The Quality Growth Investor

ANNUALRESPONSIBLE
INVESTMENTREPORT
2022

INDEXI.
II.

R ESPONSIBLE INVESTMENT APPROACH
AND 2022 HIGHLIGHTS ............................................ 3
GOVERNANCE AND RESOURCES........................... 5

III. I NTEGRATE............................................................... 10IV.

E NGAGE ................................................................... 16V.

P ROMOTE................................................................. 31

VI. TRANSPARENCY ON KEY ESG METRICS ............. 35
VII. CORRESPONDENCE TABLE FOR
TCFD RECOMMENDATIONS ................................... 41
APPENDIX I ..................................................................... 44
ASIA PAC EX JAPAN EQUITY STRATEGYAPPENDIX II ................................................................... 46
CHINA EQUITY STRATEGYAPPENDIX III .................................................................. 48
EUROPE EX UK EQUITY STRATEGYAPPENDIX IV .................................................................. 50
EUROPE PLUS EQUITY STRATEGYAPPENDIX V ................................................................... 52
G LOBAL EMERGING MARKETS ("GEM")
EQUITY STRATEGYAPPENDIX VI .................................................................. 54
GEM PLUS EQUITY STRATEGYAPPENDIX VII ................................................................. 56
GLOBAL EQUITY STRATEGYAPPENDIX VIII ................................................................ 58
GLOBAL FLEX EQUITY STRATEGYAPPENDIX IX .................................................................. 60
GLOBAL PLUS EQUITY STRATEGYAPPENDIX X ................................................................... 62
JAPAN COMPOUNDERS EQUITY STRATEGYAPPENDIX XI .................................................................. 64
JAPAN EQUITY STRATEGYAPPENDIX XII ................................................................. 66
PAN EUROPE EQUITY STRATEGYAPPENDIX XIII ................................................................ 68
US EQUITY STRATEGY

Comgest’s Annual Responsible Investment Report for 2022 is based on the aggregated available data of ourinvestee companies for all portfolios managed by the Comgest Group1 (the “Comgest Portfolios"). The data
illustrated in the Appendix section of this report refers to the respective strategy referenced therein.

12

 he Comgest Group includes six asset management companies: Comgest, S.A. (Paris), Comgest Far East Ltd (Hong Kong), Comgest Asset Management International Ltd
T(CAMIL)(Dublin), Comgest Asset Management Japan Ltd (Tokyo), Comgest Singapore Pte Ltd (Singapore) and Comgest US LLC (Boston). Comgest also has the following
service locations: Comgest Deutschland GmbH (Düsseldorf), Comgest Benelux B.V. (Amsterdam), Comgest Australia Pty Ltd (Sydney), as well as offices of CAMIL in
London, Milan, Brussels, and Vienna.

COMGEST UK STEWARDSHIP CODE 2022: ANNUAL REPORTThe Quality Growth Investor

I . R ESPONSIBLE INVESTMENT APPROACH
AND 2022 HIGHLIGHTS
A. OUR RESPONSIBLE INVESTMENT BELIEFS AND STRATEGY
Comgest’s long-term, quality growth investment style leads us to integrate ESG analysis into all our investment
decisions and to encourage our investee companies to enhance their sustainability practices. Our responsible
investment approach is grounded by the following:– A long-term investment horizon incentivised byour partnership structure: Comgest has always
been 100% owned by employees and founders – ourbroad partnership structure allows us to consider
the materiality of ESG issues and partner withcompanies over the long-term in the transition
towards more sustainable economies.
– Experience in integrating ESG into investment
analysis: For over 35 years, we have invested using
a quality growth philosophy, resulting in heightened
analysis of financial and extra-financial longterm risks and opportunities, being aware that the
durability of a company’s success depends on their
entire ecosystem and ability to address ESG criteria.

– Proprietary ESG research: We identify quality
growth companies through years of fundamental
research performed by diverse, on-the-groundteams with local language skills and cultural
knowledge. As an integrated part of the Investment
Team, the ESG analysts work alongside ourcompany analysts attending company meetings,
performing research and conducting proprietary
ESG assessments.
– Independent ownership structure: Independence
allows us to implement an unbiased and effective
engagement and advocacy strategy.

This responsible investment approach comprises a three-pronged responsible investment (RI) strategy.

Figure 1. Comgest’s responsible investment strategy

INTEGRATE
Proprietary ESG research
Investment process
Exclusions

ENGAGE
Active ownership
Company enagement & voting

PROMOTE
Advocacy
Reporting & transparency

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

3

B. REFLECTING ON 2022: KEY PROGRESS AND ACHIEVEMENTS
2022 was a key year for Comgest’s ESG journey, exemplified by the formalisation of our Group Sustainability
Committee and the expansion of dedicated ESG resources (see section II(A), “Sustainability governance” andsection II(B) “Dedicated ESG resources”). We also continued to develop our ESG tools and processes (seesection II(D), “ESG tools and data”) to align with the latest sustainable finance regulations and the rising
expectations of our external and internal stakeholders. As of 31 December 2022, 94% of our public funds wereclassified as Article 8 under the European Union’s Sustainable Finance Disclosure Regulation (SFDR).2
2022 also marked the enhancement of our climate
commitments. Comgest joined the Net Zero AssetManagers Initiative (NZAMI) early in the year, and
our Group-level net zero targets were accepted by the
initiative in March 2023. These targets cover 100% of
our listed equity AUM and provide solid milestones
on which we can anchor our climate strategy.3

In accordance with our responsible investment
strategy, achieving our targets will focus on:– Further integrating climate-related risks in ourinvestment process;– Prioritising engagement with investee companies
to accelerate real-world decarbonisation; and– Promoting collaboration with industry stakeholders
and clients to advance climate action.

PORTFOLIO­COVERAGE TARGETENGAGEMENT­T HRESHOLD

Figure 2. Comgest’s climate targets and roadmap
Baseline
30% of financed
emissions were
subject to individual
or collaborative
engagement.

NZAM accepted threshold

Ambition

70% of financed emissions
are subject to individual or
collaborative engagement(if not already assessed asachieving net zero or aligned).

As per NZIF, 90% of financed
emissions are subject to individual
or collaborative engagement(if not already assessed asachieving net zero or aligned).

2022

2025

2027

2030

2040

Baseline

NZAM accepted target

NZAM accepted target

Ambition

35% of our listed-equity
AUM is considered:–A chieving net zero– Aligned– Aligning

50% of our listed-equity
AUM is considered:–A chieving net zero–A ligned–A ligning

50% of our listed-equity
AUM, in material sectors,
is considered:–A chieving net zero–A ligned

As per NZIF, 100% of
our listed-equity AUM
is considered:–A chieving net zero–A ligned

Source: Comgest

We are proud of Comgest’s continued external recognition of our ESG practices. In 2022, successfully applied tothe
UK Stewardship Code, which sets high stewardship standards for investors. In addition, a selection of
our strategies applied to, and received, the below-referenced, leading European socially responsible investing (SRI)
labels. We look forward to continuing to our responsible investment practices in years to come.

Figure 3. Portfolios Holding European SRI Labels
LABEL
No. of Portfolios% Total AUM

LuxFlag ESG

13

60.4%

Towards Sustainability (Febelfin)

3

2.8%

FNG

3

2.8%

Source: Comgest, 31-Dec-2022.

42

 he EU’s Sustainable Finance Disclosure Regulation (SFDR) requires firms to advise whether principal adverse impacts on sustainability factors are considered in theirT
investment decision making process. 94% calculation is based on AUM.

3

Further details on our climate strategy are included in our Climate Change Policy appended to our Responsible Investment Policy.

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

The Quality Growth Investor

II. GOVERNANCE AND RESOURCES
A. SUSTAINABILITY GOVERNANCE
As noted in section I, Comgest is an independent asset management group owned by its employees and founders.
This ownership structure is central to develop and implement our responsible investment approach andsustainability strategy. It is supported by a governance structure which includes the following governance bodies:a Board of Partners (BoP), an Executive Committee, an Investment Committee and a Sustainability Committee.
The Sustainability Committee (SC) is chaired by
the Group Chief Investment Officer (CIO) 4 andits members represent a wide variety of teams
including the Chief Executive Officer (CEO), Portfolio
Management, ESG, Compliance, Risk, Marketing,
Investor Relations, and Operations. It was establishedin June 2022 (replacing the Responsible Investment
Committee) in line with our ambition to continuallystrengthen our sustainability expertise andgovernance. The SC assists the BoP, which serves as

the strategic oversight body for the Group, and the
Executive Committee, in defining, implementing, andmonitoring the Group’s Responsible Investment (RI)
strategy and Corporate Social Responsibility Strategy(CSR) strategy, including on specific priorities suchas climate change. The SC liaises with the Group’s
entities to ensure that Group RI and CSR strategies
incorporate local regulatory requirements, and that RI
and CSR policies are implemented in each entity.

Figure 4. Group Governance Structure

PARTNERS (AGM)

BOARD OF PARTNERS (BoP)– Strategic oversightNOMINATION & GOVERNANCE
COMMITTEE (NGC)EXECUTIVE COMMITTEE (ExCo)− Strategy implementation− Operational oversight

CAPITAL & COMPENSATIONCOMMITTEE (CCC)− Group remuneration scheme− Capital allocation− G overnance processes− E nsures transparency and diversity in nominations− R ecommendation of CEO & CIO nomination
and remuneration

INVESTMENT COMMITTEE (IC)− C oordination of Group portfolio
management processes− Resource management

SUSTAINABILITY COMMITEE− G uide development andimplementation of RI and CSR
strategies

Boards of Directors
Comgest Entities

2

The CIO took on the role of Chair in 2023, previously held by the CEO.

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

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B. ESG RESOURCES
1)

Dedicated ESG resources

Since the hiring of our first ESG analyst a decade ago, Comgest’s dedicated ESG resources have evolved
considerably and comprise, as of year-end 2022, 10 members who fulfil two distinct functions:– Responsible Investment: comprises 6 experienced
investment professionals (ESG analysts), eachfocused on company coverage within specificgeographic regions and embedded within Comgest’s
Investment Team, rather than operating as a siloed
function. As an integrated part of the Investment
Team, the ESG analysts work alongside ourcompany analysts attending company meetings,
performing research and conducting proprietary
ESG assessments. Concurrently, the company
analysts are considered key ESG resources as
they are directly involved in ESG research as partof their fundamental analysis. They also conduct
stewardship activities including carrying the

responsibility for company voting and carryingout individual engagements, often together with amember of the ESG Team.
– Responsible Development: comprises 4 membersof a specialist team that lead thematic andcollaborative engagement on topics such as climatechange, biodiversity and human rights. The teamalso oversees ESG strategy, policies, internal
training and communication of Comgest’s RI
strategy. The Responsible Development Team works
closely with Comgest’s Project Team, with 2 project
managers dedicated to the development of theGroup’s ESG tools and processes.

Figure 5. Reporting Structure - ESG Resources

CIO

RESPONSIBLE INVESTMENTRESPONSIBLE DEVELOPMENT− Company ESG Research− ESG strategy, policy setting and data

− B road/thematic ESG Research− Collaborative & thematic engagements− Investment/Portfolio Management− Advocacy, industry initiatives, market
intelligence− Individual Company Engagements− Proxy Voting− Regulatory environment strategy andimplementation− ESG Communications(thought leadership, client reporting,regulatory, stewardship)− B espoke client RI reporting

6

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

The Quality Growth Investor

2)

Ongoing training

ESG is a rapidly evolving field and ongoing training of the ESG Team and wider Comgest teams, including
investment teams, is necessary to keep skills, knowledge and thinking up-to-date. Internal ESG knowledgesharing initiatives include:– Regular information sessions conducted by the
ESG Team for employees that are tailored totheir various functions (e.g., investor relations,compliance, legal, investment, etc.) on evolving
ESG topics, notably updates regarding sustainablefinance regulations or thematic topics suchas climate change and our recent net zerocommitments. These sessions can be run on a ­one-to-one basis, for example for new joiners.
– Presentation and regular discussion of ESG issues atweekly investment research meetings, including
discussing specific stocks to serve as case studies.

– Dedicated ESG workshop during annual
investment team offsite “best practice seminar”.
This gathers all Investment Team members fromaround the world to learn from our experiences,mistakes and each other. Training focuses on both
broader topics such as climate change and specificissues relevant to a particular company or industry.
– ESG systems and tools training sessions to ensurethat Investment Team members can maximise theuse of our proprietary “ESG Dashboard” system.

We also run training sessions and workshops with external experts and facilitators. For instance, in December
2022, the Sustainability Committee members joined a
Climate Fresk workshop to strengthen their knowledge
on climate change. This type of workshop will be deployed across our Group in 2023. Participating in industry
working groups and seminars is an important avenue for our teams, especially our ESG teams, to continuously
develop their expertise.

3)

Incentives

Comgest’s partnership structure and its
remuneration policy are designed to incentivise longterm thinking and behaviour. For the Investment
Team members, variable compensation is basedon a set of quantitative and qualitative criteria thatfavour processes and behaviour over outcomes. Thisis based on our belief that quality research inputs
combined with sound methodology typically leads
to positive outputs over the long-term, whilst short-term outcomes can be random. The assessment
includes stewardship criteria including ESG
integration, identification of sustainability risks,quality of engagement and participation in training.
In addition, the calculation of the total package
available for variable compensation across thecompany takes into account any significant risks towhich Comgest’s Risk Committee considers that thecompany may be exposed.

C. DIVERSITY, EQUITY & INCLUSION
Diversity is one aspect of ESG criteria that we
examine in our investee companies, because webelieve that it is an important indicator of thepotential for higher quality decision-making. We
apply the same standards to ourselves. As an equalopportunity employer, we recognise the importanceof all forms of diversity and we believe that diversityof backgrounds, skills and viewpoints leads tobetter informed discussions, greater creativity andopen-mindedness and a more stimulating work
environment. Our human resources department
deliberately seeks out diverse profiles and ourcompensation system ensures that all employees aretreated fairly and equally. There are over 30 different
nationalities represented within our staff, and we

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COMGEST UK STEWARDSHIP CODE 2021: ANNUAL REPORT

have achieved gender balance across the wider
company, with 48% of our employees and 46% of
our shareholder base being women. Within our
Investment Team, 33% of the team are women, close
to three times the industry average.
Comgest’s Diversity, Equity & Inclusion (DEI)
Working Group comprises six members from various
Comgest entities – of which 50% are women – andrepresentatives from a range of functions acrossthe firm, including the Investment Team. The
DEI Working Group is responsible for reviewing
developments and initiatives across the industry, as
well as the development and implementation of DEI
initiatives at Comgest.

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

7

Comgest implemented or participated in several measures over 2022, seeking to enhance the diversity of ourInvestment Team, including:– Established a diversity target of 50% femaleinterns for our Investment Team– Roundtable discussion:
Sharing our
experience of breaking the bias, to raiseawareness of the lack of female representationin the finance sector, specifically in investment
management teams (May 2022)– UK Women in Investment Awards: 3 female
Comgest partners named as finalists(November 2022)

Our goal in 2023 is to establish a formal Group-level DEI Policy and to advance our DEI responsibility
and oversight structure.

D. ESG TOOLS AND DATA
1)

Proprietary ESG tools

To collect and share ESG data and information more efficiently, we developed several in-house tools:– ESG Assessment tool: designed to capture ESGrelated information on a company and summarise
analysts’ ESG research findings– Engagement form: allows analysts to record
engagement activities and outcomes, whichfeeds into our engagement database and stores
engagement data needed for monitoring andreporting purposes– ESG dashboard: internal system that enables us
to share a wealth of ESG information (proprietary
and third party) across all investment strategies
to provide the Investment Team with access torelevant ESG data and information on companies
and portfolios. We are continuously enhancing thedashboard’s functionalities, e.g., adding a net-zerotab summarising companies’ alignment categories
to monitor progress on climate targets and identify
engagement priorities.
– PAI dashboard: developed internally in 2022 tobetter collect and share principal adverse impacts(as defined by SFDR) related data and information
on investee companies, mainly to provide theInvestment Team with instant access to all PAIrelated data and information, as well as a moregranular view of each indicator at the portfolio level.

