Investment Impact Report 2019

Im pactReport2019 December2020

Contents Wel come 2 The mandat e’ spur pose 4 Oursoci alr esponsi bi l i t y6 The i mpactofyouri nvest ment s7 The f undsyou i nvesti n8 Aegon Gl obalSust ai nabl e Equi t y8 BMO Responsi bl e Gl obalEmer gi ng Mar ket s9 Feder at ed Her mesI mpactOppor t uni t i es10 Gol dman SachsEmer gi ng Mar ket sEqui t y ESG 11 Ni net y One Gl obalEnvi r onment12 Pi ct etGl obalEnvi r onment alOppor t uni t i es13 Pol arCapi t alEmer gi ng Mar ketSt ar s14 RobecoSAM Gl obalGenderEqual i t yI mpactEqui t i es15 UBAM Posi t i ve I mpactEqui t y 16 Vont obelCl ean Technol ogy 17

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W ELCOME t o oursecond i mpactreport For f i r st t i me r eader s, t hi sr epor t ai mst o pr ovi dei nvest or si n Af f i ni t y’ s Sust ai nabl e St r at egy wi t h an i nsi ght i nt ot he posi t i ve cont r i but i ons t hei r capi t alhas made t owar ds t he UN’ s Sust ai nabl e Devel opment Goal s ( SDGs) , usi ng t he t hemes whi ch shapet hi smandat e.

Weagr eewi t ht hef ol l owi ng: “ Capi t alal l ocat i on and engagement st r at egi es r epr esent t he most power f ult ool sf ori nvest or st omakea di f f er ence i nt he l i st ed equi t y space.

I nvest i ng i nl i st ed equi t i es hel ps t o r educe compani es' cost of capi t al , suppor t i ng f ut ur e gr owt h.The act ual i mpact i s t hen – by def i ni t i on – achi eved by t he por t f ol i o hol di ng t hr ough pr oduct s and ser vi ces t hat hel pt or educet heecol ogi calf oot pr i nt and i mpr ove our l i ves. Act i ve owner shi p, most i mpor t ant l yi nt he f or m of di r ect engagement and vot i ng, i st he ot her i nst r ument t o i nf l uence por t f ol i o compani es. Thi s i mpr oves t r anspar ency and f ost er s posi t i vechange. ” -Vont obelI mpactRepor t ,2020 As per t he above, t he under l yi ng manager sweusepubl i sht hei ri mpact r epor t sf or 2019, t hr oughout 2020.

However ,t hi syeari thaspr ovenmor e chal l engi ng wi t h Covi d l ockdowns seemi ngl ymaki ngt hecoor di nat i onof t hei r pr oduct i on di f f i cul t . We sense t her ei sanot herf act oratpl ay.

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Par t i ci pant s i n t hi s space ar e i ncr easi ngl yawar eoff l awsi nmet r i cs commonl y used t o demonst r at e i mpact .Forexampl e,ar ound car bon emi ssi ons, some compani es wi l l r epor t on Scope 1 and 2,but omi t Scope 3 met r i cs due t o t he compl exi t i es i nvol ved – ot her s wi l l i ncl ude al lt hr ee ( r ef er ence t o Ni net y One engagementcomment son page 12) .

As we wr ot e l ast year , al l st akehol der sar e keen t o st andar di se t he t axonomy and t husenabl ef ai r er assessment and measur ement . So whatpr ogr esshasbeen made i nt he past12 mont hs?

TheEur opeansar eaheadoft hegame when i t comes t o devel opi ng t hei r f r amewor k.A keyel ementi nt heEU’ s endeavor si st he socal l ed EU Act i on Pl an f or Fi nanci ng Sust ai nabl e Gr owt h.As one oft he t hr ee pi l l ar s, t he EU Taxonomy i s a cl assi f i cat i on syst em t o det er mi ne whet her an economi cact i vi t yi ssust ai nabl e.The t woot herpi l l ar scoverdi scl osur eand r epor t i ng aspect s, as wel l as how sust ai nabl e pr oduct s shoul d be pr esent edt ocl i ent s.

The EU t axonomy l i st s si x envi r onment al obj ect i ves and f i nanci al pr oduct s aspi r i ng t o a sust ai nabi l i t yl abelmust assess t he act i vi t i es of t hei r hol di ngs accor di ngl y.

The si x envi ronm entalobj ecti ves ofthe EU taxonom y

Foracompany’ sr evenuest obeel i gi bl e,t hebusi nessmustsuppor tatl east oneoft heseobj ect i ves,andnotf ai li nanyoft heot herf i ve–r ef er r edt oas DNSH ( do no si gni f i canthar m) .Mor eover ,a company mustmeetmi ni mum soci al and gover nance r equi r ement s– r ef er r ed t o as compl i ant wi t h mi ni mum saf eguar ds.

Asset manager s ar e expect ed t or epor t on t hei ri nvest ment s usi ng EU Taxonomydef i ni t i onsst ar t i ngi n2021,whi chi sbef or eEU compani eswi l lbe r equi r ed t o make t hei rown di scl osur es.Ther ef or e,i nst i t ut i onali nvest or s wi l li nt hemeant i meneedt or el yon t hei rown r esear ch.Consequent l y,i ti s i mpor t ant t or ecogni se t hat a l i kef or l i ke compar i son ofi nvest ment si s nei t herf ai rnormeani ngf ul ,att hi st i me.I ti sbet t ert osi mpl yr epor tont he posi t i ve soci aland envi r onment alact i vi t i es oft he under l yi ng compani es hel di n yourpor t f ol i o;as wel las t he manager s’engagementt oi nf l uence changef orgood.

Sot hi si swhatwear edoi ng.

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Recappi ng t he purpose oft he mandat e Forus,sust ai nabi l i t ymeansmaki ngeconomi cpr osper i t yl ongl ast i ng,mor esoci al l y i ncl usi ve and l ess dependenton expl oi t at i on off i ni t er esour ces and t he nat ur al envi r onment . Over t he past decades, t hi st heme has al so per meat ed f i nanci al mar ket s.Ther at i onal ef orsust ai nabl ei nvest i nghasgai nedsuppor tandl egi t i macy.

