine staff are employed at the headquarters in Beijing with approximately 274 additional staff employed across the entire group. The number of Safety Inspectors and Managers employed across the portfolio increased in 2017 from 30 to 32.

DIRECT STAFF

2015 2017

FEMALE MALE

2016

195

95

204

101

190

93

YearChange

YearChange

89

2015 20172016

9,989

600

9,389

9,989

9,955

9,989

22

9,967

34

(8)(14)




annual generation

2017211

Households Powered1

2016211





2017243

2016243

2017211

2016211

201745

201644

20175

20165

ENVIRONMENTAL, SOCIAL & GOVERNANCEIn 2017, Infraedge continued to focus on implementing the ESMS, EHS manual and the CSR policy, which includes long-term initiatives required for the project. The ESG consultant, ARCADIS, assisted in developing the ESMS and other policies and procedures, which are aligned with IFC Performance Standards and Indian Environmental, Health and Safety regulations. Since the start of the project, there have been no injuries or lost-time incidents, nor have there been any contraventions to EHS regulations.

The dedicated EHS representative, along with the project management company, is assuring environmental and occupational health and safety standards are met. The construction contractor has implemented ISO 9001 (Quality Management System), ISO 14001 (EMS) and ISO OHSAS 18001 (Safety Management System). During the year, the project received an award for Construction

INFRAEDGE HAS ENTERED INTO A PARTNERSHIP WITH ASSETZ PROPERTY GROUP TO DEVELOP COMMUNITY TOWNSHIPS IN INDIA. THE PLATFORM’S SEED ASSET IS A 17.8-ACRE TOWNSHIP IN BANGALORE, INDIA. IN 2016 INFRAEDGE ADDED THE SARJAPUR EXTENSION TO THE PORTFOLIO, THE 8.3-ACRE SITE IS ADJACENT TO THE SEED ASSET AND INCREASES THE TOTAL SIZE OF THE PROJECT TO 26.1 ACRES.

EMPLOYMENTIn 2017, Infraedge provided employment to 497 staff, including 46 direct and 451 indirect employees. Staff numbers include seven employees focused on EHS and ESG.

Indirect staff numbers increased during the year following commencement of the full-fledged construction for the units. Local workers have been given priority when hiring for construction.

Health, Safety & Environment from the Construction Industry Development Council, recognising the high EHS procedures and standards implemented for the project.

During 2017, the dedicated ESG Manager at the project company continued to focus on training and safety processes. Over the year, 120 training sessions and workshops were held for the project team and on-site workers, covering topics such as health, safety, managing heat stress, safe usage of vehicles, evaluation of hazards, excavation, personal protective equipment and site housekeeping. Tool-box talks and training are held on a monthly basis.

Environmental, Health and Safety measures included:

• Safety training for staff from an external consultant; • A first aid room and emergency vehicle located at site, with emergency

contact numbers available;• Safety rules for both visitors and workers prominently displayed;• Procedures developed to indicate the designated safe assembly points and

location for fire extinguishers for visitors and personnel on site; • Periodic emergency fire drills and the installation of an emergency alert

siren;• The installation of safety nets, mushroom caps on projected rods and iron

railings along stairways as a good safety practice; • Vertigo testing for workers work on the higher floors;• Dengue and malaria awareness programme for workers on site;• The installation of a secondary tray to arrest any chemical spillages and

provision of a dedicated room to store inflammable liquids; and• The establishment of a gas bank, equipped with a fire extinguisher in an

isolated area of the site.

CSR INITIATIVESIn 2017, based on feedback gathered during the ESIA process, Infraedge targeted CSR initiatives that provided healthcare to the local community. The healthcare programmes benefitted approximately 2,455 people.

HEALTHCAREInfraedge organised a health camp in association with the Gunjur Government Hospital, Bangalore East, benefitting approximately 250 people. Patients with conditions including epilepsy, schizophrenia and drug addictions were screened and treated during the camp and provided with medical support, counselling and prescribed the appropriate medications.

In continuation of a programme started in 2016, Infraedge sponsored a bi-monthly series of yoga classes for 91 HIV-infected children in a nearby care home run by a local NGO and provided meals for the children following the classes. Introducing the children to yoga is expected to provide increased mental and physical well-being and health.

During the year Infraedge supported a government run leprosy colony by providing food, clothes and groceries to the 40 patients housed in the colony.

Infraedge also participated in various health care programmes, including participating in World TB Day events, which is held to raise the common public’s awareness of the disease, as well as the causes, preventative measures and treatment, in an effort to eradicate the disease. During the event Infraedge provided a meal to the patients that attended.





INDIA

The sustainability metrics for Infraedge are based on the power that will be generated by the planned roof-top solar panels and solar water heating. Water savings include the annual estimated volumes saved through the rainwater harvesting system and the on-site sewage treatment plant included in the project design.

INDIRECT STAFF

2015 20172016

129 (36) 93

358451

DIRECT STAFF

2015 2017

FEMALE MALE

2016

38

19

12

3

50

21

35

12

YearChange

YearChange

YearChange

YearChange

(15)

(12)


EMPLOYMENTAsia Networks has eleven long-term employees in management, finance and operations. During 2017 three additional employees joined the company, including one full-time Safety Consultant. In addition, 31 indirect staff support the company, with two staff members dedicated to Health & Safety.

PORTFOLIO BENEFITSThe neutral hosting model promoted by Asia Networks is more energy efficient and environmentally friendly than a single host model as the design of the system avoids duplication of the base and remote units, cabling and antennas required for in-building telecommunications coverage.

The DAS in the Sports Hub project uses best practice wireless technology to reduce power consumption in comparison with traditional models.

Safety and security within the facility was a key focus during the project design as part of the capacity of the network is reserved for exclusive use by Singapore’s police, ambulance and emergency services.

ENVIRONMENTAL, SOCIAL & GOVERNANCESince Equis invested in Asia Networks in 2013, there have been no material instances of non-compliance with health and safety regulations or ESG requirements. The environmental and social impact of the project is minimal due to the nature of the business. EHS monitoring and reporting has been integrated into Asia Networks’ business operations.

ASIA NETWORKS OWNS AND OPERATES TELECOMMUNICATIONS INFRASTRUCTURE ASSETS. THE COMPANY CONSTRUCTED AND OPERATES SYSTEM IN-BUILDING DISTRIBUTED ANTENNA SYSTEMS (“DAS”). WHICH IS LOCATED IN THE SINGAPORE SPORTS HUB (“SPORTS HUB”).

Internal safety polices have been put in place to govern work practices at the asset sites, which all employees are required to follow. In 2017, Asia Networks achieved BizSAFE Level 3 accreditation from the Singapore Workplace Safety and Health Council. In order to be certified, all Occupational Safety and Health policies and documentation must be in place and compliant with Singapore standards. Additionally, Risk Management Plans and Safe Work Practices must be formulated, implemented and audited. To comply with Singapore regulations, the Risk Management Plan must also include measures against terror threats in the work place.

All staff have received relevant health and safety induction, as well as periodic training to ensure the stringent safety and security standards required by the Singapore Sports Hub are met. Monthly EHS meetings and tool-box talks are held for the asset.

CSR INITIATIVESDuring the year, Asia Networks donated refurbished desktop computers to the Pertapis Children’s Home to allow the children to further their studies, gain basic IT skills and increase their employment prospects.

DIRECT STAFF

2015 2017

FEMALE MALE

2016

4

1 3

7

1

1

2

8

3

SINGAPORE

YearChange

YearChange


E: [email protected] T : +65 6220 0040www.equisfg.com