frp_2024_sustainability_resiliency_report_v20

SUSTAINABILITY & RESILIENCY REPORT

MAKING A DIFFERENCE

This document sets forth how we endeavor to care for our employee communi Ɵ es by minimizing our environmental footprint, fostering a spirit of volunteerism in our sta ff and providing an opportunity to learn from each other in service to a be Ʃ er and brighter future.

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A MESSAGE FROM THE CEO

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ABOUT FOUNDATION RISK PARTNERS

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THE FRP MISSION

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OUR APPROACH TO SUSTAINABILITY & RESILIENCY

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SUSTAINABILITY & RESILIENCY COMMITTEE

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INVESTING IN OUR GREATEST RESOURCE

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LEARNING & DEVELOPMENT

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HEALTH & WELLBEING

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WOMEN ’ S EMPLOYEE RESOURCE COMMITTEE

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CULTURE & COMMUNITY OUTREACH

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DIVERSITY & INCLUSION

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BUSINESS CONTINUITY & RISK MANAGEMENT

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CYBERSECURITY & PHISHING AWARENESS

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ENVIRONMENTAL AWARENESS & ACTIVITY

A MESSAGE FROM THE CEO We are pleased to launch our inaugural Sustainability & Resiliency Report with our board of directors, clients, Foundation Risk Partners associates, carrier partners and communities we serve. We aim to share Foundation Risk Partners ’ sustainability initiatives and results while building accountability for our efforts into our organization ’ s framework. At Foundation Risk Partners we strive to always be a part of the solution. This first annual Sustainability & Resiliency Report represents our promise to be transparent about the initiatives launched to foster our key objectives. We do this to affirm our dedication to a better world. As a thought leader on all things insurance we recognize the influence we have within this important industry. We acknowledge the impact of our decisions on our communities and seek to be a positive representative of corporate responsibility for a sustainable tomorrow.

Charlie Lydecker Chairman & CEO

(On the left is Charlie addressing FRP team members at the 2024 Annual Sales Summit.)

ABOUT FOUNDATION RISK PARTNERS Foundation Risk Partners (FRP) is a privately held, national insurance brokerage and consultancy, backed by the international private equity firm, Partners Group. It was founded in 2017 and currently ranked as a top 20 broker in the U.S. Our company began with the convergence of two large, established consulting and brokerage platforms that now provide FRP ’ s comprehensive property and casualty and employee benefits insurance services. FRP is licensed in all 50 states with more than 2,500 teammates. Our benefits professionals support the health and welfare programs of local, regional and national employers, with a combined total valuation of over $2.8 billion. This combination of a locally entrenched and trusted advisor with the expanded capabilities of a nationally recognized employee benefits platform, elevates our value proposition to new levels. We are a rare combination of industry experience, leadership and innovation. We embrace the success of each of our member agencies and further support them through the collective capabilities of our internal network. We invite you to experience the difference.

184 LOCATIONS Geographic Reach

2,375+ Professionals

$630 Million Revenue

TOP 20 US Insurance Brokerage Firm

Data current as of September 2024

THE FRP MISSION Foundation Risk Partners has set out to be the preeminent middle market insurance brokerage and consultancy in the United States. To achieve that goal, we continue to develop partnerships with highly respected, growth-oriented agencies that complement our national insurance brokerage team who are exceptional at analyzing risk exposure and providing solutions to minimize potential loss. One of the key components of our success is the embracement of technology to exponentially increase our effectiveness in every aspect of our business. This is core to our mission and continues to drive our growth and set the standard for the insurance industry. Of course our people make the difference and that is why we invest so much in the development of our team members and the environment in which they work. Together we are building a culture of success that permeates throughout our organization and extends to the communities in which we serve.

