Perpetual ESG Australian Share Fund

Responsible Investing Approach

The Fund invests in quality companies or issuers that meet their ESG and values-based criteria utilising research from external ESG specialists. Perpetual evaluates companies and issuers that meet the investment approach using an ESG and values-based criteria when deciding to select, retain or sell an investment.

The Fund applies values-based criteria that restrict investment in companies or issuers that are involved in activities deemed by the Fund Manager as harmful to society or the environment. A secondary ESG screen is applied, where companies are scored on a broad range of environmental, social and governance criteria. Companies are scored both positively and negatively on their approach to or involvement in the ESG criteria, finally, all company scores are totalled and companies that receive a negative overall score fail this screen and are excluded from investment.

The Fund Manager exercises its influence as a shareholder/asset manager by engaging Boards and management of investee companies and encouraging them to take action on ESG related topics.

Documents

Exclusions

The Fund applies values-based criteria that restrict investment in companies or issuers that derive 5% or more of their revenue from the manufacture or sale of alcohol or tobacco, the operation of gambling facilities or the manufacture or supply of gambling products, exploration and extraction of fossil fuels, activities including uranium and nuclear, animal cruelty, such as cosmetic testing, genetic engineering, pornography, and armaments, including weapons. Companies that derive any revenue from the production of tobacco, the manufacture of nicotine alternatives and tobacco-based products, or the development, production and maintenance of controversial weapons are excluded from the investment universe.

Exclusions	Full/Partial Exclusion	Description
Tobacco	Full	The Fund does not invest in companies that derive any revenue from the production of tobacco including plantations and the manufacture of tobacco products including nicotine alternatives.
Tobacco	Partial	The Fund does not invest in companies that generate more than 5% of their revenues from the distribution of tobacco including the wholesaling and retail of tobacco products manufactured by other companies.
Alcohol	Partial	The Fund does not invest in companies that generate more than 5% of their revenues from the production or distribution of alcoholic beverages, including the wholesaling and retail of alcoholic beverages manufactured by other companies.
Weapons	Full	The Fund does not invest in companies that derive any revenue from the manufacture or development of controversial or nuclear weapons.
Weapons	Partial	The Fund does not invest in companies that generate more than 5% of their revenues from the production of military conventional weapons.
Fossil fuel exploration, mining and production	Partial	The Fund does not invest in companies that generate more than 5% of their revenues from the exploration and production of fossil fuels (coal, natural gas, oil, oil sands, oil shale), including the provision of services used in the extraction phase.
Animal testing for non-medical purposes	Partial	The Fund does not invest in companies that generate more than 5% of their revenues from animal testing by producers of cosmetic products.
Gambling	Partial	The Fund does not invest in companies that generate more than 5% of their revenues from gambling operations, including online services, casinos, and gambling products including gaming equipment.
Genetic engineering/GMO	Partial	The Fund does not invest in companies that generate more than 5% of their revenues from the production of genetically modified organisms for human consumption, except for medical purposes.
Nuclear power (including uranium mining)	Partial	The Fund does not invest in companies that generate more than 5% of their revenues from uranium mining, electricity generation from nuclear power and major parts and services sold to the nuclear industry.
Adult entertainment/pornography	Partial	The Fund does not invest in companies that generate more than 5% of their revenues from the provision of pornography and adult entertainment services.

Inclusions

Perpetual's responsible investment policy outlines how the Fund Manager incorporates ESG issues into the investment analysis and decision-making process. The incorporation of ESG issues typically refers to an analysis of what ESG issues an investment is exposed to and how well these issues are being managed by the company.

Before being considered for investment by the ESG Funds, companies or issuers must pass a series of exclusionary screens. The screening process is designed to limit the ESG Funds investible universe to only those companies or issuers that meet minimum values-based and ESG standards. Companies or issuers that successfully pass the Values-based exclusionary screen are then subject to an ESG exclusionary screen, that scores them (both positively and negatively) on a broad range of ESG factors, those that fail this exclusionary screen and will not be considered for investment by the ESG Funds.

Perpetual believes that as a shareholder/asset manager has influence and has the duty to use it in order to achieve better investment outcomes. From an ESG perspective, this means engaging Boards and management of investee companies and encouraging them to take action on ESG related topics.

UN Sustainable Development Goals

Conventions & Treaties

Perpetual has been a signatory to the United Nations supported Principles for Responsible Investing (PRI) since 2009. To apply the ESG Exclusionary Screen the manager scores potential investments on a broad range of ESG factors, this may include scoring products and services that positively contribute to the United Nations Sustainable Development Goals.

Conventions & Treaties	Aligned	Description
Principles for Responsible Investment	Yes	Signatory since 2009
UN Sustainable Development Goals	Yes	To apply the ESG Exclusionary Screen the manager scores potential investments on a broad range of ESG factors, this may include scoring products and services that positively contribute to the United Nations Sustainable Development Goals.

ESG Score

ESG Score
Does the portfolio have an ESG score?	Not disclosed
If so, who is responsible for calculating the score?	Not disclosed
If a score is calculated, is this publicly available; i.e. displayed in monthly reports, on your website, etc.?	Not disclosed
If the portfolio has an ESG score, how often is that score recalculated to account for changes to portfolio holdings?	Not disclosed

Impact Investing Score

Impact Investing Score
Does the portfolio have an Impact Investment score?	Not disclosed
If a score is calculated, is this publicly available; i.e. displayed in monthly reports, on your website, etc.?	Not disclosed
If the portfolio has an Impact Investment score, how often is that score recalculated to account for changes to portfolio holdings?	Not disclosed
Does the fund publish its holdings publicly?	Yes

Policies, Certification & Marketing

Policies, Certification & Marketing
Responsible investing policy	View Responsible investing policy document
Proxy voting policy	View Proxy voting policy document
Stewardship policy	View Stewardship policy document
Modern slavery policy	View Modern slavery policy document
Is the fund RIAA certified?	Yes
Date certified
Holdings	View Holdings document
Screening process	View Screening process document
Sustainability Report 2023	View Sustainability Report 2023 document
Portfolio Impact Measurement Report ESG Australian Share Fund 2024	View Portfolio Impact Measurement Report ESG Australian Share Fund 2024 document

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