Annual Results to 31 December 2021

Companies

Foresight Solar Fund Limited (FSFL)

UK 100

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•	NAV increased to £660.0m (31 Dec 2020: £582.2m), driven by strong UK power prices, above budget inflation and a reduction in discount rates, resulting in a 12.9% increase in NAV per share to 108.2 pence (31 Dec 2020: 95.8 pence); total NAV return for the year, assuming reinvest of dividends paid, of 21.4%
•	Strong power prices meant total revenues and EBITDA were 16% and 22% ahead of budget, respectively, although electricity generated by the global portfolio was 5.3% below base case for 2021. Earnings per share were 19.7 pence for the period (31 Dec 2020: - 1.2 pence)
•	UK operational assets, accountable for 76% of electricity generated by the total portfolio in 2021, performed strongly. UK assets benefitted from higher irradiation levels, resulting in the portfolio generating 1.0% above budget
•	Although the Australian portfolio experienced challenges with low irradiation, curtailment and negative pricing resulting in electricity generation for the year being 20.7% below budget, the situation is expected to improve in the first half of 2022 as specific grid issues are resolved
•	Construction of the Company's Spanish projects progressed well during the year, with site facilities now substantially complete at each of the four locations; ten-year purchase power agreement signed for the 98.5MW Lorca project in Granada
•	Good progress on diversification strategy with first investment in battery storage systems (the 50% acquisition of 50MW Sandridge project in May 2021); the Company successfully acquired the remaining 51% interests in Oakey 1 and Longreach operational solar farms in Queensland, Australia (24MW)
•	Global portfolio generated 903,000 MWh of clean electricity, enough to power 311,379 UK homes avoid 697,116 tonnes of carbon emissions
•	Total dividends of 6.98 pence per share were declared for the year, with a target dividend of 7.12 pence per share for FY2022 (an increase of 2.0% compared with 2021). Dividend cover for 2021 was 1.21x and for 2022 is forecast as 1.25x based on contracted revenues alone.

	As at	As at
	31 December 2021	31 December 2020
Net Asset Value ("NAV")	£660.0m	£582.2m
NAV per Share	108.2 pence	95.8 pence
Gross Asset Value ("GAV")	£1,172.0 million	£1,054.6 million
Total Dividend per Share for the period	6.98 pence	6.91 pence
Annualised Total Shareholder Return since IPO	5.90%	5.90%

Ex-dividend Date	21 April 2022
Record Date	22 April 2022
Scrip Price Announcement	28 April 2022
Last Date for Submission of Forms of Election	10 May 2022 at 17h00
Last Date for Crest Elections	10 May 2022 at 17h00
Anticipated Listing of New Shares	27 May 2022
Dividend Payment Date	27 May 2022

£660.0m	108.2p	£1,172.0m
NET ASSET VALUE ("NAV")	NAV PER SHARE	GROSS ASSET VALUE ("GAV")
(31 December 2020: £582.2m)	(31 December 2020: 95.8p)	(31 December 2020: £1,054.6m)

6.98p	£618.5m	5.9%
DIVIDEND PER SHARE DECLARED RELATING TO THE PERIOD	MARKET CAPITALISATION	ANNUALISED TOTAL SHAREHOLDER RETURN SINCE IPO
(Full year to 31 December 2020: 6.91p)	(31 December 2020: £622.9m)	(31 December 2020: 5.9%)

7.3%
ANNUALISED TOTAL NAV RETURN SINCE IPO
(31 December 2020: 5.2%)

