Clayton, Dubilier & Rice believes that careful management of environmental and social performance can have a positive impact on financial returns. The Firm is committed to improving the environmental and social actions of our portfolio companies to enhance the long-term sustainability of their businesses.

We strive to promote best-in-class corporate citizenship by:

• Engaging with a range of stakeholders on key issues and challenges;
• Endeavoring to make our companies great places to work and the communities in which they operate great places to live;
• Protecting our planet through environmentally responsible activities; and
• Enabling sustainable economic growth by building better businesses.

CD&R aims to encourage companies in which it invests to take responsibility for the environmental and social impact of their business operations, reflecting the Firm's belief that

the observance of sound environmental and social strategies is essential for building strong brands and safeguarding reputation, which in turn is vital for long-term success. We believe that there can be a strong, positive correlation between financial performance and corporate, social and environmental responsibility.

CD&R also believes its combined investment and operational competencies enable the Firm to identify Environmental, Social and Governance ("ESG") issues in the due diligence process. The Firm's operating focus is especially valued by the management of a divested business, which may not be as experienced at handling ESG matters.

In 2014, CD&R launched a new component of its ESG program, formalizing the engagement between CD&R and each company around key ESG issues. In collaboration with senior management at each company and the CD&R Operating Partners and Advisors who sit on each company’s board, we have identified the key material issues at each company and initiated a reporting procedure to track these issues on at a minimum annual basis.