Figure 6. Comgest PAI Dashboard
PAI 2 - Carbon Footprint - Comgest Global Equity Strategy - Coverage 100.00%

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COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

The Quality Growth Investor

2)

External data and information providers

In addition to our proprietary research, the ESG
and Investment Teams draw on extra-financial
information sources, such as companies’ CSR reports,
information and alerts from specialist providers,contacts with companies and their stakeholders,

NGOs and media reports. Figure 7 shows theexternal providers – selected for the quality of theirinformation and their geographical coverage – that are
currently used by the Teams.

Figure 7. External Data Providers

Environmental data
Governance

ESG information

ESG Research Platform

Controversial ­weapons

General ESG dataclimate scenarios,­m odelling, physicalrisks analysis
ESG information
Controversies &­R eputational risks

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

9

III. INTEGRATE
A. ESG INTEGRATION PROCESS
Comgest’s ESG integration approach aligns well with our general approach of stock-picking quality companies
with a long-term investment horizon and ensures that sustainability risks and opportunities are taken into
account in a systematic manner. Our process is described in detail in Comgest’s
Responsible Investment
Policy. Proprietary ESG research is central to our investment process and an overall ESG Quality Level is assigned
to each company, ranging from 1 (leader) to 4 (improvement expected) using an internal rating system (Figure 8).
The Quality Level reflects the consensus opinion of the company analyst and the ESG Team, and results in acompany-specific ESG discount rate applied in our valuation models.
Figure 8. Comgest ESG Quality Levels and associated discount rates

ESG Leaders

ESG Quality Level
Discount Rate Impact: DM/EM

Description(one or more of the sample elements below)

1 ESG Leader–50 bps / –100 bps

Sustainability/CSR fully embedded in corporate culture,
strategy to benefit from ESG opportunities, excellent
disclosure, mitigation of existing ESG risks

2 Good Quality
0 (no change) / 0 (no change)

Good awareness and mitigation of low ESG risks,adequate disclosure, few controversies, able to benefit
from ESG opportunities

3 Basic Quality+100 bps / +150 bps

Basic awareness of ESG risks, limited mitigation
measures in place, moderate ESG risk exposure, lowdisclosure, ESG controversies, room for improvement

4 Improvement Expected+200 bps / +300 bps

High ESG risk exposure, no consideration of ESG risks,very low or absence of disclosure, no mitigation measures,significant ESG controversies, priority for engagement

INSUFFICIENT QUALITYGROWTH CRITERIAESG Laggards

Figure 9 provides a breakdown of the ESG Quality Levels (QL) for all investee companies in Comgest Portfolios
as of 31 December 2022.
Figure 9. ESG Quality Level breakdown for all investee companies (%)
ESG QL 1

18.3

ESG QL 2

56.1

ESG QL 3

24.1

ESG QL 4

1.1

ESG QL Not As signed

0.3
0

10

Source: Comgest, 31-Dec.-2022. Coverage: 100% of equity and equity-linked AUM.

10COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

20

30

40

50

60

The Quality Growth Investor

B. CASE STUDIES: ESG-RELATED MATERIAL PORTFOLIO CHANGES–CASE STUDYESCALATION FOLLOWED BY DIVESTMENT − SAIC MOTOR
SAIC Motor, a Chinese state-owned automobile
manufacturer, is an apt example of a situation where ourescalation efforts did not bring us the expected results
and, consequently, we divested from the company.

increase in media attention on this topic exacerbated ourconcerns, and we questioned the company on this topic
during our engagement in March 2021. The company
denied the allegations.

Our engagement with SAIC Motor started in 2018 andcovered several topics related to ESG, in particulartransparency on environmental data and humanrights issues. However, the company failed to deliver asatisfactory response throughout our engagement.

Following MSCI’s downgrade of the company in 2022
due to the aforementioned allegations involving humanrights violations, we reached out to SAIC’s investor
relations team again to learn more about its labour
practices in its own operations and at the level of thejoint venture, as well as in its supply chain. We received
a formal response from the investor relations teamclaiming that they were in compliance with China’s
labour laws, which used nearly the same wording
as the previous response they gave us on this topic
in 2021, but without actually answering any of thequestions we raised.

Comgest participates regularly in collaborative
engagements on climate and forest (participation in the
CDP Non-Disclosure Campaign on climate change in
2019, 2021, and 2022, and on forest in 2021 and 2022).
We also co-led the collaborative engagement under the
Climate Action 100+ framework to engage with SAIC
to request more disclosures on climate related issues.
Despite having set operational targets for its climatechange mitigation products (i.e., electric vehicle andhybrid vehicle) and starting to consider a life-cycle
assessment for these products, the company stated thatit had no intention to disclose environment-related data
to the CDP or to publicly commit to any targets related
to environmental metrics.
The company also failed to show a satisfactory responseon human rights issues. In 2020, SAIC was accused ofpotentially using forced labour in the factories of its joint
venture with Volkswagen in Xinjiang. The continued

In light of our experience with SAIC over the years inwhich the company showed a lack of responsivenessand willingness to improve, this response sadly came asno surprise. However, it proved as ‘final straw’ evidence
that our engagement efforts with SAIC had not brought
the progress we had hoped for. We had been gradually
reducing our stake in SAIC for primarily fundamental
reasons. Following this inadequate response from thecompany, the Investment Team discussed the validity of
the holding in depth in light of its unchanged ESG risk
profile, reaching a decision to divest entirely from SAIC
across all portfolios by the end of 2022.

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

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CASE STUDYCASE STUDY: UPGRADE OF AN ESG QUALITY LEVEL – RECRUIT HOLDINGS
Recruit Holdings is a Japanese company that provides
human resources and employment services. The
social dimension is thus central to its activities
and its positive general contribution to society has
always been a key consideration in our investmentcase. Although we knew that delivering social value
has been part of Recruit’s DNA since its founding,
additional company developments in terms ofstrategic commitments in 2022 have further reinforced
our perception of the nature and depth of thisvalue intended to be created by the company, andconsequently of its growth prospects.
Through new meetings with the company in whichthese social factors were the focus, we came to better
understand how achieving social impact is part ofthe company's core strategy, and in what ways thecompany might do that in practice. For example, one
critical risk to falling into poverty is the time it may
take to find a job, so Recruit made an official objective
to shorten the time it takes to find a job in half.

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COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

At the same time, from a financial perspective, settingsocial impact targets positively impacts the businessbecause, obviously, if the platform can help the users
find jobs twice as fast, they will use it. From a larger
societal perspective, the increased social need forservices that help find jobs is also a growth driver insocieties where there is a clear trend towards higher job
turnover, which is the case in Japan. The company also
explained how having these social objectives supports
employees' engagement and pride to be part of the
Recruit organisation.
As a result, this integration of social factors in our
research process has led to a reinforcement of ourconviction and an upgrade of our internal ESG ratingon the stock from an ESG Quality Level 2 to an ESG
Quality Level 1 (ESG leader). This change improved theteam’s upside calculation for Recruit (and thus relative
attractiveness versus other stocks) as our processapplies a 50bps decrease to the discount rate used in
the valuation process for ESG 1 companies.

The Quality Growth Investor

C. EXCLUSION OF HIGHER RISK SECTORS
Comgest’s investment selection process makes
it unlikely that companies with substantial ESG
risks will satisfy the required standards of quality,
visibility, and sustainability that we seek in quality
growth companies. As a result, companies with
substantial ESG risks tend to be naturally filteredout during our investment selection. In addition,
however, Comgest applies targeted exclusion policies,
documented in our
Responsible Investment
Policy, for certain activities where ESG risks
tend to be more significant. These exclusions are
implemented in Comgest’s managed portfolios 5 andcover the following sectors and activities:– Controversial weapons– Conventional weapons– Tobacco– Thermal coal
– UN Global Compact violators– Operations in controversial jurisdictions

Comgest’s “Plus” strategies apply additional ESG
screening criteria regarding the fossil fuel, nuclear
energy, and uranium mining sectors. Further
details are available inComgest’s Plus Funds
Exclusion Policies.
In 2022, we strengthened the exclusion threshold of
our thermal coal exit policy. These changes align withour climate commitments made under the Net Zero
Asset Managers Initiative. They clarify that Comgest
excludes companies developing new coal-fired power
plants and complement existing relative thresholdswith an absolute threshold of 5 GW of installedcapacity based on coal for electric utility companies.
Our updated coal exit policy brings forward the phaseout date for companies operating in developed markets
from 2040 to 2030. We are nonetheless keeping a 2040
phase-out date for companies operating in emerging
markets, recognizing they need additional time totransition towards cleaner sources of energy.

D. INTEGRATION OF CLIMATE-RELATED RISKS AND OPPORTUNITIES
1)Climate scenario analysis and Climate VaR methodology

Comgest is committed to carefully monitoring andmanaging climate risks and opportunities within
its investment processes. Comgest uses MSCI’s
Climate Value-at-Risk (Climate VaR) methodology
to measure climate related risks and opportunities
within our portfolios. Based on the
Task Forceon Climate-Related Financial Disclosures (TCFD)
recommendations, this forward-looking and returnbased methodology includes both transition andphysical risk assessments. It can be negative (cost)or positive (gain) and the horizon is the next 15 years.
Transition risks assessment includes both policy
risks and technology opportunities. Climate VaR iscalculated according to various temperature targets:
1.5°C, 2°C and 3°C.

As Climate VaR calculations are based on estimatesand forward-looking data, results are mainly to be
used as an indication of a portfolio’s exposure toclimate-related risks. Additionally, as for any metricaggregated at an individual portfolio level, Climate
VaR results are highly tied to a portfolio’s composition.
In other words, a change in a portfolio’s Climate VaR
is not only due to a change in underlying companies’
Climate VaR but could be linked to changes in thegiven portfolio’s composition.
Applying the Climate VaR data and methodology to theComgest Portfolios (the aggregated available data of ourinvestee companies for all portfolios managed by the
Comgest Group) provides us with the following results:

Aggregated Climate VaR(under various temperature targets)

1.5°C

2°C

3°C

Coverage of equity andequity-linked AUM

Comgest Portfolios–7.30%–6.20%–6.27%

98.03%

Source: MSCI, 31-Dec-2022. The “aggressive” physical risks scenario is used in the calculation of the aggregated Climate VaR.

This means that, under a 1.5°C scenario, the aggregated Comgest Portfolios could lose 7.30% of their value in thenext 15 years, while under a 2°C scenario, they could lose 6.20% of their value.

5

Except where otherwise requested by clients or where implementation is prohibited by applicable laws.

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

13

2)

Climate transition risks: policy risks and technological opportunities

The MSCI Climate VaR methodology, considers both:– Policy risks: these result from regulatory changes
aimed at increasing the cost and reducing the volumeof greenhouse gas emissions. These are additionalcosts for companies affected by the regulations.

– Technological opportunities: these result from
regulatory changes that make new low-carbon
technologies possible and profitable. These are newsources of revenue and profits, the value of which isestimated through existing green revenues generated
by the company and the number of patents thecompany has related to low-carbon technologies.

To estimate the policy component of the Climate VaR, MSCI uses the countries’ Paris Agreement Nationally
Determined Contributions. MSCI also uses multiple scientific scenario models, including:– Integrated assessment models:
AIM-CGE, IMAGE, GCAM

Aggregated Policy Climate VaR(under various temperature targets)
Comgest Portfolios– Shared socioeconomic pathways (SSP):
SSP1, SSP2, SSP3, SSP4, SSP5

1.5°C

2°C

3°C

Coverage of equity andequity-linked AUM–4.62%–2.19%–0.22%

98.03%

Source: MSCI, 31-Dec-2022.

The results show that the Comgest Portfolios are impacted by variations in transition risk scenarios, with a 1.5°C
Policy Climate VaR estimated to represent -4.62% of the aggregated Comgest Portfolios’ value, against –2.19% in
a 2°C scenario and –0.22% in a 3°C scenario. Indeed, regulatory transitions would need to be quicker and more
stringent to reach a +1.5°C temperature target. Companies operating in high emitting sectors (chemicals, airlines,etc.) are the companies contributing the most to the aggregated Comgest Portfolios’ overall Policy Climate VaR(e.g., Linde, Ryanair).

Aggregated Technology Climate VaR(under various temperature targets)

1.5°C

2°C

3°C

Coverage of equity andequity-linked AUM

Comgest Portfolios

3.67%

2.34%

0.30%

97.05%

Source: MSCI, 31-Dec-2022.

The Technology Climate VaR represents a potential gain stemming from the development of new products
and services based on low-carbon patents. The results show that Comgest is investing in companies that canbenefit from the transition to a lower carbon economy, including companies in high emitting sectors which aredeveloping products and services for advancing and scaling climate solutions (e.g., LG Chem, Fanuc Corporation).

3)

Physical climate risks

The TCFD recommendations encourage asset management companies to assess not only the transition risks but
also the physical risks associated with climate change. MSCI models two types of climate risk to analyse extreme
weather events that could affect a company’s operations:– Chronic climate risks: manifest slowly over time;modelling based on statistical extrapolation ofhistorical data.

14

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

– Acute climate risks: linked to rare natural disasters
such as tropical cyclones; risks determined byphysical climate models.

The Quality Growth Investor

The following ten physical risks are covered by MSCI’s analysis:– Extreme Heat
– Extreme Cold
– Wind gusts– Heavy rain
– Heavy snowfall– Tropical cyclones

Using a 40-year history of observed weather patterns
to establish a baseline scenario, the MSCI model
calculates a likely cost resulting from physical risks andopportunities for each company over the next 15 years.
Overall, comparing the various components of theComgest Portfolios’ Climate VaR (Policy, Technology
and Physical), we observe that physical climate
risk represents the largest proportion of the4)– River low flow
– Wildfires

Group’s aggregated Climate VaR. In an aggressive orstressed physical risk scenario (using a hypothesisof occurrence in the 95th percentile of the cost
distribution), the total cost of physical risks could
amount to -6.35% of the value of the aggregatedComgest Portfolios over the next 15 years. Companies
contributing the most to the physical Climate VaR
include those with large infrastructure, such as
Chinese gas distributor, China Resources Gas.

Mitigating climate-related risks

Companies assessed with having the highest
climate-related risks are prioritised for individual
and/or collective engagement. Our dialogue withcompanies allows us to (1) better understand how
climate-related risks are managed, and (2) assess
the various mitigation actions that companies have
implemented or plan to implement. Our analysts may
also request that companies implement further risk
mitigation actions and track companies’ progress onthese recommendations. If we deem that climate-5)– Coastal flooding– Fluvial flooding

related risks are continually not being appropriately
managed, we would consider that the company nolonger meets our quality growth standards andwould divest the holding. Additionally, our Groupwide exclusion criteria on thermal coal mining andcoal-fired power generation, as well as our significant
under-exposure to high climate-risk sectors suchas mining, energy or airline industries, allows us to
manage portfolios with significantly lower climate
risks than comparative indices.

Engaging with top emitters

Shin-Etsu is one of the largest emitters in our Japan
Equity strategy (the “Japan strategy”) and represents
2% of our Group’s total financed emissions. The
company is also one of the main contributors to ourJapan strategy’s Policy Climate VaR, which assesses
exposure to climate-related regulatory risks.
After several interactions with Shin-Etsu throughout
2022, focusing on hazardous chemical waste andsustainability reporting, Comgest held an in-depth
engagement discussion with the company on carbon
emissions and decarbonisation targets. This meeting
followed an initial engagement with the company
in December 2021, during which we commenced
discussions encouraging Shin-Etsu to set sciencebased targets for decarbonisation.

Our discussion with the company on their plans
to curb emissions and progress on setting carbon
neutrality targets allowed us to better assess how
the company is considering and managing its
climate transition risks. During the meeting, thecompany representatives highlighted the challenges
that the teams have faced in establishing a realistic
and actionable plan. We concluded the meeting
confident that Shin-Etsu will adopt science-basedtargets in due course. We believe that they aretaking the necessary time to properly implement
science-based targets in order to mitigate businessand regulatory risks the company has identified in
their
TCFD report. Our engagement with ShinEtsu will continue into 2023, notably through the
CDP Climate Transition Plan campaign.