•	NAV increased to £660.0 million (31 December 2020: £582.2 million), driven by strong UK power prices, above budget inflation and a reduction in discount rates resulting in a 12.9% increase in NAV per share to 108.2 pence (31 December 2020: 95.8 pence). Total NAV return for the year, assuming reinvest of dividends paid, was 21.4%
•	Although electricity generated by the global portfolio was 5.3% below base case for 2021, strong power prices meant total revenues and EBITDA were 16% and 22% ahead of budget. Earnings per share were 19.7 pence for the period (31 December 2020: -1.2 pence)
•	UK operational assets, accountable for 76% of electricity generated by the total portfolio in 2021, performed strongly. The assets benefited from higher irradiation levels, resulting in the portfolio generating 1.0% above budget
•	The Australian portfolio experienced challenges with low irradiation, curtailment and negative pricing, resulting in electricity generation ending the year 20.7% below budget. However, the situation is expected to improve in the first half of 2022 as specific grid issues are resolved
•	First investment in battery storage systems with the 50% acquisition of 50MW Sandridge project in May 2021
•	The Company successfully acquired the remaining 51% interests in Oakey 1 and Longreach operational solar farms in Queensland, Australia (24MW)
•	Construction of the Company's Spanish projects progressed well during the year, with site facilities now substantially complete at each of the four locations. Furthermore, a ten-year Power Purchase Agreement was signed for the 98.5MW Lorca project in Granada.
•	The portfolio generated 903,000MWh of clean electricity, enough to power 311,379 UK homes and avoid 697,116 tonnes of carbon emissions
•	Total dividends of 6.98 pence per share were declared for the year with a target dividend of 7.12 pence per share for FY2022, an increase of 2.0% compared with 2021. Dividend cover for 2021 was 1.21x and for 2022 is forecast as 1.25x based on contracted revenues alone

1	Wymeswold	Solar
2	Castle Eaton	Solar
3	Highfields	Solar
4	High Penn	Solar
5	Pitworthy	Solar
6	Hunters Race	Solar
7	Spriggs Farm	Solar
8	Bournemouth	Solar
9	Landmead	Solar
10	Kencot Hill	Solar
11	Copley	Solar
12	Atherstone	Solar
13	Paddock Wood	Solar
14	Southam	Solar
15	Port Farm	Solar
16	Membury	Solar
17	Shotwick	Solar
18	Sandridge	Solar
19	Wally Corner	Solar
20	Coombeshead	Solar
21	Park Farm	Solar
22	Sawmills	Solar
23	Verwood	Solar
24	Yardwall	Solar
25	Abergelli	Solar
26	Crow Trees	Solar
27	Cuckoo Grove	Solar
28	Field House	Solar
29	Fields Farm	Solar
30	Gedling	Solar
31	Homeland	Solar
32	Marsh Farm	Solar
33	Sheepbridge	Solar
34	Steventon	Solar
35	Tengore	Solar
36	Trehawke	Solar
37	Upper Huntingford	Solar
38	Welbeck	Solar
39	Yarburgh	Solar
40	Abbey Fields	Solar
41	SV Ash	Solar
42	Bilsthorpe	Solar
43	Bulls Head	Solar
44	Lindridge	Solar
45	Manor Farm	Solar
46	Misson	Solar
47	Nowhere	Solar
48	Pen Y Cae	Solar
49	Playters	Solar
50	Roskrow	Solar
51	Sandridge	Battery

1	Virgen del Carmen	Solar
2	Los Llanos	Solar
3	Los Salinas	Solar
4	Los Picos	Solar

UK subsidy income	48%
UK electricity sales - Fixed	24%
UK electricity sales - Merchant	20%
AUS electricity sales - Merchant	3%
AUS subsidy - Merchant	3%
AUS electricity sales - Fixed	2%
AUS subsidy - Fixed	<1%

Electricity sales - Merchant	48%
Subsidy	42%
Electricity sales - Contracted	10%

Brighter Green Engineering Limited	42%
Anesco Limited	17%
IM2	12%
Canadian Solar	9%
Belectric Solar Limited	8%
Lightsource	5%
UGL	5%
Other	2%

SMA	44%
Power Electronic	14%
ABB	13%
Other	9%
Schneider Electric	9%
Bonfiglioli	4%
GE Power Conversion	4%
LTI ReEnergy	3%

Canadian Solar	13%
Trina Solar	12%
JA Solar	11%
Renesola	9%
REC Solar	9%
First Solar	8%
Other	7%
Jetion	7%
SunEdison	5%
Hanwha	5%
S-Energy	5%
Astronergy	4%
Yingli Solar	3%
Talensun	2%