Thi si mper at i veofsust ai nabl ef i nancei snot hi ngnew;whati snew i st hemoment um behi nd i t s i mpl ement at i on. Today, compani es t hat pr ovi de sol ut i ons t o t he chal l engesf acedar ewel lpl acedt ogr ow st r ongl y.Webel i eve,byi nvest i ngi nt hese f i r ms,our cl i ent s can make a posi t i ve cont r i but i on t owar ds a mor e sust ai nabl e wor l d,al i gn weal t h wi t ht hei rval uesandgener at eat t r act i vecapi t algai ns.

Thepur poseoft hi smandat ei st opr ovi degr owt hwi t hi mpact .Thest r at egyt ar get s i nf l at i onpl us3% ,overal ongt i mehor i zonofatl eastt enyear s.Thi sr epor tf ocuses oni mpactanddoesnotanal ysei nvest mentper f or mance,whi chhasbeenpl easi ngl y st r ong,andi sdet ai l edi n ourquar t er l ycommuni cat i ons.

8t hemes Weal l ocat ecapi t al ,usi ngf unds,acr oss8 t hemes.Namel y;

heal t h andwel l bei ng

r educedi nequal i t y

r esour ceef f i ci ency

cl ean ener gy

wat er

sust ai nabl eci t i es

f ut ur emobi l i t y

educat i on

These sust ai nabi l i t yt hemes r el at et ol ongt er m t r ends and t he f unds we use t o accesst hem ar ef ocused on t hecompet i t i veadvant agesoff i r msand economi esi n t hef ut ur e,r at hert hanval uedi mi ni shi ngshor t t er mr eact i ons.Eacht hememapst o oneormor eoft he17 UN SDGs. 4

By i nvest i ng i nt hi s st r at egy you al so suppor tDur r el lWi l dl i f e Conser vat i on Tr ust ( DWCT) .A f i xed per cent age oft he di scr et i onar yf eesyou pay ar e donat ed t ot hi s J er seyr egi st er edchar i t y.Theygot osuppor tt hechar i t y’ swor kar oundt hegl obet o save speci es f r om ext i nct i on.Lear n mor e aboutt he i mpor t antwor kt hey do by vi si t i ngwww. dur r el l . or g.

Durrel lW i l dl i f e Conservat i on Trust 5

Af f i ni t y’ s soci alresponsi bi l t y Our commi t ment t o sust ai nabi l i t y ext ends beyond t hi s mandat e. As a f i r m, our Et hi cal Char t er ( accessi bl e on our websi t e) set st he t one f or our busi ness. We ai m t o be good cor por at e ci t i zens, act i ve i n our communi t y and suppor t i ng gl obal ef f or t st owar dsamor esust ai nabl ewor l d.

Someoft heact i vi t i eswear epr oudofi ncl ude; Si gni ng up t o The Jersey Li vi ng W age – whi ch ensur esal lourempl oyeesandt hoseofoursuppl i er s ar epai dawaget omeetbasi cl i vi ngcost s.

Bei ngt he5t hcompanyont hei sl andt obeawarded Chart er St at us, by t he Jersey Good Busi ness Counci l . versi t y Net work – an i ni t i at i ve Support i ng The Di whi chpr omot esandenabl esdi ver si t yandi nnovat i ve wor ki ngpr act i cesi nJ er sey.

Sponsori ng Eco Jersey - whi ch ai ms t o r ai se awar eness ofenvi r onment ali ssues and encour age i sl ander st ot akemi t i gat i ngact i ons.

Bei ng par t of a gover nment envi r onment al managementscheme – Eco Act i ve – t aki ng act i on t ol owert heenvi r onment ali mpactofourbusi ness.

Ar ecogni t i on ofourcommi t mentt o st af fwel l bei ng i nt he f or m off ourshor t l i st i ngsand one wi ni nt he Leadersi n W el l Bei ng Awards.

I nt he pi pel i ne we have car bon of f set t i ng i n col l abor at i on wi t h Dur r el l and f or mal i si ng di ver si t y andi ncl usi ongoal sf orappr ovalby t heboar d.

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The i mpact ofyouri nvest ment s

Ourf und managers

350

We cont i nue t o enj oy excel l ent access t o our manager s-i ndeedwehaveseeni nsi demanyoft hei r homes,dur i ng t he Covi d pandemi c,whi l ston Zoom cal l swi t ht hem.

10 f unds

We have been har d atwor kr esear chi ng oppor t uni t i es acr oss di f f er ent asset cl asses, as t hi s space mat ur es. We ar e exci t ed by t he pi pel i ne of new f unds comi ng onst r eam, whi ch i ncl ude some much neededbondsol ut i ons.

underl yi ng st ocks

As sust ai nabl e i nvest i ng moves i ncr easi ngl y mai nst r eam, t he demand f or ski l l ed manager s cont i nuest o gr ow.Thi shasr esul t ed i nt eam moves f r om one f und house t o anot herand i ncl uded one of t he manager s we al l ocat et o. I nt hi s case, af t er di scussi onanddebat e,wer et ai nedourhol di nggi ven t hest r ong pr ocessand pedi gr eeoft hef i r m.Theyi n t ur n, namel y Feder at ed Her mes, r ewar ded our l oyal t ybyl ower i ngt hemanagementf eesoft hef und, f oraper i odoft i me.

£3 bi l l i on asset sundermanagement

The dat a we have avai l abl ei sf or2019 and r ef l ect st he hol di ngs over t hat year . Dur i ng t hi st i me t he por t f ol i o hel d over 350 i ndi vi dualst ocks,acr oss10 f unds,wi t ht he t ot alasset smanaged by t hese 10 por t f ol i o manager sbei ng c. £3.