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

15

IV. ENGAGE
A. 2022 ENGAGEMENT AND VOTING STATISTICS
Given our concentrated and long-term investment approach we aim to remain invested in a company for many
years. Therefore, maintaining strong relationships with investee companies is a key element of our investment
process. We believe that active engagement can result in tangible improvements to a company’s operations andearnings sustainability and is therefore key to delivering long-term performance to our investors. Our Investment
Team engages with companies in a constructive and purposeful dialogue throughout the research and monitoringprocess, rather than simply in reaction to one-off events or news. Additionally, Comgest’s objective is to votesystematically at all shareholder meetings held by all investee companies when technically possible. All voting
decisions are taken by the lead analysts for the company concerned. We apply our own
voting policy and do
not delegate or outsource votes.

1)2022 engagement overview

In 2022, we engaged with 152 companies(vs.135 in 2021) and carried out 213 engagement
actions (vs. 194 in 2021). Statistics on these

activities are provided in the charts below(Figure 10). The most common topic of engagement
was disclosure of climate-related information.

Figure 10. Engagement activities across Comgest's portfolios
Regional Breakdown

2)

Topic Breakdown
31%

Asia ex Japan

37.6%

Environment

21%

Europe10.8%

Social

17%

Japan

16.9%

Governance

10%North America

34.7%

Overlapping ESG issues

21%

Rest of World

2022 collaborative engagement activities

We identify engagement themes through common
issues arising from our bottom-up engagement withcompanies as well as through the top-down priorities
we have established as a responsible investor. Our
areas of focus will also take into account the resultsof our principal adverse impacts assessment. In 2022,
Comgest set thematic priorities for collaborative
engagement for the first time, identifying three ESG

16

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

risk areas of focus for the Responsible Development
Team at Comgest: climate, biodiversity and humanrights. These topics are considered material in relation
to primary ESG risks and principal adverse impact
mitigation. Climate and biodiversity have beenprioritised for collaborative engagement across all
portfolios and companies. Please see the below list ofcollaborative engagements for the year 2022.

The Quality Growth Investor

Examples of collaborative engagements undertaken in 2022
SPONSOR/TITLE

CDP NonDisclosure
Campaign

CDP ScienceBased Targets
Campaign

REGIONOBJECTIVE

OUTCOME

GlobalAs per the last four years, Comgest
participated in the CDP Non-Disclosure
Campaign, a collaborative engagement
campaign that encourages companies
to disclose more standardised
environmental information to allow for
better comparison. We led engagementswith 21 companies to request thesubmission of CDP climate change,
water and/or forest questionnaires.
We supported the engagement with
32 additional companies by co-signingletters requesting companies to disclose
through the CDP questionnaires.

Overall, 26.5% of the companies
engaged in the 2022 CDP NonDisclosure Campaign responded toat least one CDP questionnaire (i.e.,
climate, water or forest). According to
the CDP, companies engaged in the
campaign were 2.3 times more likely todisclose if engaged by investors to doso. Out of the 53 companies engaged byComgest, 16 responded to at least one
CDP questionnaire.

Following last year’s initiative, Comgest
renewed our participation in the CDP
Science-Based Targets Campaign*, acollaborative engagement initiative thataims to accelerate the adoption of sciencebased climate targets by companies.

Overall, 24% of the companies engaged
in the CDP SBT Campaign joined the SBTi
between May 2021 – September 2022.

Global* CDP is one of the founding partners of
the Science-Based Targets initiative (SBTi).

FAIRR
Sustainable
Aquaculture
Initiative

GlobalComgest joined FAIRR’s collaborative
engagement initiative which encourages
the world's largest salmon companies
to develop a science-based approachto diversifying feed ingredient sourcesin order to better manage ESG risks
associated with sourcing wild forage fishand soy. Comgest co-led the collaborative
engagement of 3 companies.

The 3 companies that we engaged asa co-lead on all agreed to meet withinvestors, and Comgest participated in a
meeting with 1 company. We will follow
up to see if the companies address therecommendations made by investors for2022 – 2023.

On human rights, Comgest signed the Investor Alliance for Human Rights’ statement in June 2022,
and joined two working groups:– ICT & Human Rights– Uyghur Region Engagement Group

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

17

3)

2022 voting overview

In 2022, Comgest voted at 444 general meetings,
representing over 98% of all general meetings heldby investee companies, or around 99% excluding
meetings at which Comgest declined to vote to avoid
conflicts of interest (see section IV of Comgest’s
Voting & Engagement Policy).
Comgest did not vote at 5 general meetings held by
5 companies, either for technical reasons or because
voting was not considered to be in the best interest ofinvestors (e.g., to prevent blocking of shares).

Overall, Comgest voted on 5,107 resolutions
concerning 339 companies in 38 countries.
Comgest voted against, or abstained from voting on,
at least one resolution at 287 general meetings.
Ourvoting records are published online, which is
updated every quarter with a 3-month lag.

General Meetings by Country
COUNTRY18

VOTABLEMEETINGSVOTEDMEETINGS%COUNTRYVOTABLEMEETINGSVOTEDMEETINGS%

Bermuda22100.00%Philippines

1

1

100.00%Brazil3737100.00%Portugal

11100.00%

CaymanIslands

16

16100.00%Russia3

3

100.00%South Africa

44100.00%

Chile

1

1

100.00%South Korea

88100.00%

China

40

39

97.50%

Spain

2

2

100.00%Colombia

44100.00%Sweden3

3100.00%Cyprus11100.00%

Switzerland

12

11

91.67%

Denmark

99100.00%

Taiwan4

4100.00%Faroe Islands

1

1

100.00%

USA

43

43

100.00%Finland1

1

100.00%France1313100.00%

UnitedKingdom

1313

100.00%Germany

16

15

93.75%

Vietnam27

25

92.59%

Greece11100.00%Hong Kong2

2

100.00%

India

65

65

100.00%Indonesia

11100.00%

Ireland10

660.00%

Italy

3

3

100.00%

Japan

72

72

100.00%Jersey(Channel IsL,
UK territory)

3

3

100.00%

Kazakhstan

33100.00%

Luxembourg

88100.00%

Mexico88100.00%Netherlands

1010100.00%

Norway44100.00%

Pakistan11100.00%COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

Comgest exercised its voting rights on 5,107
resolutions out of a total of 5,172 resolutions,representing 98.7%.
Comgest voted on 137 shareholder resolutions.

The Quality Growth Investor

Resolutions are largely driven by Governance topics, even if we have seen Environmental and Social (E & S)
resolutions gaining space over the past few years. Most of the E & S resolutions were shareholder resolutions.

Exercise of Voting Rights
BREAKDOWN OF VOTES%BREAKDOWN OF VOTES%

82%

In Line with Comgest Policy

97%

Against15%

Against Comgest Policy

3%

Abstentions or Withholdings

3%

For

For Shareholder Resolution

64%
27%
9%

In Line with Management

83%

Against Shareholder Resolution

Against Management

17%

Abstention on Shareholder Resolution

ESG Themes
BREAKDOWN OF THEMES%

Environmental

0.20%

Social

1.37%

Governance98.14%ESG

0.29%

In 2022, Comgest
identified three ESG risk
areas of focus: climate,biodiversity andhuman rights, which areconsidered material topics
in relation to primary ESG
risks and principal adverse
impact mitigation.

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

19

B. ENGAGEMENT EXAMPLES IN 2022–

ENGAGEMENT IS A “MARATHON”

9 YEARS OF ENGAGING WITH INNER MONGOLIA YILI (YILI)
Since 2014, we have actively engaged with Yili, a Chinese dairy company held in several of our portfolios, with
Comgest’s Hong Kong-based Investment Team and Paris-based ESG Team together leading the engagement.

YILI ESG MILESTONESYILI ENGAGEMENT TIMELINE

TM

Limited ESG reporting and awareness

COMGEST MANAGEMENT

2014
Comgeststarts ESG
engagement:
Neededbasic ESG
information for
in-house ESG
initiation before
investing2015

Signatory of
UN Global
First
Corporate Social Compact
ESG
Responsibility
Committee
Report issued
in English andformed directly
Chinesein CEO office

2016

2017

Company
corporate
strategyalignedwith
9 SDGs2018

Full CDP
disclosure on
water security,
forest andclimate action
Partial CDP
disclosure– only Chinese
confidential
dairy company
version of CDP with CDPquestionnaire disclosure

2019

2020

Multiple ESG engagements:– Reiterated ESG issues– Shared our ESG expertise in developed markets– Provided industry standard documents, e.g., Nestlé’s CSR
report to help Yili improve ESG reporting and governance

Focus on CDP disclosure:Comgest acts as one of
108 lead signatories for
the CDP Non-Disclosure
Campaign

Engagements (CEO meetings, calls, etc.) led by
our China PM team with support from our Paris-based
ESG TeamEngaged on CEO
compensation: voted against
Yili’s revised proposal

2nd full CDP
disclosure
Announced
Carbon Neutral
Plan by 2050 forcompany andsupply chain

2021
In-depth
exchanges
on more ESG
standards, their
ESG disclosureand strategy
directions

Formulated
andsubmitted
SBTi target
plan

2022
Upgraded Yili’s
Comgest ESG
Quality Level:
4 to 3Introduced andrecommended
SBTi to Yili

Source: Comgest / Company website and media communications, as of 30-Aug-2022. *CDP is the world’s leading collaborative engagement platform asking for specific climaterelated improvements such as water consumption, deforestation and climate action. In 2020 50% of global market capitalization reported on climate action, deforestation andwater consumption to CDP.

Request for disclosure and transparency
Given the company’s core business activity, high levelsof GHG emissions were a material sustainability issue
that we prioritised. Our initial dialogues focused onincreasing transparency of environmental data. In 2019,we held a lead investor role in the CDP’s Non-Disclosure
Campaign and asked Yili to answer three disclosure
questionnaires covering climate change, water andforests. In addition to sending out letters, our analysts
organised a one-on-one session with Yili in Hong Kong

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COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

to discuss the CDP’s disclosure process and thebenefits of greater environmental data transparency.
The company ultimately submitted partial andunscored questionnaires in 2019, and has responded
to the three CDP questionnaires every year since 2020,
with the overall scores improving over time (from a“C” in 2020 to a “B” in 2022 on climate change; froma “B-” to a “B” on water security; and from 3 “C’s” to
2 “B’s” and 1 “B-” on forest).

The Quality Growth Investor–

ENGAGEMENT IS A “MARATHON”

9 YEARS OF ENGAGING WITH INNER MONGOLIA YILI (YILI)
Encouraging the company to set science-based targets and broader sustainability plans
In 2021, Yili reached out to get our views on the SBTi
and its target-setting standards. We explained theimportance and benefits of setting SBTs as well as
third-party validation of the targets. We were pleased tosee that the company formally committed to the SBTiin H1 2022. During our meeting in 2022, the company
confirmed that they had submitted their near-termtargets, and were awaiting approval from SBTi and
expecting to receive a formal response in 2023. During
our meeting, we also discussed their initiatives andmeasures put in place to reduce their environmental
footprint, notably on scope 3 emissions, renewableenergy use, green packaging, etc. From 2012-2021, Yili
reduced its Scope 1 and 2 carbon emissions by 51% per
ton of products through the use of green packaging
materials and improved production efficiency; however,since Yili does not directly own any farms, the largest
emissions in its value chain, namely carbon emissions
from upstream farms, fall under Yili’s Scope 3 emissions.
Starting from 2021, Yili began to systematically compile
Scope 3 emissions data and reduce carbon emissions byhelping dairy farmers optimise their feed formulas. We
encouraged Yili to set quantitative targets for optimising
dairy feed to reduce Scope 3 emissions more efficiently.

In recent years, we have broadened our engagement topics and leveraged our long-term relationshipwith Yili to facilitate communication with other stakeholders.
In 2021, as an active supporter of the FAIRR initiative
and after learning that FAIRR had not received a
response from Yili on its Coller FAIRR Protein Producer
Index survey, we reached out to encourage Yili torespond to the survey, which they ultimately submitted
in a timely manner. During our meeting held in 2022,
the company asked us to review with them ESG ratings
they received from different service providers and theColler FAIRR Protein Producer Index in order to help

them understand where they stand in comparison totheir peers and where they can improve. We salutethe company’s openness, initiative in seeking ouradvice and willingness to improve. In addition, Yili
informed us that they were unable to contact a specificdata provider to provide feedback on some missing or
incorrect data. We therefore helped them get in touchwith the relevant data provider in January 2023 so they
can provide their feedback.

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

21

CASE STUDYCASE STUDY: BIODIVERSITY DISCLOSURE AT NESTLÉ
We have engaged with Nestlé, the world’s largest foodand beverage company, for years. Given the importanceof the food sector on biodiversity, our engagementwith Nestlé has focused largely on biodiversity-related
topics. For instance, in 2020 we co-signed the CDP NonDisclosure Campaign on Forest for Nestlé to encouragethem to respond to CDP questionnaires, and eventually
the company submitted the questionnaire.
Nestlé was one of the first large companies in thefood sector to commit to ambitious climate andbiodiversity targets. For instance, the company aims
to cut emissions (their 2018 in-scope greenhouse gas
emissions: 92m tonnes of total 113m tonnes*) by 20% in
2025 and by 50% in 2030. The company is also focusing
on sourcing ingredients sustainably (ingredients are
responsible for two-thirds of its greenhouse gases,of which over half is dairy/livestock), shifting theirproduct portfolio towards more focus on plant-based
foods, making all plastic reusable or recyclable by 2025,
using renewable energy in manufacturing and its fleets,
as well as planting trees. To fund these programs, thecompany has set aside CHF3.2 billion for 2021-25, with
CHF1.2 billion going into regenerative agriculture.

minimal. In April 2022, during a small group meetingwith the Chair of Nestlé’s Board, we asked the Chair
to be more transparent about some of the company’s
current actions undertaken to address biodiversity
loss and carbon emissions in their upstream supply
chain. The Chair shared with us that the company
was launching a number of different initiatives andtrialling new ideas. However, we expressed that wewould like them to be more forthcoming about what
they can scale and commit to over the next 12-24
months, particularly regarding how the CHF1.2bn
will be used for regenerative agriculture. In late2022, we were pleased to learn that the company
released a regenerative agriculture framework,
defining its approach with more clarity and describing
its implementation strategy. In addition, Nestlé
will incorporate key ingredients sourced into its
performance measures and has highlighted three key
products to focus on in their 2023 reporting (fresh milk,
green coffee, cereals and vegetables used in baby foodproducts). Overall, we see Nestlé’s steps as a positive
start and we believe it will also contribute to industryalignment on common frameworks and metrics forregenerative agriculture.

While we laud the efforts and appreciate the sizeand complexity of Nestlé’s operations, we have foundthe granularity around what they currently do to be*Total GHG emissions were 113 million tonnes (CO 2 equivalent) in 2018, 92 of which were in scope of their UN 1.5°C pledge.

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COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

The Quality Growth Investor

CASE STUDY–DIFFERENT ENGAGEMENT METHODS TO ADDRESS THEMATIC ISSUESAs long-term investors, our performance is tied to thesuccess of the companies we invest in, and we think ofengagement as an opportunity to partner with thesecompanies to drive change in their sustainability
practices. We do not refrain from holding companies
with weaker ESG profiles if we can see a credible path toimprovement. Whilst our exclusion policy ensures that
we avoid exposure to certain industries such as tobacco,electricity producers with an energy mix exposed tocoal and thermal coal mines, we believe investment inother ESG-sensitive industries, such as the agriculture
and food industry, is certainly possible for Comgest solong as our research properly addresses biodiversity
and other environmental and social issues. To maximise
the impact of the engagements that we carry out, we
combine several approaches — individual engagement
is ideal to maintain an ongoing dialogue with companies
and monitor progress against sustainability targets,
whilst collaborative engagement is useful to strengthen
our leverage as well as share best practices with likeminded investors.
In 2022, we engaged both individually andcollaboratively with the 3 salmon farming companies
that we hold in our portfolios, namely Bakkafrost,
SalMar and Salmones Camanchaca.
Whilst salmon farming is a lower carbon-intensive
livestock,source of protein compared to land-based
the industry has other significant ESG risks that can’tbe ignored and which we address in our engagement
programmes with companies operating in the sector.