OUR APPROACH TO SUSTAINABILITY & RESILIENCY Our sustainability approach is rooted in those areas where we can have measurable impact. As a professional services organiza Ɵ on, we are limited in the scope of ini Ɵ a Ɵ ves that have a direct quan Ɵ fi able e ff ect on the environment, but we have tried to improve our footprint where possible. Those e ff orts include:

x Consolidation and improved efficiencies in our offices x More efficient utilization of resources to run our business x Prioritization of sustainability criteria in our vendor selection process

From an educational standpoint, we are guiding our team members on best practices to support a more sustainable organization. Our operational resiliency is another key component of our overall success strategy. We are early adopters of technology in all its forms, including AI to create a safer, faster, more accurate and responsive ecosystem to run our business. We have formed several committees focused solely on the development and improvement of our infrastructure. Our sales and account management platforms have been integrated in a way that identifies opportunities for more efficient workflows, coverage indications to support the rounding of our client book of business, and safeguards to protect our data and processes in the event of external disruptions. These efforts help us to absorb the stresses of an ever-changing insurance landscape which in turn helps to create a positive environment for our workforce. Ultimately, we are driving our success through the prioritization of these initiatives.

SUSTAINABILITY & RESILIENCY COMMITTEE

Our committee was formed to create a more sustainable and resilient environment across the FRP community. It is charged with identifying, implementing, and measuring the initiatives that will improve corporate sustainability at Foundation Risk Partners. As such, we are committed to developing environmental best practices throughout our agencies. We work to ensure that the appropriate governance structure is in place to provide necessary oversight for our sustainability initiatives. The Board of Directors created the Sustainability & Resiliency Committee and delegated formal oversight of sustainability matters to this committee in accordance with its charter.

Executive Sponsors Tom Leek, Chief Legal Officer

Kathleen Shanahan, FRP Board Member and Senior Advisor to Turtle Inc.

Members

x Brian Feeley,

x Paul Rice,

x Chris Bell, Chief Administrative Officer x Teresa Brock, Director of Acquisition Accounting & Reporting x Linette Cartagena, Executive Coordinator x Natalie Corbett, Chief People Officer

Chief Marketing Officer

Associate Legal Counsel

x Alexis Henley, VP of Project Management & Business Administration x Paul LaRubbio, Sr VP of Finance & Accounting x Kim Powers, Director of Legal Services

x Paul Tucker,

Director of Facilities

x Michelle Young, VP of Learning & Development

INVESTING IN OUR GREATEST RESOURCE

One of Foundation Risk Partners ’ most valuable attributes is our ability to become a true extension of our clients ’ team. This is because of our deeply committed and extraordinarily talented employees. Our people represent the best of what we have to offer as an organization. We lead by example. Investing in them as they invest in us. This mindset is reflected from the top down in our company ’ s principles and beyond. FRP ’ s success as an organization is a reflection of the trust and backing of Partners Group. A firm committed to the cause of sustainability & resiliency and the example we follow as Foundation Risk Partners solidifies its own path. Their dedication has given us concrete standards to strive for an organization. This is why one of our objectives is to foster a company culture where teammates can achieve their goals, develop their skills and do meaningful work to further their aspirations in our industry. Every day our 2,500 associates provide clients with the guidance they need to ensure their insurance needs are being met. We can do no less for our staff. Keeping our teammates engaged and successful is paramount to Foundation Risk Partners ’ success as a thought leader in the insurance community. They are our greatest resource and we are invested in supporting them as they support our company ’ s goals and objectives.

We do this in a few ways:

x Learning and Development x Wellness & Wellbeing x Employee Resource Committees x Culture & Community Outreach

LEARNING & DEVELOPMENT

Excelling as an organization is only possible when the entire staff is focused on improving personal contributions. To that end, we have transformed our company into a premiere learning environment through staff education and information sharing. Our holistic approach to internal employee training and development is called Learning Foundations . FRP offers many of our learning programs through a learning management system (LMS) as it provides a robust and unified learner experience. Utilizing the LMS, our Learning & Development team can distribute content for a blended learning environment that includes live, virtual, and online courses. The LMS also supports team members working remotely through greater flexibility which leads to higher course completion rates and better information retention. Through our LMS, Learning Foundations is separated into different approaches based on company career track:

x Learning Foundations Sales Academies x Account Management Training Academy

Each academy module provides fundamental technical knowledge as well as project management skills and product training presented by subject matter experts. The blended, interactive format includes live classroom, virtual and online learning along with testing to ensure the successful transfer of learning.