0bn.You wi l ll i kel y be r el i eved t o know we ar e not r epor t i ng on ever y under l yi ng posi t i on,al t houghwehaveaccesst ot hi si nf or mat i on.I nst ead,we ar e–onceagai n-sel ect i ngasmal lnumberofexampl est hatbr i ng t he 8 t hemes t o l i f e and i l l ust r at e t he di ver si t y of sect or s, geogr aphyandmandat e.Weal soaddr esshow t hei ndi vi dualf und houseshavebeen engagi ngwi t h companymanagement .

Aegon Gl obalSust ai nabl e Equi t y For mer l yt heKamesGl obalSust ai nabl eEqui t yf und,t hi spr ovi desexposur et oapor t f ol i oofmi dcap gr owt h st ocks. The i nvest ment t eam use a bot t omup appr oach t o cat egor i se compani es as sust ai nabi l i t yl eader s,i mpr over sorl aggar ds.Thei ri nvest mentconvi ct i oni sul t i mat el ydet er mi nedby combi ni ng t hese i nsi ght s wi t h an est abl i shed gl obalequi t y st ockpi cki ng pr ocess. Aegon Asset Management ( Aegon) sear ch f or t he best i deas and ai m t o enhance per f or mance by i ncr easi ng exposur et ocompani eswi t h st r ongsust ai nabi l i t ycr i t er i a.

Pl ug Power(Uni t ed St at es): hydrogen f uelcel l s

Ampl i f on (It al y): t reat i ng heari ng l oss

Pl ug Powermakeshydr ogen f uelcel l sf or f or kl i f tt r ucks and ot her commer ci al vehi cl es.I tof f er soneoft he onl y endt oend hydr ogen power cel lsol ut i ons i nt he wor l d and has at t r act ed a numberofFor t une 500 compani es wi t hl ar ge di st r i but i on cent r esand war ehousest o buy i t s sol ut i ons ( exampl es i ncl ude Amazon and Wal mar t ) . Hydr ogen power ed f or kl i f tt r ucks can i ncr easepr oduct i vi t yi n awar ehousebyas much as 20% compar ed t ot hose power ed by t r adi t i onal l ead bat t er i es, as t hey can be r ef uel l ed i n af r act i on oft het i memeani ng l ess t i meof ft hewar ehouseorf act or yf l oor .Recent acqui si t i ons have made t he company mor e ver t i cal l yi nt egr at ed, maki ng i t a si gni f i cant pl ayeracr osst hewhol ehydr ogen val uechai n.

Hear i ng l oss i s a l ar gel y unr ecogni sed heal t h pr obl em despi t e t he f act t hat 466 mi l l i on peopl e, gl obal l y,l i ve wi t h di sabl i ng hear i ngl oss.Ampl i f oni st he wor l d’ sl ar gest hear i ng ai d r et ai l er and a sust ai nabi l i t yl eader i n heal t h car e. Founded i n Mi l an, t he company now oper at esi n over21 count r i esand pr ovi desan end t o end ser vi ce wi t h an emphasi son hi ghl y t ai l or ed,cust omer speci f i c sol ut i ons.Ampl i f on i sal soatt hef or ef r ontoft heuseoft echnol ogy i n t he space, hel pi ng t o i ncr ease t he i nt er connect i vi t y ofhear i ng ai ds t o maxi mi se t hei reaseofuse/ mai nt enanceandt hebenef i t s f ort hecust omer .

Engagement Aegon have bui l ta r obustact i ve owner shi p pr ogr am t hati ncl udes exer ci si ng shar ehol dervot i ng r i ght si nt hebesti nt er estofcl i ent s.Theyengagewi t hbondorequi t yi ssuer si nanef f or tt omi t i gat e ESG r i sk,t o hel p bet t er under st and t he oppor t uni t i es t hatcompani es f ace and encour age mor e sust ai nabl epr act i ces.

Theybel i evet aki ngr esponsi bi l i t yasani nvest oral someansbei ngat r ul yact i veowner ,notj ustasa shar ehol derbutasaf i nanci ermor ebr oadl y.Aegon st epped up t hei rengagementact i vi t i esi n 2019, i ncr easi ng t he numberofcompani es t hey engaged wi t hf r om 360 i n 2018 t o 564 i n 2019.Cor e engagementt hemes cent r ed on heal t h & wel l bei ng,cl i mat e change,cor por at e gover nance and l abourr i ght s.

I n2019,Aegonvot edat2, 321meet i ngsgl obal l y,upf r om 1, 373i n2018.Appr oxi mat el y91% ofvot es wer ecastwi t hmanagementand9% wer eagai nst .Theper cent ageofmeet i ngswi t hatl eastonevot e agai nstmanagementwas48% ,or1, 112 outof2, 321.

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BMO Responsi bl e Gl obalEmergi ng Market s Thi sf und i nvest si n hi gh qual i t y, l ar ge cap compani es, wi t h st r ong or i mpr ovi ng sust ai nabi l i t y char act er i st i cswhi ch we bel i eve i st he r i ghtappr oach f orl ongt er m i nvest i ng i n emer gi ng mar ket s.

I nt egr at edt ot hei nvest mentpr ocessi sBMO’ sResponsi bl eI nvest mentAdvi sor yCounci l–i npl acet o mai nt ai nt he i nt egr i t y oft he st andar dsby whi ch t he Responsi bl er ange off undsar er un,pr ovi di ng advi ceon et hi calandsust ai nabi l i t ycr i t er i a.

AguasAndi na SA (Chi l e): saf e dri nki ng wat er

Si nopharm Group Co Lt d (Chi na): heal t hcare equi pment& servi ces

Di st r i but es pot abl e wat er and of f er s wast e wat ert r eat mentser vi cesi nt he Met r opol i t an Regi on ofSant i ago de Chi l e.The r egul at ed compani es oft he Aguas Gr oup manage t he whol e wat er cycl e, i ncl udi ng cat chment t r anspor t at i on and x di st r i but i on; and t he col l ect i on,t r eat mentandf i nal di sposalofwast e wat er .The busi ness guar ant ees t he suppl y ofwat err egar dl ess of connect i on event s, dr ought , ear t hquakes, and ener gy pr obl ems.I tmanagesnat ur al r esour ces ef f i ci ent l y and i s consi der ed one ofChi l e’ s key al l i es i n t he f ace of t he count r y’ s commi t ment s t o COP21 ( Par i sCl i mat eAccor d) .