			Installed peak	Operational/	Acquisition	Subsidy/
	Type	Asset	capacity (MW)	under construction	cost¹ (£m)	subsidy free
UK
1	Solar	Wymeswold²	34	Operational	45.0	Subsidy
2	Solar	Castle Eaton	18	Operational	22.6	Subsidy
3	Solar	Highfields	12	Operational	15.4	Subsidy
4	Solar	High Penn	10	Operational	12.7	Subsidy
5	Solar	Pitworthy	16	Operational	19.3	Subsidy
6	Solar	Hunters Race	10	Operational	13.3	Subsidy
7	Solar	Spriggs Farm	12	Operational	14.6	Subsidy
8	Solar	Bournemouth	37	Operational	47.9	Subsidy
9	Solar	Landmead	46	Operational	52.4	Subsidy
10	Solar	Kencot Hill	37	Operational	49.5	Subsidy
11	Solar	Copley	30	Operational	32.7	Subsidy
12	Solar	Atherstone	15	Operational	16.2	Subsidy
13	Solar	Paddock Wood	9	Operational	10.7	Subsidy
14	Solar	Southam	10	Operational	11.1	Subsidy
15	Solar	Port Farm	35	Operational	44.5	Subsidy
16	Solar	Membury	16	Operational	22.2	Subsidy
17	Solar	Shotwick	72	Operational	75.5	Subsidy
18	Solar	Sandridge	50	Operational	57.3	Subsidy
19	Solar	Wally Corner	5	Operational	5.7	Subsidy
20	Solar	Coombeshead	10	Operational	36.6 (Acquired as portfolio)	Subsidy
21	Solar	Park Farm	13	Operational		Subsidy
22	Solar	Sawmills	7	Operational		Subsidy
23	Solar	Verwood	21	Operational		Subsidy
24	Solar	Yardwall	3	Operational		Subsidy
25	Solar	Abergelli	8	Operational	3.7	Subsidy
26	Solar	Crow Trees	5	Operational	1.8	Subsidy
27	Solar	Cuckoo Grove	6	Operational	2.5	Subsidy
28	Solar	Field House	6	Operational	3.1	Subsidy
29	Solar	Fields Farm	5	Operational	1.7	Subsidy
30	Solar	Gedling	6	Operational	1.9	Subsidy
31	Solar	Homeland	13	Operational	5.2	Subsidy
32	Solar	Marsh Farm	9	Operational	4.0	Subsidy
33	Solar	Sheepbridge	5	Operational	1.9	Subsidy
34	Solar	Steventon	10	Operational	4.2	Subsidy
35	Solar	Tengore	4	Operational	1.3	Subsidy
36	Solar	Trehawke	11	Operational	4.7	Subsidy
37	Solar	Upper Huntingford	8	Operational	3.1	Subsidy
38	Solar	Welbeck	11	Operational	4.4	Subsidy
39	Solar	Yarburgh	8	Operational	3.4	Subsidy
40	Solar	Abbey Fields	5	Operational	1.5	Subsidy
41	Solar	SV Ash	8	Operational	3.4	Subsidy
42	Solar	Bilsthorpe	6	Operational	1.9	Subsidy
43	Solar	Bulls Head	6	Operational	2.2	Subsidy
44	Solar	Lindridge	5	Operational	1.7	Subsidy
45	Solar	Manor Farm	14	Operational	6.1	Subsidy
46	Solar	Misson	5	Operational	2.0	Subsidy
47	Solar	Nowhere	8	Operational	3.7	Subsidy
48	Solar	Pen Y Cae	7	Operational	2.9	Subsidy
49	Solar	Playters	9	Operational	4.0	Subsidy
50	Solar	Roskrow	9	Operational	3.7	Subsidy
51	Battery	Sandridge	25	Under construction	12.7	Subsidy free
		UK subtotal	748		697.8
Australia
1	Solar	Bannerton	533	Operational	22.9	Subsidy
2	Solar	Longreach	17	Operational	5.7	Subsidy
3	Solar	Oakey 1	30	Operational	9.2	Subsidy
4	Solar	Oakey 2	70	Operational	34.0	Subsidy
		Australia subtotal	170		71.8
Spain
1	Solar	Virgen del Carmen	26	Under construction	18.0	Subsidy free
2	Solar	Los Llanos	49	Under construction	64.2	Subsidy free
3	Solar	Los Salinas	30	Under construction	(Acquired	Subsidy free
4	Solar	Los Picos	20	Under construction	as portfolio)	Subsidy free
		Spain subtotal	125		82.2
		Total	1,043		851.8