HEALTH & WELLBEING One of FRP ’ s core capabilities is in the area of wellbeing. We are a leading provider in benefits and solutions and we work with many clients to build out the strategies that lead to a return on investment with regards to their employees ’ health outcomes. Our 2024 strategic initiative saw to the development of a wellness committee dedicated to our campaign on preventive care. We are starting an education series that focuses on the importance of preventive care. Our main objective is to encourage as many people as we can within our organization to complete their annual physical exams with their doctor. This education series will highlight the importance of these annual exams combined with age and gender related screening tests such as colonoscopies and mammograms. However, it does not stop at reminding teammates about recommended preventive screening tests. For example, skin cancer is the most common cancer in the United States but the U.S. Preventive Services Task Force does not have current guidelines for screening. As part of our dedication to organizational wellness, FRP opened an onsite health clinic at our headquarters in Ormond to ensure our employees always have healthcare access. This is just the start of how we plan to focus on educating our teammates so they can assess their own personal risk and make informed decisions about their health. In this area, one of our initiatives is to create the baseline by which we can measure the improvements on preventive care engagement and services. That data will be included in our next sustainability & resiliency report.

The Center is led by Dr. Arun Dhand, a healthcare professional with more than 40 years of experience, offering a range of preventive care services.

WOMEN ’ S EMPLOYEE RESOURCE COMMITTEE

As part of our commitment to supporting our diverse employee community, FRP has begun establishing employee resource committees. Employee resource groups are voluntary, employee driven groups that foster belonging, professional development and inclusion. They allow employees to feel heard by their peers and promote collegiate camaraderie. They can also provide insightful information for young professionals seeking to understand the nuances of the industry they work within. The Power Collective is our FRP employee resource committee to support women in insurance. We believe it is important to invest in our team members and foster their growth and ambitions in our organization. This is why The Power Collective is so important to our community. Their mandate is: Supporting one another: Providing a platform for open dialogue, encouragement, and solidarity in navigating challenges and celebrating achievements. Advancing diversity: Actively promoting diversity initiatives and advocating for inclusive practices within our teams and across the company. Enhancing professional growth: Offering opportunities for skill development, career guidance, and networking to help women excel in their roles and beyond.

CULTURE & COMMUNITY OUTREACH Foundation Risk Partners is dedicated to supporting organizations and families in need through our regional Cares networks of community outreach, We Care. We Care It not only strengthens our internal corporate culture by way of fellowship but reminds us all why we do what we do - to protect what matters most to you. And for many of our neighbors, close and far, a helping hand, food, shelter and support can make a world of difference. The FRP family is kind and compassionate and prioritizes helping others so that tomorrow will be better than today. We spearhead this work through our CARES program which has two pillars of focus: x CARES Forward – Paying it forward to our nonprofit clients and local communities with a focus on health & wellness x CARES Comfort – Caring for our colleagues and teams through internal initiatives focused on emotional wellbeing, team building events and recognition Through these two pillars, FRP fosters growth for the individual and the company. FRP has 2,400 teammates and offers 8.5 hours of volunteer time annually to all of them. That means over 20,000 hours of voluntary time that our teammates can use to give back to the communities we serve. Some of those initiatives include: x Clothing Donation x Disaster Relief x Food Drives x Habitat for Humanity x Toy Drives

(On the left is one of our FRP team members supporting a local Habitat for Humanity project.)

