The Fund does not invest in companies that derive any revenue from the production of tobacco, or the production of controversial weapons, their key components or services. However, the Fund may invest in companies that do not derive more than 10% of their revenues from the retail of tobacco, or companies that derive more than 50% of their revenues from products or services related to tobacco. It does not invest in companies involved in palm oil that have less than 50% of RSPO-certified hectares of land at their plantations. Fossil fuel production-based exclusions mean that the Fund does not invest in companies that derive more than 5% of their revenues from fossil fuel extraction through Arctic drilling, or companies that derive more than 10% of their revenues from fossil fuel extraction through Oil sands. It does not in companies that derive more than 20% of their revenues from thermal coal extraction/mining or power generation.

Behaviour-based exclusions refer to the Fund's controversial behaviour screening that measures the company's compliance with ILO, UNGP, UNGC and OECD standards. If Robeco deems a company to severely breach these standards and deems engagement possible, the company will be in the scope of our dedicated enhanced engagement program focusing on controversial international business behaviour. However, companies under engagement in this program remain eligible.

Financially material ESG factors are integrated into the portfolio construction to ensure the ESG score of the portfolio is better than that of the benchmark. In addition, the environmental footprints of the Underlying Fund are made lower than that of the benchmark by restricting the GHG emissions, water use and waste generation. The Underlying Fund makes use of shareholder rights and applies proxy voting in accordance with Robeco's Proxy Voting Policy as set out in Robeco's Stewardship Policy.

Robeco holds membership, is a signatory or participates in multiple Sustainable Investment initiatives, such as Climate Action 100+ Initiative, Institutional Investors Group on Climate Change (IIGCC), Net-Zero Asset Managers Initiative (NZAM), Principles for Responsible Investment (PRI), Task Force on Climate-related Financial Disclosures (TCFD), Task Force on Nature-related Financial Disclosures (TNFD), United Nations Global Compact (UNGC), and other. 

Robeco acts in accordance with international standards on responsible conduct. International treaties, such as the International Labor Organization (ILO) standards, United Nations Guiding Principles (UNGPs), United Nations Global Compact (UNGC) Principles, and the Organization for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises guide Rebeco in assessing controversial behaviour of companies.