	31 December	31 December
	2021	2020
Market capitalisation	£618.5 million	£622.9 million
Share price	101.4 pence	102.5 pence
Dividend declared per share for the year	6.98 pence	6.91 pence
Gross Asset Value ("GAV")	£1,172.0 million	£1,054.6 million
Annualised total return (NAV) since IPO	7.3%	5.2%
Annualised total shareholder return since IPO	5.9%	5.9%
Net Asset Value ("NAV")	£660.0 million	£582.2 million
NAV per share	108.2 pence	95.8 pence
Profit/(loss) after tax for the year	£117.9 million	(£7.2 million)

		NAV per
	NAV	share
NAV as at December 2020	£582.2m	95.8p
Dividends paid	(£40.0m)	(6.6p)
Fund costs	(£10.5m)	(1.7p)
Other adjustments	£6.8m	1.1p
Forex	(£2.4m)	(0.4p)
Time value	£36.0m	5.8p
Project actuals	£6.6m	1.1p
PPA fixes	£13.5m	2.2p
Power forecasts	£16.1m	2.6p
Inflation	£22.2m	3.6p
Corporation tax	(£7.9m)	(1.3p)
Discount rates	£23.0m	3.7p
Asset life	£5.0m	0.8p
Other	£9.4m	1.5p
NAV as at December 2021	£660.0m	108.2p

ROC	69%
LGC	17%
Subsidy-free	14%

			Total
			electricity	Generation	Irradiation
	Connection		generation	variance vs	variance vs
Site	date	MW	(MWh)	base case	base case
Abbey Fields	March 2016	4.9	4,684	-6.3%	-1.8%
Abergelli	March 2015	7.7	6,863	-5.2%	-1.2%
Atherstone	March 2015	14.8	13,710	1.8%	0.4%
Bilsthorpe	November 2014	5.7	5,486	3.7%	2.4%
Bournemouth	September 2014	37.3	39,001	1.0%	-2.6%
Bulls Head	September 2014	5.5	5,235	3.9%	-0.3%
Castle Eaton	March 2014	17.8	16,639	5.8%	3.3%
Coombeshead	December 2014	9.8	9,970	-0.6%	2.0%
Copley	December 2015	30.0	27,765	1.2%	2.1%
Crow Trees	February 2016	4.7	4,309	1.4%	2.8%
Cuckoo Grove	March 2015	6.1	6,315	-5.2%	-5.5%
Field House	March 2016	6.4	6,038	-4.7%	-3.4%
Fields Farm	March 2016	5.0	4,900	5.4%	0.9%
Gedling	March 2015	5.7	5,259	2.2%	3.3%
High Penn	March 2014	9.6	10,744	-2.8%	-3.1%
Highfields	March 2014	12.2	9,059	1.8%	0.9%
Homeland	March 2014	13.2	13,332	-2.3%	-4.8%
Hunters Race	July 2014	10.3	10,327	-0.6%	-2.5%
Kencot Hill	September 2014	37.2	34,700	-1.2%	-1.7%
Landmead	December 2014	45.9	42,108	0.8%	3.1%
Lindridge	January 2016	4.9	3,588	-22.2%	-2.4%
Manor Farm	October 2015	14.2	12,251	-1.0%	-1.0%
Marsh Farm	March 2015	9.1	9,142	0.6%	-0.2%
Membury	March 2015	16.5	15,663	1.2%	-3.1%
Misson	March 2016	5.0	4,465	-4.2%	-0.3%
Nowhere	March 2015	8.1	8,166	3.8%	1.7%
Paddock Wood	March 2015	9.2	9,090	0.1%	-2.8%
Park Farm	March 2015	13.2	11,625	-0.6%	-0.8%
Pen Y Cae	March 2015	6.8	6,203	-1.9%	2.1%
Pitworthy	March 2014	15.6	15,186	8.4%	1.6%
Playters	October 2015	8.6	8,277	-1.8%	-1.0%
Port Farm	March 2015	34.7	32,811	1.5%	-0.3%
Roskrow	March 2015	8.9	8,960	-0.6%	0.7%
Sandridge	March 2016	49.6	45,696	-2.6%	-0.1%
Sawmills	March 2015	6.6	6,666	1.1%	0.5%
Sheepbridge	December 2015	5.0	4,589	-1.0%	2.9%

