GLOBAL INVESTMENTS, THE EUROPEAN WAY PARIS FRANKFURT NEW YORK SINGAPORE MILAN LONDON ZURICH VIENNA LUXEMBOURG

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1 AXA PRIVATE EQUITY CORPORATE SOCIAL RESPONSIBILITY GLOBAL INVESTMENTS, THE EUROPEAN WAY PARIS FRANKFURT NEW YORK SINGAPORE MILAN LONDON ZURICH VIENNA LUXEMBOURG

2 At the heart of our culture lies a commitment to long term partnerships. Our priorities are clear: we act responsibly and cautiously as guardians of our investors capital, and we develop our portfolios and companies in the vigilant manner our investors have come to expect. Dominique Senequier, CEO, AXA Private Equity

3 OUR CSR APPROACH We believe that being a responsible investor Investment discipline and ethics Transparency & taking into account the interests of all stakeholders Long term investments Reasonable use of leverage will improve our long term performance Reduce risk in our portfolio Improve working practices within our portfolio companies A preferred shareholder and employer WE APPLY A RESPONSIBLE INVESTMENT APPROACH AXA Private Equity signed up to the United Nations Principles for Responsible Investment (UNPRI) in We are actively involved in the UNPRI Steering Committee, which defines the direction and activity of the UNPRI. AXA Private Equity integrates environmental, social and governance (ESG) considerations in all levels of its operations - as an investor - in all its funds, at all stages of the investment process - and as a company. WE ALSO EMPLOY A NEGATIVE SCREENING APPROACH AXA Private Equity never invests in firms that operate in sectors it considers unethical.

4 CSR WITHIN THE COMPANY AXA Private Equity has firmly established its policies in relation to ESG issues. > INVESTORS Strong investment criteria that means AXA Private Equity avoids investing in unethical sectors as tobacco and firearms. Best in class transparency of client reporting. > INVESTMENTS Take into account criteria relating to ESG prior to every investment. Maintain best corporate responsibility practices throughout the companies and funds. Relationship of trust with the managers, and distribution of a part of the capital gains at exit to all employees. > THE EMPLOYEES A human resources policy that encourages diversity, the sharing of best practice and internal mobility. 43% of all employees are women. > THE ENVIRONMENT Reduction of the negative environmental impact of our activities through several initiatives: careful selection of suppliers, recycling of paper, toner and waste, use of eco-friendly buildings for new offices and electronic reporting. AXA PRIVATE EQUITY S CSR APPROACH AXA Private Equity published its own CSR Charter that lays out its commitment to its investors, investments, employees, society and the wider environment. > THE COMPANY Creation of a dedicated CSR Committee: bringing together representatives of the firm s different departments. The CSR Committee monitors, provides, supports and creates implementation tools in relation to ESG matters. Creation of an endowment fund to carry out the company s sponsorship activities dedicated to education, access to culture for disadvantaged children and students, and social entrepreneurship. Strong community links with official associations and regulators to set up fair rules in private equity: AXA Private Equity supports international initiatives, which help to shape its overall organization and activities. These include: UNPRI*, UNEPFI*, ICGN*, Carbon Disclosure Project, Global Compact, EVCA*, AFIC*, AFG*. AXA Private Equity s compliance manuals outline the firm s rigorous standards and are given to all new employees. AXA Private Equity is GIPS certified (confirming quality and transparency of reporting) and SAS 70 certified (confirming efficiency of internal controls and processes). This is a testament to the firm s high governance standards and processes. Our commitment within the UNPRI AXA Private Equity is a member of the Private Equity Steering Committee and sponsor of the UNPRI s GP Support Working Group dedicated to propose practical tools to GPs to implement ESG in their investment pratice. * UNPRI: United Nations Principles for Responsible Investments, UNEPFI: United Nations Environment Programme Finance Initiative, ICGN: International Corporate Governance Network, EVCA: The European Private Equity and Venture Capital Association, AFIC: Asssociation française des investisseurs pour la croissance, AFG: Association française de Gestion Financière.