Pr ovi des compr ehensi ve di st r i but i on, l ogi st i cs and ot her val ue added ser vi ces t o domest i c and f or ei gn manuf act ur er s and x suppl i er sof x phar maceut i cal s, medi cal devi ces and ot her heal t hcar e pr oduct s. I t suppor t s downst r eam cust omer s i ncl udi ng hospi t al s,ot herdi st r i but or sandpr i mar yheal t h ser vi cesi nst i t ut i ons.Thecompanymanagesi t s net wor kofr et ai ldr ugst or esi nmaj orci t i esvi a di r ectoper at i onsand f r anchi sest husensur i ng access t o saf e, ef f ect i ve and af f or dabl e medi ci nest hr oughoutChi na.

Engagement I n 2019,BMO engaged wi t h 90% oft he compani eshel di nt he st r at egy,wi t ht he ai m ofi mpr ovi ng t hei rmanagementofESG i ssues.The mai nt opi cs f orengagementwer e cor por at e gover nance – boar d composi t i on and ef f ect i veness i n par t i cul ar - and cl i mat e change, i ncl udi ng emi ssi ons managementand r esi l i ence and adapt at i on.Asf orsoci alt opi cs,BMO’ sengagementcover ed i ssues r el at edt of i nanci ali ncl usi on,wor ki ngcondi t i onsandbusi nessconduct .

Vot i ng act i vi t yi n 2019 r esul t ed i n BMO opposi ng managementon 12% ofr esol ut i ons,wi t h capi t al i ssuancesanddi r ect orel ect i onst hei ssuest heyf r equent l yhadconcer nson.

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Federat ed Hermes ImpactOpport uni t i es I mpactOppor t uni t i es i s a hi gh convi ct i on,gl obalequi t y st r at egy wi t h a bol d obj ect i ve.I tai ms t o gener at el ongt er m out per f or mance by i nvest i ng i n compani essucceedi ng i nt hei rcor e pur pose:t o gener at eval uebycr eat i ngposi t i veandsust ai nabl echanget hataddr essest heunder ser vedneedsof soci et yandt heenvi r onment .

I n December2019,t he t eam managi ng t hi sf und depar t ed Feder at ed Her mes.Gi ven t he l ong t er m i nvest mentt i me hor i zon,t he l ow por t f ol i ot ur noverand t he sust ai nabl ei nvest i ng pedi gr ee oft he f i r m,wet ookt hedeci si on t ost ayi nvest ed i nt hef und.Att het i meoft heannouncement ,Feder at ed Her mesal soadvi sedt heywoul dhal vet hemanagementf eef orsi xmont hs.

ANSYS Inc(Uni t ed St at es): si mul at i on sof t ware

Cogna Educaco SA (Brazi l ): educat i on

ANSYS’sof t war ei s used t o si mul at e comput er model s of br i dges, engi nes, vehi cl es,el ect r oni cs,mobi l e devi ces and el ect r oni c component s,t onameaf ew.

I t enabl es t he anal ysi s of st r engt h, t oughness, el ast i ci t y, t emper at ur e di st r i but i on,el ect r omagnet i sm,f l ui d dynami cs andot herat t r i but es.I not herwor ds,engi neer s canbui l d‘ t hi ngs’vi r t ual l yandt henassesscor e met r i cs wi t hout havi ng t o ut i l i se physi cal r esour ces.The busi ness was r ecogni sed as a l eaderi n Cor por at eSust ai nabi l i t ybyCor por at e Kni ght s i n t hei r 2019 Gl obal 100 Most Sust ai nabl eCor por at i onsi nt heWor l di ndex.

For mer l y Kr ot on x Educaci onal , Cogna i st he l ar gest pr i vat e educat i onal company i n t he wor l d. I t oper at es i n al leducat i onal segment s, such as pr eschool , el ement ar y, secondar y, adul t hi gh school , col l ege pr epar at or y school ,f r ee cour ses, and ot her r el at ededucat i onalact i vi t i es,aswel lashi gher , pr of essi onal ,andpost gr aduat i on educat i on.

Engagement

Si nce i t si ncept i on,Feder at ed Her meshasbeen att he f or ef r ontofr esponsi bl ei nvest i ng and act i ve owner shi p.Thei rst ewar dshi pandengagementar m,EOS,est abl i shedapi oneer i ngmodelf orwor ki ng const r uct i vel ywi t hcor por at eboar dsandmanagementt eamsi nt hel ongt er mi nt er est sofi nvest or s, coi ni ngt het er mf ort hi spr act i ce– engagement .

Anexampl eoft heappr oachempl oyedi st ypi f i edbyt hei rengagementont hei ssueofhumancapi t al managementwi t h Novo Nor di sk,t he Dani sh Phar maceut i calcompany.Her meswant ed t he busi ness t of ost ergr eat erdi ver si t y.Thi sengagementcommenced i n Q4,2017 and r esul t ed i n Novo Nor di sk i mpl ement i ng a di ver si t yt al entpr ogr amme and pr ovi ded bi as t r ai ni ng f orseni ormanagementt o accel er at et he i ncr ease i n di ver se t al ent .Feder at ed Her mespr oposed t he company shoul d consi der appr opr i at e met r i cs t o measur e t he out put s of t hese i ni t i at i ves. I n Q2, 2019, t he Head of Sust ai nabi l i t y conf i r med t he company was i nt he pr ocess ofr evi ewi ng i t s boar d ski l l s eval uat i on pr ocess,andi twason t r ackt opubl i sh aboar dski l l smat r i xi ni t snextannualr epor t .

