The SICAF is committed to do no significant harm (“DNSH”), to any of the sustainable investment objectives, in particular, not to result in a significantly negative environmental effect under any circumstances, and to promote, where possible, initiatives that reduce pollution and wastage of running water, as well as support biodiversity and sustainable transport. Negative effects are monitored through the monitoring of KPIs i.e., quantitative and qualitative social and environmental rating indicators and performance metrics, codified in accordance with the policies adopted by the ManCo.

The purpose of the SICAF is to acquire and manage social and university residences, university buildings, schools of all levels , other educational centers, and universities and their ancillary infrastructure, and additional facilities intended for the same purposes (hereinafter, the “Social Infrastructure“) with the aim of contributing to the development of a sustainable society by generating positive impacts on the community through long-term investments in Social Infrastructure while protecting the environmental impacts generated by its investments.

Investment in Social Infrastructure aims to create impact on four SDGs namely: #4 quality education; #7 clean and affordable energy; #8 decent work and economic growth; and #11 sustainable cities and communities.

Without prejudice to the section above, the management of the SICAF is aimed at pursuing an investment strategy that combines the objectives of social sustainability, pursued in accordance with Article 9 of the SFDR Regulations, with increasing the value of the SICAF’s assets, to be achieved through the fulfillment of operations of valorization and/or development of facilities for the educational sector, located in Italy, as well as to allow the SICAF’s shareholders to benefit from the income derived from the properties held in the portfolio. In addition, the SICAF’s investment policy is subject to the same exclusion criteria applicable for all investments promoted by the ManCo.

The minimum percentage of sustainable investments is identified as 80%.

Silver Fir, to measure the achievement of the sustainable investment objective promoted by the SICAF, adopts a special management and measurement framework based on ESG indicators, defined with the support of a specialized consultant and updated from time to time in accordance with relevant regulations, standards and international industry best practices.

Silver Fir has adopted a matrix through which the achievement of each characteristic promoted by the SICAF will be measured, monitored and evaluated in accordance with identified sustainability parameters.

Data are collected and uploaded directly by Silver Fir, referring to third parties (tenants, property management, etc.). Data is saved on company servers and the dedicated tool. Most data are real, but where this is not possible, and collection is not dependent on the ManCo, they may be estimated.

The main limitation of the above methodology lies in the dependence on third parties in data collection. Nevertheless, most of the data is correctly collected and considered for the purpose of evaluation.

In evaluating the investment opportunities identified for the SICAF, Silver Fir conducts a due diligence process aimed at assessing, in a comprehensive manner the return expectations, risk profiles and sustainability aspects related to the potential investment. With particular regard to environmental and sustainability due diligence, Silver Fir conducts the following sub-activities: (i) the inspection of the property; (ii) the sustainability assessment from an ESG perspective using a sustainability checklist, as further detailed in the section entitled “Due Diligence.”

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No benchmark has been designated for the purpose of measuring the achievement the sustainable investment objective pursued by the SICAF.