We conducted an in-depth review of the sustainability
credentials of the salmon farming sector, based on
4 environmental themes: biosecurity/fish health,sustainable feed, environmental footprint, and novel
technology. As part of the assessment, in addition toregular meetings and site visits, we initiated individual
dialogues with our portfolio companies in 2022. We
engaged with Salmones Camanchaca in June 2022 todiscuss biosecurity, food safety, sustainable fishingcertifications, employee health and safety, whilst our
individual dialogues with Salmar and Bakkafrost in Q42022 mainly focused on the topics of sustainable feed,emissions and seafloor waste.
In 2022, Comgest joined the FAIRR Sustainable
Aquaculture Initiative, a collaborative initiative thataims to encourage the world’s largest salmon companies
to develop a strategic, science-based approach todiversifying feed ingredient sources. We co-led thecollaborative engagement of our 3 salmon farming
investee companies. As part of the engagement, weparticipated in a meeting with Bakkafrost executives,
during which they were able to answer most questions
in detail and share a thorough presentation that
addressed the engagement requests of FAIRR andinvestors, such as their rationale for relying on marine
ingredients and the results of their feed trials withplant-based ingredients. We were pleased to see that thecompany had conducted some risk assessments on the
future volatility of marine ingredient supplies and had
prepared alternative solutions. We also noted positively
their willingness to work towards the milestones set byinvestors in terms of R&D and transparency.

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

23

CASE STUDY–

EXAMPLE OF A SUCCESSFUL ENGAGEMENT – AMADEUS
In 2021, we started an engagement on remuneration
with Amadeus, a leading travel technology company. We
put forward our concerns regarding the CEO package
during two meetings, and eventually voted againstthe ‘Say on Pay’ item at their AGM. In our view, theremuneration package was too generous vis-à-vis thecompany’s results and unbalanced in terms of shortand long-term components of the remuneration scheme.
Given the depth of our dialogue with the company
over the years, and being a significant shareholder,
we believe that it was important for us to clarify ourvoting rationale and further describe our expectations
regarding future remuneration schemes. In addition to
sharing our views during meetings with the company’s
Head of Investor Relations, Board Secretary and Head ofCompensation, we sent a copy of our recommendations
to the Board.
This dialogue held in 2021 continued in 2022, with
Amadeus’ Board reaching out to collect our feedback on
their upcoming remuneration policy. We took comfort
in the fact that some of our ideas, including expanding
their range of remuneration outcomes, were included in
the new policy.

24

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

We have also been advocating for the inclusion of an
ESG metric based on the amount of kerosene saved
thanks to the adoption and usage of some of Amadeus’
solutions and software. Indeed, some solutions modulesof Amadeus can help airline companies optimise theirflights in many ways that lead to shorter distances
travelled and less fuel burnt. While the details of how
this could be calculated remain to be finalised, we werepleased to see that the Board remains focused on finding
a way to link an ESG target to the sale of dedicatedsoftware and variable remuneration in the near term.
Progress made by the company led us to vote for the ‘Sayon Pay’ item on remuneration at the 2022 AGM.
In November, we resumed our engagement with theBoard through a meeting held collaboratively with threeother investors. During the discussion we gave feedbackon the latest version of the company’s remuneration
policy and followed up on the inclusion of ESG targets.
Overall, we applaud the company for being open toideas and appreciate the Board’s transparency andefforts to align remuneration schemes with investors’
expectations while seeking ways to better integrate ESG
metrics in packages.

The Quality Growth Investor

CASE STUDY–ESCALATION FOLLOWED BY DIVESTMENT − TELEPERFORMANCE
Comgest held Teleperformance in several European
portfolios until November 2022. Teleperformance
operates customer support service centres for large
clients such as Apple or Amazon. Their employees arelocated across the globe (Colombia, Philippines, Albania,etc.). This ambitious company is known to have a “highperformance” culture which is helpful to sustain growth
and to serve their demanding clients. That said, this typeof culture is a double-edged sword that we believe canleave room for managers, heavily focused on deliveringresults, to create stressful and toxic work environments.
As a significant shareholder with a good access totheir Management and Board, we have been intensely
engaging with the company and escalating in different
ways to steer them towards conducting business withcareful consideration of their employees and otherstakeholders.
Our engagement activity started in 2019, withdiscussions on their workplace environment andevolution of their company culture. In 2021, we
intensified our engagement following an OECD
investigation of the company’s employment practises,
and recommendations in August by the French
National Contact Point (NCP), an independent authority,
investing a complaint by UNI Global Union statingthat Teleperformance violated worker rights to asafe workplace in certain countries during the covid
pandemic. We held numerous calls with the company(management and Board representatives) to address theissues and communicate that we expected a roadmap
with clear milestones on how their employee practises
would improve. We also participated in collaborative
engagements with other shareholders and stakeholders(trade unions in particular) requesting demonstrable
action by the company on the issues raised. In addition,
we voted against the re-election of certain Board
members we deemed as too close to management, inorder to encourage a structure with Board members
who will challenge management and bring new
ideas, establishing a better balance between businessperformance and employee/stakeholder engagement.
In March 2022, in the wake of previous engagementswith the company, we followed up with a call to their
Deputy CEO and Head of CSR to find out if any progresshas been achieved in terms of labour relations incertain countries (notably, Colombia). We noted that thecompany was building better communication channels
in some countries and was still in the process of building
bridges in others.
In April, we sent a letter to the Board to follow up on thisissue and made a recommendation that they engage
with an ethics specialist who has a solid track record,having previously worked with a large listed company.
The Board’s response was that Teleperformance has
already implemented some of the recommendations of
the NCP and intended to maintain its commitments inthe future. We were also reminded that a Board-level
CSR Committee was created in January 2021, to take into
account the increasing importance of these matters.
We were not satisfied with this response, as we were
expecting a more proactive response from the Board,which could have also tried to investigate the matters
directly and not just rely on getting updates on measures
implemented by management.
Given the strong personality of founder, Chairman andCEO, Daniel Julien, we increasingly had the impressionof limited counterpower from the Board of Directors. We
were also not satisfied that no clear timeline for the CEO
succession was provided given Daniel Julien’s age and theless-than-ideal situation of having a combined Chairman– CEO role. Furthermore, given the continued complaints
regarding employee treatment brought about by UNIGlobal Union, we were increasingly concerned about
the gap between the company’s messages on its labour
efforts and criticism from external stakeholders. In June,
we decided to downgrade our internal ESG Quality Level(on 1-4 scale) for Teleperformance from Level 2 to Level 3.

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

25

CASE STUDY–ESCALATION FOLLOWED BY DIVESTMENT − TELEPERFORMANCE
Following a Forbes article published in early Augustthat referenced allegations about the way the company
manages its ‘’content moderation’’ business line in the
US and, in particular, for their client, TikTok, we met
with the company’s CEO in September, during which thecompany strongly denied most of the article’s allegations
and provided some factual counter-arguments. We
used this controversy to urge the Board to meet with abusiness ethics expert that we previously recommended
to the company and become more independent from the
management in order to exercise oversight as rigorously
as possible. After numerous attempts, a meeting
between the Lead Independent Director of the Board andthe business ethics expert finally took place, but without
any representative from Teleperformance’s management
team. In the meantime, we decided to reduce the size ofour holding.
In early November, Teleperformance issued solid Q3
and 9M 2022 results. However, we were growing moreconcerned with the disconnect between the very solid
financial performance of the company, their numerous‘Great Place to Work’ awards, and the growing numberof negative press coverage, combined with continued

26

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

allegations of poor working conditions by UNI. Someof the most senior portfolio managers of our Europe
strategy, along with our company and ESG analysts, metwith Daniel Julien, who is generally not available forshareholders, except for rare and important occasions.
We had urged to meet with him to cover some recurringissues around their labour practices. The CEO cameacross as dismissive of any allegation of poor employee
working conditions at Teleperformance. Following
various controversies on this topic, we asked thecompany, and its Board in particular, to demonstrate
more stringent and independent oversight on their
Human Capital management. We specifically asked
the company to publish the report of an investigation
launched internally with the support of an independent
third-party. The company did not publish it. Later in
November, we met with the Lead Independent Director
on the Board and urged him to exercise more oversight,
along with constructive critical thinking, but we did not
identify any resulting actions. With another controversy
brewing at that time, and sentiment around the issue
not properly overseen, we divested from the company
across all our portfolios.

The Quality Growth Investor

C. SIGNIFICANT VOTES IN 2022
Comgest provides a rationale for voting decisions that we consider significant, such as votes against management,
votes on shareholder resolutions, votes withheld, votes that are not in line with our voting policy, and votes that
represent a significant shareholding. Below is an illustrative selection of significant votes during the year 2022.

1)

Examples of Votes Against Management/Abstention
SAP: VOTE AGAINST MANAGEMENT (AGM, 18-MAY-22)– Ratify KPMG AG as Auditors for Fiscal Year 2022
§ Rationale: The auditor’s tenure exceeds 15 years.
§ Outcome: Pass (Dissent Level: 5.0%)– R atify BDO AG as Auditors for Fiscal Year 2023
§ Rationale: We decided to vote against the selection of BDO as we doubt an audit firm of this size can gather the
resources and competences required to audit a firm like SAP. The complexity of their revenue recognition and manyother accounting-related processes is unparalleled in the software industry.
§ Outcome: Pass (Dissent Level: 0.2%)– E lect Hasso Plattner to the Supervisory Board§ Rationale: We decided to vote against the re-election of Hasso Plattner as Chair of the Board. Having been one of thefive founders of SAP, Hasso Plattner has been at SAP for almost 50 years. We hold him accountable for some of thegovernance shortcomings of SAP and we would rather see him leave the Board. In our view, the company needs adifferent oversight.
§ Outcome: Pass (Dissent Level: 9.5%)

TENCENT: VOTE AGAINST MANAGEMENT (AGM, 18-MAY-22)–  Elect Ian Charles Stone as Director§ Rationale: We voted against the re-election of Mr. Ian Charles Stone and Mr. Dong Sheng Li as directors. They haveboth served on the company’s Board for more than 18 years and no longer meet our definition of an Independent
Director and have been reclassified as Non-Independent Directors.
§ Outcome: Pass (Dissent level: 16.7%)

KEYWORDS STUDIOS: VOTE TO ABSTAIN (AGM, 20-MAY-22)– Re-elect Ross Graham as Director§ Rationale: We voted to abstain on the re-election of the Director who chairs the Nomination Committee due to afemale representation below 30% and few indications they would remediate this after we engaged with the company.
§ Outcome: Pass (Dissent Level: 9.5%)

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27

2)

Votes Against Comgest’s Voting Policy
KOBAYASHI PHARMACEUTICAL: VOTE AGAINST COMGEST’S VOTING POLICY (AGM, 30-MAR-22)– Elect Director Kazumasa Kobayashi§ Rationale: Despite being over 80 years old, Chairman Kobayashi continues to remain active, performing his duties
well. He attended all of the Board meetings last year, leading the meetings appropriately as Chairman, and also
received good evaluations from Outside Directors of the Board. He also conducts “K-ei juku”, a special training
course for select employees who are officer candidates to pass down the company’s DNA. Furthermore, he isaggressively communicating with the public through media interviews, a new book (published in January 2022), andlectures in a business mail magazine. He even promotes the company’s products and brands in China on TikTok.
§ Outcome: Pass (Dissent level: 4.5%)

HALMA: VOTE AGAINST COMGEST’S VOTING POLICY (AGM, 21-JUL-22)– Approve Remuneration Report§ Rationale: We believe the increase in executive compensation within the last 18 months is an indication that the
management compensation package is no longer appropriate given the size and success of the company. Looking at
the last five years, the compensation does not show any increase, but true to the performance culture of Halma, theremuneration of the executives has gone through large ups and downs in the wake of hard-to-meet but rewarding
performance targets. The fixed component of the CEO’s remuneration has increased but it remains in a range that
we would consider adequate for a company of that size and with such success. To put this in perspective, the totalcompensation of the CEO has doubled over the last ten years, starting from a reasonable base, while the size andrevenues tripled. The loss of a senior executive last year to become CEO of another company suggests there iscompetition for talent and the company needs to be at least in line with competing salaries.
§ Outcome: Pass (Dissent Level: 32.9%)– Re-elect Jo Harlow as Director§ Rationale: We believe it is important for Jo Harlow to continue as Chair of the Remuneration Committee and wetherefore voted in favour of her re-election.
§ Outcome: Pass (Dissent Level: 23.2%)

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COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

The Quality Growth Investor

3)

Votes Against Comgest’s Voting Policy
KINGSPAN GROUP: VOTE AGAINST COMGEST’S VOTING POLICY (AGM, 29-APR-22)– Re-elect Jost Massenberg as Director (Outcome: Pass – Dissent Level: 23.9%)– Re-elect Gene Murtagh as Director (Outcome: Pass – Dissent Level: 5.6%)– Approve Remuneration Policy (Outcome: Pass – Dissent Level: 20.1%)– Amend Performance Share Plan (Outcome: Pass – Dissent Level: 19.9%)§ Rationale:W e supported the re-election of the Chair of the Nomination Committee despite the Board being made up of only 27%
female directors. Although the level is below our expected threshold of 30% for a European company, since we havediscussed this with them, their female representation went from 17% to 27%, and we have received their assurancesthat the threshold will soon be above 30%. The Chair of the Nomination Committee has been instrumental in thisprogress, so it seemed counter-productive to not support them. While our Voting Policy could have led us to voteagainst the re-election of the current CEO for his alleged responsibility in some severe controversies, we decided tosupport him. Our multiple engagements with Kingspan’s Board and Management, as well as the numerous steps
taken by the company over the past 18 months, indicate that the Grenfell building tragedy has been managed with adeep resolve to ensure product and public safety in the future.
L astly, we could have voted against the remuneration policy of the company but decided otherwise as it meets
all of our criteria: fully transparent, highly relevant (both the STI and the LTI), very challenging and definitively
long-term. We appreciate the cap and the Board’s access for us to review in detail what drives each component.
Lastly, we also recognise the competitive pressure the company is facing to retain talent.

SANLAM: VOTE AGAINST COMGEST’S VOTING POLICY (AGM, 08-JUN-22)– Reappoint Ernst & Young (E&Y) as Joint Auditors with Christo du Toit as the Individual and Designated Auditor§ Rationale: PwC has been appointed to replace E&Y effective for the 2023 financial year. It was deemed appropriate
to allow E&Y to share the audit with KPMG for a smooth transition. Therefore, we vote for this resolution.
§ Outcome: Pass (Dissent Level: 26.8%)– Re-elect Kobus Moller as Member of the Audit Committee§ Rationale: Sanlam is a complicated, diverse financial services company. Kobus Moller was a very effective andstrong financial director during his tenure, and he has completed his mandatory cooling off period before re-joining
Sanlam’s Board. With a new CFO, head of Finance and new auditors, it was deemed important to have some levelof continuity to understand the history and context of Sanlam’s accounting and financial culture. Therefore, we
decided to vote for this resolution.
§ Outcome: Pass (Dissent Level: 11.3%)

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

29

4)

Shareholder proposals
WALMART: VOTE FOR SHAREHOLDER PROPOSAL (AGM, 01-JUN-22)– Report on Impacts of Restrictive Reproductive Healthcare Legislation§ Rationale: Given that currently 11 US States ban abortion coverage in all state-regulated private insurance
plans, following the Supreme Court’s June 2022 decision to overturn the federal right to an abortion (underRoe v. Wade), which has triggered abortion bans in various states and increased the likelihood that thecompany’s female workforce could be impacted. Additional information on the potential risks to Walmart
caused by such policies, and how the company plans to address such risks would be beneficial to shareholders.
Therefore, we voted for this resolution.
§ Outcome: Fail (Dissent Level: 13.9%)

AMAZON.COM: VOTE FOR SHAREHOLDER PROPOSAL (AGM, 25-MAY-22)– Commission Third-Party Report Assessing Company’s Human Rights Due Diligence Process§ Rationale: The company says that it prohibits using its services in an unlawful method in its Acceptable Use
Policy. Despite the company’s assertion that the responsibility for ethical use of surveillance and facial recognition
technology lies with the user, the U.N. Guiding Principles on Business and Human Rights make clear that theservice provider has responsibility to ensure that its technology is not used in instances likely to cause overall
harm or in a way that contravenes international law and human rights. The company does establish guidelines
for potential legislation regarding the use of facial recognition technology, including human review, very highconfidence score, and transparent use of the technology. However, controversies and questions surrounding thecompany’s facial recognition technology are ongoing, as the company itself states that it will continue providing
this technology to law enforcement agencies. Shareholders would benefit from independent verification on how
the company is assessing, preventing, mitigating, and remedying adverse human rights impacts resulting from its
business operations and end-use of its products and services. Therefore, we voted for this resolution.
§ Outcome: Fail (Dissent Level: 40.3%)

NIKE: VOTE AGAINST SHAREHOLDER PROPOSAL (AGM; 09-SEP-22)– Adopt a Policy on China Sourcing§ Rationale: While we would encourage any proposal that enhances enforcement and transparency around Nike’s
human rights policy and labour compliance standards, we believe that this proposal addresses the issue of Xinjiang
cotton sourcing through the wrong lens. Suspending all raw material sourcing from the entirety of China is anoverreach that we believe is not in the interest of shareholders. Nike’s initiatives to drive change in their supply
chain and promote responsible manufacturing are well documented and expected to yield results over time. Any
strict ban would need to be well calibrated to not unnecessarily impact unrelated business activities within Nike.
Therefore, we voted against this resolution.
§ Outcome: Fail (Dissent Level: 6.3%)

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COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

The Quality Growth Investor

V. PROMOTEAt Comgest, we seek to advance responsible investment as well as spread a responsible and long-term mindset
throughout our ecosystem in which we operate. Our independent ownership structure is regarded as a key
advantage to implementing an unbiased and successful advocacy strategy. Our advocacy work targets industry
participants such as regulators, policy makers, governments, and a broad range of financial industry stakeholders(e.g., our peers, industry bodies, asset owners, SRI label providers, consultants, etc.). We conduct advocacy
activities either directly or by joining industry and/or collaborative initiatives, notably those listed below.

