Melior applies general exclusions and supply chain exclusions as part of its investment process to ensure companies which it considers to have material exposure to excluded industries are avoided. The Fund does not intend to invest in companies which source 5% or more of their gross revenue from alcohol manufacturing, armament manufacturing, gambling operations, pornography production, tobacco manufacturing, fast food, soft drinks and confectionery manufacturing, predatory lending, uranium production and nuclear energy, and thermal coal, gas, tar sands, oil, conventional and unconventional gas production (subject to the Manager's Climate Action Transition Framework exclusion exception). The Fund does not intend to invest in companies which derive 5% or more of their gross revenue from selling any of the Excluded Industries' goods or services or from the provision of financial services to any of the Excluded Industries.

The Fund's strategy seeks to deliver long-term competitive market returns and net positive social and/or environmental impacts that contribute to the Sustainable Development Goals, through its three impact levers of Investment Capital, Active Corporate Stewardship and Public Advocacy. The Fund Manager assesses and addresses risks and opportunities that may result from a changing climate and the natural environment through its investment decision-making process that comprises four steps, each of which must be satisfied in turn. First, the Impact Assessment assesses companies' contributions to the SDGs, followed by the ESG Assessment, which assesses how companies operate from an ESG perspective. Followed by the Financial Assessment, which determines which companies have strong financial credentials, and finally, the Portfolio Construction, which creates the portfolio across different sectors.

The ESG assessment is achieved through the Fund Manager's impact assessment, where Melior assesses whether companies have core goods and services that positively contribute to one or more SDGs and whether higher-emitting companies are demonstrating climate action leadership. Through its ESG assessment, Melior assesses companies according to its proprietary framework of quantitative and qualitative ESG factors, including specific climate and nature-related factors, such as greenhouse gas emissions, renewable energy targets, waste and pollution, water and biodiversity.

Melior takes the responsibility of exercising its voting rights, therefore proxy voting is a key part of its Active Corporate Stewardship Strategy. It has a specific engagement process with companies for proxy voting and consistently applies proxy voting principles that are aligned with its Corporate Impact Pillars and Corporate Impact Goals. Melior's Active Corporate Stewardship Strategy is aimed at driving corporate change on material company ESG issues that contribute to the UN Sustainable Development Goals, thereby creating positive environmental and societal impact.

Melior has been committed to the UN Global Compact corporate responsibility initiative and its principles in the areas of human rights, labour, the environment and anti-corruption since 2021, and it has been a signatory to the United Nations Principles for Responsible Investment since 2019. Melior is a supporter of the Task Force on Climate-Related Financial Disclosures and the goals of the Paris Agreement. It assesses whether investee companies have core goods and services that positively contribute to one or more SDGs and whether higher-emitting companies are demonstrating climate action leadership.