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Gol dman Sachs Emergi ng Market sEqui t y ESG Gol dman Sachs Asset Management ( GSAM) desi gned t hi sf und f or i nvest or sl ooki ng t o access dynami c emer gi ng mar ket s and i nvesti n compani es t hatshow a commi t mentt o Envi r onment al , Soci alandGover nance( ESG)l eader shi p.GSAM bel i evet hatESG andi mpacti nvest i ngf act or scanbe mat er i alt oi nvest mentper f or manceandwor kt owar dseverdeeperESG i nt egr at i onacr osst hei rr ange off unds. I n 2015, t hey acqui r ed t he asset s ofI mpr i nt Capi t al( “ I mpr i nt ” ) , one oft he l ar gest dedi cat edESG andi mpacti nvest i ngadvi sor si nt hei ndust r y.Thi sexper t i sehasbeenusedt odevel op t hephi l osophyandpr ocessesembeddedi nt hi sf und.

MercadoLi bre (Uni t ed St at es): Lat Am onl i ne marketpl ace

Tai wan Semi conduct orManuf act uri ng Company Lt d (Tai wan):comput erchi ps

Mer cado Li br e, I nc. i s an Ar gent i ne company x i ncor por at ed i n t he Uni t ed St at es t hat oper at es onl i ne mar ket pl aces dedi cat ed t o ecommer ce and onl i ne auct i ons.Whi l e envi r onment al i mpact s t hat ar e dr i ven di r ect l y by t he f i r m’ s oper at i ons ar e l i mi t ed, t he company empl oys a suppl y chai nf ocused pol i cy t o ensur e t he adher ence t o envi r onment al st andar ds t hr oughout t he val ue chai n. Addi t i onal l y, t he company i s on t he f or ef r onti nt hei rr egi on t o use bi opl ast i csf orshi pment sand i ncr ease t he useofel ect r i cvehi cl esf orl ogi st i cs.

TSMC i s a Tai wanese mul t i nat i onalsemi conduct or cont r act manuf act ur i ng and desi gn company and i s a l eader i nt he i ndust r y as i t r el at es t o envi r onment al st andar ds. Envi r onment al pr ot ect i on i s a hi gh pr i or i t y f or t he management t eam whi ch has puti n pl ace t he ext ensi ve use ofr enewabl e ener gyaswel lasaf ocuson sust ai nabl e wat er x consumpt i on,r ecycl i ng and pol l ut i onpr event i on.Fr om a soci et al per spect i ve, TSMC i s not onl y adher i ng t oi nt er nalpol i ci es and conductcodes,cover i ng empl oymentequal i t y, heal t h and f ai rt r eat ment ,butar eal sopushi ng t hesest andar dsacr osst hei rsuppl ychai n.

Engagement Engagementwi t h companymanagementt eamsi sakeyel ementofGSAM’ sst ewar dshi p pr ocess.As par toft hei rongoi ng di al ogue t hey conductdue di l i gence and di scuss a r ange ofi ssues t o bet t er under st and busi nesses t hey i nvest i n. Gl obal l y, t he GSAM t eam hol d 11, 000+ meet i ngs wi t h compani esannual l y,wi t h each oft heseusedt o; - Gat heraddi t i onali nf or mat i ononpr oxyvot i ngt opi csandexpr essvi ewsoncor por at egover nance andESG i ssues.

- Enabl et hecompl et i onofpr opr i et ar yESG eval uat i onsf ort heESG f ocusedpor t f ol i os,under st and how ESG pr act i ces ar e dr i vi ng val ue,and det er mi ne how t hese pr act i ces ar ei nt egr at ed i n st r at egyanddeci si onmaki ng.

- Pr omot e good cor por at e gover nance pr act i ces t o company seni or management and enact posi t i vechange.

Lorem Ipsum

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Ni net y One Gl obalEnvi ronment The exper i enced t eam atNi net y One manage t he Gl obalEnvi r onmentFund t o pr ovi de l ongt er m i ncomeandcapi t algr owt h,byi nvest i nggl obal l y,pr i mar i l yi ncompani escont r i but i ngt oorbenef i t i ng f r om posi t i veenvi r onment alchange.Thi swi l li ncl udecompani esoper at i ngi nser vi ces,i nf r ast r uct ur e, t echnol ogi esand r esour cesr el at ed t o envi r onment alsust ai nabi l i t y.Al lt he compani esi nt he Gl obal Envi r onment st r at egy ar e exposed t o at l east one of t hr ee t hemes – r enewabl e ener gy; el ect r i f i cat i on; r esour ce ef f i ci ency.Al ongsi de del i ver i ng i nvest mentr et ur ns,i tpur posel y seeks t o cont r i but et odecar boni sat i on andact i vel ymeasur esandr epor t si t s‘ car bon avoi ded’i mpact .

Ki ngspan Group (Irel and): l ow energy bui l di ngs

W uxiLead Int el l i gentEqui pment (Chi na):renewabl e energy

Ki ngspan i st hegl oball eaderi n hi ghper f or mance i nsul at i on and bui l di ng envel ope sol ut i ons. Sust ai nabl e X decar boni sat i on wi l l r equi r e much mor e ef f i ci ent use of ener gy r esour ces.Ar ound 36% of gl obal gr eenhouse gas emi ssi onscomef r om bui l di ngs.

Ki ngspan manuf act ur es X t her mal l y ef f i ci entand ai r t i ght i nsul at ed panel bui l di ng envel opesaswel lasi nsul at i on boar ds,pi pe i nsul at i on and engi neer ed t i mber syst ems. Ever y year ,i t s i nsul at i on syst ems si gni f i cant l y r educe ener gy usage, car bon emi ssi ons and bui l di ng oper at i ng cost s. The busi ness i s abl et o char ge a pr emi um f or i t s pr oduct s,duet ot hei rl ongl i f ei n whi ch t her mal capaci t y does notdegr ade.As a r esul t ,i twi l l r epor tcar bonavoi ded emi ssi ons based on t he l i f et i me savi ngs ofi t si nst al l ed pr oduct s over t hei r60 year sofl i f e.