A. RESPONSIBLE INVESTMENT INITIATIVES
Participation in responsible investment working groups, committees and initiatives
INITIATIVEDETAILS

Association Française
de Gestion (AFG)

Comgest is a member of AFG’s:– Responsible Investment Plenary: contributes to the development of responsible
investing within the French asset management industry.
– Corporate Governance Committee: contributes to the development of the Corporate
Governance Code for the French asset management industry.

AFG is the French asset
management industry
association.

Topics include responsible investment regulations, ESG standards, sharing of bestpractices, governance codes, collaboration on response to French and European
regulators’ consultation papers, advocacy as an industry association.

Institut Français desAdministrateurs (IFA)

Comgest is a member of the IFA’s Prospective & Research working group which aims
to identify and analyse emerging governance topics. The first round of topics andworkshops focused on how to build a Board “compass” and debated the legitimacy ofshareholders as the ultimate stakeholder.

FinDatEx

Comgest is a member of the FinDatEx’s EET working group which aims at easing theexchange of ESG data between manufacturers and distributors and helping themmeet the European regulatory requirements.

Supporting sustainability and responsible investment initiatives
INITIATIVE

Principles for Responsible
Investment (PRI)

International Corporate
Governance Network (ICGN)DETAILS
Comgest has been a signatory since March 2010. In 2021, we received a 4-star rating inthree categories: “Investment & Stewardship Policy (79%)”, “Direct - Listed Equity - Active
Fundamental – Incorporation (89%)” and “Direct - Listed Equity - Active Fundamental –Voting (79%)”, above median in each of these assessment modules.
Read Comgest’s latest
PRI Transparency Report andAssessment Report.
As a signatory to the PRI, Comgest participated in 2022 in the Net Zero Listed
Equity Practitioners Group. The group is a knowledge-sharing platform on Net Zero
implementation for listed equity investors where participants can share information on
methodologies, strategies and challenges.
Comgest is a member of the ICGN to raise standards of corporate
governance worldwide.

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

31

Standards and initiatives related to climate
INITIATIVEDETAILS

Net Zero Asset Manager
Initiative (NZAMi)

In 2022, Comgest became a signatory to this initiative driven by an internationalgroup of asset managers committed to supporting the goal of net-zero greenhouse gas
emissions by 2050 or sooner.

Task Force on Climate-related
Financial Disclosures (TCFD)

Comgest has supported the TCFD since 2017 and encourages all portfolio companies
to align disclosures to the TCFD recommendations.

Climate Action 100+Comgest has been a signatory to Climate Action 100+, an investor-led initiative toensure that the world’s largest corporate greenhouse gas emitters take necessary
action on climate change, since 2017.

CDP

Comgest has supported the CDP since 2012, as well as participated in the CDP NonDisclosure Campaign since 2018 and the CDP-SBTi Campaign since its launch in 2021.

Say on Climate Forumpour l’Investissement
Responsible (FIR)
French Sustainable
Investment Forum

Institutional Investors Groupon Climate Change (IIGCC)

In 2022 and 2023, Comgest was a signatory to the FIR’s “Say on Climate” investor
campaign which asks companies to present ambitious climate plans and targets,allowing investors to then vote.

The Institutional Investors Group on Climate Change is the European membershipbody for investor collaboration on climate change. Joining the IIGCC, in 2023, stronglyaligns with our Net Zero Target Setting approach as we adopted the Net Zero
Investment Framework (NZIF), developed by IIGCC, to establish our targets.

Standards and initiatives related to other environmental factors

32

INITIATIVEDETAILS

Deforestation Free Finance

Comgest joined this new initiative in 2021 and is one of the signatories to the
Financial Sector Commitment Letter on Eliminating Commodity-driven Deforestation,
which is endorsed by 33 financial institutions representing USD8.7 trillion in assets
under management. The signatories recognise the vital role of financial institutions
in tackling deforestation and commit to adopt the roadmap proposed by the
Deforestation-Free Finance Project by 2025, aligned with a Paris Agreement-compliant
1.5°C pathway.

FAIRR Initiative

Comgest has supported the FAIRR Initiative, a collaborative investor network thatraises awareness on ESG risks and opportunities brought by intensive livestock
production, since 2020.

Investor Letter to FAO

In November 2022, Comgest signed an investor letter to the UN Food and Agriculture
Organisation (FAO), initiated by the FAIRR Initiative, calling on the FAO to deliver a
clear roadmap for the Agriculture, Forestry and Other Land Use (AFOLU) sector to asustainable global food system by 2050.

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

The Quality Growth Investor

Standards and initiatives related to social, human rights and anti-bribery/corruption
INITIATIVEDETAILSInternational Corporate
Governance Network (ICGN)

Comgest has been a member of the ICGN to raise standards of corporate governanceworldwide since 2011.

Access to Medicine Foundation

Comgest has supported the Access to Medicine Foundation, an independent non-profit
organisation which analyses how the world's largest pharmaceutical companies are
addressing access to medicine, since 2019.

PRI Advance Platform

Comgest has endorsed the newly created PRI Advance platform focused on humanrights and social issues since July 2022.

Investor Alliance for
Human Rights

In 2022, Comgest joined the Investor Alliance for Human Rights, which is a collective
action platform for responsible investment that is grounded in respect for people’s
fundamental rights.

30% ClubFrance Investor Group

Comgest joined the 30% Club France Investor Group (the “Group”) in September 2022.
The Group is a newly established collaborative engagement initiative comprised ofasset managers and asset owners which aim to engage with SBF 120 * on the way
they promote gender equality across their organisation, with a specific focus on
the executive management level, e.g., executive committees (Comités exécutifs),
management committees (Comités de direction), management board (Directoire).
Their aim is to achieve at least 30% of women on boards.
* “SBF 120” refers to companies listed in the French stock market index, “Société desBourses Françaises 120”.

B. ENGAGING WITH POLICY MAKERS ON DEFORESTATION
To maximise the impact of our engagements on deforestation and wider ESG topics, we combine several
approaches. In addition to engaging with issuers, engaging with policymakers allows us to participate in aligning
the rules of the game towards a low-carbon, people- and nature-positive world.
The Investors Policy
Dialogue on Deforestation (IPDD) is a good example of the positive role investors can play in influencing
regulators to advance sustainability in their jurisdictions.
IPDD is a PRI-supported initiative on the PRICollaboration Platform representing USD10.0 trillionof global AUM and 67 institutions. Comgest joined
the IPDD in June 2020 and has been working withover 30 investors as a committee member and therepresentative for France.
This multiple high-level engagement involves
interaction with senior officials globally and in
Brazil and Indonesia, with an objective of making
deforestation and land-use changes a more importantpart of climate narrative.

In 2022, a member of Comgest’s Investment Team
travelled to Brasilia on behalf of the IPDD and held
individual meetings with Brazil’s Environment
Minister Marina Silva, the National Treasury andthe Central Bank. The representatives shared what
they saw as the main obstacles in the fight against
deforestation and expressed recognition of their
responsibilities in moving the process forward. In
addition, they welcomed the IPDD’s engagement on
this front and in future engagements. We found themessages from the discussions were very positive
overall. Comgest will continue to work with othermembers of the IPDD to address this issue.

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

33

C. PROVIDING FEEDBACK ON ESG STANDARDSIn 2021 and 2022, Comgest staff participated in the FinDatEx European ESG Template (“EET”) Working Group,
which aims to ease the exchange of ESG data between manufacturers and distributors and to help them meet
European regulatory requirements. During the update of the latest version of the EET form, Comgest actively
participated in the Working Group meetings and provided feedback to FinDatEx and the AFG (Association
Française de la Gestion financière / French Asset Management Association).
In March 2022, Comgest participated in a European Securities and Markets Authority (ESMA) call for evidence onmarket characteristics for ESG rating providers in the EU, to share on our usage of such data, key challenges wehave encountered as well as risks posed by ESG ratings we have identified.

We seek to advanceresponsible investment
as well as spread a
responsible and long-term
mindset throughout our
ecosystem.

34

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

The Quality Growth Investor

VI. TRANSPARENCY ON KEY ESG METRICS
A. CLIMATE-RELATED METRICS
1)

Implied temperature rise

Implied Temperature Rise (ITR) is a forward-looking metric developed by MSCI to show the temperature
Thealignment of companies and portfolios with global temperature goals. Key to understanding the ITR is the conceptof a carbon budget: how much the world can emit and, by extension, how much a company can emit (acrossScopes 1, 2 and 3) and remain within the limitations required to meet a 2°C warming scenario by 2100.6 MSCI
uses Intergovernmental Panel on Climate Change (IPCC) guidance to understand what the budget needs to be
and considers a 1491Gt CO2e budget as of January 2021. This budget is updated yearly. MSCI then establishes anemission pathway aligned with this budget by constructing a single global pathway which combines global budget
considerations with global 2°C emission levels, as defined in the 2020 United Nations Environment Programme(UNEP)
Emissions Gap Report, and a zero-emission assumption by 2070 to limit warming to 2°C, as presented
in the
IPCC Special Report on 1.5°C.
The calculation of a portfolio-level ITR involves three key steps:– Step 1: Calculate the portfolio companies’ carbon
budget overshoot or undershoot based on their
allocated 2°C carbon budget and their projected
emissions, until 2070.
– Step 2: Allocate to the portfolio companies’
overshoot and undershoot, using the enterprise
Value including Cash (EVIC).

– Step 3: Convert the relative overshoot andundershoot to a degree of temperature rise using
the IPCC Transient Climate Response to Cumulative
Emissions (TCRE) approach. The TCRE factor used
is 0.000545°C of warming per Gt CO2e. In otherwords, each emitted Gt CO2e, exceeding the global
2°C carbon budget, contributes to an additional
warming of 0.000545°C.

These steps are summarized in the below formula:
ITR = 2°C + portfolio over / undershoot * Global 2°C carbon budget * TCRE factor

Global 2°C carbon budget = 1491Gt CO 2 e and TCRE factor = 0.000545°C / Gt CO 2

As ITR calculations are based on projected emissions and modelled pathways, results are mainly to be used as
an indication of a portfolio’s alignment with global temperature goals and to identify least aligned companies
for engagement. Companies need to achieve their carbon emissions reduction targets to achieve real economy
decarbonisation. Additionally, as for any metric aggregated at portfolio level, ITR results are highly tied to aportfolio’s composition. In other words, a change in a portfolio’s ITR isn’t only due to a change in underlying
companies’ ITR but could be linked to changes in the portfolio’s composition.

6

MSCI is currently developing pathways and carbon budgets required to meet a 1.5°C warming scenario by 2050. We will use this data as soon as it is made available.

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

35

2)

Aggregated Implied Temperature Rise (ITR)3

ITR °CAs of 31 December 2022, the aggregated ITR for the
Comgest Portfolios is 2.40°C. In other words, if thewhole economy overshoots the global 2°C carbon
budget at the same proportion as the Comgest
Portfolios, global warming would reach 2.40°C by theend of the century, overshooting the Paris Agreement
goals. However, as defined above, the ITR is basedon companies’ projected emissions and considers
the decarbonisation targets they have set at thecalculation date of the ITR. Engaging with companies
to establish science-based targets for decarbonisation
will be key to increase our alignment with global
temperature goals.

2.40

2

1

0
Comgest Portfolios
Source: MSCI, 31-Dec-2022. Coverage: 97.81% of equity and equity-linked AUM.

Portfolio coverage and engagement metrics

As mentioned in section I, “Our responsible investment approach and 2022 highlights”, we have transformed
our commitment to support the global 2050 net zero goal into a portfolio coverage target and an engagement
threshold. This Annual Responsible Investment Report will enable us to report on our progress towards thesetargets. We also intend to annually report our percentage of investee companies that have decarbonisation targets
approved by the Science Based Targets initiative (SBTi) or have committed to do so.
Similar to other measures (e.g. Climate VaR and ITR), the results below need to be considered with caution. As per
any metric aggregated at the portfolio level, results are tied to a portfolio’s composition. In other words, a change
in portfolio coverage results isn’t only due to changes in companies’ climate performance but could be linked tochanges in portfolio composition.

Aggregated NZIF Coverage
for Comgest Portfolios*

Aggegated SBTi Portfolio Coverage

100%

100%

34.57%

80%
60%

60%

24.40%

15.94%

40%

40%

41.03%

20%

38.32%

20%0%0%Aggregation by AUM (weight) for Comgest Portfolios

Aggregation by AUM (weight) for Comgest Portfolios
Not aligned

Committed to aligning

Aligning

Source: Comgest, as of 31-Dec-2022. Coverage: 100% of equity and equity-linked AUM.
*Our portfolio coverage target has been developed using the Net Zero Investment
Framework (NZIF). Further details on company classification criteria can be found intheir implementation guideApproved SBTi targets
No SBTi targets

Number of companies engaged on climate

74

Number of climate engagements

82% of financed emissions under climate engagement30%

Source: Comgest, 31-Dec. 2022.

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

Committed to setting SBTi targets

Source: SBTi, as of 31-Dec-2022. Coverage: 100% of equity and equity-linked AUM.

2022 Climate Engagements

36

45.74%

80%

The Quality Growth Investor

3)

Carbon footprint

SCOPE 1

While the ITR and portfolio coverage are forwardlooking metrics that consider companies’ projected
emissions, carbon footprint metrics allow us totrack past emissions and identify highest emitting
companies, which can be prioritised for engagement.

SCOPE 2

Reported Estimated Reported
Emissions Emissions Emissions
ComgestPortfolios

84.79%

15.21%

Estimated
Emissions84.90%

15.10%

Source: MSCI, as of 31-Dec-2022. All scope 3 emissions are estimated.

Aggregated Carbon to Value (scope 1, 2 & 3)

tCO 2 e / M EUR

200

150

160.06
100

50

19.54

0

Comgest Portfolios
Scope 1 & 2

Scope 3

Source: MSCI, as of 31-Dec-2022. Coverage: 98.65% of equity and equity-linked AUM.
The carbon footprint estimates the apportioned scope 1, 2 and 3 greenhouse gases
emissions of the portfolio holdings, per million of Euros invested. The attributing factor
used is the EVIC.

The information above is to be analysedacknowledging the fact that not all companies
disclose their emissions, and therefore part of thedata is estimated.

We also annually track which companies represent
the largest part of the Comgest Group’s financed
emissions. In December 2022, 27 companies
represented 70% of the Comgest Group’s financed
emissions, considering scope 1, 2 and 3 GHG
emissions, with the largest contributors to our carbon
footprint including:
COMPANY% FINANCED EMISSIONS

Suzuki Motor

12%

China Resources Gas

7%

Linde

6%

Inner Mongolia Yili

5%

LG Chem

3%

Source: Comgest, MSCI, as of 31-Dec-2022. Scope 1, 2 and 3.

