Hannon Armstrong1906 Towne Centre Blvd , Suite 370, Annapolis, Maryland, United States

Hannon Armstrong provides debt and equity financing to the energy efficiency and renewable energy markets. We focus on providing preferred or senior level capital to established sponsors and high credit quality obligors, such as U.S. federal, state and local governments, Global 1000 corporations and private developers, for assets that generate long-term, recurring and predictable cash flows.  Our management team has extensive industry knowledge and experience, having completed its first renewable energy financing more than 25 years ago and its first energy efficiency financing over 15 years ago.

In conjunction with our initial public offering (IPO) which closed on April 23, 2013, we changed our organizational structure in order to allow us to continue our business as a real estate investment trust (REIT). Our strategy in converting to a REIT and in undertaking our IPO was to expand our proven ability to serve our rapidly growing markets by increasing our capital resources, enhancing our financial structuring flexibility, expanding the types of projects and end-customers we pursue, and selectively retaining a larger portion of the economics in the assets in which we invest, while delivering attractive risk-adjusted returns to our stockholders.

Hannon Armstrong conducts investment banking through Hannon Armstrong Securities, LLC, a registered broker-dealer, member of FINRA and SIPC and subsidiary of Hannon Armstrong Sustainable Infrastructure Capital, Inc. 

BUSINESS PARTNER CODE OF CONDUCT

It is the general policy of Hannon Armstrong Sustainable Infrastructure Capital, Inc. and its affiliates (the “Company”) to conduct its business activities and transactions with the highest level of integrity and ethical standards and in accordance with all applicable laws, rules and regulations. Obeying the law both in letter and in spirit is the foundation on which the Company’s ethical standards are built. The Company’s Business Partner Code of Conduct sets the Company’s expectations and standards for doing business and applies to agents, distributors, dealers, contractors, intermediaries, joint venture partners, suppliers, and other business partners.

RENEWABLE ENERGY

We provide debt and equity financing for projects that deploy cleaner energy sources, such as solar and wind.  We focus on financing renewable energy projects which use proven technology and that have contractually committed agreements with high credit quality utilities or large electricity users to enter into power purchase agreements under which the utility or large user purchases the power produced by the project at a minimum price with potential price escalators. These projects are building or facility specific and may be combined with other energy efficiency projects or are standalone projects designed to sell power to electric utilities or large users. Developers, including many ESCOs, acquire a specific site and the applicable permits and negotiate the construction and maintenance contracts and the power purchase agreement. The size of the project and the payback depends on the nature of the project as well as the cost of traditional energy sources. Building specific projects can be as small as $1.0 million or less while standalone projects can be as large as several hundred million dollars or more.

SUSTAINABILITY INVESTMENT ANALYSIS

Sustainability means different things to different people. To help you understand our approach, please read below.

Background

We believe that sound investing practices should include analysis of the environmental benefit of the proposed investment. It is our practice to invest in projects that increase energy efficiency, provide cleaner energy, positively impact the environment, or make more efficient use of natural resources. As such, we apply a clear and transparent set of policies when evaluating the environmental impact of any proposed investment.

What we mean by “sustainability”

We define sustainability as positively impacting the environment while being neutral or reducing greenhouse gas (GHG) emissions. In addition to GHG emissions, projects are screened for other environmental benefits, such as water use reduction. The quantification of environmental benefits is part of our investment screening process.

Measuring the Impact of Hannon Armstrong’s Investment

We analyze project specific data, for example the expected reduction in annual energy consumption resulting from the installation of energy efficiency upgrades or the energy produced by a clean energy project, to determine expected environmental benefit associated with such projects. For example, to measure the carbon impact, we calculate the annual metric tons of carbon emissions offset by the project, taking into consideration the fuel mix percentages and carbon intensities of fuel in the state where the project is located.1 We then evaluate the relative impact of our potential investment by calculating the pounds of carbon emissions reduced annually per dollar invested.

Disclosure Standards

For competitive reasons, it is a general policy of Hannon Armstrong to not disclose specific investment information. However, we plan to release annually the CO2 equivalent impact of each project we finance to provide appropriate transparency of the environmental profile of our portfolio.

In summary, we believe that our investments have and will continue to have significant environmental benefits. Our promise to be on the right side of the climate change issue will continue to be a defining principle of the Company, and we are committed to disclosing the environmental impact of our financed projects to all interested parties.