Item - 2026.TA16.7

The Vice President, Impact Investing, Toronto Atmospheric Fund recommends that the Board of Directors of the Toronto Atmospheric Fund:

1. Approve the purchase of the Project Originator’s remaining interest and ongoing royalty income in two legacy ESPA retrofit projects for $35,000, subject to:

a. the Project Originator bearing all legal costs required to effect the transaction;

b. completion of all required documentation to effect TAF's purchase, on terms satisfactory to the Vice President, Impact Investing; and

c. satisfactory review of all legal documentation by TAF's legal counsel, as determined by the Vice President, Impact Investing and the Chief Executive Officer.

2. Direct that the confidential information contained in Confidential Attachment 1 remain confidential in its entirety, as it contains commercial and financial information, supplied in confidence to the Toronto Atmospheric Fund, which, if disclosed, could reasonably be expected to prejudice significantly the competitive position or interfere significantly with the contractual or other negotiations of a person, group of persons, or organization.

The Direct Investment Committee recommends that the Board approve Toronto Atmospheric Fund's purchase of the remaining interest in two legacy Energy Savings Performance Agreement (ESPA) projects and an associated royalty stream held by a for-profit, energy efficiency-focused infrastructure-as-a-service company (the “Project Originator”). Toronto Atmospheric Fund currently owns a partial interest in these Energy Savings Performance Agreements. The transaction would simplify administration of the mature contracts and allow Toronto Atmospheric Fund to receive all remaining project revenue. Details of the transaction are contained in Confidential Attachment 1.

There is no financial impact to the City of Toronto resulting from the adoption of the recommendations in this report.