			Total
			electricity	Generation	Irradiation
	Connection		generation	variance vs	variance vs
Site	date	MW	(MWh)	base case	base case
Bannerton	July 2018	53.4	77,650	-14.4%	-3.5%
Longreach	March 2018	8.5	15,634	-16.4%	3.0%
Oakey 1	February 2019	14.5	22,709	-21.2%	-2.7%
Oakey 2	May 2019	70.0	101,243	-25.4%	-12.7%
Total		146.5	217,236	-20.7%
Weighted total					-7.4%

		Total
		electricity	Generation	Irradiation
		generation	variance vs	variance vs
	MW	(MWh)	base case	base case
Total	869.6	953,417	-5.3%	-1.9%

Site location	Ventas de Huelma and Escúzar, Granada, Spain
Technology	Fixed ground-mounted structure
Project size	98.5MW
Status	Fully constructed
Target operations start date	June 2022
Regulatory regime	Unsubsidised
Total investment amount	Total transaction costs are expected to amount to approximately €72 million once construction is completed and include the acquisition of development rights for approximately €15 million

•	An opportunity to increase the international diversification of the portfolio
•	An increased presence in the Spanish subsidy-free solar market
•	The ability to secure a high proportion of contracted revenues. The project entered a ten-year Power Purchase Agreement ("PPA") with Statkraft in December 2021
•	Having signed the PPA, there is now an opportunity to further optimise the capital structure of the portfolio by introducing a conservative level of project finance debt

Project	Location	Capacity (MWp)	Surface (hectares)	Technology
Los Llanos	Ventas de Huelma, Granada	49.1	79.1	Fixed ground-mounted
Las Salinas	Ventas de Huelma, Granada	29.7	50.0	Fixed ground-mounted
Los Picos	Escúzar, Granada	19.7	33.6	Fixed ground-mounted
Total		98.5	162.7

•	Generated 903,00MWh of clean electricity, enough to power 311,379 UK homes
•	Avoided 697,116 tonnes of carbon emissions that would have been emitted by traditional carbon-intensive energy sources such as coal
•	EU Taxonomy compliance independently verified for three portfolio assets in the UK, Australia and Spain
•	Increased focus on reducing the risk of forced labour within the solar supply chain, with the Investment Manager publishing its own Modern Slavery Statement in September 2021 and appointing a third party, ethiXbase, to perform due diligence on modern slavery with all key counterparties
•	Reported on the first set of key quarterly sustainability KPIs for each individual asset in September 2021
•	Contributed £135,643 to the communities in which it operates via community benefits payments to local authorities
•	The Company is also reporting its findings under the guidance of the Task Force on Climate-related Financial Disclosures ("TCFD") for the first time in this Annual Report

1.	Operations and maintenance contractors
2.	Inverter manufacturers
3.	Panel/module manufacturers

Natural capital and environmental impacts	• Enhance biodiversity and the natural environment at each of our asset locations • No environmental incidents or legal breaches as a result of the operation of our assets
Carbon and greenhouse gas emissions	• Reduce scope 1 direct emissions • All operations to import 100% renewable energy and reduce scope 2 emissions
Circular economy and waste	• 100% diversion from landfill of all non-hazardous waste
Climate change mitigation	• Mitigate against climate change through renewable energy generation and low emission alternative technologies
Community engagement	• Foster a positive relationship with the local community
Socio-economic impact	• Promote productive employment and decent work for all • Support community initiatives
Skills, employment and work practices	• All staff to have access to adequate training for their role
Health, safety and well-being	• Increased near miss reporting for decreased accidents
Supply chain and risk management	• Strengthen reputation as a high-performing sustainability-led investment manager • Conduct regular audits at asset and supplier level

