Sustainability-Related Disclosures

Lyrical practices responsible investing. We believe our investment pillars align naturally with solid ESG practices. As deep value investors, we require our strategies to also exhibit the characteristics of Quality (sustainable earnings and good returns on invested capital) and Analyzability (transparent and predictable business models). We see a strong relationship between Quality and Analyzable companies and those companies’ favorable ESG practices, including their willingness to further embrace responsible practices.

Our approach is built on bottom-up research to identify the ESG risks and opportunities in each of our investments, and on proactive, friendly, and long-term engagement which encourages our companies to steadily improve and adopt best practices in ESG reporting, goal setting, and impact. Our long-term holding periods and material stakes in our companies have afforded us a receptive audience with company management for our engagement.

We have been encouraged by the impact of our responsible investing efforts and seek to continue to deepen our integration of ESG in our investment process.