Climate-related risks are identified, assessed and managed through Oakley’s responsible investment and risk management processes. As set out in the Strategy section, Oakley’s climate risk assessment is used to identify where physical and transition risks may be more material across the portfolio, so that monitoring, engagement and resilience planning can be prioritised where it matters most.

This section summarises how climate-related risks are considered across the investment lifecycle and how material findings are integrated into Oakley’s wider risk management framework.

Climate risk management across the investment lifecycle

Oakley manages climate-related risks by embedding identification, assessment and monitoring into its existing responsible investment and risk management processes. This helps identify where physical or transition risks may be material to a prospective or existing portfolio company, determine whether further diligence or engagement is required, and ensure material findings are considered through the appropriate investment, portfolio monitoring or risk governance channels.

Initial screening and due diligence

During initial screening, the Sustainability Team works with the Investment Team to identify climate-related red flags, particularly where a target operates in sectors or geographies with potentially material physical or transition exposure. Where climate factors are material, the Sustainability Team undertakes more detailed due diligence, drawing on external advisers where appropriate.

Investment decision-making and onboarding

Material climate-related findings are presented to the Investment Advisory Committee and can inform investment selection, onboarding priorities and the post-investment plan.

Collaborative ownership and monitoring

During ownership, Oakley reviews climate-related risks through the portfolio-wide climate risk assessment, annual emissions data collection and ongoing engagement with management teams. In 2025, this included a portfolio-wide webinar with an external partner on understanding and managing climate-related risks, deep dives into company carbon footprints and discussions with management teams on emissions drivers, hotspots and climate risks identified through the assessment. Findings are used to prioritise monitoring, resilience planning and decarbonisation support where material.

Exit preparedness

The management of climate-related risks and opportunities is considered as a relevant part of exit preparedness. Throughout the exit process, we reflect on the progress portfolio companies have made against their sustainability and climate action plans, and the value creation and risk mitigation outcomes that have resulted.

Integration with Oakley’s wider risk management framework

As described in the Risk management at Oakley section, Oakley’s Enterprise Risk Management System provides a centralised approach to identifying, assessing and monitoring risks across the Group, with sustainability risks, including physical and transition climate risks, embedded within the system.

Climate-related risks identified through due diligence, portfolio monitoring and the climate risk assessment are considered alongside other principal risks and escalated through the relevant governance channels where material. This supports visibility of climate-related risks within Oakley’s wider risk profile and helps ensure that climate considerations are considered in investment, portfolio management and risk governance processes.

For Oakley’s own operations, office-related exposures are managed through standard property, business continuity and operational risk processes. Climate-related regulatory and reputational exposures are monitored through Oakley’s compliance and risk management framework and inform Oakley’s approach to disclosure, governance and external communications.

A more detailed description of our investment approach can be found here:

See: Our Responsible Investment Process