McRock Responsible Investment Report 2023

Message from the Co-Founders

Hello again from out here on the edge Our favourite vantage point – where we can see how far we’ve come and where we’re headed on our ongoing Responsible Investing journey From here, we can be really intentional about the milestones we set to make meaningful and positive change in the world

Why Responsible Investing? Embracing ESG inherently creates value; try to undercut or avoid it and you’ll see its immediate impact on business sustainability. Digital Industrial technologies help operations run better, faster, cheaper, safer and with lower environmental impact, and these tech companies also sit on a treasure trove of potential to combat the impact of climate change There’s potential everywhere you look resource efficiency, renewable energy, the creation of new products and services, the advancement of new carbon markets, and the ability to practice resilience as steps are taken to transition to a Net Zero emission world

In 2023 we doubled down on our deep dive into the environmental implications of Digital Industrial transformation, further exploring the materiality of climate change for our portfolio, enhancing our alignment with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), and launching a more robust and transparent carbon footprint exercise for McRock Capital and our portfolio companies.

At a time of global instability and in the face of concerns about the social risks of AI, we’ve been reflecting on how Digital Industrial harnesses technology to predict and signal danger before it escalates to disaster You can read more about how our companies are helping to create a safer world in our case studies.

Responsible Investing doesn’t stop at ESG for us We’re also passionate about funding companies with underrepresented founders. We focus on diversity not only because it’s one of our values, but also because it contributes to portfolio values. Look for our 2023 diversity initiatives throughout the report, including our support for immigrant founder initiative Migr8

Every day, we’re motivated to continue blazing the trail with best practices, reporting frameworks and meaningful financial returns Our position on the edge makes it all possible

Let’s change the world for the better together The right way

WhitneyRockleyandScottMacDonald Co-Founders, McRock Capital

2023 ESG Highlights

Assets under management (as of December 31, 2023) $182 million

Portfolio companies since inception: 11 active, 6 exits 17

Diversio Inclusion Score a perfect score and 28.8 points above industry average 100

Portfolio company failures since inception Zero

Portfolio companies disclose Scope 1 and 2 greenhouse gas (GHG) emissions 55%

McRockledover10Diversity,Equity&Inclusioninitiativesin2023,exceedingour targetforathirdyearinarow.

Theseinitiativesincluded:

AdvisingMigr8,anon-profitorganizationforracializedandimmigrantfoundersinCanada. AdvisingBKRCapital,aventurecapital(VC)fundinvestinginblackentrepreneurs. ParticipatingintheBMOMentorshipProgramattheHaskayneSchoolofBusiness

McRockco-founderWhitneyRockleyreceivedtheCVCAinauguralWomanofAchievementAward forVCin2023WhitneyalsobecametheChairoftheHaskayneSchoolofBusines’sManagement AdvisoryCommittee.

McRockportfoliocompaniescontinuetoberecognized:

ClearpathRoboticswasnamedtoFastCompany’s2023listofMostInnovativeCompanies LandingAIwasnamedaTop10StartupbyAIMagazine MiovisionwasnamedasoneofthemostactivestrategicbuyersbyAGCPartners.Miovisionalso wontheMcRockClimateActionTechCompanyoftheYearAward. SkyspecswasrecognizedbyPurposeJobsasaTopAIStartupandaCompanywiththeBest Culture,andreceivedanAnnArborSparkFastTrackAwardforthethirdyearinarowDannyEllis, co-founder&CEOofSkyspecs,wasarecipientoftheErnst&YoungLLPEntrepreneuroftheYear awardforMichiganandnorthwestOhio

Our ESG Journey — The Right Way

Our journey towards ESG (environmental, social and governance) started right from our inception as a firm For us doing it the right way means:

Integrating diversity considerations throughout our investment cycle and carving out a niche as a VC (venture capital) industry diversity champion (ESG in Our Investment Process Social)

Harnessing the potential of Digital Industrial to provide environmental sustainability solutions and accelerate the transition to a resilient, low-carbon economy (ESG in Our Investment Process Environmental)

Supporting our portfolio companies to measure and account for the positive climate impact of their innovations (ESG in Our Portfolio Measuring ESG Performance in Our Portfolio)

ESG Journey

Applying best practice ESG guidelines within our investment process, including:

Sustainability Accounting Standards Board (SASB) Standards

Task Force on Climate-Related Financial Disclosures (TCFD) recommendations

ESG Data Convergence Initiative metrics (ESG in Our Portfolio Measuring ESG Performance in Our Portfolio)

Walking the talk by incorporating ESG into how we run McRock Capital (ESG Within Our Firm) If we expect our portfolio companies to operate responsibly, we need to lead by example. We’re proud of these efforts, and our essential contribution to the global sustainability movement While our offices in Toronto and Calgary have small footprints, every bit counts!

Scott and Whitney co-found McRock Capital as the first investment firm focused exclusively on the Industrial Internet of Things (IIoT)

Whitney becomes the first woman to chair the Canadian Venture Capital & Private Equity Association (CVCA) establishing and chairing its first Diversity & Inclusion Committee and Taskforce

Scott and Whitney launch the thought leadership vlog and McRock Live series

McRock rolls out Diversio as a tool to assess DEI at McRock, its portfolio companies and prospective portfolio companies

We become a signatory to the Institutional Limited Partners Association (ILPA) Diversity in Action initiative

We achieve certification to Diversio’s Diversity VC standard

We become a signatory to the Principles for Responsible Investment (PRI)

We join the ESG Data Convergence Initiative

We undertake the McRock Climate Opportunities Project to help portfolio companies measure and account for the positive impact of their Digital Industrial technology solutions on GHG emissions

We publish our first Responsible Investment Report, which is recognized in Diversio’s Top 20 DEI Initiatives

Ha Nguyen is promoted to Partner, making McRock’s Investment Committee 2/3 women

We begin using Green Project, an automated software platform to track firm and portfolio company

ESG metrics

We undertake a portfolio climate change materiality assessment aligned to the TCFD recommendations to update our analysis of climate risks and opportunities for the value of Digital Industrial companies

We volunteer to participate in the PRI Assessment for the first time

We present the McRock Climate Action Awards: Miovision wins Climate Action Tech Company of the Year and Mitsubishi Corporation wins Climate Action Corporate Company of the Year

This Is Us

The Rise of Digital Industrial

We came here to change the world and we built McRock Capital as the vehicle to make it happen Nearly two decades of investing in the industrial and energy sectors gave us front row seats to the impact these industries have on people, communities and the environment locally and globally. We channeled that insight when we started McRock with the mission to invest in companies accelerating the Digital Industrial Revolution with better, safer and climate-focused technologies.

The new frontier in the Digital Industrial Revolution is combining next-generation data analytics, through artificial intelligence (AI) and machine learning, with data from a range of field devices, machines and equipment. Major industries are at a tipping point, facing profound economic and technological challenges and opportunities, and their big advancements are being powered by Digital Industrial solutions.

As we look to the future, our focus is on Industrial SaaS (Software as a Service) We believe the opportunity is bigger than Enterprise SaaS and has more transformational potential for the economy and sustainability given the sheer size, complexity and potential industrial companies have in driving economic growth and climate action

Do you want to change the world, too? Partner with people brave enough to find new and better ways That’s just what we’re doing Check out these innovators in ESG in Our Portfolio Portfolio Overview

About McRock

We’re here to change the world, doing what we do best, investing globally in the companies accelerating the Digital Industrial revolution and supporting lasting, positive impact in their sectors. Founded in 2012 by Scott MacDonald and Whitney Rockley with offices in Toronto and Calgary, Canada, McRock is a team of wickedly specialized, high-performing people who are also kind, humble and a whole lot of fun.

Signatory Institutional Limited Partners Association (ILPA) Diversity in Action initiative

Participating General Partner

ESG Data Convergence Initiative

Signatory Principles for Responsible Investment (PRI)

Member Canadian Venture

Capital & Private Equity Association (CVCA)

Board Member: Scott MacDonald

Our Team

Scott MacDonald Co-Founder

Sustainable, responsible investing benefits society and the environment and it also drives superior financial performance Identifying and supporting companies with strong long-term prospects is good for business

Ha

Nguyen Partner

We’re driving value creation through purpose-driven, responsible investments It’s not enough to generate a strong ROI by integrating ESG into our operations and processes we’re also creating a ripple effect of positive change

Fasih Kareem,

Associate Investing

responsibly is not a fad; it is a commitment to shaping a more sustainable and equitable future through conscious financial decisions.

Whitney Rockley Co-Founder

When you embrace the transformative power of responsible investing, every dollar underlines your commitment to environmental stewardship, social justice, and corporate governance Profitability aligns with purpose, and prosperity is synonymous with sustainability

Udit Bhatnagar Vice President

Incorporating ESG factors into our investment process isn’t just a moral imperative it’s a strategic advantage By prioritizing sustainability, we contribute to a better world and secure stronger, more resilient returns for our portfolio companies in the face of evolving global challenges

Mike Dawson Vice President

Our investment strategy combines profit with purpose. ESG considerations are woven into the fabric of all that we do, ensuring that every dollar contributes to a sustainable future

Susan Makik, Head of Finance & Operations

Our investment strategy incorporates ESG factors, sustainability, and cost consciousness into every decision Each investment is a strategic commitment to a brighter, more sustainable future, where financial gains are aligned with societal and environmental responsibility

Corporation

Cisco is the global leader in IT and networking

Shell is a leading international energy company

Caterpillar is the world’s leading manufacturer of construction and mining equipment

Mitsubishi is a global integrated business enterprise

AspenTech is a leading provider of software and services for the process industries

Wilson Sonsini Goodrich & Rosati is a premier legal advisor for technology companies

Export Development Canada (EDC) is a Canadian financial Crown corporation supporting Canadian companies to succeed globally

CPP Investments is a global investment manager investsing the assets of the Canada Pension Plan

Business Development Canada (BDC) is a Canadian financial Crown corporation supporting entrepreneurs

Teralys Capital is a Canadian private markets investment firm

HarbourVest is a global private markets investment firm

Alberta Enterprise Corporation (AEC) invests in VC funds promoting innovation in Alberta

Fonds de solidarité-FTQ is a Québec development capital fund investing in small and medium enterprises

Kensington Capital Partners is a Canadian private markets investment firm

Lionhill Global is the family office of Novotex Textiles and Novel Investment Partners