Pr i nci pal l y engaged i n t he r esear ch and devel opment , desi gn,pr oduct i onandsal es ofaut omat i onequi pment .I t pr ovi des f ul l aut omat i on i nt el l i gent sol ut i ons f or manuf act ur er s of ener gy conser vat i on and envi r onment al pr ot ect i on pr oduct s, as wel l as new ener gy pr ovi der s. Wuxi ’ s cor e pr oduct s i ncl ude l i t hi um bat t er y,phot ovol t ai c and capaci t orequi pment .I ti sdi r ect l yexposed t o one oft he l ar gestEV mar ket si nt he wor l d and as such i s at t he f or ef r ont of decar boni sat i on.

Engagement Ni net yOnehasunder t aken asyst emat i cand wel l document ed engagementpr ogr amme,wi t h ever y company i nt he Gl obalEnvi r onmentpor t f ol i o.They engage t o under st and r i sk and i mpact ,and t o i mpr ove di scl osur e.Asa consequence,67% oft he compani esi nt he por t f ol i or epor t ed Scope 1 & 2 emi ssi ons,up f r om 52% i n 2018.The per cent age ofpor t f ol i o compani es r epor t i ng al l15 Scope 3 emi ssi onscat egor i esr ose si gni f i cant l y,f r om 16% l astyeart o 38% .I n aggr egat e,83% ofpor t f ol i o compani esi ncr easedt hei rcar bon avoi dedr esul t s.

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Pi ct et Gl obalEnvi ronment alOpport uni t i es The f und’ si nvest ment appr oach uses a uni que sci ent i f i cf r amewor k; Pl anet ar y Boundar i es. I t i dent i f i esni nekeyenvi r onment aldi mensi ons( wat er ,cl i mat echange,bi odi ver si t y,l anduse,ni t r ogen & phosphor ous cycl e,ocean aci di f i cat i on,ozone depl et i on,aer osoll oadi ng and chemi calpol l ut i on) and speci f i es t he r espect i ve t hr eshol ds t hat humani t y shoul d not cr oss i fi t wi shes t o avoi d i r r ever si bl e envi r onment aldamage.The t eam ai m t o under st and how a company’ s pr oduct s and ser vi ces,t aken overt hei rent i r el i f e cycl e,i mpacton t he ni ne key envi r onment aldi mensi ons.They onl yi nvesti ncompani eswi t hi nt hesaf eoper at i ngspacet hatmakean‘ act i ve’cont r i but i ont osol vi ng envi r onment alchal l enges.

Smurf i tKappa (Uni t ed St at es): f ut ure ofpackagi ng We ar e al lawar et hat pl ast i cbased wast ei s a maj or i ssue gl obal l y, wi t h an est i mat ed 12.

7 mi l l i on t onnesofpl ast i cpol l ut i ng ouroceanseach year .The f und i nvest si n Smur f i t Kappat ohel p addr esst hi s.Thecompanypr oducespaper based packagi ng pr oduct st hatar e a necessi t yt o avoi d pl ast i c wast e and hel ps r educe t r anspor t at i on cost by appr opr i at e package desi gn. A l ar ge pr opor t i on of t he company’ spr oduct sar ebased on r ecycl ed paper .I n addi t i on,Smur f i tKappaowns and oper at es 100k hect ar es off or est s gl obal l y.The company’ s’bi ggestposi t i ve i mpact wi t hr egar ds t ot he Pl anet ar y Boundar i es i s measur ed on t he cl i mat e change,f r eshwat eruseandchemi calpol l ut i on cat egor i es.

Engagement Pi ct et ’ s engagementf r amewor ki s ai med atposi t i vel yi nf l uenci ng t he ESG per f or mance oft ar get compani es.I ti s bui l ton f our key pi l l ar s: di r ectengagement s by t he i nvest mentt eams,pool ed engagement sl ed by an ext er nalser vi ce pr ovi der , par t i ci pat i on i n col l abor at i ve i ni t i at i ves and t ar get edengagement s.

Asan exampl eofcol l abor at i vei ni t i at i ves,Pi ct etar epar t i ci pant sofCl i mat eAct i on 100+.Asar esul t t hey ar e act i vel yt aki ng par ti n col l abor at i ve engagement swi t h a Swi ssmi ni ng company,a Russi an met al sandmi ni ngcompanyandaGer man aut omaker .

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Pol arCapi t al Emergi ng MarketSt ars Atf i r stgl ancet hi sf undmi ghtseem i nconsi st entwi t ht hi sst r at egy’ si nvest mentphi l osophy.However , ourmandat ei snotapor t f ol i oofangel i ccompani es.Rat her ,wel ookf orexposur et ocompani est hat ar emovi ngf r om l essgoodt obet t er .EM St ar si sver yr epr esent at i veoft hi sappr oach.When wemet t het eam i n summer2019 wewer eawar eposi t i vecont r i but i onsi n cat egor i essuch asenvi r onment al good,car bonef f i ci encyandeconomi cdevel opmentwer esi t t i ngal ongsi del essgoodscor esi ngender equal i t y and wast e ef f i ci ency.Aswe have consi st ent l y st at ed,i nvest i ng sust ai nabl yi scompl i cat ed andsomet i mest hemat er i al i t yofal ar gecompanymovi ngi nt her i ghtdi r ect i oni sver yi mpact f ul .To be cl ear ,t hi sf und i ncor por at es i nputi nspi r ed by t he UN’ s SDGs and adj ust st he costofcapi t al cal cul at i onsi nf i nanci alanal ysi sf orspeci f i cand mat er i alESG i ssues.Addi t i onal l y,t he Sust ai nabl e Account i ngSt andar dsBoar d( SASB)gui del i nesf or mt hebackbonef ort hei ranal ysi s.

