Long Arc Capital LP (“Long Arc”) is making the following disclosure required to be made pursuant to Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector (“SFDR“)

Investment process – Article 3 Disclosure

“Sustainability Risk means an environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investments made by the Fund. Such risks are principally linked to climate-related events resulting from climate change (i.e physical risks) or to the society’s response to climate change and transition towards low carbon economies and societies (i.e. transition risks), which may result in unanticipated losses that could affect the Fund’s investments and financial condition. Social events (e.g. inequality, inclusiveness, labour relations, investment in human capital, accident prevention, changing customer behavior, etc.) or governance shortcomings (e.g. recurrent significant breach of international agreements, bribery issues, products quality and safety, selling practices, etc.) may also translate into Sustainability Risks.

The Fund does not actively promote environmental, social or governance (ESG) characteristics and does not maximize portfolio alignment with Sustainability Factors, however it remains exposed to Sustainability Risks. Such Sustainability Risks are integrated into the investment decision making and risk monitoring to the extent that they represent a potential or actual material risks and/or opportunities to maximizing the long-term risk-adjusted returns.”

Principal Adverse Impact Statement – Article 4 Disclosure

“In accordance with Article 7.2 of the SFDR, Long Arc does not consider adverse impacts of investment decisions on sustainability factors given the overall difficulties in obtaining the necessary information and the resources required to put in place the necessary processes.”

Remuneration Statement – Article 5 Disclosure

“Long Arc has established a remuneration process/policy that does not to encourage risk‐taking which is inconsistent with the risk profiles of the clients and of the Funds, including with respect to sustainability risks, being defined as environmental, social or governance events or conditions that, if they occur, could cause an actual or a potential material negative impact on the value of an investment.”