Band Venture Partners Canada is the investment company of the Mannix Family business, a fourth generation family in Alberta

About This Report

Our Responsible Investment Report describes how we implement our Responsible Investment Policy

We are committed to reporting annually on responsible investment activities as well as our approach to ESG at the firm level and we will seek to enhance our reporting year over year

Unless otherwise stated:

Thescopeofdataandinformationinthereportisfirm-wideandportfolio-wide

DatacoversthereportingperiodofJanuarytoDecember2023

FinancialdataisstatedinCanadiandollars

The terms “McRock”, “our”, “we”, “us”, and other similar terms denote McRock Capital

We seek to follow best practices by aligning our reporting to the following ESG disclosure standards incorporated by the International Sustainability Standards Board (ISSB):

SASBSustainabilityAccountingStandards AssetManagement&CustodyActivitiesStandard TherecommendationsoftheTaskForceonClimate-RelatedFinancialDisclosures(TCFD)

The content of this report also reflects other ESG commitments, including as a signatory to the Principles for Responsible Investment (PRI), a supporter of the ILPA Industry Code of Conduct Guidelines: Harassment, Discrimination and Workplace Violence, and a participant in the ESG Data Convergence Initiative

Venture Capital 101

We are proud of McRock and we want our Report to be read by as many people as possible, including people who may be unfamiliar with the world of venture capital Some key terms are defined below

Investment targeted at start-up, early-stage and growth-stage tech companies

and

The firm running a VC investment fund selecting and monitoring the portfolio companies and partnering with them to help them grow and prosper

The investors providing capital by investing in the funds run by GPs these include investors such as financial institutions, pension funds, and major corporations, family offices and individuals

Our Approach

In This Section

ESGatMcRock

Governance

ESGResponsibilities

ESGPolicies

Strategy

StatusofESGPrioritiesfor2023

LookingAhead ESGPrioritiesfor 2024andBeyond

RiskManagement

Metrics&Targets

ESG at McRock

With an exclusive focus on investment in the Digital Industrial space, we recognize the transformative power of technology and big data in the transition to a more sustainable economy But while we want to invest responsibly, we also want to be a responsible firm We are committed to making a positive impact as entrepreneurs, influencers and investors As such, we aspire to incorporate best practices through a holistic approach to ESG, encompassing:

ESGwithinourfirm:HowweconsiderESGinthewaywerunthefirm

ResponsibleInvestment:HowweconsiderESGinthewayweinvest

ESGinourinvestmentprocess:HowweincorporateESGinour investmentstrategyandinpre-investmentduediligenceand post-investmentmonitoringofportfoliocompanies

ESGinourportfolio:HowwemonitortheESGperformanceofour portfoliocompanies

Our approach is formalized in our Responsible Investment Policy

We believe Responsible Investment drives the performance of our firm and our underlying portfolio companies, in addition to unlocking new business opportunities and ways of operating

ESGResponsibilities

Ourco-foundersareprimarilyaccountableforensuringthatESGconsiderationsareincorporatedintoourinvestment processandoperations,including:

Approving,reviewingannually,andupdatingtheResponsibleInvestmentPolicy

Facilitating,monitoringandoverseeingtheimplementationoftheResponsibleInvestmentPolicyandincorporationof materialESGissueswithintheinvestmentprocess

EmpoweringtheMcRockteamtoimplementtheResponsibleInvestmentPolicythroughresourceavailability, appropriatecommunication,trainingandeducationonESG

All McRock team members are responsible for:

Developingandmaintainingprocessestosupport

implementationoftheResponsibleInvestmentPolicy

ReportingimplementationprogressontheResponsible InvestmentPolicytotheco-founders

As a small firm, our entire team is closely involved in our Responsible Investment and ESG activities, and we regularly discuss opportunities to enhance our impact. To ensure that we incorporate best practices, we consult external ESG advisory resources as necessary.

ESG Policies

Policy

Responsible Investment Policy

Diversity, Violence, Discrimination and Harassment Policy

Diversity, Equity & Inclusion Overview

Code of Ethics

Pregnancy and Parental Leave

Recruitment and Selection Process Policy

Remote Work Policy

Performance Review Policy

Policy Regarding Personal Investments

Computer Usage Policy

Network Disaster Recovery Policy

Purpose

ClimateGovernance

Ourco-foundershavethehighestlevelof accountabilitywithinthefirmfor managementofclimate-relatedrisksand opportunitieswithinourinvestmentprocess andoperations.AllMcRockemployees participateinassessment,managementand monitoringofclimaterisksand opportunities.[TCFDGovernance(b)]

Our commitment to consider ESG in our firm management and investment decisions

Our commitment to provide a safe and respectful working environment, consistent with the ILPA Code of Conduct Guidelines

Our commitment to diversity, equity and inclusion, consistent with ILPA Diversity in Action initiative Foundational Commitment 1

Our commitment to integrity, loyalty and honesty

Our commitment to equal treatment of parents who are welcoming a child into their lives.

Our commitment to recruit and select diverse candidates to the team.

Our guidelines for employees who have a desire to work remotely

Our commitment to coach, evaluate and reward employees based on constructive feedback and open communication

How we limit potential conflicts of interest between McRock Funds and our personal investments

Date of Approval/ Last Update

November 28, 2023

September 19, 2019

August 6, 2021

June 17, 2015

July 5, 2022

August 16, 2022

August 16, 2022

August 16, 2022

April 9, 2019

Guidelines for using company network and computer facilities January 10, 2022

Procedures for IT network disaster recovery, including critical technology platforms and telecom infrastructure January 10, 2022

WebelievecompaniesharnessingthepotentialoftheDigitalIndustrialRevolutiontoprovidesolutionstosustainability challengespresentasignificantandgrowinginvestmentopportunity.

ByintegratingconsiderationofmaterialESGissuesintoinvestments,wecanbetteridentifyvaluecreationopportunitiesand mitigaterisks;byengagingportfoliocompaniestopursueimprovedperformanceonmaterialESGissues,wecanbetter protectandenhancethevalueofourinvestments.Westrivetoseizetherightopportunities,quickly.Recognizingtherisksand opportunitiespresentedbymaterialESGissuesandtheimpacttheycanhaveonourbusinessandinvestmentstrategyispart oftheagilemindsetthathasdriventhesuccessofourfirmsinceinception

Asasmall,office-basedfirm,ourbiggestESGimpactsareindirectandassociatedwithourinvestments Nevertheless,wetake responsibilityinourownoperations,justasweexpectportfoliocompaniestooperateresponsibly Therefore,atthefirmlevel, weprioritizecompliancewithapplicableESGlawsandregulationsandseektofollowESGbestpractices.

Firm-Level ESG Issues

Diversity, Equity & Inclusion

Business Ethics

Environment

Investment Process and Portfolio-Level ESG Issues

Environment

Climate Change

Social

Diversity, Equity & Inclusion

Data Privacy

Governance

Corporate Governance

Digital Industrial Governance

Intellectual Property (IP)

Data Security

IT Systems & Infrastructure

ClimateStrategy

We continue to be committed to incorporating climate risks and opportunities into our business and investment strategy We’ve enhanced our approach to evaluating and quantifying the actual and potential impacts of climate change for our portfolio and assessed them to be primarily on the opportunity side. We have also begun to explore the resilience of our strategy under two International Energy Agency (IEA) climate change scenarios Stated Policies (STEPS) and Net Zero Emissions by 2050 (NZE) with a focus on impacts for the portfolio (ESG in Our Investment Process Material ESG Factors Environmental)

Compared to other sectors of the economy, the exposure of Digital Industrial companies to climate risk is limited: in fact, these companies often provide solutions that mitigate climate risk in the wider economy We are strongly attracted to Digital Industrial companies acting on climate opportunities, including adapting to the physical impacts of climate change, enhancing energy and resource efficiency, increasing efficiency in renewable energy generation, and providing new products and services that are aligned with the transition to a low-carbon economy When we invest in these companies, we also seek to leverage these opportunities In 2023, we explored the alignment of our portfolio companies to the scope of climate risks and opportunities outlined in the TCFD recommendations to better understand the climate impact of these businesses We continue to encourage all portfolio companies to measure and report their GHG emissions as part of our participation in the ESG Data Convergence Initiative and by providing access to the Green Project ESG data software platform; this will facilitate further analysis of their potential climate risk exposure (ESG in Our Portfolio Measuring ESG Performance in Our Portfolio). We also performed an annual review of the climate-related section of our Due Diligence Questionnaire to ensure applicability and completeness when reviewing new investment opportunities.

The impacts of climate change for our operations at the firm level are minimal compared to the potential impacts relating to our investments; nevertheless we are now measuring and disclosing our operational carbon footprint, alongside our portfolio companies. [TCFD Strategy (a),(b) and (c)]

Status of ESG Priorities for 2023

Status as of date of publication: Completed In progress

Develop the McRock ESG Attractiveness Score to evaluate investment opportunities

Assist in launching an immigrant entrepreneurial initiative in Alberta

Complete a gap analysis of our current ESG approach against best practices

Review ESG expectations for Digital Industrial companies

Review climate-related risks and opportunities for the portfolio

Update our Responsible Investment Policy

Enhance and document ESG incorporation in portfolio due diligence and monitoring framework

Assess GHG reduction potential of portfolio companies with a particular focus on climate technology solutions

Participate in the 2023 ESG Data Convergence Initiative

Enhance reporting to LPs on ESG matters

Participate in four DEI initiatives every year

Enhance measurement of firm carbon footprint to include Scope 3 emissions from air travel

Begin measuring and disclosing portfolio carbon emissions

Looking Ahead – ESG Priorities for 2024 and Beyond

Enhance disclosure of firm carbon footprint to include Scope 3 GHG emissions from air travel Activity

Review and if necessary, update McRock Responsible Investing Policy, due diligence, monitoring process and LP reporting

Refine and apply McRock’s ESG Attractiveness Score to new investment opportunities

Continue to provide leadership on the Migr8+ Board of Directors

Continue team training with the Canadian Private Capital Investment School at the Ivey Academy

Continue to enhance reporting to LPs on ESG matters

Participate in four DEI initiatives every year

Firm Level

Investment Process Portfolio Level

Risk Management

Our co-founders are ultimately accountable for firm-wide risk management, including ESG risks. Whitney takes the lead on risk management. Firm-level ESG risks are mitigated through our policies and procedures (Our Approach to ESG Governance) Portfolio-related ESG risks are addressed through our pre-investment due diligence process and post-investment engagement and monitoring of portfolio companies (ESG in Our Investment Process Our Responsible Investment Process)