At Comgest, we have transformed ourcommitment to support the global 2050 net
zero goal into a portfolio coverage target and an
engagement threshold.

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

37

4)

Exposure to fossil fuels

Embedding climate risk into our investment process means developing a tailored approach for high impact
sectors including oil, gas and coal sectors, and reporting on our exposure to these sectors.
Group Level
Exclusion Criteria 7

Exclusion Thresholds

Aggregated Exposureof Comgest Portfolios

THERMAL COAL
Extraction andminingYes

Comgest excludes all companies
operating thermal coal mines, applying a
0% revenue threshold.

0.00%

Comgest excludes companies involved inelectricity production with an energy mix
exposed to coal exceeding the following
relative or absolute thresholds:

Power generationYes– Utilities with electricity production
or revenue based on coal equal to or
exceeding 20%

0.00%– Utilities with installed capacity based oncoal equal to or exceeding 5 GW
Additionally, Comgest excludes
companies developing new coal-fired
power plants.
OIL AND GASExtraction (including
non-conventional)

No

N/A

0.00%

Distribution

No

N/A

0.50%

Power generation

No

N/A

0.00%

Petrochemicals

No

N/A

0.30%

Related services(refining, trading,transport/
pipelines, dedicatedequipment)

No

N/A

0.00%

Source: MSCI, as of 31-Dec-2022.

7

38

Read Comgest's Responsible Investment Policy for further information.

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

The Quality Growth Investor

B. BIODIVERSITY-RELATED METRICS AND ENVIRONMENTAL FOOTPRINT
Comgest tracks the environmental footprint of ourportfolios. This metric, developed by Trucost, provides
an indicative assessment of companies’ negativeenvironmental impact, taking into considerations
GHG, water, waste, soil and water pollutants, air
pollutants, and the use of natural resources. Trucost’s
applies a monetary valuation to compare the relative
contribution of each environmental impact, providing
an overarching common metric to assess risk andopportunity across companies and portfolios. The
analysis applies the chosen valuations to the impacts

associated with a company's own business activities
and those of its upstream suppliers, all the way backto raw material extraction. Environmental impacts areoften concealed within global supply chains, therefore
Trucost uses environmentally extended input-output(EEIO) modelling to reveal liabilities at each tier ofthe value chain for holistic risk and opportunity
analysis. Trucost uses multiple data sources and whencompanies don’t disclose on their environmental
footprints, they rely on model-based estimations.

As of 31 December 2022, the aggregated environmental footprint of the Comgest Portfolios was as follows:

ComgestPortfolios

Total

GHG

Water

Waste

Soil and
Water
Pollutants

Air
Pollutants

Use ofNaturalResources

Coverageof equityand equitylinked AUM

0.72%

0.72%

0.25%

0.26%

0.02%

0.07%

0.10%

99.82%

Source: Trucost, as of 31-Dec-2022. The environmental footprint estimates the apportioned ratio of annual costs linked to greenhouse gases, water abstraction, waste generation, air, land
& water pollutants, and natural resource use associated with the portfolio holdings per million of euros invested.

C. BOARD GENDER DIVERSITYAs mentioned in section III,
Integrate, diversity
is one aspect of ESG criteria that we examine in ourinvestee companies, because we believe that it is an
important indicator of the potential for higher quality
decision-making. Diversity, especially at board level,
forms part of the ESG criteria we consider in our
analysis, and we track the percentage of female board
members in our investee companies.

Board Gender Diversity
35%
30%
25%
20%
15%
10%
5%
0%

31.12%

Comgest Portfolios
Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Coverage: 97.69% of equity andequity-linked AUM. The above figures show the weighted average of female board members.

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

39

D. TAX RATESThe effective tax rate remains a solid indicator of corporate responsibility and impact. Using MSCI data, we
calculate the Comgest Portfolios’ average effective tax rate and average statutory tax rate. These two rates arecompared to the worldwide average statutory tax rate, provide by The Tax Foundation, in order to provide context.
As of 31 December 2022, the aforementioned tax rates were as follows:

Income tax rate
40%30%

25.95%

22.35%

23.00%

20%
10%0%Comgest Portfolios
Avg. effective tax rate

Comgest Portfolios
Avg. statutory tax rate

GlobalAvg. statutory tax rate
(The Tax Foundation)

Source: Calculated on MSCI Analytics, The Tax Foundation, as of 31-Dec-2022. Coverage: 92.18% of equity and equity-linked AUM.

E. UN GLOBAL COMPACT SIGNATORIESThe
United Nations Global Compact (UNGC)
aims to mobilise a global movement of sustainable
companies which align their strategies and operations
with universal principles on human rights, labour,
environment, and anti-corruption. We believe thatcompanies signing the UNGC haven taken key steps
to assess, define, implement, and measure theirsustainability strategies.

40

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

UNGC signatories
50%

46.52%

40%
30%
20%
10%
0%
Comgest Portfolios
Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Coverage: 98.66% of equity
and equity-linked AUM. The above figures show the weighted average of companies being
signatories to the UNGC.

The Quality Growth Investor

VII. CORRESPONDENCE TABLE FOR
TCFD RECOMMENDATIONSCore Elements of TCFD’s
Recommended Climate-Related
Financial Disclosures
Governance
The organization’s governance aroundclimate-related risks and opportunities
Strategy
The actual and potential impacts ofclimate-related risks and opportunities
on the organization’s businesses,
strategy, and financial planning
Risk Management
The processes used by the organization
to identify, assess, and manage climaterelated risks

Comgest Annual Responsible Investment Report

Details regarding Comgest Group’s sustainability and climate governance areincluded in section II, “Governance and resources”, notably regarding the roles
and responsibilities of the Sustainability Committee, Board of Partners andExecutive Committee regarding sustainability and climate matters.

Details regarding Comgest Group’s responsible investment and climate strategy
are included in section I, “Our responsible investment approach”. Further
information on scenario analysis is included in section III(D), “Integration ofclimate-related risks and opportunities.”

Details regarding climate-related risks management are include in section III(D),“Integration of climate-related risks and opportunities”, notably regarding
processes for identifying, assessing and managing climate-related risks.

Metrics used to assess and manage climate-related risks and opportunities,
notably the MSCI Climate VaR, are include in section III(D), “Integration ofclimate-related risks and opportunities”.
Metrics and targets
The metrics and targets used to assess
and manage relevant climate-relatedrisks and opportunities

Further backward-looking (carbon footprints) and forward-looking (ITR,
portfolio coverage rates) climate-related metrics are included in section VI(A),“Climate-related metrics”.
Details regarding Comgest Group’s climate targets, set under the Net Zero
Asset Managers initiative, are included in section I(B), “Reflecting on 2022:
Key progress and achievements”.

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

41

IMPORTANT INFORMATION
The information contained in this report valid asof 31 December 2022, unless otherwise stated. This
document is provided for information purposes onlyand does not constitute a recommendation, or an offer
to buy or sell, or an encouragement to investment or
arbitrage. This document is the intellectual property ofComgest. Reproduction of all or part of this document
is strictly prohibited without the prior written
authorisation of Comgest.
Indices are used for comparison purposes and theportfolios do not aim to track their performance.
Legal entity disclosure
Comgest S.A is a portfolio management company
regulated by the Autorité des Marchés Financiers andwhose registered office is at 17, square Edouard VII,
75009 Paris.
Comgest Asset Management International Limited isan investment firm regulated by the Central Bank of
Ireland and registered as an Investment Adviser with
the U.S. Securities Exchange Commission. Its registeredoffice is at 46 St. Stephen’s Green, Dublin 2, Ireland.
Comgest Far East Limited is regulated by the Hong
Kong Securities and Futures Commission.
Comgest Asset Management Japan Ltd. is regulated by
the Financial Service Agency of Japan (registered with
Kanto Local Finance Bureau (No. Kinsho 1696)).
Comgest Singapore Pte Ltd, is a Licensed FundManagement Company & Exempt Financial Advisor(for Institutional and Accredited Investors) regulatedby the Monetary Authority of Singapore.

42

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

Notice and Disclaimer for MSCI Reporting Licenses
This report contains information (the “Information”)
sourced from MSCI Inc., its affiliates or information
providers (the “MSCI Parties”) and may have been used
to calculate scores, ratings or other indicators. The
Information is for internal use only, and may not be
reproduced/redisseminated in any form, or used as abasis for or a component of any financial instruments
or products or indices. The MSCI Parties do not
warrant or guarantee the originality, accuracy and/or
completeness of any data or Information herein andexpressly disclaim all express or implied warranties,
including of merchantability and fitness for aparticular purpose. The Information is not intended
to constitute investment advice or a recommendation
to make (or refrain from making) any investment
decision and may not be relied on as such, nor should
it be taken as an indication or guarantee of any future
performance, analysis, forecast or prediction. Noneof the MSCI Parties shall have any liability for any
errors or omissions in connection with any data or
Information herein, or any liability for any direct,
indirect, special, punitive, consequential or any otherdamages (including lost profits) even if notified of thepossibility of such damages.
Disclaimer for Trucost
S&P Trucost Limited © Trucost 2023. All rights in the
Trucost data and reports vest in Trucost and/or its
licensors. Neither Trucost, nor its affiliates, nor its
licensors accept any liability for any errors, omissions
or interruptions in the Trucost data and/or reports.
No further distribution of the Data and/or Reports ispermitted without Trucost’s express written consent.

The Quality Growth Investor

APPENDIX DATA SHEETSIMPORTANT INFORMATION
The information contained in this report valid asof 31 December 2022, unless otherwise stated. This
document is provided for information purposes
only and does not constitute a recommendation,or an offer to buy or sell, or an encouragement
to investment or arbitrage. This document is theintellectual property of Comgest. Reproduction of allor part of this document is strictly prohibited without
the prior written authorisation of Comgest.

Comgest Far East Limited is regulated by theHong Kong Securities and Futures Commission.
Comgest Asset Management Japan Ltd. is regulatedby the Financial Service Agency of Japan (registeredwith Kanto Local Finance Bureau (No. Kinsho 1696)).
Comgest Singapore Pte Ltd, is a Licensed FundManagement Company & Exempt Financial Advisor(for Institutional and Accredited Investors) regulatedby the Monetary Authority of Singapore.

GIPS® and Representative Account Information:

Notice and Disclaimer for MSCI Reporting Licenses

Comgest claims compliance with the Global
Investment Performance Standards (GIPS®). To
receive GIPS compliant performance information for
the firm’s strategies and products a GIPS compliant
presentation for any composite discussed, pleasecontact info@comgest.com.

This report contains information (the “Information”)
sourced from MSCI Inc., its affiliates or information
providers (the “MSCI Parties”) and may have beenused to calculate scores, ratings or other indicators.
The Information is for internal use only, and may
not be reproduced/redisseminated in any form, orused as a basis for or a component of any financial
instruments or products or indices. The MSCI Parties
do not warrant or guarantee the originality, accuracy
and/or completeness of any data or Information
herein and expressly disclaim all express or implied
warranties, including of merchantability andfitness for a particular purpose. The Information is
not intended to constitute investment advice or arecommendation to make (or refrain from making)any investment decision and may not be relied on
as such, nor should it be taken as an indication
or guarantee of any future performance, analysis,
forecast or prediction. None of the MSCI Parties
shall have any liability for any errors or omissions inconnection with any data or Information herein, or
any liability for any direct, indirect, special, punitive,
consequential or any other damages (including lost
profits) even if notified of the possibility of suchdamages.

The representative accounts discussed within the
Appendices have been managed in accordance with
their relevant Composite since the Composite’s
inception. Each representative account is an openended investment vehicle with the longest trackrecord of its respective Composite.
GIPS® is a registered trademark of CFA Institute.
CFA Institute does not endorse or promote thisorganization, nor does it warrant the accuracy or
quality of the content contained herein.
Indices are used for comparison purposes and theportfolios do not aim to track their performance.
Legal entity disclosure
Comgest S.A is a portfolio management company
regulated by the Autorité des Marchés Financiers andwhose registered office is at 17, square Edouard VII,
75009 Paris.
Comgest Asset Management International Limited
is an investment firm regulated by the Central
Bank of Ireland and registered as an Investment
Adviser with the U.S. Securities Exchange
Commission. Its registered office is at 46 St.
Stephen’s Green, Dublin 2, Ireland.

Disclaimer for Trucost
S&P Trucost Limited © Trucost 2023. All rights in the
Trucost data and reports vest in Trucost and/or its
licensors. Neither Trucost, nor its affiliates, nor its
licensors accept any liability for any errors, omissions
or interruptions in the Trucost data and/or reports.
No further distribution of the Data and/or Reports ispermitted without Trucost’s express written consent.

COMGEST ANNUAL RESPONSIBLE INVESTMENT REPORT – 2022

43

ASIA PAC EX JAPAN EQUITY STRATEGYAppendix I

31 December 2022

PAGE 1 of 2

KEY ESG METRICSENVIRONMENTAL
Implied Temperature Rise (ITR °C)

SBTi Portfolio Coverage Rate

4

100%
80%

3
3.00

2

40%

1
Portfolio

Approved SBTi targets

7.19

0%

Index

Committed to setting SBTi targets

16.64

20%

0

No SBTi targets

76.17

60%

3.33

Source:of 31-Dec-2022;
Coverage
rate: 100.00% of equity and equity-linked AUM.
ASIASBTi,
PACasEXJAPAN EQUITYSTRATEGY

Carbon Footprint – Carbon to Value(Scope 1, 2 & 3)

Financed Emissions – Portfolio: Top 3 Contributors(scope 1, 2 & 3)

tCO 2 e/M EUR

Source: Comgest and MSCI, as of 31-Dec-2022. Portfolio coverage: 92.81% of equity and
ASIA PAC
EX IndexJAPAN
STRATEGY
equity-linked
AUM.
(MSCIEQUITYAC Asia Pacific ex-Japan - Net Return) coverage: 98.79%.

800
600
400

560.15

Scope 3
Scope 1 & 2

128.96

Scope 3
Scope 1 & 2

434.98

200

22.02

0

Portfolio

23.00% China Resources Gas
17.00% Suzuki Motor
11.00% Alibaba
49.00% Other companies

Index

ASIA PAC EX JAPAN EQUITY STRATEGY

Source: Comgest and MSCI, as of 31-Dec-2022. Portfolio coverage: 90.60% of equity andequity-linked AUM. Index (MSCI AC Asia Pacific ex-Japan - Net Return) coverage rate:
99.29%. The carbon footprint estimates the apportioned scope 1, 2 and 3 greenhouse gases
emissions of the portfolio holdings, per million of euros invested. The attributing factor usedis the Enterprise Value Including Cash (EVIC).

Source:and MSCI, as of 31-Dec-2022. The above figures show the top 3 contributors
ASIA Comgest
PAC EX
to the Portfolio’s financed emissions considering scope 1,2 and 3 GHG emissions.

JAPAN EQUITYSTRATEGY

Estimated Versus Reported Emissions
Scope 1

Scope 2

Reported Emissions

Estimated Emissions

Reported Emissions

Estimated Emissions

Portfolio

59.71%

40.29%

61.51%

38.49%

Index

77.45%

22.55%

77.88%

22.12%

Source: Comgest and MSCI, as of 31-Dec-2022. Index (MSCI AC Asia Pacific ex-Japan - Net Return). All scope 3 emissions are estimated.

Climate Value-at-Risk (VaR)
Aggregated Climate VaR
Policy Climate VaR
Technology Climate VaR
Physical Climate VaR
Aggressive Scenario

1.5°C

2°C

3°C

Portfolio-17.69%-13.39%-14.75%Index-25.37%-21.98%-17.12%

Portfolio-9.46%-3.81%-0.26%

Index-13.27%-8.29%-1.54%

Portfolio

7.23%

5.87%

0.96%

Index

3.77%

2.18%

0.29%

Portfolio-15.45%Index-15.87%

Source: MSCI as of 31-Dec-2022. The “aggressive” physical risks scenario is used in the calculation of the Aggregated Climate VaR. Portfolio coverage: 92.81% of equity and equity-linked AUM. Index coverage rate
(MSCI AC Asia Pacific ex-Japan - Net Return): 98.88%.