Goal	SDG target	Contribution
3 Good health and well-being	3.9 Substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination.	During the year, the Company enabled CO₂ pollutant savings of: • 487,616kg of NOx (nitrous oxide) • 357,585kg of SOx (sulphur dioxide) • 8,452kg of PM10 (µm10 particulate matter) • 3,901kg of PM2.5 (µm2.5 particulate matter)
7 Affordable and clean energy	7.2 Increase substantially the share of renewable energy in the global energy mix.	The Company produced: • 903GWh of renewable energy • Enough electricity to power 311,379 homes
9 Industry, innovation and infrastructure	9.1 Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all.	The Company added: • 880MW of renewable generation capacity to the electricity grid
13 Climate action	13.3 Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning.	The Company raises awareness and improves institutional capacity on climate change mitigation. • 697,116 tonnes of CO₂e vs the equivalent amount of coal-fired generation
15 Life on land	15.5 Take urgent and significant action to reduce the degradation of natural habitats, halt the loss of biodiversity and, by 2020, protect and prevent the extinction of threatened species.	Contributing to the avoidance of fossil fuel use, the Company has saved: • 110,920 TCE (tonnes of coal equivalent) • 77,644 TOE (tonnes of oil equivalent)

•	Sustainable Development Contribution
•	Environmental Impact
•	Social Welfare
•	Governance
•	Third-Party Interactions

•	Hedgerow and tree planting - To date, more than 35km of hedgerows have been planted across the portfolio. With hedgerow planting now complete, the hedgerows are managed to ensure they develop into dense species-rich habitats. Hedgerows help to promote biodiversity, absorb carbon, improve both drainage and soil quality and reduce site exposure to extreme weather conditions.

•	Building of animal refuges - Hibernacula, log piles and "insect hotels" have been established at Kencot Hill, Crow Trees and Sheepbridge, and ponds and swales have been installed or restored at Bilsthorpe, Castle Eaton, Crow Trees, Gedling, Atherstone, Fields Farm, Paddock Wood, Sandridge, Sheepbridge, Southam and Upper Huntingford to provide natural habitat as well as to help improve natural drainage.

•	Bat and bird boxes - The Asset Manager installs bird and bat boxes to attract local species to the sites.

•	Sheep grazing - Numerous sites have been either built or adapted through the installation of barriers and the protection of cabling, to ensure their suitability for continued sheep grazing.

•	Beehive installation - The Asset Manager continues to work with local beekeepers to install hives as a means of helping to restore the native bee population, support crop pollination and honey production. The Asset Manager also encourages the productivity of these hives through the planting of nectar-rich wildflower species.

•	Climate change risk - Flood risk assessments have been carried out for all sites. Panels are installed above the "worst-case scenario" water level and land drains, swales and ponds are also maintained to ensure safe working conditions and good soil conditions which further promotes diverse grass and wildflower growth.

•	Grassland management - A grassland cutting timetable is being implemented to limit cutting in the summer months. This promotes the growth, flowering and seed spreading of wildflowers to encourage biodiversity and forage for insects and birds.

•	Ecosystem services study - A study is being carried out by Lancaster University to assess and quantify how much solar parks contribute to net gains in biodiversity and soil quality. The study will provide valuable information to assess, and subsequently improve, environmental performance. Furthermore, as the study applies a unified sampling framework across a range of sites, it will enable identification of the potential for ecosystem enhancements under specific site conditions and different land management approaches, as well as providing independent industry-wide evidence to feed into policy.

•	Community engagement - The Asset Manager regularly conducts visits with O&M providers, landowners and construction companies to encourage community engagement and education. This ensures that local stakeholders understand the Asset Manager's expectations of site management and to discuss areas of improvement in management techniques.

•	Community investment - The Company supports community benefit schemes which assist local communities in developing and maintaining community assets and organisations. In 2021, approximately £135,643 of grants were provided to local communities throughout the UK. Examples of community work to which the grants have contributed include improvements to sports grounds, parks, ponds, classrooms and community halls. Furthermore, the installation of CCTV facilities in a local community will help to improve public safety. Smaller investments, still important to the lives of rural communities, include bus shelters, upgraded street lighting, and installation of technology to assist the police in detecting speeding vehicles.