Given the small size of our team, we work together to identify potentially material ESG issues, with support from external ESG advisors Our pre- and post-investment processes include seeking to identify and consider all material ESG issues that could impact the value of portfolio companies. However, Digital Industrial is a new frontier for ESG, with few established ESG guidelines and standards We therefore leverage our internal expertise, the expertise of our external advisors and ESG guidelines and standards, including the SASB Standards for Technology & Communications industries and the TCFD recommendations. We will continue to enhance the integration of ESG factors into the firm’s overall risk management processes

ClimateRiskManagement

We recognize that climate change poses significant long-term challenges with the potential to substantially impact investments We also recognize the opportunity for companies harnessing the potential of the Digital Industrial Revolution to provide climate solutions We acknowledge the Paris Climate Agreement goal to limit the rise in global average temperature to well below 2°C above pre-industrial levels and preferably to 1.5°C, which requires the global economy to achieve Net Zero GHG emissions by 2050

We also acknowledge the TCFD recommendations on disclosure of climate-related risks and opportunities We have completed a portfolio climate change materiality assessment aligned to the TCFD recommendations to update our analysis of climate risks and opportunities for the value of Digital Industrial companies, and have reviewed climate-related risks and opportunities for our portfolio (ESG in Our Investment Process Environmental Climate Change) Climate risks and opportunities identified as priorities for portfolio value are integrated into our investment process, including sourcing deals, due diligence and monitoring (ESG in Our Investment Process Our Responsible Investment Process). We avoid investing in Digital Industrial solutions specifically targeted at industries and sectors that are likely to become obsolete in the transition to a low-carbon economy [TCFD Risk Management (a), (b) and (c)]

Metrics & Targets

We collect diversity metrics at the firm level and portfolio level. Diversity statistics are incorporated into quarterly fund reporting to LPs. We have set diversity targets at the firm level (ESG Within Our Firm Diversity & Inclusion) and portfolio level (ESG in Our Portfolio Measuring ESG Performance in Our Portfolio) In 2023, we collected carbon data at both the firm level and portfolio level

In 2022 we joined the ESG Data Convergence Initiative, through which portfolio companies are encouraged to report a range of standard ESG metrics, including GHG emissions, renewable energy consumption, board and management diversity, work-related injuries, hiring and employee engagement McRock also subscribed to Green Project, an ESG data reporting software platform designed for investment firms and their underlying portfolio companies We continue to commit to enhancing ESG performance disclosure and seeking greater alignment with select ESG disclosure frameworks over time.

ClimateMetrics&TargetsManagement

We measure and disclose our firm’s scope 1 and 2 carbon footprint, and in 2023 we began to measure Scope 3 emissions from air travel (ESG Within Our Firm Environment) We have also supported select portfolio companies to quantify their technology solutions’ GHG emissions reduction potential We continue to participate in the ESG Data Convergence Initiative through which portfolio companies are encouraged to report their Scope 1 and 2 GHG emissions, with the option to provide Scope 3 emissions Our portfolio companies have access to Green Project’s automated ESG data reporting software at no cost so they can track progress seamlessly including GHG emissions performance Using this data, we have begun to measure and disclose our portfolio carbon footprint, beginning with aggregation of portfolio company Scope 1 and 2 GHG emissions. (ESG in Our Portfolio Measuring ESG Performance in Our Portfolio) [TCFD Metrics & Targets (a)]

ESG Within Our Firm

In This Section

Diversity,Equity&Inclusion

WhyThisMattersforMcRock OurApproach

OurPerformance ILPADiversityinActionInitiative CaseStudy:ChangingtheFaceof VentureCapital

BusinessEthics

WhyThisMattersforMcRock OurApproach

OurPerformance

Environment

WhyThisMattersforMcRock OurApproach

Diversity, Equity & Inclusion

Why This Matters for McRock

VC firms must have highly skilled teams to make successful investments, and there’s evidence diverse groups make better investment decisions Yet the industry has a notable lack of diversity, indicating firms are failing to access the full talent pool McRock was founded with diversity, equity and inclusion (DEI) as a key pillar Our DEI mandate is to attract, retain and develop a diverse team through an inclusive culture, with a goal to drive performance

Diversity

refers to the range of human differences, which include but are not limited to: visible dimensions, such as race, gender and ethnicity, as well as invisible dimensions, such as religion, political beliefs and sexual orientation. Diversity also recognizes human differences in personality.

Our

Approach

Investing in the right businesses has been instrumental to McRock’s success. However, investing in the right people has been equally, if not more, important. The people we depend on aren’t accidents of proximity or privilege

Equity

refers to the approach to ensure everyone has access to the same opportunity.

Inclusion

refers to creating an environment in which people feel involved, respected, valued and connected, and to which individuals bring their authentic selves (ideas, backgrounds and perspectives) to their work with colleagues, entrepreneurs and investors.

WearecommittedtoDEIatthefirmlevel,includingtrackingdiversityinhiringandpromotions,settinggoals,and implementingpracticesforinclusiverecruitmentandretention,assetoutinourDiversity,Equity&InclusionOverview

Weareawarewemayhaveunconsciousbiases Aswemovedfromatwo-personshoptobuildaworld-classinvestmentteam, ourco-foundersresearchedtoolswecouldusetoneutralizebiasinselectingpotentialnewteammembers.Weasked candidatestotakeaPlumtalentassessmentsurveytoexplorehumanpotentialratherthanrelyingonsubjectivecriteria.Next, weusedSparkHiretoconductone-wayvideointerviewsinwhicheverycandidategotachancetoanswerthesamequestions Finally,weconductedblindcasestudies,reviewingeachcasestudywithoutknowingwhichcandidatepreparedit Onlyafter comparingtheresultsfromthesethreestepsdidweproceedtoin-personinterviews,atwhichpointournaturalbiasesbecame aconscioussecondthoughtandnotthefirstimpressionthatdroveouropinions.

WeregularlyassessworkplaceinclusionthroughDiversio

Weprovidepaidinternshipstorecentgraduatesandyoungprofessionalsfromunderrepresentedgroups Ourinterns experiencemanyaspectsofourbusinessandhavefrequentinteractionswithallmembersoftheinvestmentteam,including ourco-founders.

Weencourageourteamtoactivelyparticipateinindustryeffortstointroduceunderrepresentedgroupstotheopportunityto makearewardingcareerinprivatemarkets.Forexample,McRockpartnerHaNguyenhasbeenadvisingMigr8,an organizationlaunchedin2023toempowerimmigrantentrepreneurslookingtomake theirmarkinCanadasinceitsinception(CaseStudy–Nurturingtheentrepreneurial spiritamongimmigrantsisgoodforeveryone)

OurDiversity,Violence,DiscriminationandHarassmentPolicyisalignedwithILPA’s CodeofConductGuidelines;itformalizesourcommitmenttoprovideasafeand respectfulworkingenvironmentforourteammembers,andeveryonewhodoes businesswithMcRock.

WewereoneofthefirstCanadianinvestorstoadopttheILPAGuidelines.

Our Policies

Diversity, Violence, Discrimination and Harassment Policy

Diversity, Equity & Inclusion Overview

Our Performance

If diversity was the foundation for building McRock, equity and inclusion are how we sustain success We've seen DEI drive performance time and again That's why we set aggressive targets for advancing DEI in an industry that has historically fallen behind

DEI is the right way for people and for business In 2018, we set targets to enhance our team’s diversity:

At least 50 percent of the McRock team should be women, and at least 50 percent of our team should be members of a visible minority

At least 40 percent of our investment team should be women, and at least 60 percent of the team should be members of a visible minority

We will all profit from a more diverse, inclusive society, understanding, accommodating, even celebrating our differences, while pulling together for the common good - Ruth Bader Ginsburg

We had met these targets by 2019, but in a small team like McRock, even a slight change in team composition can have a significant impact on diversity data. In late 2022 and 2023, we promoted Ha Nguyen to partner and hired two additional investment professionals – this was good news for the team but brought our 2023 diversity data temporarily out of alignment with our targets. We are committed to maintaining diverse representation as our team continues to grow.

Diversity at McRock [SASB FN-AC-330a.1] As of December 31, 20231

Minorities

Visible Minorities

In our 10 years of business, no one has ever resigned from our investment team. We are incredibly proud of this. We live by our core values, which are to be kind and humble yet to achieve and compete.

We achieved a perfect inclusion score of 100 for a second year in a row, as measured by Diversio 28 8 points above the industry average Our core investment team speaks eight different languages and has worked across 13 different countries in North America, Europe and Asia We work incredibly hard as a cohesive and inclusive team and credit much of our success to the diverse experiences and perspectives we each bring to McRock

Diversity data does not include seconded staff or interns 1

We also set a goal in 2018 to undertake at least four DEI initiatives each year, which can include anything from events we host or co-host, speaking engagements, or authoring blogs and vlogs We exceeded this objective in 2023:

McRockassistedinthelaunchofMigr8andHaNguyensitsonitsBoardtobringexpertiseonVCbestpractices andbasicsoffundraising

HaNguyencontinuedtoco-hostFemaleFounders,Funders&Fortifiers(ABF4)Sustainabilitynetworkingevents

WhitneyRockleybecametheChairoftheHaskayneSchoolofBusinessManagementAdvisoryCommittee, whileHaNguyenvolunteeredasamentorintheschool’sBMOMentorshipProgram

McRockcollaboratedwithExportDevelopmentCanada(EDC)onasustainabilitystoryshowcasingCanadian techcompaniesanddemonstratinghowtechcompaniesinCanadaareaddressingclimatechangethrough operationalpracticesandinnovationproductsandsolutions

WhitneyparticipatedintheHuronWomen’sBusinessClubasakeynotespeaker

McRockcontinuedtosponsorThe51HerStorypitchcompetition

UditBhatnagarparticipatedonStartUpCanada’sESGpaneltoaddresstheimportanceofrecruitingand retainingteammemberswithuniquebackgroundsandperspectivestodriveperformanceandaddressclimate challenges

WhitneycontinuestobeanadvisortoBKRCapital aVCfundfocusedoninvestinginblack-ledcompaniesin thetechnologyspace