DIVERSITY & INCLUSION

Our approach to diversity and inclusion is an ongoing process of learning, understanding, training and implementation of programs that allow us to further mature as an organization. While we have always embraced diverse cultural and economic backgrounds, recent reflection has led us to refine and redefine how we evaluate these goals. We recently updated our required D&I training program, and encourage individual participation in paid volunteerism, a vital part of further understanding our role in the workplace, community, and society. As part of this commitment to our community, we are developing a local mentorship program to help provide career opportunities to a new and more diverse generation. By including underrepresented voices in positions of leadership, we hope to address existing barriers in for the historically underserved members of our local and regional communities. This initiative is also supported by the charter of our equity partner, Partners Group. Since their inception, Partners Group have seen time and again that we make the best decisions when we jointly explore and vigorously debate a range of viewpoints, in order to achieve clarity of direction. This process of 'creative abrasion' is key to the partnership approach that sits at the heart of our business. As a new and rapidly growing company, FRP ’ s goal is to provide opportunities for all candidates and teammates to succeed and to cultivate a workforce that mirrors the diverse communities we serve.

BUSINESS CONTINUITY & RISK MANAGEMENT

Foundation Risk Partners enforces robust disaster recovery protocols. Our Agency Management System is a common operating platform and is located on a secure cloud allowing teammates to service our customers from both the office and remotely. Further, our organization stores backups at a secure off-site data site located more than 100 miles away from our primary location. We maintain a redundant data facility situated over 250 miles away, which houses our current backup data. An independent third-party performs semi-annual penetration testing to ensure our systems remain impervious to outside attacks. FRP is committed to the protection, security, and integrity of all confidential information. To ensure global compliance, our company ’ s various processes and workflows undergo regular reviews by our Privacy Officer and General Counsel with a specific focus on privacy rules and HIPAA requirements. All new teammates with access to sensitive information receive comprehensive training on privacy rules and requirements. Additionally, we employ secure shredding disposal services through our waste disposal vendors across our regional locations, further safeguarding sensitive information. Our ability to transition to a virtual work setting during the Covid-19 pandemic demonstrates our agility in ensuring uninterrupted service and support for our clients during challenging times. Furthermore, our client support model is built on a collaborative team approach. Each client is supported by multiple highly specialized individuals with overlapping skillsets. This redundancy and cross-training allow for consistent, high-level service even when team members change, or individuals are periodically unavailable.

CYBERSECURITY & PHISHING AWARENESS

FRP has very stringent policies and procedures in place as well as multiple monitoring and alerting agents that report to a 3rd party SOC that monitors and controls 24x7x365. We have a security assessment policy that applies to all FRP information systems and information system components. Corporate Synergies periodically assesses the security controls in organizational information systems to determine if the controls are effective in their application. Both security and vulnerability assessments are performed by internal staff to ensure appropriate levels of coverage and oversight are maintained. We routinely scan our network and applications for unauthorized access through our network and security vendors. FRP enforces enterprise-wide security procedures for web sites, applications, databases, servers, networks, desktops and other endpoints, which are regularly monitored and assessed. Our processes and workflow are designed and reviewed regularly by our General Counsel.

In addition to this, we ensure that our teammates and staff are briefed on cybersecurity constantly through ADP module education. Everyone in the organization must complete these education modules on an annual basis. Periodic updates from the Information Technology, such as the infographic seen here, keep everyone informed on the appropriate protocols to avoid scams and our continuing education program, Learning Foundations reinforces the knowledge required to keep the entire FRP enterprise.

ENVIRONMENTAL AWARENESS & ACTIVITY

At FRP we are deeply concerned about our environmental impact. This is why we have established the committee to focus on initiatives that reinforce company sustainability practices and strengthen our resilience. In pursuit of these goals the committee has done the following: x Surveyed all FRP Agencies to identify products and programs to improve our environmental footprint

x Created internal communication materials to promote new sustainability policies such as: x Don ’ t Get Trashed – avoiding single use food packaging and utensils, x Paper Cuts – cutting back on paper use, using recycled paper and going digital x Turn Offs – investing in energy efficient appliances, unplugging appliances when they are not in use and turning off the lights when a room is not occupied. x Water You Thinking? –focuses on reducing plastic water bottle use and water conservation recycling old electronics and composting organic materials