Al i baba (Chi na): t echnol ogy,i nf rast ruct ure and market i ng Al i baba’ si mpactont heenvi r onmenti sl i mi t edgi vent henat ur eoft hei rbusi ness.

However ,t he company has putpol i ci es and pr ocedur es i n pl ace t o consci ousl y r educe negat i ve ef f ect s of t hei r oper at i ons; f or i nst ance t hey ar e adopt i ng r enewabl eener gyacr osst hei rmai ncampus.Al i babahasal soputcl eargui del i nes i n pl ace t hatcoverant i br i ber y and equaloppor t uni t i esamong t hei rwor kf or ce andet hi cs.Addi t i onal l y,t hecompanyhasi ncr easedf ocusont hesust ai nabi l i t yof t hei rsuppl ychai n.

Engagement Thet eam ar ever yt r anspar entanddi scl oseal lt hei rvot i ngact i vi t y.Thr ough2019,t heyvot edon764 i t ems; vot i ng i nf avour696 t i mes and agai nstmanagementon 68 occasi ons.Thi s vot i ng r ecor d r epr esent st het eam’ si nt er act i on wi t h compani esl i st ed i n 17 count r i esacr osst heemer gi ng mar ket uni ver se. I nt er msofspeci f i cengagementi ssues,t hese have r anged f r om pr ovi di ng i nputt ot he devel opmentofaGr een Bui l di ngsst r at egyf oran I ndi an pr oper t ycompany,t hr ough t owor ki ngwi t h aTai waneset echnol ogybusi nessar oundi t sSust ai nabi l i t yr epor t i nganddi scl osur es.

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RobecoSAM Gl obalGenderEqual i t y ImpactEqui t i es RobecoSAM Gl obal Gender Equal i t yI mpact Equi t i es i nvest si n compani es t hat ar e known t o demonst r at e si gni f i cantgenderdi ver si t y and equal i t y,as wel las sust ai nabi l i t y.A hi gh degr ee of genderequal i t ymeanst hatacompanyconsci ousl yr ecogni sesandencour agesgenderequal i t yi nt he acqui si t i on,cul t i vat i on andcommi t mentt of emal et al entatal ll evel soft hecompany' sst r uct ur e.

Thei nvest mentpr ocessi ncor por at esdat af r om t heSAM Cor por at eSust ai nabi l i t yAssessment( CSA) .

Thi si ncl udes5 genderr el at ed quest i onsar ound boar d di ver si t y( 40% ) ,equalr emuner at i on ( 12% ) , empl oyeewel l bei ng( 10% ) ,t al entmanagement& r et ent i on( 28% )andempl oyeesat i sf act i ont r ends ( 10% ) . The r esul t ant dat a ensur et he manager s can di st i ngui sh whi ch compani es ar e act i vel y engagi ng/ movi ngt owar dsgenderequal i t y.

Mast erCard Inc.(Uni t ed St at es): gl obalpayment ssyst em Mast er Car d( MA)i sagl obalpaymentpr ovi dert hatoper at esoneoft hel ar gest payment pr ocessi ng net wor ks, benef i t i ng f r om t he secul ar i ncr ease i n epaymentpenet r at i on acr osst hewor l d.

MA’ s st r engt h i n t er ms of gender equal i t y i s suppor t ed by f l exi bl e and suppor t i ng wor ki ng ar r angement sf or men and women wi t h and wi t hout f ami l i es.Thi s,combi ned wi t h ot herempl oyee benef i t s,shoul dl ead t o bet t er at t r act i on oft al ent ,whi ch wi l lul t i mat el y hel pt o achi eve l ongt er m f i nanci al t ar get s.

Engagement The engagementand act i ve shar e owner shi p appr oach adopt ed by t he i nvest mentt eam has one si mpl eai m;t oencour agecompani esi nt hef undt oi mpr ovet hei rGenderEqual i t yper f or mance.Fr om 2017 t o 2019,t hemanager svot ed on 25 shar ehol der spr oposal sr el at ed t o genderdi ver si t yi ssues.

Exampl ecompanynamesandmat t er saddr essedar easf ol l ows; - Amer i can Expr essCo. :shar ehol derpr oposalr egar di nggenderpayequi t yr epor t - I nt elCor p:shar ehol derpr oposalr egar di ngmedi an genderpayequi t yr epor t - Amazon. com I nc. : shar ehol der pr oposalr egar di ng pr epar at i on ofsexualhar assmentr epor t , shar ehol derpr oposalr egar di ngmedi an genderpayequi t yr epor t - TJ X Compani es,I nc. :shar ehol derpr oposalr egar di nggenderandet hni ci t ypayequi t yr epor t - Al phabet :shar ehol derpr oposalr egar di ngpr epar at i onofsexualhar assmentr epor t ,shar ehol der pr oposalr egar di ngmedi an genderpayequi t yr epor t - Mi cr osof t :shar ehol derpr oposalr egar di ngmedi an genderpayequi t yr epor t 15

UBAM Posi t i ve ImpactEqui t y Thi sf und i s managed t o a si mpl e pr i nci pl e;i nnovat i ve compani es,whi ch gener at et hei rr evenues f r om f i ndi ng sol ut i onst ot hewor l d’ sbi ggestchal l enges,ar ei n auni queposi t i on t obeabl et oser ve t hei rst akehol der swel l .I ti saconcent r at edpor t f ol i o,of25 t o35 st ocks,del i ver i ngexposur emost l y t oEur opeanequi t i es,al t hought hemandat ei sgl obali nnat ur e.UBAM havedi st i l l edt he17UN SDGs i nt o6i nvest mentt hemes;3soci et al–basi cneeds,heal t h& wel l bei ngandi ncl usi ve& f ai reconomi es.

The ot her3 ar e envi r onment al ;heal t hy ecosyst ems,cl i mat e st abi l i t y and sust ai nabl e communi t i es.

Hol di ngsi nt hepor t f ol i omustgener at er evenuesf r om busi nessest hatdi r ect l yaddr esst heset hemes.