ScottMacDonaldandWhitneyRockleyparticipatedinaBKRCapital-sponsoredFellowshipprogram,wherethey spokeabout“CreatingAlpha”

Uditparticipatedonapanelentitled“UnlockingGlobalCompetitivenessthroughESG”

Wecontinuedtomentorseniorfemaleteammembersatourportfoliocompanies

ILPA Diversity in Action Initiative

McRock was one of the first GPs to become a signatory to the ILPA Diversity in Action initiative a way for GPs and LPs to publicly signal concrete steps they are taking to advance DEI in their organizations and in the VC industry more broadly

We have used participation in the initiative and alignment with its expectations to advance DEI within our firm and in the VC industry more broadly, as detailed below

Diversity in Action Framework Status McRock’s Action

Intention & Accountability

Foundational 1: Has in place a Diversity, Equity & Inclusion (DEI) statement or strategy, communicated publicly, and/or a DEI policy communicated to employees and investment partners, that addresses recruitment and retention

Optional: Has assigned senior level DEI accountability, aligned with an investment or senior management role

Website: Diversity at McRock Diversity, Equity & Inclusion Overview

Our co-founders, Scott and Whitney, have the highest level of accountability for DEI Whitney has primary accountability

Talent Management & Inclusive Culture

Foundational 2: Has in place organizational goals that result in demonstrable practices to make recruitment and retention more inclusive

Foundational 3: Tracks internal hiring and promotion statistics by gender and race/ethnicity

Optional: Provides unconscious bias training for employees on an ongoing basis

Optional: Has in place diverse employee resource groups

Optional: Incorporates contributions towards advancing DEI into employee performance reviews

ESG Within Our Firm Diversity, Equity & Inclusion Our Approach

ESG Within Our Firm Diversity, Equity & Inclusion Our Performance Website: Diversity at McRock

Under consideration.

This action is difficult to implement in a small firm instead, we focus on industry engagement

ESG Within Our Firm Diversity, Equity & Inclusion Our Performance

We include DEI objectives as part of our annual goals

Investment Management

Foundational 4: Provides DEI demographic data for any new fundraises

Optional: Tracks gender and race/ethnicity statistics within portfolio company Boards/management teams

Optional: Commits to encourage and promote diversity within Boards of Directors at portfolio companies

Optional: Provides DEI demographic data for all funds ie, not solely new fundraises

Optional: Supports DEI research in the private markets industry by participating in surveys that capture data on diversity in the workforce

ESG in Our Investment Process Social Diversity, Equity & Inclusion

ESG in Our Portfolio Measuring ESG Performance in Our Portfolio

We have joined the ESG Data Convergence Initiative

Website: Diversity at McRock Diversity and Inclusion Overview Responsible Investment Policy

ESG in Our Investment Process Social Diversity, Equity & Inclusion

Industry Engagement

We have joined the ESG Data Convergence Initiative; McRock also participated in the research for the most recent CVCA/Diversio State of Diversity & Inclusion Report

Optional: On a programmatic basis, supports industry efforts to educate underrepresented groups about careers in private markets

Case Study: Changing the Face of Venture Capital

ESG Within Our Firm Diversity, Equity & Inclusion Changing the Face of Venture Capital

At McRock we lead by example We want to inspire and motivate other investors and tech companies to pursue their dreams and contribute to a more diverse and inclusive industry By working together, we can create a future where everyone has the opportunity to pursue rewarding careers in private capital and tech ” Whitney Rockley

“I am so proud of the amazing culture of DEI we have built at McRock. I am proud that our entire team has worked hard to change the VC industry so some of the challenges Whitney and other underrepresented people faced during their careers become a thing of the past.

Scott MacDonald

It’snosecrettheVCindustryhaslaggedondiversity,equityandinclusion ThefirstD&IReportforourindustrywas releasedbytheCVCA/Diversioin2021 BDCCapitalsteppedintodevelopanationalDEIreportingtemplateforCanadian GPsin2022 ThistemplatewasbasedontheglobalframeworkoftheILPADiversityMetricsTemplateandtracksmetrics relatedtogender,race,ethnicity,andidentification,alignedwithStatisticsCanada’sdefinitions In2023,BDCCapital expandedthemandatetoincludeanESGreportingtemplateforCanadianGPs,likeMcRock.AccordingtoBDC’slatest reportin2023,positivestepsarebeingtakeninourindustry,withamarkedyear-over-yearimprovementinthe percentageofGPswithatleastonewomanorvisibleminoritymemberontheirinvestmentcommittees Butdiversityintheseniorrankscontinuestofallshortandemployeeretentionrates,especiallyamongwomen,remaina challenge Wepromotediversitywithinthefirmandinourportfolio,andourteammembershavealsotakenaleadingrole inVCindustrydiversityinitiatives Theseeffortsarebeginningtohaveanimpactandwe’llcontinuetodoourpart, undertakingatleastfourDEIinitiativeseachyear

Championing Diversity at CVCA

TheCanadianVentureCapital&PrivateEquityAssociation(CVCA)isthevoiceofCanada’sprivatecapitalindustry.Co-founder Whitneybecamethefirst-everfemalechairofCVCAin2017 WhitneylaunchedandledthefirstCVCADiversity&Inclusion TaskforceandCommitteeandparticipatedinCVCA’s2018cross-countrytourtospeaktofemalebusinessschoolstudents aboutcareersinVCandprivateequity

Elevating Diverse Founders

It’s not enough to increase diversity within VC firms it’s also vital to ensure that diverse founders have equitable access to VC funding Ha co-founded Alberta Female Founders, Funders, and Fortifiers (ABF4), a networking group to promote the advancement of women in the tech space. In 2023, Ha assisted in the launch of Migr8, an organization to empower immigrant entrepreneurs looking to make their mark in Canada. Whitney continued her work as an advisor to BKR Capital, a VC fund focused on investing in black-led companies in the technology space We continued to co-host and sponsor multiple DEI events

Educating and Mentoring Diverse, New and Emerging Entrants to the VC Industry

Canada is known for encouraging immigration, but it can still be tough for New Canadians to build networks and navigate unfamiliar career requirements. Whitney became the Chair of the Haskayne School of Business Management Advisory Committee while Ha volunteered as a mentor in the BMO Mentorship Program at the Haskayne School of Business Scott and Udit are supporting emerging Canadian VC professionals through the Ivey Academy/CVCA Canadian Private Capital Investment School (CPCIS) Scott continues to be an instructor for the CPCIS negotiation course and Udit volunteers as an “investor-in-residence” for aspiring VCs

Diversity is a key topic within our thought leadership communications, including our regular blogs and vlogs In 2023, Udit spoke on two industry panels about ESG and Responsible Investing while both Scott and Whitney spoke at BKR’s VC Fellowship program on “Creating Alpha ” The panels focused on the importance of recruiting and developing diverse team members to drive performance Whitney also gave a keynote to the Huron Women’s Business Club about entrepreneurship and pursuing your passion Diversity Thought Leadership

Business Ethics

Why This Matters for McRock

We operate in a highly regulated industry in which trust is paramount and investment managers have a legally binding duty to protect the interests of their investors

Our Approach

McRockhasbuiltareputationforintegrityamongourLPandportfoliocompanypartnersandwithinthewiderVCindustry Weseektodemonstrateresponsibilityinourownoperations,justasweexpectourportfoliocompaniestooperate responsibly Therefore,asafirm,weprioritizecompliancewithapplicablelawsandregulationsandseektofollowbest practicesforethicalbusinessconduct

Specifically,wehaveestablishedthefollowingcommitmentsandpolicies:

OurCodeofEthicsandassociatedpoliciesformalizeourcommitmenttotransparencyandaccountability groundedinsoundbusinessethics Wearecommittedtoupholdingstrongcorporategovernancepracticesand tothepreventionofextortion,bribery,corruptionandfinancialcrime.

Wearecommittedtofinancialprobity,includingproperlyrecording,reportingandreviewingfinancialandtax informationandclearlydefiningresponsibilities,proceduresandcontrolsinourmanagementstructures

OurDiversity,Violence,DiscriminationandHarassmentPolicyformalizesourcommitmenttoprovideasafeand respectfulworkingenvironment,inalignmentwithILPA’sCodeofConductGuidelines

OurComputerUsagePolicyandassociatedpoliciesformalizeourcommitmenttodatasecurity Weareacutely awareoftheimportanceofdataprivacyandsecurityasinvestorsintheDigitalIndustrialspace.Wetakea rigorousapproachtoprotectingthedataofourinvestors,portfoliocompaniesandourownfirm.Inthiscontext, wehavetakenthestrategicdecisiontostoresensitiveLPinformationwithawell-regardedthird-partyfund administratorwhichoperatesinaSOC1TypeIIcontrolsenvironment

OurPolicies

Code of Conduct

Code of Ethics Policy Regarding Personal Investments

Diversity, Violence, Discrimination and Harassment Policy

Computer Usage Policy Network Disaster Recovery Policy

Our Performance

We have not received any fines or sanctions for violations of business ethics or financial industry regulations since our inception [SASB FN-AC-510a 1]

Community Giving

WeareannualcontributorstoHolidayHelpers In2023,wehelpedtoprovidecustomizedholidaypackagesincluding gifts,decorationsandfestivefoodtolow-incomefamiliesintheGreaterTorontoArea.

WemadeadonationtotheCentreforAddictionandMentalHealth(CAMH) Canada’slargestmentalhealthteaching hospitalandoneoftheworld’sleadingresearchcentres.

Weprovidedadonationtoanindigenousartistwhosufferedaheartattackandneededsupportforpost-surgerycare Thisartisthasprovidedterritorialaddressestoprivatecapitalindustryeventsovertheyears

Lastly,weprovidedadonationtoanup-and-comingCanadianfilmmakeranddirector,PonchoNavarro,forhis coming-of-ageshortfilmentitled“WiththeWind”

Environment

Why This Matters for McRock

Most of our environmental impact occurs through our investment portfolio (see ESG in our Portfolio) While we may be a small firm with limited direct impact on the environment, we prioritize environmentally consciousness because it’s important to our team

Our Approach

Wecontinuedtoenhancemeasurementanddisclosureofourfirm’soperationalGHGemissionsin2023 Wecontinuetodisclose ourScope1and2emissions In2023,webegantheprocessofcollectingdataonourairtravel-relatedemissions acritical componentofourfirm’sScope3carbonfootprint BecauseMcRockrentsofficespacewehavelimitedcontroloverourgasand powerusage,butwebelieveconsumptionconsciousnessiscriticaltoraisingawarenessandmakingwiserclimate-based decisionsinthefuture Regardless,in2023,McRock’sgasandpowerusageatafirmlevelresultedinScope1and2GHG emissionsof36.6metrictonsofCOeortheequivalentofabouteighttypicalpassengervehiclesrunningongasolineforayear.