Environmental Footprint
Environmental
footprint

Soil & Water
Pollutants

Air Pollutants

Use of Natural
Resources

0.04%

0.12%

0.18%

0.02%

0.10%

0.13%

0.24%

0.28%

Total

GHG

Water

Waste

Portfolio

1.37%

0.43%

0.57%

Index

2.01%

0.81%

0.45%

Source: Trucost, as of 31-Dec-2022. The environmental footprint estimates the apportioned ratio of annual costs linked to greenhouse gases, water abstraction, waste generation, air, land & waterpollutants, and natural resource use associated with the portfolio holdings per million of euros invested. Portfolio coverage: 98.17% of equity and equity-linked AUM. Index coverage rate (MSCI AC
Asia Pacific ex-Japan - Net Return): 98.29%.

ASIA PAC EX JAPAN EQUITY STRATEGYAppendix I

31 December 2022

PAGE 2 of 2

SOCIAL & GOVERNANCE

VOTING & ENGAGEMENT

Board Gender Diversity

Engagement Statistics

30%

Number of companies engaged

26

Number of engagements

42

Source: Comgest, 31-Dec-2022.

20%

20.96

19.43

ESG Engagement Topics
10%

30.00% ESG
37.50% E
17.50% S
15.00% G

0%Portfolio

Index

Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Portfolio coverage rate: 85.69% of equity and equity-linked AUM.
Index
(MSCI
ACEX
Asia
Pacific ex-Japan- Net
Return) coverage rate: 98.87%. The above figures show the weighted average of
ASIA
PAC
JAPAN
EQUITYSTRATEGY
female board members.

ASIA PAC
EX31-Dec-2022.
Source:Comgest,JAPAN EQUITYSTRATEGY

Voting statistics
UN Global Compact Signatories

Breakdown of Votes

%

30%

For

83.68

Against

16.32

27.71
20%

21.33

Abstentions or withholdings

0.00

In line with management

83.86

Against management

16.14

In line with Comgest policy

96.06

Against Comgest policy

3.94

Source: Comgest, 31-Dec-2022.
10%

ESG Quality Level (QL) Breakdown0%

Portfolio

5.76%

ESG QL 1

Index

Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Portfolio coverage rate: 90.60% of equity and equity-linked AUM.
Index
(MSCI
Asia
Pacific ex-Japan- Net
Return) coverage rate: 100.00%. The above figures show the weighted average of
ASIA
PACAC
EX
JAPAN
EQUITYSTRATEGY
companies being signatories to the UN Global Compact.

ESG QL 2

Tax Rates

ESG QL 3

28.74%

55.03%

30%

8.97%

ESG QL 4

25.54
23.00

20%

21.01

1.51%

ESG QLNot Assigned
0

20

40

60

80

ASIAComgest,
PAC EX31-Dec-2022.
JAPAN EQUITY
Source:Coverage:STRATEGY
100.00% of equity andequity-linked AUM.

10%

0%

Portfolio
Effective Tax Rate

Portfolio
Statutory Tax Rate

Global Average
Statutory Tax Rate

Source: Calculated on MSCI Analytics, The Tax Foundation, as of 31-Dec-2022. Effective Tax Rate coverage rate 78.23% of
equityequity-linked
AUM.EQUITY
StatutorySTRATEGY
tax rate coverage rate: 85.69% of equity and equity-linked AUM.
ASIAand
PAC
EX JAPAN

This 2022 data summary is based on the
Comgest Asia Pac Ex Japan Equity Strategy
representative account (hereafter, the“Portfolio”), a pooled investment vehicle which has
been managed in accordance with the strategy
discussed since inception of the strategy.

CHINA EQUITY STRATEGYAppendix II

31 December 2022

PAGE 1 of 2

KEY ESG METRICSENVIRONMENTAL
Implied Temperature Rise (ITR °C)

SBTi Portfolio Coverage Rate

4

100%
80%

3
3.32

2

Committed to setting SBTi targets
Approved SBTi targets

40%

1

19.92
0.0

20%

0

No SBTi targets

80.08

60%

3.15

Portfolio

0%

Index

Source: Comgest and MSCI, as of 31-Dec-2022. Portfolio coverage: 98.72% of equity andequity-linked AUM. Index (MSCI China - Net Return) coverage: 99.32%.

Source: SBTi, as of 31-Dec-2022; Coverage rate: 100.00% of equity and equity-linked AUM.

Carbon Footprint – Carbon to Value(Scope 1, 2 & 3)

Financed Emissions – Portfolio: Top 3 Contributors(scope 1, 2 & 3)

CHINA EQUITY STRATEGYtCO 2 e/M EUR

CHINA EQUITY STRATEGY

600
400

418.31

Scope 3
Scope 1 & 2

130.13

Scope 3
Scope 1 & 2

387.51

200

13.24

0

Portfolio

35.86% China Resources Gas
11.84% Vipshop
9.01% Inner Mongolia Yili
43.29% Other companies

Index

Source: Comgest and MSCI, as of 31-Dec-2022. Portfolio coverage: 98.72% of equity and
CHINA EQUITY STRATEGY
equity-linked AUM. Index (MSCI China - Net Return) coverage rate: 100.00%. The carbon
footprint estimates the apportioned scope 1, 2 and 3 greenhouse gases emissions of theportfolio holdings, per million of euros invested. The attributing factor used is the Enterprise
Value Including Cash (EVIC).

Source: Comgest and MSCI, as of 31-Dec-2022. The above figures show the top 3 contributors
to the Portfolio’s financed emissions considering scope 1,2 and 3 GHG emissions.

CHINA EQUITYSTRATEGY

Estimated Versus Reported Emissions
Scope 1

Scope 2

Reported Emissions

Estimated Emissions

Reported Emissions

Estimated Emissions

Portfolio

53.56%

46.44%

59.17%

40.83%

Index

68.07%

31.93%

68.31%

31.69%

Source: Comgest and MSCI, as of 31-Dec-2022. Index (MSCI China - Net Return). All scope 3 emissions are estimated.

Climate Value-at-Risk (VaR)
Aggregated Climate VaR
Policy Climate VaR
Technology Climate VaR
Physical Climate VaR
Aggressive Scenario

1.5°C

2°C

3°C

Portfolio-21.73%-17.19%-14.51%-15.42%Index-22.65%-19.92%

Portfolio-8.19%-3.12%-0.17%

Index-9.62%-5.81%-0.54%

Portfolio

0.82%

0.30%

0.02%

Index

1.94%

0.86%

0.09%

Portfolio-14.37%Index-14.97%

Source: MSCI as of 31-Dec-2022. The “aggressive” physical risks scenario is used in the calculation of the Aggregated Climate VaR. Portfolio coverage: 98.72% of equity and equity-linked AUM. Index coverage rate
(MSCI China - Net Return): 99.59%.

Environmental Footprint
Environmental
footprint

Total

GHG

Water

Waste

Soil & Water
Pollutants

Air Pollutants

Use of Natural
Resources

Portfolio

1.01%

0.34%

0.36%

0.04%

Index

1.76%

0.75%

0.34%

0.20%

0.10%

0.15%

0.02%

0.09%

0.18%

0.20%

Source: Trucost, as of 31-Dec-2022. The environmental footprint estimates the apportioned ratio of annual costs linked to greenhouse gases, water abstraction, waste generation, air, land & waterpollutants, and natural resource use associated with the portfolio holdings per million of euros invested. Portfolio coverage: 100.00% of equity and equity-linked AUM. Index coverage rate (MSCI
China - Net Return): 99.65%.

CHINA EQUITY STRATEGYAppendix II

31 December 2022

PAGE 2 of 2

SOCIAL & GOVERNANCE

VOTING & ENGAGEMENT

Board Gender Diversity

Engagement Statistics

30%

Number of companies engaged

15

Number of engagements

26

Source: Comgest, 31-Dec-2022.

20%

21.62

ESG Engagement Topics

16.24
10%

15.38% ESG
34.62% E
26.92% S
23.08% G

0%Portfolio

Index

Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Portfolio coverage rate: 90.22% of equity and equity-linked
AUM. Index (MSCI China - Net Return) coverage rate: 99.37%. The above figures show the weighted average of female
board
members.
CHINA
EQUITY STRATEGY

Source: Comgest, 31-Dec-2022.

CHINA EQUITYSTRATEGY

Voting statistics
UN Global Compact Signatories

Breakdown of Votes

%

20%

For

80.12

Against

19.69

15%

17.06
13.75

10%

Abstentions or withholdings

0.19

In line with management

80.12

Against management

19.88

In line with Comgest policy

96.14

Against Comgest policy

3.86

Source: Comgest, 31-Dec-2022.

5%

ESG Quality Level (QL) Breakdown0%

Portfolio

0.00%

ESG QL 1

Index

Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Portfolio coverage rate: 98.72% of equity and equity-linked AUM.
Index (MSCI China - Net Return) coverage rate: 100.00%. The above figures show the weighted average of companies being
signatories to the UN Global Compact.

ESG QL 2

Tax Rates

ESG QL 3

CHINA EQUITY STRATEGY

9.27%

68.91%

30%

19.36%ESG QL 4

25.02

20%

23.00

2.46%

ESG QLNot Assigned
0

17.91

30

60

90

Source: Comgest, 31-Dec-2022. Coverage: 100.00% of equity andequity-linked
AUM. STRATEGYCHINA EQUITY

10%

0%

Portfolio
Effective Tax Rate

Portfolio
Statutory Tax Rate

Global Average
Statutory Tax Rate

Source: Calculated on MSCI Analytics, The Tax Foundation, as of 31-Dec-2022. Effective Tax Rate coverage rate 69.74% of
equity and equity-linked AUM. Statutory tax rate coverage rate: 90.22% of equity and equity-linked AUM.

CHINA EQUITY STRATEGYThis 2022 data summary is based on the
Comgest China Equity Strategy representative
account (hereafter, the “Portfolio”), a pooled
investment vehicle which has been managed inaccordance with the strategy discussed since
inception of the strategy.

EUROPE EX UK EQUITY STRATEGYAppendix III

31 December 2022

PAGE 1 of 2

KEY ESG METRICSENVIRONMENTAL
Implied Temperature Rise (ITR °C)

SBTi Portfolio Coverage Rate

4

100%

3
2
1.94

2.05

Portfolio

Index

1
0

80%

30.61

No SBTi targets

60%

19.31

Committed to setting SBTi targets

40%

Approved SBTi targets

50.08

20%
0%

Source: Comgest and MSCI, as of 31-Dec-2022. Portfolio coverage: 98.11% of equity andequity-linked AUM. Index (MSCI Europe Ex UK - Net Return) coverage: 99.80%.

Source: SBTi, as of 31-Dec-2022; Coverage rate: 100.00% of equity and equity-linked AUM.

Carbon Footprint – Carbon to Value(Scope 1, 2 & 3)

Financed Emissions – Portfolio: Top 3 Contributors(scope 1, 2 & 3)

EUROPE EX UK EQUITY STRATEGYtCO 2 e/M EUR

EUROPE EX UK EQUITY STRATEGY

600
400
200

88.40
Portfolio

12.00% Jeronimo Martins
11.00% Essilorluxottica

Scope 3
Scope 1 & 2

84.55

16.96

0

12.00% Ryanair

Scope 3
Scope 1 & 2

381.3365.00% Other companies

Index

Source: Comgest and MSCI, as of 31-Dec-2022. Portfolio coverage: 100.00% of equity and
EUROPE EX UK EQUITY STRATEGY
equity-linked AUM. Index (MSCI Europe Ex UK - Net Return) coverage rate: 100.00%. The
carbon footprint estimates the apportioned scope 1, 2 and 3 greenhouse gases emissions of
the portfolio holdings, per million of euros invested. The attributing factor used is theEnterprise Value Including Cash (EVIC).

Source: Comgest and MSCI, as of 31-Dec-2022. The above figures show the top 3 contributors
to the Portfolio’s financed emissions considering scope 1,2 and 3 GHG emissions.

EUROPE EX UK
EQUITYSTRATEGY

Estimated Versus Reported Emissions
Scope 1

Scope 2

Reported Emissions

Estimated Emissions

Reported Emissions

Portfolio

98.89%

1.11%

98.89%

Estimated Emissions
1.11%

Index

94.79%

5.21%

93.66%

6.34%

Source: Comgest and MSCI, as of 31-Dec-2022. Index (MSCI Europe Ex UK - Net Return). All scope 3 emissions are estimated.

Climate Value-at-Risk (VaR)
Aggregated Climate VaR

1.5°C

2°C

3°C

Portfolio-7.34%-6.08%-4.49%

Index-11.57%-10.95%-8.41%-4.11%-2.37%-0.31%

Portfolio

Policy Climate VaR

Index

Technology Climate VaR
Physical Climate VaR
Aggressive Scenario-11.79%-7.08%-1.09%

Portfolio

1.01%

0.53%

0.06%

Index

7.98%

3.89%

0.44%

Portfolio-4.24%

Index-7.76%

Source: MSCI as of 31-Dec-2022. The “aggressive” physical risks scenario is used in the calculation of the Aggregated Climate VaR. Portfolio coverage: 98.11% of equity and equity-linked AUM. Index coverage rate
(MSCI Europe Ex UK - Net Return): 99.80%.

Environmental Footprint
Environmental
footprint

Total

GHG

Water

Waste

Soil & Water
Pollutants

Air Pollutants

Use of Natural
Resources

Portfolio
Index

0.57%

0.17%

0.23%

0.01%

0.08%

0.07%

0.01%

1.49%

0.64%

0.43%

0.06%

0.11%

0.19%

0.06%

Source: Trucost, as of 31-Dec-2022. The environmental footprint estimates the apportioned ratio of annual costs linked to greenhouse gases, water abstraction, waste generation, air, land & waterpollutants, and natural resource use associated with the portfolio holdings per million of euros invested. Portfolio coverage: 100.00% of equity and equity-linked AUM. Index coverage rate (MSCI
Europe Ex UK - Net Return): 98.59%.

EUROPE EX UK EQUITY STRATEGYAppendix III

31 December 2022

PAGE 2 of 2

SOCIAL & GOVERNANCE

VOTING & ENGAGEMENT

Board Gender Diversity

Engagement Statistics

60%

Number of companies engaged

13

50%

Number of engagements

14

40%

Source: Comgest, 31-Dec-2022.

40.63

30%

39.49

ESG Engagement Topics

20%

15.38% ESG
38.46% E

10%

0.00% S46.15% G

0%Portfolio

Index

Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Portfolio coverage rate: 100.00% of equity and equity-linked AUM.
Index (MSCI Europe Ex UK - Net Return) coverage rate: 99.96%. The above figures show the weighted average of female
board
members.
EUROPEEX UK EQUITY STRATEGY

Source: Comgest, 31-Dec-2022.

EUROPE EX UK
EQUITYSTRATEGY

Voting statistics
UN Global Compact Signatories

Breakdown of Votes

%

90%

For

85.49

Against14.34

Abstentions or withholdings

79.45
60%

59.97

In line with management

0.17
85.84

Against management

14.16

In line with Comgest policy

93.78

Against Comgest policy

6.22

Source: Comgest, 31-Dec-2022.
30%

ESG Quality Level (QL) Breakdown0%

Portfolio

32.66%ESG QL 1

Index

Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Portfolio coverage rate: 100.00% of equity and equity-linked AUM.
Index (MSCI Europe Ex UK - Net Return) coverage rate: 100.00%. The above figures show the weighted average of companies
being signatories to the UN Global Compact.

EUROPE EX UK EQUITY STRATEGYESG QL 2

Tax Rates

ESG QL 3

62.26%

5.08%

30%

24.83

20%

21.57

23.00

ESG QL 4

0.00%

ESG QLNot Assigned

0.00%
0

30

60

90

Source: Comgest, 31-Dec-2022. Coverage: 100.00% of equity andequity-linked
AUM.
EUROPE EX
UK EQUITY STRATEGY

10%

0%

Portfolio
Effective Tax Rate

Portfolio
Statutory Tax Rate

Global Average
Statutory Tax Rate

Source: Calculated on MSCI Analytics, The Tax Foundation, as of 31-Dec-2022. Effective Tax Rate coverage rate 93.81% of
equity and equity-linked AUM. Statutory tax rate coverage rate: 100.00% of equity and equity-linked AUM.

