American Postal Infrastructure, LLC (“API”) has adopted an Environmental, Social and Governance Policy (“ESG”) to formalize our longstanding view of considering all stakeholders in our investment and management decisions. We hold ourselves to the highest business and ethical practices.
The purpose of this policy is to define API’s approach to integrating the consideration of environmental, social, and governance (“ESG”) risks and value creation opportunities into investments made through its infrastructure fund. API commits to improving the communities in which it invests, and to enhancing the role of the United States Postal Service in its communities. As such, API considers material ESG issues, as detailed in API’s Investment Committee Criteria, during its due diligence and in the monitoring of portfolio investments, to the extent reasonably practical under the circumstances, subject to the fiduciary responsibility of API. For the purposes of this policy, “material” ESG issues are defined as those issues that API, in its sole discretion, determines to have, or the potential to have, a direct substantial impact on an organization’s ability to create, preserve, or erode economic value, as well as environmental and social value for itself and its stakeholders.
This policy will apply to all infrastructure investments considered by the API Investment Committee following the date hereof and will be interpreted in accordance with local laws and regulations.
API’s Investment Committee is responsible for ensuring that consideration of ESG issues is integrated into investment decisions. Where additional subject matter expertise is needed, API utilizes external resources as relevant and necessary.
Subject to the scope described in Section 2, API seeks to:
API will seek to integrate the consideration and thoughtful management of ESG issues throughout the investment cycle.
To ensure the integration of ESG considerations in the pre-investment phase of infrastructure investments, and subject to API’s determination of what is reasonable and appropriate, API will:
API will conduct due diligence on ESG elements as are outlined in the Investment Committee Criteria; this due diligence may include third party assessments as deemed applicable.
Documentation: In cases where ESG-related issues are considered during the due diligence process, API will document, for internal use, the issues considered, findings, and next steps, if any.
To manage ESG risks and value creation opportunities in its infrastructure investments post-investment, and subject to our determination of what is reasonable and appropriate, API will:
Where there are material issues identified during the diligence process, include the management of these issues in a 100-day plan post-close, or otherwise monitor ongoing progress on ESG issues, as applicable. Process improvement efforts will be initiated, as applicable.
In cases where material ESG-related risks and opportunities are being monitored or managed, API will document, for internal use, the issue, progress, and next steps, if any.
We will seek to be transparent in our approach to incorporating ESG considerations in our infrastructure investments by reporting annually on its progress and outcomes at the fund level. The format of this reporting may vary among written public reports, verbal informal reports, or confidential fund or asset-level reports to API investors. Where appropriate, throughout the investment cycle we will seek to actively engage relevant stakeholders to make informed decisions that may affect these stakeholders.
API is a signatory to the United Nations-supported PRI. The PRI Initiative is an international network of investors working together to put the six following principles for responsible investment (the “Principles”) into practice:
This policy will be reviewed and updated, as necessary, regularly at API’s Board of Director meetings.