OurTorontoheadofficeislocatedattheLightFactory(219DufferinStreet) arenovatedheritageindustrialbuilding The buildinghasLEEDcertificationforExistingBuildings:OperationandMaintenance Thebuilding’sEnergyStarenergyefficiency score(81)putsitinthetop20percentofcommercialbuildings.Recyclingprogramshavebeenestablishedfortenants.The buildingdiverts45percentofitswastefromlandfillandhasachieved22percentwatersavings.

ESG In Our Investment Process

Environmental Social Governance In This Section

OurResponsibleInvestment Commitments

OurResponsibleInvestment Process

MaterialESGIssues

Our Responsible Investment Commitments

WefocusexclusivelyoninvestmentintheDigitalIndustrialspaceandrecognizethetransformationalpoweroftechnology andbigdatainthetransitiontoamoresustainableeconomy WebelievecompaniesharnessingthepotentialofDigital Industrialtoprovidesolutionstosustainabilitychallengespresentasignificantandgrowinginvestmentopportunity.

OurResponsibleInvestmentPolicy,updatedin2023,setsoutourapproachtoincorporatingESGconsiderationstoour investmentprocessbothpre-andpost-investment,through:

ESG integration: By integrating consideration of material ESG issues into investments, we can better identify value creation opportunities and mitigate risks

ESG engagement: By engaging portfolio companies to pursue improved performance on material ESG issues, we can better protect and enhance the value of our investments

ThePrinciplesforResponsibleInvestment(PRI)istheleadingglobalproponentofresponsibleinvestment Asasignatory,wecommittosixprinciples:

Principle1:WewillincorporateESGissuesinto investmentanalysisanddecision-makingprocesses

Principle2:Wewillbeactiveownersand incorporateESGissuesintoourownership policiesandpractices

Principle3:Wewillseekappropriatedisclosureon ESGissuesbytheentitiesinwhichweinvest

Principle4:Wewillpromoteacceptanceand implementationofthePrincipleswithinthe investmentindustry

Principle5:Wewillworktogethertoenhanceour effectivenessinimplementingthePrinciples

Principle6:Wewilleachreportonouractivities andprogresstowardsimplementingthePrinciples

ThePRIAssessmentisPRI’sannualsurveyofsignatoryalignmentwithitsprinciples Wedemonstratedourcommitmentto responsibleinvestmentbyvolunteeringtoparticipateinthePRIAssessmentonavoluntarybasisin2023,andwewere pleasedwiththeresults.Wereceiveda4-starratingonourconfidencebuildingmeasuresanda3-starratingforourpolicy, governanceandstrategyanddirect-privateequitymodules

WealsoparticipateinresponsibleinvestmentinitiativestohelpadvanceESGboth withinbothourportfolioandacrosstheVCindustry,includingthroughCVCAandthe ESGDataConvergenceInitiative.Inaddition,wetakeintoaccounttheOrganization forEconomicCo-operationandDevelopment(OECD)ResponsibleBusinessConduct forInstitutionalInvestors,whichprovidesguidanceonaddressinganysignificant adverseimpactsassociatedwithinvestmentportfolios

Our Responsible Investment Process

Ourco-foundersareprimarilyresponsibleforensuringthatESGis effectivelyincorporatedthroughoutourinvestmentcycle

Wetakeapartnershipapproachtoinvestment Wetypicallysitonthe Boardsofourportfoliocompanies,allowingustodevelopstrong relationshipswithmanagementandcreatingsignificantpotentialto encourageprogressonmaterialESGissuesthroughengagement,driving self-sustainingESGpracticesthatsupportcompanygrowthandpositive environmentalandsocialoutcomes

Our Policies

Responsible Investment Policy

We are very active with our portfolio investments, so we only invest in a select number of high-potential companies—a maximum of 10 to 12 per fund We work hard with each of them, as we believe that we can help every entrepreneur in our portfolio to be wildly successful.

How do we incorporate ESG in our investment process?

Pre-investment [SASB FN-AC-410a.2]

Each of our senior investment professionals is responsible for ESG due diligence on potential deals

ESG information is gathered through our Due Diligence Questionnaire, meetings, calls and use of third-party tools such as Diversio, Plum and Green Project to identify ESG value creation opportunities or risks

We have developed an ESG Attractiveness Score and apply this to each potential investment in due diligence.

If material ESG issues are identified, they may be included in discussions with the Investment Committee and external advisors may be engaged to conduct additional due diligence.

If we identify a need for improvement on a material ESG issue we engage and work with the potential portfolio company to develop a corrective action plan

Our preference is to engage where there is a need for improvement on material ESG issues We exclude investment in technologies where the primary purpose is warfare or weapons-related

ESG findings and next steps are documented, including in Investment Committee documentation

As appropriate, we may include ESG terms in deal documentation and agreements with portfolio companies.

Post-investment [SASB FN-AC-410a.3]

We communicate our commitment to Responsible Investing to portfolio companies

We monitor ongoing progress of portfolio companies on material ESG issues to manage risks and value creation opportunities

We encourage the management teams of portfolio companies to identify and raise material ESG issues to relevant decision makers, including the Board of Directors

We participate on the Boards of portfolio companies and work with their other investors to encourage progress on material ESG issues

We work with portfolio company management to support development of a corrective action plan where there is a need to improve management or performance on ESG issues.

We document monitored or managed ESG issues in order to progress towards resolution and next steps

Portfolio companies are accountable for informing us of significant ESG incidents and the steps taken to address them

We support our portfolio companies’ efforts to report externally and internally on their ESG approach and performance related to material ESG issues. Through our participation in the ESG Data Convergence Initiative, we encourage portfolio companies to develop consistent reporting on material ESG issues Every quarter, portfolio companies report a range of KPIs that include ESG metrics, such as diversity These metrics are included in quarterly LP reporting. We provide software tools, at no cost to the portfolio companies, to measure DEI, carbon footprint and other best practices related to ESG

At exit we assess the portfolio company’s progress on material ESG issues and identify lessons learned

Material ESG Issues

SomeofthemostprevalentESGissuesforDigitalIndustrialcompaniesarediscussedinthissection

Inourpre-andpost-investmentprocessesweseektoidentifyandconsiderallmaterialESGissueswithpotentialtoimpact thevalueofportfoliocompanies However,DigitalIndustrialisanewfrontierforESG,withfewestablishedESGguidelines andstandards WerecognizethischallengeinidentifyingmaterialESGissuesspecifictotheDigitalIndustrialspaceorto individualcompaniesandthereforeleverageinternalexpertise,theexpertiseofexternalESGadvisorsandESG guidelines,includingtheSASBStandardsforarangeoftechnologyandcommunicationsindustriesandtheTCFD recommendationsforclimatechange.

We’reincreasinglyseeinginnovationandsustainabilityoutcomesintertwining Forexample,doesaDigitalIndustrial applicationincreaseproductivityandenergyefficiency?Ordoesastart-uprecognizethatthebestyoungtalentisdrawn tomoresustainablecompanies?

Environmental

Climate Change

McRock prefers to invest in problem-solving companies and climate change is a systemic issue presenting risks and opportunities for businesses in almost every sector While the first Industrial Revolution kick-started the modern era of climate change, the Digital Industrial Revolution has the potential to facilitate the transition to a more sustainable economy

We seek to mitigate climate-related risks in our portfolio and to support the transition to a low-carbon economy by identifying sustainable value creation opportunities, including companies providing sustainability solutions. To an increasing extent, climate change considerations are integrated throughout our investment process, both pre- and post-investment We engage with portfolio companies to address climate risks and opportunities and support and encourage portfolio companies to report on climate metrics and targets, such as GHG emissions produced and avoided We continue to prioritize refinements to our approach to climate integration

In 2023, as part of our ongoing review of climate strategy in alignment with the TCFD recommendations, we undertook a portfolio-level materiality assessment to evaluate the actual and potential impacts of climate change, specifically for Digital Industrial start-ups

We concluded Digital Industrial companies are well-positioned to seize opportunities created by the low-carbon transition and the need to address the impacts of climate change We are strongly predisposed to Digital Industrial companies providing viable solutions in response to climate opportunities including adaptation to the physical impacts of climate change, enhancing energy and resource efficiency, increasing efficiency in renewable energy generation and providing new products and services aligned with the transition to a low-carbon economy

Our investments include partnering with Digital Industrial tech companies to leverage climate opportunities and mitigate risks Digital Industrial tech companies have relatively low exposure to both physical and transitional climate risks, unless they specialize in solutions specific to industries or sectors at risk of obsoletion in the transition to a lowcarbon economy which is not an area of investment for McRock. In fact, the climate risks faced by other sectors and industries translate into climate opportunities for Digital Industrial companies offering innovative solutions. We are also considering how the risks and opportunities facing Digital Industrial might change over time under two International Energy Agency (IEA) climate change scenarios Stated Policies (STEPS) and Net Zero Emissions by 2050 (NZE).

How do climate risks and opportunities impact Digital Industrial?

