IEN WEBINAREquity Investing in Climate Solutions

May 5, 2021

The webinar will begin shortly

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THE INTENTIONAL ENDOWMENTS NETWORK

A Peer-Learning Network for Higher Education, Philanthropic & Non-Profit Endowments

Aligning Investment Portfolios with Institutional Mission, Values, & Sustainability Goals

Associations &

Networks

Thought Leadership

Education & Training Forums & Meetings

Resource Exchange

Peer

Networking

Other

Institutional

Investors

Non-Profit &

Advocacy

Groups

Investment

Firms

• Presidents

• CFOs

• Trustees

• Students

• Alumni

• Donors

• Faculty

• Staff

• Managers

• Consultants

Endowments

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CLIMATE ACTION PURSUIT

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Second Nature and the Intentional

Endowments Network is leading a virtual year

long programing of learning, planning, acting,

and leading on equity and climate on our

campuses, in our communities, and across

our society and economy.

Online programming dates:

• February 24-26, 2021

• June 10-11, 2021

• October 7-8, 2021

• December 9-10, 2021

https://secondnature.org/climateactionpursuit/

LOGISTICS

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UN-CONVENED NET-ZEROASSET OWNER ALLIANCE

United Nations-convened Net-Zero Asset Owner Alliance

United Nations-convened Net-Zero Asset Owner Alliance

as of 23rd of April

Illustrative model – Path

to limit global warming

to 1.5°C

Negative emissions

8

HUMANITY’S CHALLENGE –

LONG-TERM INVESTORS CAN CONTRIBUTE TO SOLUTIONS

Maximum total annual CO2 emissions in 2050 and

beyond, coupled with negative emission technologies~4 Gt

Source: IPCC SR1.5 – Summary for Policy Makers, figure 3a

Global total net CO2 emissions

(in billion tons of CO2/year)

Climate change mitigation means addressing

risk. The transformation to resilient economies

will spur economic gains through innovation.

Long-term investors leverage investment

opportunities in new technologies and

innovation to also to contribute to the solutions.

Estimated investment needs respectively investment opportunities in new

power and heat generation and bio- and synthetic fuel production

of ~US$2tn annually or ~1.5% of global GDP.

420 Gt cumulative CO2 emissions left (“CO2

budget”) for a 2/3 chance of limiting global

warming to a max. 1.5°C temp. increase.

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37 ASSET OWNERS WITH OVER $5.7 TRILLION ASSETS AS STRONG SIGNAL

OF SUPPORT TO POLICYMAKERS AND A CALL TO ACTION FOR THE

ECONOMY

Commit to transitioning investment portfolios to net-zero GHG emissions by 2050 consistent with a maximum temperature rise of

1.5C degrees above pre-industrial temperatures, taking into account the best available scientific knowledge including the findings of

the IPCC, and regularly reporting on progress, including establishing intermediate targets every five years in line with Paris

Agreement Article 4.9.

In order to meet fiduciary duty to manage risks and achieve target investment returns, this Commitment must be embedded in a

holistic ESG approach, incorporating but not limited to, climate change, and must emphasize GHG emissions reduction outcomes

in the real economy.

Seek to reach this Commitment, especially through advocating for, and engaging on, corporate and industry action, as well as

public policies, for a low-carbon transition of economic sectors in line with science and under consideration of associated social

impacts.

This Commitment is made in the expectation that governments will follow through on their own commitments to ensure the

objectives of the Paris Agreement are met.

THE COMMITMENT

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NET ZERO ASSET OWNER ALLIANCE - “THEORY OF CHANGE”

Investors with influence via

engagement and policy advocacy

Decarbonization of companies

of the real economy

Best in class strategy

Reallocation within one sector

Integration of climate mitigation into

Strategic Asset Allocation (SAA)

Sector weighting, reallocation

across sectors

Investments in economic activities

that contribute to climate change

mitigation

Investing in climate solution

investments

Real World

Impact

Capital Allocation

Strategies

Capital Allocation

Strategies

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ALLIANCE TARGET SETTING - 5 YEAR ROAD MAP

https://www.unepfi.org/net-zero-

alliance/resources/

STRONG CLIMATE TECH RETURNS FROM 2013 TO 2019

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"We know that climate risk is investment

risk. But we also believe the climate

transition presents a historic investment

opportunity.” Larry Fink, BlackRock

2021 Investor LetterSource: Cambridge Associates, 2020.

19.5%

POOLED

IRR

Late-Stage Climate

Tech

22.1%

POOLED

IRR

Early-Stage Climate

Tech

CONFIDENTIAL

TACKLING CLIMATE CHANGE IS A MASSIVE ECONOMIC OPPORTUNITY

CONFIDENTIAL 13

120 1,541National

governments

committed to net-

zero by 2050

Global companies

pledged to net-zero

targets

https://www.forbes.com/sites/sergeiklebnikov/2019/10/24/stopping-global-warming-will-cost-50-trillion-morgan-stanley-report/

http://datadrivenlab.org/featured/press-release-momentum-towards-zero-emissions-accelerates-alongside-climate-week/

http://datadrivenlab.org/wp-content/uploads/2020/09/Accelerating_Net_Zero_Report_Sept2020.pdf

