This Environmental and Social Responsibility Policy (this “Policy”) of Clayton, Dubilier & Rice (“CD&R” or the “firm”) reflects the firm’s recognition that there can be a strong, positive correlation between financial performance and corporate social and environmental responsibility. The firm believes that strong businesses deliver value, not only to investors, customers, and suppliers, but also to employees and communities.

In addition, the Firm believes that the observance of sound environmental and social strategies is essential for building strong brands and safeguarding reputation, which in turn is vital for long-term success.

CD&R aims to encourage its portfolio companies to take responsibility for the environmental and social impact of their business operations. In particular, where consistent with fiduciary responsibilities, CD&R shall:

  1. consider social, ethical and environmental issues affecting our portfolio companies both (a) during the due diligence stage for target portfolio companies and (b) as part of our ongoing collaboration with management of existing portfolio companies;
  2. seek to be accessible to, and engage with, a range of stakeholders on key issues and challenges relating to the social, environmental and ethical issues addressed by this Policy’
  3. work with management of portfolio companies to address environmental, public health, safety, and social issues, with the goal of improving long-term sustainability and performance and minimizing adverse impacts arising from these areas;
  4. seek to ensure that portfolio company managers are able to maintain appropriate levels of oversight in the areas of audit, risk management and potential conflicts of interest;
  5. provide timely information to limited partners and other stakeholders regarding the actions taken to address the environmental, social and ethical issues outlined in this Policy and foster transparency in portfolio companies regarding these matters; and
  6. encourage portfolio companies to advance the principles outlined in this Policy in a manner consistent with their fiduciary duties to their stakeholders.

CD&R believes that the principles outlined in this Policy not only serve to align our portfolio companies with the broader objectives of society, but also help build better businesses and thus support the firm’s primary objective of generating superior investment returns.