McRock believes climate change creates a range of risks and opportunities for investment in Digital Industrial

These can increase or decrease over time under different long-term scenarios of global response to climate change These climate scenarios include:

Stated Policies Scenario (STEPS) Global action to address climate change is limited to policies that have been announced this implies increased physical risk, and decreased transition risk

Net Zero Emissions by 2050 Scenario (NZE) Global action is taken to avoid the worst impacts of climate change in the line with the Paris Agreement this implies decreased physical risk, and increased transition risk

Digital Industrial has low exposure to climate risks

Climate risks for other industries can create opportunities for Digital Industrial

Climate Risks Risks for Digital Industrial Risks for Other Industries

Policy&Legal TransitionRisk

Policiesthatrespond toclimatechange (eg,climate disclosure requirements,GHG emissionspricing, product,andservice regulation)and litigationonfailureto discloseormitigate climaterisks

Technology,Market andReputational TransitionRisk

Impactsofthe transitiontoalow carboneconomy

GHGemissionsfrom datacentres,shifting pricesforcarbon offsets

Negative considerationfor McRock–butlow riskforstart-ups

STEPS: Decrease risk

NZE: Increase risk

DigitalIndustrial solutionsforhighcarbonindustries andtechnologiesat riskofobsolescence

McRockavoids investment

STEPS: Decrease risk NZE: Increase risk

GHG emissions from operations and in the value chain

AcuteandChronic PhysicalRisk

Impactsofextreme weatherevents, long-termshiftsin weatherpatterns, risingaverage temperatures,rising sealevels

Physicalimpactson facilities,supply chainandteam

Negative considerationfor McRock–butlow riskforsoftware

STEPS: Significantly increases risk

NZE: Increase risk

Technology changes (e.g., product and service substitution, unsuccessful technologies, costs of transition to lowemissions technologies); shifts in supply and demand for commodities, products, and services; changing stakeholder perceptions of companies and industries

Physical impacts on facilities and infrastructure

Digital Industrial is well-positioned to seize opportunities in addressing low-carbon transition and climate impacts

Climate Opportunities for Digital Industrial

Climate Opportunities for Digital Industrial

ResourceEfficiencyOpportunity

Enablingefficiencyinresourceuse, operationsandtransportation

HighlyattractiveforMcRock

STEPS: Increases opportunity

NZE: Significantly Increases risk opportunity

EnergySourceOpportunity

Enablingexpansionandefficiencyin renewableenergyproduction

HighlyattractiveforMcRock

STEPS: Significantly decreases opportunity

NZE: Significantly Increases opportunity

Products&ServicesOpportunity

Low-carbonproductsandservices, enablingtechnologytransition

HighlyattractiveforMcRock

STEPS: Decreases opportunity

NZE: Increases opportunity

MarketsOpportunity

Newmarketswithincreasingclimate exposure,participationincarbon marketsthroughoffsetcreation

PositiveconsiderationforMcRock,in combinationwithotheropportunities

STEPS: Increases opportunity

NZE: Significantly Increases risk opportunity

ResilienceOpportunity

Infrastructuremonitoringandpredictive analysis,eventtrackingandresponse

HighlyattractiveforMcRock

STEPS: Significantly Increases opportunity

Diversity, Equity & Inclusion

We prioritize DEI as a material ESG issue for all portfolio companies, recognizing the value creation potential of including diverse perspectives, and the historical and continuing diversity challenges within VC and technology companies

As one of the first Canadian adopters of ILPA’s Industry Code of Conduct Guidelines, McRock is committed to engaging portfolio companies to provide a safe, respectful working environment. Our portfolio-level commitments are formalized in our Diversity, Violence, Discrimination and Harassment Policy.

We use Diversio for Portfolios to collect and analyze current and prospective portfolio company DEI performance in areas including culture, career development, workplace safety and recruitment We conduct a diversity assessment during the preinvestment stage, including assessment of diversity practices and representation of women and visible minorities

We work closely with management teams of portfolio companies to develop DEI strategies and practices, providing resources, tools and guidance. We require each of our portfolio companies to report diversity metrics each quarter, which we then report to our LPs. Where possible, we participate in the Human Resources and Compensation Committee for all our portfolio companies.

We are committed to engaging portfolio companies on DEI best practices and to monitoring their diversity performance Performance data can be found in ESG in Our Portfolio Measuring ESG Performance in Our Portfolio

Data Privacy

The Digital Industrial space leverages the power of data to drive and shape technologies that make operations safer and more efficient. With this great power comes responsibility to ensure ethical use, storage and sharing of data. Most of the data our portfolio companies work with focuses on machines not people. This means our portfolio companies are unlikely to be using, storing or sharing sensitive personal data. If they gather location or demographic information, such as the location of employees for safety monitoring, it is anonymized. In general, we do not invest in companies whose business model focuses on collection, processing, storage or monetization of personal data.

Our investment due diligence includes taking a case-by-case approach, assessing the type and purpose of data collected This helps us analyze actual or potential data privacy concerns We also assess data security to determine each company’s capability to protect any sensitive data We recognize there may be grey areas and that we cannot monitor every line of code used by portfolio companies To address these concerns, we proactively engage with portfolio companies to discuss the types of data collected and why

Governance

Corporate Governance

Effective corporate governance underpins financial, operational and sustainability performance, but for start-up companies it can sometimes be an afterthought We are committed to facilitating good corporate governance practices across our portfolio We seek to partner with companies aligned with our values of transparency, accountability and compliance with legal requirements and best practices

During pre-investment due diligence we assess the governance quality of potential portfolio companies, including the roles of the management team and Board, and whether there are clear communication channels between them Post-investment, we aim to serve on the Boards of all our portfolio companies

Digital Industrial Governance

A range of technology-related governance issues present significant risks and opportunities for most companies in the Digital Industrial space:

ESG Issues Why This Matters

IP presents significant value creation and erosion potential for technology start-ups Given the potential financial and operational risks associated with patent infringement claims, free and clear IP is a critical investment consideration

Data Security

IT Systems and Infrastructure

Data security and physical hardware security are significant risks, when any port can be a point of attack to shut down systems and endanger safety Specialist cybersecurity companies can present investment opportunities, particularly in the Digital Industrial space

The stability and resilience of the IT systems and infrastructure portfolio companies rely on to deliver their services, including third-party cloud computing services, is critical to their ability to satisfy customers.

(specialist data security companies)

Intellectual Property (IP)

Material

ESG In Our Portfolio

In This Section

ESGDataConvergenceInitiative HowDidOurPortfolioCompanies PerformonESGin2023?

TargetingEnhancedDiversityat PortfolioCompanies

McRockClimateOpportunities Project

PortfolioCompanyESG

Spotlight

PortfolioCaseStudy#1:MIOVISION PortfolioCaseStudy#2:LANDINGAI PortfolioCaseStudy#3: WORLDSENSING

PartnerSpotlight:HaNguyen andMigr8+

Portfolio Overview: How Our Portfolio Companies Address Global Challenges

The Goal The Problem

Affordable and Clean Energy

Reliability of renewable energy

Decent Work and Economic Growth

Unsafe, inefficient factories and warehouses

Security of physical spaces

Workforce shortages in logistics and warehouses

Inefficient training and knowledge management

Operational anomalies and disruptions

Unsafe industrial worksites

Industry, Innovation and Infrastructure

Lack of access to the efficiency benefits of connectivity

Lack of access to efficiency benefits of AI in traditional industries

Inefficient analysis of information in contracts and legal documents

Impact of manmade disasters created by infrastructure failure

Sustainable Cities and Communities

Peace, Justice and Strong Institutions

Traffic congestion creating air pollution, GHG emissions and economic costs

Traffic congestion creating air pollution, GHG emissions and economic costs

Impact of natural and manmade disasters and unrest

The Solution

Autonomous inspections and predictive failure intelligence to optimize operations and maintenance

Navigation AI and robotics to automate movement-based tasks

Facial recognition, fever detection and analytics

Autonomous vision and robot supervision software

Factory floor worker performance app for on-the-job learning, knowledge access and process improvement capture

Real-time data processing to improve productivity, product quality and safety

Intelligent technology and real-time data collection for worksite safety and visibility

Human-machine interface and smart surface solutions

Enable companies with limited data sets to benefit from machine learning for visual inspection and product defects

AI data solution for legal document analysis

Remote monitoring and anomaly detection for critical infrastructure

E-mobility products and analytics

AI for traffic signal planning and operations

Global disruption monitoring powered by big data and AI

Portfolio Company

SkySpecs

Clearpath Robotics (acquired by Rockwell Automation in October 2023)

Founders

Danny Ellis

Tom Brady

Jonathan Bendes

Matt Rendall

Ryan Gariepy

Bryan Webb

Invixium Shiraz Kapadia

Plus One Robotics

Poka (acquired by IFS in June 2023)

Stream Systems (acquired Praemo in June 2023)

Triax

Erik Nieves

Shaun Edwards

Paul Hvass

Alex Leclerc

Antoine Bisson

Bruno Rizzuto

James Franklin

E2ip Eric Saint-Jacques

Landing AI Andrew Ng

ThoughtTrace (acquired 2022)

Nick Vandivere

Worldsensing Ignasi Vilajosana

Dott Henri Moissinac

Maxim Romain

Miovision Kurtis McBride

Samdesk James Neufeld

Ashlyn Bernier

Measuring ESG Performance in Our Portfolio

Responding to a patchwork of diverse investor requests and requirements on ESG can be a burden for portfolio companies. The ESG Data Convergence Initiative helps leading global GPs and LPs partner and align on a standardized set of ESG metrics and a mechanism for comparative reporting by private companies in their portfolios. Participating firms have agreed to report a core set of ESG metrics across seven categories drawn from existing ESG frameworks, including GHG emissions, Net Zero strategies and targets, renewable energy, Board and management diversity, work-related injuries, net new hires, and employee engagement We also support portfolio companies seeking to enhance ESG data reporting by providing access to the Green Project ESG data reporting platform at no cost As companies across our portfolio begin to report comparable ESG performance data, we will continue to enhance the scope of aggregated portfolio-level data points included in our Responsible Investment Report

How Did Our Portfolio Companies Perform on ESG in 2023?

SOCIAL

ENVIRONMENTAL of Board members are women

1,556 currently disclose Scope 1 & 2 GHG emissions 55% currently disclose total energy consumption 55% currently disclose renewable energy consumption–portfolio coverage tripled compared to 2022 45%

metric tons of CO e total financed Scope 1 and 2 GHG emissions (coverage: 35% of portfolio AUM)

0

13% of Board members are visible minorities 16% work-related fatalities

The percentage of portfolio companies reporting Scope 1 and 2 GHG emissions and total energy consumption was slightly lower than in 2022 This was due to several acquisitions in 2023 and more accurate reporting Our 2023 results still represent a near doubling compared to 2021 and enabled us to begin reporting on financed emissions So far, this data covers Scope 1 and 2 GHG emissions for 35% of our assets under management (AUM). The percentage of portfolio companies that disclosed their renewable energy consumption tripled from 15% in 2022 to 45% in 2023.

