2024 was a transition year for Oakley, in which we focused on bedding down the foundations established over the previous years and began strategically planning for the next phase of our sustainability journey. We remain committed to creating value by focusing on the sustainability topics that are most material to our business and investment portfolio.

The Oakley sustainability programme continues to prioritise three key themes for our operations and our investments that we believe are important for all businesses irrespective of sector, geographical location or scale.

Materiality requires consistent assessment to ensure the sustainability strategy remains relevant to Oakley, our portfolio companies and our wider stakeholders. We ask all portfolio companies to report annually on their progress and KPIs through our annual sustainability survey, based on a combination of the Sustainability Accounting Standards Board (SASB) industry guidelines, the EU Sustainable Finance Disclosures Regulation (SFDR) principal adverse impacts (PAIs), the ESG Data Convergence Initiative (EDCI) metrics and knowledge of the sectors we invest in. Additionally, we conduct materiality assessments with each of our investments and formally review these assessments with company management annually. In 2024, for many of our portfolio companies, the materiality assessments focused on double materiality in line with the Corporate Sustainability Reporting Directive (CSRD). This formal framework for assessing materiality goes a step beyond the Oakley materiality process and has been utilised by the portfolio companies who were in scope of CSRD prior to the EU Omnibus package. For more details on CSRD in our portfolio, please see our Corporate Sustainability Reporting Directive spotlight. Alongside these annual activities, throughout the year, the Sustainability Team also monitors internal and external events that could abruptly impact what is material to our investments, such as geopolitical developments and tariff increases.

Taking a comprehensive two-fold approach to sustainability considerations ensures both Oakley and our investments are committed to responsible business practices, effectively mitigating risks and building resilience for the future. As new sustainability topics continue to emerge, we remain proactive in monitoring these developments through our engagement with leading industry initiatives, which allows us to benefit from access to industry standards and best practices to stay connected to the evolving challenges within our portfolio. This ongoing learning allows us to anticipate change, adapt accordingly and ensure our approach remains relevant and forward-looking.