How do we integrate sustainability risks into our investment decisions

Sustainability risks consist of environmental, social or governance conditions and events that, if they occur, could cause an actual or potentially material adverse effect on the value of the investment. Examples of sustainability risks are:

• Physical risks ( such as natural resource risk, flood risk, storm risk and drought risk);
• Transition risks ( such as general transit risk and stranded assets risk);
• Social and governance risks (working conditions, governance risk and tax risks).

We limit and manage these sustainability risks in part by excluding high-risk companies and sectors. In addition, violations of sustainability indicators or business activities that have significant environmental, social and other sustainability impacts can lead to discussions with companies (“engagement”).

Sustainability risks can still always affect the Manager's investments and returns.