We will continue to improve adoption of these reporting metrics across our portfolio by working closely with our companies to raise awareness and understanding about the importance of reporting environmental performance metrics, and in particular GHG emissions We are also committed to providing easy-to-use software tools at no cost to our portfolio companies so they can improve upon their baselines year-over-year

Targeting Enhanced Diversity at Portfolio Companies

Companies need to create a diversity pipeline from entry level upwards in order for diversity efforts to flourish in the C-suite. In setting our DEI targets, we considered ESG Data Convergence Initiative Board diversity data, as well as data on diversity in the management and workforce of our portfolio companies. We saw room for improvement, so we set targets to improve the representation of women and visible minorities by 2026. Setting realistic targets is challenging in the absence of baseline data for tech companies funded by private capital, let alone for the Digital Industrial sector. In 2024, we will be revisit and potentially reset our targets as we get more data. The table below demonstrates how the McRock iNFund LP (Fund I) aligned with these targets in 2023 Several metrics trended negatively compared to the previous year, so we are working hard to emphasize the importance of diverse teams with portfolio companies Regardless, our commitment to DEI remains steadfast and we will continue to use our influence on the Boards of these companies

As a result of two more successful exits and improved data, aggregate diversity metrics for Fund II trended downwards compared to 2022, although the percentage of women in management increased We recognize that more effort is required to increase diversity in general, and especially representation of visible minorities We have therefore enhanced our focus on diversity in Fund III due diligence

McRock Climate Opportunities Project

We’redelightedthatthemajorityofourportfoliocompaniesare measuringGHGemissions Butacompany’sGHGemissionsare onlypartoftheclimatechangestory

Whileclimatechangeposesmaterialrisksandopportunitiesacross theeconomy(ESGinOurInvestmentProcess Environmental ClimateChange,)weconsidertheactualandpotentialimpactsof climatechangeforDigitalIndustrialcompaniestobeprimarilyon theopportunityside.

The McRock Climate Opportunities Project supported Miovision's initiative to conceptualize and draft a traffic improvement-based GHG Accounting Methodology Concept Note, which was submitted for consideration to the Verified Carbon Standard Program (Verra) in 2022

Miovision plans to release its inaugural ESG report this year.

Average Percentage (as of December 21, 2023)

Portfolio Company Diversity Data (Fund II)

Potential Climate Opportunities for Digital Industrial

McRock

Portfolio Companies

Miovision

Poka (aquiredbyIFS)

Landing AI

Triax

ClearpathRobotics (aquiredbyRockwellAutomation)

Plus One Robotics

SkySpecs

Dott

e2ip Technologies

Samdesk

Worldsensing

Resource Efficiency:

Enabling efficiencyin resourceuse, operationsand transportation

Energy Source:

Enabling expansionand efficiencyin renewableenergy production

Product& Services:

Low-carbon productsand services,enabling technology transition

Markets: Newmarkets withincreasing climateexposure, participationin carbonmarkets throughoffsetcreation

Resilience: Infrastructure monitoringand predictive analysis,event trackingand response

ManyofthecompaniesweinvestinwillhaveanetpositiveimpactonGHGemissionsbecausetheyprovideclimate-related technologysolutionsthatallowothercompaniesandorganizationstoreducetheirownGHGemissions.

Thequestionis:Howmuchofapositiveimpact?Andhowcancompaniesusethisinformationtoenhancevalue?

We believe in engaging with our portfolio companies to help them enhance all aspects of performance and that goes for ESG performance, too. But talk is cheap and we know that measuring GHG emissions impact isn’t easy. That’s why in 2022 and 2023, we provided relevant portfolio companies with guidance to undertake tasks like preparing a GHG emissions inventory and quantifying positive climate impact. They were then able to demonstrate how their Digital Industrial solutions help potential customers reduce their own GHG emissions, and the resulting potential carbon offsets At the Board level, we continue to encourage relevant portfolio companies to explore climate opportunities with the support of our expertise and contacts

Every investment is a shared journey When you look for revolutionary technology, you end up finding passionate people, and sometimes, an unforgettable anecdote.

Portfolio Company ESG Spotlight - Digital Industrial for a Safer World

Most, if not all, our portfolio companies are harnessing the potential of the Digital Industrial Revolution to contribute to a safer world Whether they are addressing workplace safety, traffic safety, infrastructure resilience to physical climate risk, or providing alerts in conflict situations, our portfolio companies are saving lives In the following pages we showcase how three of our companies are applying innovation to keep employees and the public safe

Portfolio Case Study #1: MIOVISION

Miovision’s traffic solutions are creating a sustainable—and safer—world

FOUNDED: 2005

EMPLOYEES: 391

LOCATION: Kitchener, Canada

INITIAL INVESTMENT:

March 2018 (Fund I) September 2022 (Fund II)

BOARD REPRESENTATION: Yes

Miovision is more than a traffic management company. It has a pretty amazing business model in a world where digital technology has massive potential to address the global climate crisis Safety is the second and equally important prong in the firm’s one-two strategy for making the world a better place

Their goal: To empower cities and agencies to adopt more proactive solutions to identify risks, implement tailored safety measures, and create environments where accidents are preventable; to support municipalities in their Vision Zero efforts to eliminate all traffic fatalities and severe injuries, while increasing safe, healthy, equitable mobility for all When you add this to their ESG impact, Miovision feels like a force to be reckoned with

They worked with several communities across the globe in 2023 to meet these targets That included 114 safety studies for 21 clients in North America, Asia, and Europe. Those studies measured 92,000 traffic incidents, 75% of them involving vulnerable road users The studies support precise diagnosis and empower agencies to program life-saving countermeasures at high-risk intersections.

It’s too early to know the impact in 2024, but Miovision forecasts risk reductions of 80 to 85% when responding to the company’s precision diagnostics The Miovision Scout Plus service ensures every dollar is dedicated to high-impact safety measures that pave the way for meaningful results And further studies showed an accuracy rate of 94% for predicting injury collisions

Real results are already available for three different municipalities in the United States

Detroit, Michigan

Miovision optimized Detroit’s traffic networks, further cementing the Motor City as a hub for traffic innovation They helped make it easier and safer to navigate for all travelers, whether they choose to travel by car, bike, bus, or walking. Specifically, the measures resulted in:

Kyle, Texas

75% reduction in time to resolve traffic signal issues

20% reduction in maintenance costs on traffic signals

30% reduction in travel times at major intersections

20% reduction in emergency response times

In emergency situations, every minute counts. Data from the efforts in Kyle demonstrates arrest rates drop to around 20% when police arrival times exceed five minutes, compared to over 60% when they arrive more quickly Miovision helped law enforcement improve their police response times (delays were reduced by 25%), and they also decreased the risk of intersection collisions involving emergency vehicles by 70%, further increasing officer safety

San Rafael, California

San Rafael is a perfect example of what’s possible with effective safety integration between a city’s service departments Traffic, police and fire departments worked together with Miovision to address the ripple effect of state freeway incidents on the city’s roads, namely congestion Their efforts showed measurable results, including faster emergency response times and safer routes for 56 police and fire vehicles across 53 signalized intersections The municipality also realized substantial cost savings by using existing infrastructure rather than investing in new hardware

Miovision is creating the ultimate win-win scenario with their traffic management solutions Municipalities hit ESG targets while improving safety for the public and first responders And the Digital Industrial community celebrates another major step forward in making the world a better place for all of us

Portfolio Case Study #2: LANDING AI

When it comes to leveraging data for safety improvements, Landing AI proves it’s quality over quantity

FOUNDED: 2017

EMPLOYEES: 61

LOCATION: Palo Alto, California

INITIAL INVESTMENT: October 2021

BOARD REPRESENTATION: Yes

Landing AI has made a name for itself by challenging the notion that you need big data to make meaningful AI applications They have built a roster of clients that put this data-centric approach to the test, yielding significant results along the way

Case in point: lowering the risk of wildfires is possible with AI-enabled drones. That sounds like an application of AI we can all get behind.

Viesgo, a Spanish energy company, partnered with Capgemini to use drones to inspect their power infrastructure for fire safety and performance issues They capture high-resolution images to identify damaged or corroded equipment and use Landing AI to analyze images The data helps the energy company classify and predict infrastructure vulnerabilities to weather events, aiding in maintenance prioritization and emergency response And geofencing integration helps locate specific assets for maintenance or in emergencies Viesgo saw clear evidence the strategy would pay dividends The program reduced inspection time by 40% and increased inspection accuracy by 32% (from 52% to 84%) compared to human review of images

Same industry, different AI application: consumers expect consistent, safe power services from utility companies. But delivering on that seemingly simple promise requires constant vigilance. EDP, a prominent energy utility in Iberia, identified a significant challenge in ensuring the continuous monitoring of critical infrastructure to maintain compliance and align with industry standards for their vital power services. The utility company collaborated with Capgemini to harness the power of Landing AI to develop a highly automated and cost-effective solution: robots. AI autonomous robots, to be exact, to conduct utility substation inspections. The strategy helped EDP overcome time and cost constraints saving $15 million annually It also helped address the physical limitations that rendered current manual inspection methods ineffective and at times, unsafe, for workers

Other applications of Landing AI solutions to meet safety targets include inspections in manufacturing facilities of tray seals, blister packs for medications, vials, medical kits, and medical device seals Defects and contamination with these products can lead to costly recalls and damage brand reputations in highly regulated industries

Landing AI is proving time and again size doesn’t matter when it comes to data and AI. Even the smallest applications with quality data can have huge impacts on meeting objectives And when those objectives include improving safety whether it’s for workers or the public everyone wins

Portfolio Case Study #3: WORLDSENSING

Worldsensing is there for you when the world is falling down

FOUNDED: 2008

EMPLOYEES: 112

LOCATION: Barcelona, Spain

INITIAL INVESTMENT: July 2017

BOARD REPRESENTATION: Yes

Infrastructure failures may not always be preventable, but innovations in monitoring technology are trying to change that, with real results. Even when failures occur, those innovations mean it’s increasingly possible to limit the damage and loss of human life with early detection.

The people at Worldsensing know firsthand the work they do has real implications on the durability and safety of civil infrastructure Their remote monitoring solutions helped prevent casualties following a bridge collapse in Malaysia in 2023 But their story starts when the bridge operator sought out strategies to assess the stability of the structure

Iskandar Puteri is the administrative capital of the state of Johor in Malaysia The city is located on the border with Singapore and home to many famous landmarks, making it an attractive destination for visitors The city features several bridges, including one that connects Forest City to the Tanjung Pelepas highway It spans a total length of 78 meters and plays a vital role in the city road system, with a significant and continually increasing volume of traffic

The bridge operator contracted Geolab, a Worldsensing partner in Malaysia, to monitor the bridge’s structural integrity Geolab deployed 36 Worldsensing tiltmeters, placing one on each of the bridge’s columns to measure tilt readings That foresight and investment in the city’s critical infrastructure laid the foundation for preventing loss of human life on July 23, 2023 when the bridge collapsed. The sequence of events that day is a testament to the potential of this technology.