5 CSR IN OUR INVESTMENT ACTIVITIES AXA Private Equity has developed formal tools and processes to integrate ESG considerations in all its investment activities. When we invest in a company, we support its management with a growth strategy that combines economic, social and environmental considerations. Dominique Gaillard, Member of the Executive Board and Managing Director Direct Funds DIRECT ACTIVITY At AXA Private Equity, our responsible investment approach impacts all stages of the investment process. Due diligence Extensive face-to-face dialogue with company management. AXA Private Equity often implements environmental or social audits, which are carried out by independent consulting firms. The investment decision occurs after a formal process, during which ESG considerations are systematically reviewed. An ESG section is included in all investment memos. > > Holding period AXA Private Equity sits on the board of all its portfolio companies so it can closely monitor progress and provide support to management. AXA Private Equity mandated an independent consulting firm to perform regular ESG audits of several of its portfolio companies which has resulted in notable improvements. Exit AXA Private Equity was the first private equity firm in France to redistribute a portion of capital gains to all employees of portfolio companies at the point of exit. For example, upon exit, all employees of Spotless Group Capital received two months salary. At Eliokem, Gerflor and Unipex, employees received the equivalent of one month s salary. The identification of ESG-related risk does not necessarily prevent AXA Private Equity from investing in a company. The potential for improvement is also taken into account before the final decision is made.

6 CSR IN OUR INVESTMENT ACTIVITIES Already, nearly half of our assets under management are held by signatories to the Principles for Responsible Investment. Vincent Gombault, Member of the Executive Board Managing Director Funds of Funds and Private Debt FUND OF FUNDS ACTIVITY Because CSR matters necessarily have to be implemented by Fund Managers (or General Partners), we have designed processes and tools that are specifically tailored to help them. Our approach is based on: An alignment of interests As the alignment of interests with GPs allows for a greater influence over the way ESG issues are addressed, AXA Private Equity always seeks to establish a governance model which facilitates such an alignment. An active ownership We always endeavor to have a seat on the boards of funds we invest in so we can better monitor and influence GPs practices. Favor Fund Managers with good reputations We primarily invest in funds managed by GPs that have a good reputation; typically ones that are already involved in responsible investment and who are more inclined to actively integrate ESG values in their own ownership practices. Application at investment process level: ESG Questionnaires We distribute ESG questionnaires to managers of the funds in which we invest. ESG Monitoring Tool We have developed an in-house monitoring database that assesses the approach of fund managers and their practices in relation to environmental, social and governance matters. Assess GPs practices Monitor their improvement Increase their CSR awareness

7 Coup de pouce clé Frateli A commitment to supporting underprivileged children and students AXA Private Equity is driven by a strong desire to improve wider access to education, culture and social entrepreneurship. Couleurs de Chine A Foundation to foster all the firm s charitable activities The financial endowment in our Foundation amounts to 2.5 million. The Foundation supports international initiatives, from student sponsorships over 5 years (CASS Business School, Sciences Po, Ecole Polytechnique, HEC), grants to non-profit organizations (Coup de Pouce Clé, Île aux enfants d Haïti, Couleurs de Chine, Ashoka, Save the Children) as well as mentoring programs (Frateli, Un Avenir Ensemble). Managed by AXA Private Equity s employees The Foundation is managed by six of the firm s employees. Every employee s donation to the Foundation is matched in full by AXA Private Equity and we have 30 volunteers at mentoring programs supported by the Foundation.

8 For any additional information regarding AXA Private Equity s corporate responsibility policy, please refer to the website ( and to the Annual Report (available online) which include a corporate responsibility section. You can also contact AXA Private Equity s CSR officer: candice.brenet@axa-im.com AXA Investment Managers Private Equity Europe Registered office : 20 Place Vendôme Paris, France Tél / Management Company regulated by the Autorité des Marchés Financiers under the Agreement number GP / A French Limited Company with an Executive Board and a Supervisory Board with a share capital of Euro 269,447 Incorporation n RCS PARIS. Published in September 2012.