01 Our sustainability approach 02 Sustainable investing 03 Active stewardship 04 Corporate sustainability 05 Appendix 01.1 Evolving our strategic approach Principles 1 4 9 We have identified three pivotal themes which we believe are critical to society, our investors and us as a business: climate change, planetary boundaries, and inclusive capitalism. We aim to deconstruct these into actionable sub- themes and use them to guide targeted engagement and research to ensure we identify the most material risks and Planetary boundaries Inclusive capitalism opportunities for our business and its Climate change how we will sustain the how we live equitably future impact. the future temperature population in a higher in a higher temperature in which we will live temperature world world with an evolving global economy Key ESG • Climate change • Biodiversity • Social welfare and inclusion issues • Climate action • Circular economy, resilience • Access to health, finance and education • Resource use (eg, water use, • Human capital, livelihoods land management) Beliefs Climate change is one of our planet’s We have to define the environmental Inclusion will become the next big most pressing challenges, with potential limits within which humanity can safely wave after climate change, and consequences across all three operate, and avoid any unintended will require innovative thinking and ESG elements. consequences of the fight against solutions that meet the demands climate change. of younger generations. Examples • Over 30 mutual funds implement • SDG-aligned capabilities: Global • SDG-aligned capabilities: Sustainable our Climate Engagement with Water, Clean Planet, Food Security Health, Positive Change 4 Outcome (CEWO) approach and • Collaboration with initiatives to • Emerging markets blended finance engage top carbon emitters to set develop standardised indicators focus in private markets ambitious pathways • Decarbonisation solutions 4 Since launching CEWO, increasing regulation has shifted the focus towards more data-driven approaches, while engagement is typically viewed as complementary to a sustainability strategy. We have evolved our approach to climate transition to encompass data and measurability using key performance indicators. 15