At 7 am on July 23, two of Worldsensing’s tiltmeters detected movement in the bridge, triggering an alert that was sent to Geolab’s data visualization software From 7 am to 2 pm the two Worldsensing devices detected further significant structural movement, while the data from other tiltmeters remained stable This clearly indicated abnormal motion in part of the bridge Geolab immediately contacted the bridge operator

Geolab and the operator decided together to evacuate the bridge and surrounding site; they closed off the bridge as a safety precaution. At 2:15 pm the police and emergency services confirmed that a 25-meter-long section of the road and bridge had collapsed. Thanks to the early closing of the bridge, there were no casualties.

This kind of near-miss drama might seem like the stuff of action movies But it is, in fact, one of the many real-world examples of how automated remote monitoring of infrastructures with Worldsensing solutions effectively detects issues before they turn into disasters It allows authorities to take preventive measures, implement early repairs, and evacuate in the most extreme cases

How can you not get excited about digital industrial innovations that have the potential to help save lives? Beyond the feel-good factor, it’s also just a smart investment for us at McRock. The potential for Worldsensing to make a lasting positive impact on our world is limitless.

Partner Spotlight: Ha Nguyen and Migr8+

Nurturing the entrepreneurial spirit among immigrants is good for everyone

McRock Partner Ha Nguyen sits on the board of directors for Migr8+, a non-profit organization offering customized services for immigrant entrepreneurs Migr8+ is part of the overall Migr8 ecosystem which also includes Migr8 Capital an Alberta-based VC fund investing in immigrant-led startups at the pre-seed and seed stages of their development.

We asked Ha to tell us more about why this initiative is important to her, and the McRock community as a whole.

Q:Therearesomanyorganizationsthatwouldwelcomeyoursupportandexperienceontheir Boards.WhydidyouchoosetoworkwithMigr8+?

A:I’manimmigranttoCanada Inthatregard,I’mnodifferentfrommillionsofotherswhohavechosento makethiscountryhome ButIhaveauniqueperspectivebecauseofmyworkintheDigitalIndustrialVC world.AndI'malsopassionateabouthelpingtalentedimmigrantentrepreneursestablishtheirbusinesses andpursuesuccess.IbelieveimmigranttalentswillbepivotaltothegrowthofCanada'stechsector.We haveanopportunitytoharnessthisdiversebrainpower Asof2022,55%ofunicornsintheUSwere foundedbyimmigrantfounders Iseethepotentialtoemulatethatkindofsuccesshere,andmaybeeven surpassit.

Q:WhatweresomeofMigr8+’sachievementsin2023?

A:ItwasabigyearforMigr8+ WelaunchedtheinitiativeinCalgaryafterreceivinga$200,000grant;soon afteranadditional$35,000grantcamefromtheEdmontonInnovationRegionalNetworkinajoint programwiththeBlackBusinessVentureAssociation WorkstartedimmediatelyandinNovemberMigr8+ sponsoredtheNewcomerPitchEventinCalgarywithInnovateCalgary Thereisalotmoreplannedfor 2024.

Q:What’snext?

A:WeareexcitedtobelaunchingEvolveLabsinEdmontonthisyearwhichwillprovideone-on-one coachingprogramsforimmigrantentrepreneurswithbigideas TheMigr8+communitywillgrowtomore than100immigrantentrepreneursintheprairieprovinces Andourpartnershipnetworkisgrowingto coverimmigrationandhousingservicesfornewCanadians.Migr8leadersareespeciallyexcitedtobe launchingMigr8Capitalwithafirstcloseof$5million

Myworkwiththeorganization,particularlyMigr8CapitalManagingPartnerDipoAlli,andExecutive DirectorEbenezerMensa,ispersonallyrewarding.I’dliketothinkI’mhelpingsomeonejustlikemewho cametothiscountrywithlittlemorethanbigdreamsandastrongworkethic It’salsoastrategicmovefor myworkwithMcRock Wearealwaysonthelookoutforemergingopportunities,andweallbenefitby supportingentrepreneurs.Oneofthemmaybethebrainsbehindthenextindustrialsoftwareunicorn poisedtotransformanindustrialmarketandcreatelong-lastingsocialimpatransformanindustrial marketandcreatelong-lastingsocialimpact

SASB Index

The International Sustainability Standards Board (ISSB) publishes industry-specific SASB Standards intended to help companies disclose financially material, decision-useful ESG information to investors We selected the SASB Asset Management & Custody Activities Standard as the key framework to guide the development of this Report While SASB Standards are typically used by listed firms, using this standard will allow us to improve year-over-year ESG performance analysis, compare ourselves to other asset managers and engage more effectively with portfolio companies working to develop an approach to ESG reporting that will meet investor expectations

ESG Topic SASB Code Accounting Metric

Activity Metrics

Transparent Information & Fair Advice for Customers

FN-AC000A

FN-AC000B

FN-AC270a1

FN-AC270a2

FN-AC270a3

Employee Diversity & Inclusion

FN-AC330a1

Total registered assets under management Total unregistered assets under management

Total assets under custody and supervision

(1) Number and (2) percentage of licensed employees and identified decision-makers with a record of investment-related investigations, consumer-initiated complaints, private civil litigations or other regulatory proceedings

Total amount of monetary losses as a result of legal proceedings associated with marketing and communication of financial product-related information to new and returning customers

Description of approach to informing customers about products and services

Percentage of (1) gender and (2) diversity group representation for:

(a) Executive management

(b) Non-executive management

(c) Professionals

(d) All other employees

2023

(Data as of December 31, 2023)

Assets under management: $182 million The registered/unregistered assets distinction is not applicable for our firm

Not applicable for our firm

(1) Zero (2) 0%

Not applicable for our firm we do not have retail investor customers

Not applicable for our firm we do not have retail investor customers

Given the firm’s management structure and the small size of our team, we measure diversity of the overall team and the investment team, focusing on representation of women and visible minorities SASB metrics are provided below More information on our approach to DEI can be found in ESG Within Our Firm Diversity, Equity & Inclusion

Incorporation of ESG Factors in Investment Management & Advisory

Financed Emissions

FN-AC410a1

FN-AC410a2

FN-AC410a3

FN-AC410b1

FN-AC410b2

FN-AC410b3

FN-AC410b4

Business Ethics

FN-AC510a1

Amountofassetsundermanagement,byasset class,thatemploy (1)integrationofESGissues, (2)sustainability-themedinvestingand (3)screening

Description of approach to incorporation of ESG factors in investment and/or wealth management processes and strategies

Description of proxy voting and investee engagement policies and procedures

Absolute gross financed emissions, disaggregated by (1) Scope 1, (2) Scope 2 and (3) Scope 3

Total amount of assets under management (AUM) included in the financed emissions disclosure

Percentage of total assets under management (AUM) included in the financed emissions calculation

Description of the methodology used to calculate financed emissions

Total amount of monetary losses as a result of legal proceedings associated with fraud, insider trading, antitrust, anti-competitive behaviour, market manipulation, malpractice or other related financial industry laws or regulations

Description of whistleblower policies and procedures FN-AC510a2

(1)$182million(100%)

(2)Althoughmanyofourportfoliocompaniesoffersolutionsto sustainabilitychallenges,wedonotformallypositionourfundsasESG thematicorimpactfunds (3)$182million(100%)warfareandweaponsexclusion

A description of our ESG incorporation approach can be found in ESG in Our Investment Process

Proxy voting is not applicable for our firm A description of our portfolio company engagement approach can be found in ESG in Our Investment Process

(1)Scope 1: 1,277 CO2e (2)Scope 2: 279

$55,255,687

35% Not all portfolio companies are currently able to provide GHG emissions data Information on our efforts to promote GHG emissions measurement by portfolio companies can be found in Our Approach – Metrics & Targets

The majority of our portfolio companies use an activity-based methodology to capture Scope 1 and Scope 2 emissions The second, less used methodology, is spend-based

We have not yet identified a third-party whistleblower channel tool suitable to our firm requirements and size A description of our business ethics policies can be found in ESG Within Our Firm Business Ethics Zero ($0)

The TCFD framework for climate-related financial disclosures was developed to help companies and investors disclose decision-useful, forward-looking information on climate-related risks and opportunities We aligned our Responsible Investment Report with the TCFD recommendations from the start and plan to enhance our climate disclosure in future reports In 2023, the TCFD recommendations were incorporated to the new International Sustainability Standards Board (ISSB) Sustainability Disclosure Standards

Disclose the organization’s governance around climate-related risks and opportunities

Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy and financial planning where such information is material

(a) Describe the Board’s oversight of climaterelated risks and opportunities

(b) Describe management’s role in assessing and managing climate-related risks and opportunities

(a) Describe the climate-related risks and opportunities the organization has identified over the short, medium and long term

(b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy and financial planning

(c) Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario

Climate Governance

Disclose how the organization identifies, assesses and manages climate-related risks

Disclose the metrics and targets used to assess and manage relevant climaterelated risks and opportunities where such information is material

(a) Describe the organization’s processes for identifying and assessing climate-related risks

(b) Describe the organization’s processes for managing climate-related risks

(c) Describe how processes for identifying, assessing and managing climate-related risks are integrated into the organization’s overall risk management

(a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process.

b) Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 GHG emissions and the related risks Climate Strategy

c) Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets

Climate Risk Management

Climate Metrics & Targets

ESG Performance Metrics

Depending on the recipient’s domicile or place of incorporation, this document may not adhere to any applicable existing or proposed principles, laws, rules, or regulations related to environmental, social, and governance (ESG) criteria Furthermore, ESG data (including ratings) provided by external data providers and referenced for the present purpose is produced based on the data providers’ proprietary methodologies Even though McRock has an ESG methodology in place, it cannot represent that the methodology or ESG data (including ratings) provided by external data providers is accurate, complete, up-to-date, and/or continuously available.

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Toronto, Ontario, Canada M6K 3J1

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