$50T

Global investment

needed to address

climate change

14

STRONG DEMAND SIGNALS IN A WIDE RANGE OF SECTORS

Major

Corporations

Pledged to be

Net-Zero By 2050

CONFIDENTIAL

Fin

ancia

l in

vestm

ent

Government

Grants

Industry

Funding

Angels

Growth

Capital

CONFIDENTIAL 15

THE CHASM

Pre-Commercialization Growth StageEarly Commercialization

FUNDING GAP

SCALING INNOVATIVE CLIMATE TECH

MISALIGNED TIMEFRAMES – TEAM VS. ASSET OWNER

Ye

ar

1

Ye

ar

2

Ye

ar

3

Ye

ar

4

Ye

ar

5

Ye

ar

6

Ye

ar

7

Ye

ar

8

Ye

ar

9

Ye

ar

10

Ye

ar

11

Ye

ar

12

Ye

ar

13

Ye

ar

14

Ye

ar

15

Investment

Duration

Career

Duration

Compensation

DurationY

ear

0

Source: SCIE Framework, Temple Fennell, 2017

17

GEOS Investment Philosophy

FIRM OVERVIEW

Our world is facing the greatest environmental challenges in history. We believe these challengesprovide significant long-term investment opportunities. GEOS invests in companies solving thesechallenges, seeking to provide attractive financial and social impact returns.

“Wherever we look upon this earth, the opportunities take shape within the problems.” - Nelson A. Rockefeller

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Commitments: Moving the Needle

Global

• 53% of global GDP is covered by actual or intended net-zero emissions targets set by nations, regions and cities (ECIU)

Government

• The EU plans to cut GHG emissions by 55% in 2030 in reference to 1990, up from previous commitment of 40% (Bloomberg)

• The American Jobs Plan proposed by the Biden administration includes funding to support clean energy infrastructure, including $174 billion in spending to boost electric cars (CNBC)

Corporations

• Over 300 companies achieved an “A score” by the CDP for environmental transparency and action, a 45% increase from 2019 (CDP) Source: Bloomberg NEF

19

Agricultural Productivity & Clean Fuels-Precision agriculture-Field computing

Clean Tech & Efficiency-Industrial internet of things-Clean tech materials

Efficient Transport-Electric vehicle systems

-Autonomous driving

Low Carbon Commerce-Renewable products-Bioingredients

Environmental Finance-Energy efficiency project finance-Renewable energy development

Power Technology-Power storage-Electric utility systems management

Renewable Energy-Solar power development-Residential solar systems

Clean Water-Energy recovery-Water filtration

Power Merchants & Generation-Offshore wind development

A framework for assessing optimal solutions

GEOS Themes

20

Current SDG Alignment

21

Current SDG Alignment cont.

22

Holdings Example: Aspen Aerogels

Description: Aspen Aerogels (ticker: ASPN) produces highly efficient insulation materials.

GEOS Theme: Clean Tech & Efficiency

Investment Thesis: Designs and develops thermal management solutions that are up to five times more effective than traditional materials. Focused on three end markets: EV battery thermal barriers which mitigate thermal runaways, advanced battery and building materials, and energy infrastructure. We project more than 30% compound annual growth over the next decade with significant valuation upside.

SDG Solutions:

Social Impact: Improving EV safety and range – technology will extend EV range by 20-40%. Improve fire safety and efficiency of buildings.

23

This presentation is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. The opinions and analyses expressed in this presentation commentary are based on Essex Investment Management LLC’s (“Essex”) research and professional experience and are expressed as of the date of its release. Certain information expressed represents an assessment at a specific point in time and is not intended to be a forecast or guarantee of future results, nor is intended to speak to any future periods. Accordingly, such statements are inherently speculative as they are based on assumptions that may involve known and unknown risks and uncertainties.

This does not constitute an offer to sell or the solicitation of an offer to purchase any security or investment product, nor does it constitute a recommendation to invest in any particular security. An investment in securities is speculative and involves a highdegree of risk and could result in the loss of all or a substantial portion of the amount invested. There can be no assurance that the strategy described herein will meet its objectives generally or avoid losses. Essex makes no warranty or representation, expressed or implied; nor does Essex accept any liability, with respect to the information and data set forth herein, and Essex specifically disclaims any duty to update any of the information and data contained in the commentary. This information and data does not constitute legal, tax, account, investment or other professional advice. Essex being registered by the SEC does not imply a certain level of skill or training.

Disclosures