•	Educational initiatives - A large part of generating public support comes as a result of educational initiatives, which help to promote an understanding and appreciation of the benefit of solar power generation. Once COVID restrictions relaxed, the Company's solar sites played host to six separate school visits across Coombeshead, Verwood and Park Farm. More than 250 schoolchildren visited the various sites throughout the summer of 2021, learning about both solar power and the sites' biodiversity.

•	Health and well-being - The management and monitoring of health and safety on site is a top priority for O&M contractors, which are responsible for recording and reporting all health and safety-related incidents to the Asset Manager on an ongoing basis. Furthermore, to improve the management of safety, health, environmental and quality, and to reinforce best practice and ensure regulatory compliance, the Asset Manager appoints independent professionally accredited health and safety consultants. Consultants ensure that contractors are appointed on the basis of their health and safety competence and regularly visit the sites to ensure they are meeting industry and legal standards.

•	Health & Safety policy
•	Anti-Modern Slavery policy
•	Anti-Bribery & Corruption policy
•	Sustainability & ESG policy

•	Enhanced supplier and counterparty checks - The Company now contracts out due diligence to an expert third party. Using a highly specialised legal advisory and consultancy firm enables a greater depth of analysis to be conducted in a shorter space of time, thus speeding up the acquisition process and providing a higher degree of assurance that the counterparties involved are both legally and financially sound.

•	Active supplier engagement - The Company has established an O&M Sustainability Agreement which has been signed by a number of the Company's largest operational counterparties. The Investment Manager will monitor compliance with this agreement on an annual basis via direct engagement and seek to implement improvements in O&M working practices where necessary.

	While the Company actively tracks data pertaining to the above criteria on an internal basis, it also seeks external validation of its performance through third-party organisations.

•	Principles for Responsible Investment ("PRI") - The Investment Manager has been a signatory to the United Nations-backed PRI since 2013. The PRI is a globally recognised voluntary framework concerned with the incorporation of ESG considerations into the investment decision-making process. As a signatory, the Investment Manager reports annually on its responsible investment activities by responding to asset-specific modules in the PRI's Reporting Framework.

	In its most recent assessment, the Investment Manager achieved an A+ level rating for both "Strategy and Governance" and "Infrastructure", the highest possible rating in each category and surpassing the peer average.

Stakeholder group	Key stakeholders	Key stakeholder interests	Key decisions impacting stakeholder group during period
Shareholders	Institutional and retail Shareholders	• Delivery of a sustainable, progressive quarterly dividend • Investment into a diversified portfolio of ground-based solar power plants in the UK and internationally • Financial and operational performance	• Achieved dividend target of 6.98 pence per share for 2021 • Acquisition of the remaining 51% interests in the Oakey 1 (30MW) and Longreach (17MW) solar farms in Australia • Acquisition of the Company's first UK utility scale battery storage project • Concluded a ten-year PPA for 98.5MW solar portfolio in Spain
Lenders	Banks	• Diversification of, and resilience of, income streams • Quality of security provided for liabilities • Ability to meet debt servicing requirements	• Refinancing of RCF facility
Investment Manager	Foresight Group	• Maintain a strong, long-term commercial relationship • Growth of the Company's portfolio • Improved financial performance • Effective management of the Company's portfolio • Resilience of business model to ensure mutual long-term success	• Accretive acquisitions in UK, Australia and Spain • Additional flexibility to develop battery storage projects under investment mandate
Commercial service providers	• Administrator and Company Secretary • Corporate broker • Legal advisors • Public Relations agency • Tax advisors	• Maintenance of long-term commercial relationships • Open and transparent engagement • Resilience of business model to ensure mutual long-term success	• Retained services of all key service providers • Open engagement with service providers through the Company's Management Engagement Committee
Regulators	Jersey Financial Services Commission	• Maintain Jersey's position as a leading international finance centre, with high regulatory standards • Financial services businesses adhere to high regulatory standards aimed at: • Reducing risk to the public of financial loss due to dishonesty, incompetence, malpractice or the financial unsoundness of financial service providers • Protecting and enhancing the reputation and integrity of Jersey in commercial and financial matters • Safeguarding the best economic interests of Jersey • Countering financial crime both in Jersey and elsewhere	• Ongoing oversight of all services providers engaged by the Company to support the Company's regulatory reporting • Quarterly reporting from the Company's Compliance Officer on compliance monitoring and updates to the Jersey Regulations, Codes and Handbook • Open and transparent engagement with the JFSC on regulatory matters
Asset-level counterparties	• Operations and Maintenance (O&M) contractors • Supply chain counterparties • Landowners • PPA counterparties	• Maintenance of long-term commercial relationships • Frequent communication with O&M providers to ensure adequate oversight of portfolio operations • Focused engagement on value enhancement opportunities, including rationalisation of service provision for cost savings and/or improved services • Increased scrutiny of and resource allocation to emerging risks identified • Monitoring of counterparty creditworthiness and exposure	• Continued engagement, through the Investment Manager • Growth of commercial relationships through new acquisitions and development opportunities
Local communities	• Local authorities and agencies • Community funds • Landowners • Local environment	• Frequent engagement with local authorities to ensure safe and compliant operation of our assets • Actively engage with local authorities on construction planning and obtaining necessary planning permissions • Regular interaction between the owners of land on which our assets operate and the Investment Manager's asset management team • Conduct educational site visits for local community schools and colleges	• Details of the Company's community initiatives can be found in the Sustainability and ESG section.