Hof f man Green CementTechnol ogi es(France): const ruct i on di srupt i on The gl obal cement i ndust r y i s hi ghl y consol i dat ed and sl ow t o i nnovat e, expl ai ni ngwhyi t s8% ofgl obalCO2 emi ssi onsi sst ubbor nl yhi gh.I nf r ast r uct ur e needs t hr oughout t he gl obe ar e si gni f i cant , and t he number of bui l di ngs i s expect edt odoubl eby2060–t heequi val entofoneNew Yor kCi t yever y30days.

We ar e si mpl y unabl et o achi eve t he necessar y ur ban pl anni ng wi t houtcement and i t sder i vat i ves.Hof f mann Gr een CementTechnol ogi esdesi gnsand pr oduces l ow car bon cement s,wi t h a si gni f i cant l yr educed car bon f oot pr i ntcompar ed t o t r adi t i onalcement .Combi ni ng sust ai nabl e devel opment ,ci r cul areconomy and i ndust r i alper f or mance,t hecompanyhasdevel oped t hr eedi f f er entt echnol ogi es t opr oducedecar bonat edcement sf oral lconst r uct i on sect ormar ket s.

Engagement Over t he l ast t wel ve mont hs,t he UBP I mpact t eam has dr amat i cal l y expanded i t s engagement act i vi t i es.At i ncept i on t hey engaged wi t h compani es i n sear ch ofa deep under st andi ng oft he i nt ent i onal i t y ofmanagementand t hei r measur ementdi scl osur e as pr oof .As t hey l apped t hose conver sat i ons mul t i pl et i mes over ,t he t eam ar e bui l di ng an ext ensi ve r eser voi r ofi nt er act i ons f ocused on t he i dent i f i cat i on ofi mpact .The manager s have conduct ed a f ul lI mpactEngagement Fr amewor kr evi ew oft hei rpor t f ol i o.The 100% r esponse r at e,f r om t he 34 compani eshel d,gi vesa val uabl esnapshotoft hest at eoff ut ur ef i t nessamong compani est heybel i evet obeposi t i vei mpact f i xer s.

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Vont obel Cl ean Technol ogy Thi sf und i nvest si n compani espr ovi di ng cl ean and i nnovat i ve t echnol ogi esorser vi cest hatbenef i t f r om t hegl obalsecul art r end t owar d sust ai nabl eur bani sat i on and i ndust r i al i sat i on.Such compani es endeavourt omi ni mi zet henegat i vei mpactofhumani nt er vent i oni ngl obalecosyst ems.Reduci ngt he negat i ve ef f ect s of gl obal cl i mat e change and r esour ce scar ci t y of f er s consi der abl e gr owt h oppor t uni t i esf orcompani esact i vei nt hesear eas.

A keyi mpactmet r i cf ort hi sst r at egyi squant i f yi ngpot ent i alavoi dedemi ssi ons( PAE) . Measur i ngt he emi ssi onsoft heent i r eval uechai nal l owsanassessmentofpot ent i alcont r i but i ont oachi evecl i mat e changemi t i gat i on.Tot hi spur pose,I SScl i mat e,ani ndependentaudi t or ,hasquant i f i edt hepor t f ol i o compani es’i mpactby est i mat i ng t he PAE.These come f r om ener gy ef f i ci entpr oduct s orser vi ces whi ch al l ow ar educt i on i n emi ssi ons.

Ecol ab Inc.(Uni t ed St at es):wat er, hygi ene and i nf ect i on prevent i on

Chroma ATE Inc.(Tai wan): t est& measurementi nst rument s

Thi s busi ness i s a gl obal pr ovi derofwat er ,hygi eneand ener gy t echnol ogi es and ser vi ces t ot he f ood,ener gy, heal t hcar e, i ndust r i al and hospi t al i t y mar ket s. Ecol ab pr oduct s and ser vi ces hel p compani es keep t hei r envi r onment cl ean and saf e, oper at e ef f i ci ent l y and achi eve sust ai nabi l i t y goal s.

Ecol ab t echnol ogi es have savedover3.

3t r i l l i onl i t r esof wat er ,equi val entt ot heyear l y dr i nki ng wat er needs of 3 bi l l i on peopl e.

Pr ovi des t est and measur ement i nst r ument s r equi r ed i n bat t er y pr oduct i on, condi t i oni ng and t est i ng as wel l as i n aut omot i ve manuf act ur i ng.

Si gni f i cant mar ket s ser ved i ncl ude el ect r i c vehi cl e, LED, phot ovol t ai c, gr een bat t er y, semi conduct or , phot oni cs, t her moel ect r i c and aut omat ed opt i cal i nspect i on. Chr oma oper at es f r om of f i ces i n Eur ope, t he Uni t ed St at es, J apan, Kor ea, Chi na,andSout heastAsi a.

Engagement The manager s ar e act i ve bot hi nt er ms oft hei rvot i ng atshar ehol dermeet i ngs and i nt er ms of engagement .Thel at t ert akest wof or ms–col l abor at i veengagementcar r i edoutbyt hei rGl obalTr end t eam,i ncooper at i onwi t hI SScl i mat eandFact f i ndi ngengagementunder t akenbyFeder at edHer mes EOS.Col l abor at i ve engagement si ncl uded t opi csr el at i ng t o human r i ght spol i cy i ssuesand f act or s ar ound ongoi ng cl i mat e change r esi l i ency. Exampl es of f act f i ndi ng engagement s i nvol ved encour agi ng a company t oi mpr ove t hei r ESG r epor t i ng and l i ai si ng wi t h anot her on det ai l ed i nf or mat i on r el at i ngt ot heposi t i vei mpactofhydr opoweract i vi t i es.

Thr ought heyeart hei nvest mentt eam vot edat59companymeet i ngs.I nt er msofvot i ngi t ems,t hey vot edagai nstmanagementon 39 occasi ons.

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Coverar t wor k-det ai lf r om Mer cybyDami en Hi r st ,2019.

Edi t edbyMi chel l eThér ézi en.