•	Describe the Company's governance around climate-related risks and opportunities
•	Describe management's role in assessing and managing climate-related risks and opportunities

•	Describe the climate-related risks and opportunities the Company has identified over the short, medium and long term
•	Describe the impact of climate-related risks and opportunities on the Company's businesses, strategy and financial planning
•	Describe the resilience of the Company's strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario

	Opportunities	Risks
Short term (0-5 yrs)	• Increased capital flows directed towards sustainable investing • Significant deployment of capital into solar and battery storage • Enhanced focus on battery storage to enable the continued build out of renewables • Political and societal support for the energy transition • A supportive regulatory and planning environment • Further development of renewable markets in Europe and other OECD markets • Growth of sustainability-linked credit facilities • Increasing volatility in power prices benefits the trading strategies of battery storage assets	• Extreme weather-related events causing damage to Company assets or negatively impacting their production (e.g. heat stress, flooding, poor irradiation, storms, bush fires) • Significant competition for investments as the number of investment funds and corporates focused on renewable assets increases • Lower than forecast power prices due to warmer winters or over-deployment of generating assets will place pressure on the revenue streams of the generating assets
Medium term (5-10 yrs)	• Greater promulgation of and alignment to international regulation that supports decarbonisation and sustainable investment	• Climate change placing a greater strain on natural resources required for the construction and operation of Company assets
Long term (10+ yrs)	• Technological developments in energy generation and storage that complement the existing Company portfolio	• Changing climate patterns fundamentally altering the availability of renewable resource • Displacement of existing assets of the Fund by new technologies • Over-deployment of renewables resulting in mass power price cannibalisation

•	RCP 1.9: The pathway that limits global warming to below 1.5°C, the aspirational goal of the Paris Agreement
•	RCP 4.5: A scenario under which global emissions peak around 2040 and then decline by 2045. It is considered by the IPCC as an intermediate scenario under which global temperatures rise between 2-3°C
•	RCP 8.5: Considered to be a worst-case scenario under which emissions continue to rise throughout the century

•	Electricity demand: In general, rising global temperatures result in reduced winter demand and increased summer demand although the net annual impact is a reduction (some exceptions such as Southern Europe)
•	Renewable generation: Impacts on renewable generation are more mixed dependent on the region; however, generally this predicts an increase in renewable energy deployment above the base case

•	Reduced power prices over the forecast period averaging a 0.2% reduction per annum versus base case up to 2030 and a 1.1% average annual reduction post 2030
•	Immaterial irradiation impact prior to 2040 with post-2040 irradiation increasing versus base case by 0.4%

•	Describe the Company's processes for identifying and assessing climate-related risks
•	Describe the Company's processes for managing climate-related risks
•	Describe how processes for identifying, assessing and managing climate-related risks are integrated into the Company's overall risk management