EUROPE EX UK EQUITY STRATEGYThis 2022 data summary is based on the Comgest
Europe Ex UK Equity Strategy representative
account (hereafter, the “Portfolio”), a pooled
investment vehicle which has been managed inaccordance with the strategy discussed since
inception of the strategy.

EUROPE PLUS EQUITY STRATEGYAppendix IV

31 December 2022

PAGE 1 of 2

KEY ESG METRICSENVIRONMENTAL
Implied Temperature Rise (ITR °C)

SBTi Portfolio Coverage Rate

4

100%

25.33

80%

3
2
2.04

2.19

Portfolio

Index

1
0

No SBTi targets

15.45

60%
40%

Committed to setting SBTi targets
Approved SBTi targets

59.22

20%
0%

Source: Comgest and MSCI, as of 31-Dec-2022. Portfolio coverage: 98.05% of equity andequity-linked AUM. Index (MSCI Europe - Net Return) coverage: 99.85%.

Source: SBTi, as of 31-Dec-2022; Coverage rate: 100.00% of equity and equity-linked AUM.

Carbon Footprint – Carbon to Value(Scope 1, 2 & 3)

Financed Emissions – Portfolio: Top 3 Contributors(scope 1, 2 & 3)

EUROPE PLUS EQUITY STRATEGYtCO 2 e/M EUR

EUROPE PLUS EQUITY STRATEGY

800
535.66

400
200

99.61

0

15.92

11.00% Jeronimo Martins
10.00% Essilorluxottica

Scope 3
Scope 1 & 2

86.29

Portfolio

19.00% Linde

Scope 3
Scope 1 & 2600

60.00% Other companies

Index

Source: Comgest and MSCI, as of 31-Dec-2022. Portfolio coverage: 100.00% of equity and
EUROPE PLUS EQUITY STRATEGY
equity-linked AUM. Index (MSCI Europe - Net Return) coverage rate: 100.00%. The carbon
footprint estimates the apportioned scope 1, 2 and 3 greenhouse gases emissions of theportfolio holdings, per million of euros invested. The attributing factor used is the Enterprise
Value Including Cash (EVIC).

Source: Comgest and MSCI, as of 31-Dec-2022. The above figures show the top 3 contributors
to the Portfolio’s financed emissions considering scope 1,2 and 3 GHG emissions.

EUROPE PLUS
EQUITYSTRATEGY

Estimated Versus Reported Emissions
Scope 1

Scope 2

Reported Emissions

Estimated Emissions

Reported Emissions

Estimated Emissions

Portfolio

99.11%

0.89%

99.11%

0.89%

Index

95.32%

4.68%

94.33%

5.67%

Source: Comgest and MSCI, as of 31-Dec-2022. Index (MSCI Europe - Net Return). All scope 3 emissions are estimated.

Climate Value-at-Risk (VaR)
Aggregated Climate VaR
Policy Climate VaR
Technology Climate VaR
Physical Climate VaR
Aggressive Scenario

1.5°C

2°C

3°C

Portfolio-7.91%-6.07%-4.50%

Index-13.94%-11.94%-8.74%

Portfolio-4.01%-1.97%-0.21%

Index-13.29%-7.38%-1.02%

Portfolio

0.42%

0.21%

0.03%

Index

7.50%

3.59%

0.42%

Portfolio-4.31%

Index-8.14%

Source: MSCI as of 31-Dec-2022. The “aggressive” physical risks scenario is used in the calculation of the Aggregated Climate VaR. Portfolio coverage: 98.05% of equity and equity-linked AUM. Index coverage rate
(MSCI Europe - Net Return): 99.85%.

Environmental Footprint
Environmental
footprint

Total

GHG

Water

Waste

Soil & Water
Pollutants

Air Pollutants

Use of Natural
Resources

Portfolio

0.64%

0.19%

0.26%

0.01%

0.08%

0.08%

0.01%

Index

1.71%

0.69%

0.46%

0.05%

0.11%

0.24%

0.15%

Source: Trucost, as of 31-Dec-2022. The environmental footprint estimates the apportioned ratio of annual costs linked to greenhouse gases, water abstraction, waste generation, air, land & waterpollutants, and natural resource use associated with the portfolio holdings per million of euros invested. Portfolio coverage: 100.00% of equity and equity-linked AUM. Index coverage rate (MSCI
Europe - Net Return): 98.70%.

EUROPE PLUS EQUITY STRATEGYAppendix IV

31 December 2022

PAGE 2 of 2

SOCIAL & GOVERNANCE

VOTING & ENGAGEMENT

Board Gender Diversity

Engagement Statistics

60%

Number of companies engaged

14

50%

Number of engagements

15

40%

Source: Comgest, 31-Dec-2022.

40.08

30%

39.92

ESG Engagement Topics

20%

14.29% ESG
42.86% E

10%

0.00% S42.86% G

0%Portfolio

Index

Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Portfolio coverage rate: 100.00% of equity and equity-linked
AUM. Index (MSCI Europe - Net Return) coverage rate: 99.97%. The above figures show the weighted average of female
board
members.
EUROPE
PLUS EQUITY STRATEGY

Source: Comgest, 31-Dec-2022.

EUROPE PLUS
EQUITYSTRATEGY

Voting statistics
UN Global Compact Signatories

Breakdown of Votes

%

90%

For

87.32

Against12.52

Abstentions or withholdings

75.76

60%

57.63

In line with management

0.16
87.48

Against management

12.52

In line with Comgest policy

93.66

Against Comgest policy

6.34

Source: Comgest, 31-Dec-2022.
30%

ESG Quality Level (QL) Breakdown0%

Portfolio

34.29%ESG QL 1

Index

Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Portfolio coverage rate: 100.00% of equity and equity-linked AUM.
Index (MSCI Europe - Net Return) coverage rate: 100.00%. The above figures show the weighted average of companies being
signatories to the UN Global Compact.

ESG QL 2

Tax Rates

ESG QL 3

2.32%

ESG QL 4

0.00%

ESG QLNot Assigned

0.00%

EUROPE PLUS EQUITY STRATEGY

63.39%

30%

20%

24.98
22.08

23.00

0

30

60

90

Source: Comgest, 31-Dec-2022. Coverage: 100.00% of equity andequity-linked
AUM. EQUITY STRATEGYEUROPE PLUS

10%

0%

Portfolio
Effective Tax Rate

Portfolio
Statutory Tax Rate

Global Average
Statutory Tax Rate

Source: Calculated on MSCI Analytics, The Tax Foundation, as of 31-Dec-2022. Effective Tax Rate coverage rate 94.14% of
equity and equity-linked AUM. Statutory tax rate coverage rate: 100.00% of equity and equity-linked AUM.

EUROPE PLUS EQUITY STRATEGYThis 2022 data summary is based on the Comgest
Europe Plus Equity Strategy representative
account (hereafter, the “Portfolio”), a pooled
investment vehicle which has been managed inaccordance with the strategy discussed since
inception of the strategy.

GLOBAL EMERGING MARKETS (“GEM”)
EQUITY STRATEGYAppendix V

31 December 2022

PAGE 1 of 2

KEY ESG METRICSENVIRONMENTAL
Implied Temperature Rise (ITR °C)

SBTi Portfolio Coverage Rate

4

100%
80%

3
2

2.95

40%

1
Portfolio

Source: Comgest and MSCI, as of 31-Dec-2022. Portfolio coverage: 97.55% of equity andequity-linked AUM. Index (MSCI Emerging Markets - Net Return) coverage: 99.38%.

Source: SBTi, as of 31-Dec-2022; Coverage rate: 100.00% of equity and equity-linked AUM.

GLOBALEMERGING
MARKETS("GEM")GLOBALEMERGING
MARKETS("GEM")EQUITYSTRATEGY
EQUITYSTRATEGYGLOBAL EMERGING MARKETS ("GEM")
EQUITY STRATEGYtCO 2 e/M EUR

Carbon Footprint – Carbon to Value(Scope 1, 2 & 3)

Financed Emissions – Portfolio: Top 3 Contributors(scope 1, 2 & 3)

800
600

600.71

Scope 3
Scope 1 & 2

154.40

Scope 3
Scope 1 & 2

400
339.78

200

20.33

0

Approved SBTi targets

6.80

0%

Index

Committed to setting SBTi targets

22.33

20%

0

No SBTi targets

70.87

60%

3.36

Portfolio

23.26% Suzuki Motor
17.45% China Resources Gas
10.10% Inner Mongolia Yili
49.19% Other companies

Index

Source: Comgest and MSCI, as of 31-Dec-2022. Portfolio coverage: 95.66% of equity and
GLOBAL EMERGING MARKETS ("GEM")
equity-linked AUM. Index (MSCI Emerging Markets - Net Return) coverage rate: 100.00%.
EQUITYSTRATEGY
The
carbon footprint
estimates the apportioned scope 1, 2 and 3 greenhouse gases emissionsof the portfolio holdings, per million of euros invested. The attributing factor used is theEnterprise Value Including Cash (EVIC).

Source: Comgest and MSCI, as of 31-Dec-2022. The above figures show the top 3 contributors
toGLOBAL
the Portfolio’s financed emissions considering scope 1,2 and 3 GHG emissions.

EMERGING
MARKETS("GEM") EQUITYSTRATEGY

Estimated Versus Reported Emissions
Scope 1

Scope 2

Reported Emissions

Estimated Emissions

Reported Emissions

Estimated Emissions

Portfolio

69.10%

30.90%

69.10%

30.90%

Index

71.95%

28.05%

72.36%

27.64%

Source: Comgest and MSCI, as of 31-Dec-2022. Index (MSCI Emerging Markets - Net Return). All scope 3 emissions are estimated.

Climate Value-at-Risk (VaR)
Aggregated Climate VaR

1.5°C

2°C

3°C

Portfolio-14.62%-11.78%-13.52%Index-27.29%-23.54%-18.04%-7.16%-2.96%-0.22%-14.58%-9.22%-1.77%

Portfolio

6.71%

5.34%

0.87%

Index

3.85%

2.23%

0.29%

Portfolio

Policy Climate VaR

Index

Technology Climate VaR
Physical Climate VaR
Aggressive Scenario

Portfolio-14.16%Index-16.55%

Source: MSCI as of 31-Dec-2022. The “aggressive” physical risks scenario is used in the calculation of the Aggregated Climate VaR. Portfolio coverage: 97.55% of equity and equity-linked AUM. Index coverage rate
(MSCI Emerging Markets - Net Return): 99.48%.

Environmental Footprint
Environmental
footprint

Total

GHG

Water

Waste

Soil & Water
Pollutants

Air Pollutants

Use of Natural
Resources

Portfolio

1.08%

0.38%

0.38%

Index

2.43%

0.95%

0.46%

0.03%

0.11%

0.16%

0.02%

0.12%

0.19%

0.27%

0.44%

Source: Trucost, as of 31-Dec-2022. The environmental footprint estimates the apportioned ratio of annual costs linked to greenhouse gases, water abstraction, waste generation, air, land & waterpollutants, and natural resource use associated with the portfolio holdings per million of euros invested. Portfolio coverage: 100.00% of equity and equity-linked AUM. Index coverage rate (MSCI
Emerging Markets - Net Return): 99.10%.

GLOBAL EMERGING MARKETS (“GEM”)
EQUITY STRATEGYAppendix V

31 December 2022

PAGE 2 of 2

SOCIAL & GOVERNANCE

VOTING & ENGAGEMENT

Board Gender Diversity

Engagement Statistics

30%

20%

Number of companies engaged

28

Number of engagements

51

Source: Comgest, 31-Dec-2022.

22.60

ESG Engagement Topics

16.27
10%

22.00% ESG
36.00% E
16.00% S
26.00% G

0%Portfolio

Index

Source: Comgest, 31-Dec-2022.

UN Global Compact Signatories

GLOBALEMERGING
MARKETS("GEM")statistics
EQUITY
VotingSTRATEGY
Breakdown of Votes

%

40%

For

83.78

Against

14.48

Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Portfolio coverage rate: 92.15% of equity and equity-linked AUM.
GLOBALEMERGING
Index(MSCI Emerging
MarketsMARKETS- Net Return)("GEM")
coverage rate: 99.31%. The above figures show the weighted average of female
EQUITYSTRATEGY
board
members.

Abstentions or withholdings

36.56

30%

1.74

In line with management

20%

24.15

87.45

Against management

12.55

In line with Comgest policy

93.44

Against Comgest policy

6.56

Source: Comgest, 31-Dec-2022.

10%

ESG Quality Level (QL) Breakdown0%

Portfolio

9.00%

ESG QL 1

Index

Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Portfolio coverage rate: 95.66% of equity and equity-linked AUM.
Index
(MSCI Emerging
Markets MARKETS- Net Return) ("GEM")
coverage rate: 100.00%. The above figures show the weighted average of
GLOBALEMERGING
companies
being
signatories to the UN Global Compact.
EQUITYSTRATEGYESG QL 2

Tax Rates

ESG QL 3

38.19%

51.29%

30%

ESG QL 4

1.51%

ESG QLNot Assigned

0.00%

26.86
23.00

20%

21.69

0

30

60

90

Source: Comgest, 31-Dec-2022. Coverage: 100.00% of equity andequity-linked
GLOBAL AUM.
EMERGING MARKETS ("GEM")

10%EQUITY STRATEGY

0%

Portfolio
Effective Tax Rate

Portfolio
Statutory Tax Rate

Global Average
Statutory Tax Rate

Source: Calculated on MSCI Analytics, The Tax Foundation, as of 31-Dec-2022. Effective Tax Rate coverage rate 85.40% of
equity and equity-linked AUM. Statutory tax rate coverage rate: 92.15% of equity and equity-linked AUM.

GLOBAL EMERGING MARKETS ("GEM")
EQUITY STRATEGYThis 2022 data summary is based on the
Comgest Global Emerging Markets (“GEM”)
Equity Strategy representative account(hereafter, the “Portfolio”), a pooled investment
vehicle which has been managed in accordancewith the strategy discussed since inception of
the strategy.

GEM PLUS EQUITY STRATEGYAppendix VI

31 December 2022

PAGE 1 of 2

KEY ESG METRICSENVIRONMENTAL
Implied Temperature Rise (ITR °C)

SBTi Portfolio Coverage Rate

4

100%
80%

3
2

2.62

1

40%

Portfolio

Approved SBTi targets

7.85

0%

Index

Committed to setting SBTi targets

20.04

20%

0

No SBTi targets

72.11

60%

3.36

Source: Comgest and MSCI, as of 31-Dec-2022. Portfolio coverage: 97.77% of equity andequity-linked AUM. Index (MSCI Emerging Markets - Net Return) coverage: 99.38%.

Source: SBTi, as of 31-Dec-2022; Coverage rate: 100.00% of equity and equity-linked AUM.

Carbon Footprint – Carbon to Value(Scope 1, 2 & 3)

Financed Emissions – Portfolio: Top 3 Contributors(scope 1, 2 & 3)

GEM PLUS EQUITY STRATEGYtCO 2 e/M EUR

GEM PLUS EQUITY STRATEGY

800
600
400
218.59200

Portfolio

13.00% WEG
10.00% Maruti Suzuki

Scope 3
Scope 1 & 2

154.4018.44

018.00% Inner Mongolia Yili

Scope 3
Scope 1 & 2

600.7159.00% Other companies

Index

Source: Comgest and MSCI, as of 31-Dec-2022. Portfolio coverage: 95.58% of equity and
GEM PLUS EQUITY STRATEGY
equity-linked AUM. Index (MSCI Emerging Markets - Net Return) coverage rate: 100.00%.
The carbon footprint estimates the apportioned scope 1, 2 and 3 greenhouse gases emissionsof the portfolio holdings, per million of euros invested. The attributing factor used is theEnterprise Value Including Cash (EVIC).

Source: Comgest and MSCI, as of 31-Dec-2022. The above figures show the top 3 contributors
to the Portfolio’s financed emissions considering scope 1,2 and 3 GHG emissions.

GEM PLUS
EQUITYSTRATEGY

Estimated Versus Reported Emissions
Scope 1

Scope 2

Reported Emissions

Estimated Emissions

Reported Emissions

Estimated Emissions

Portfolio

63.61%

36.39%

63.61%

36.39%

Index

71.95%

28.05%

72.36%

27.64%

Source: Comgest and MSCI, as of 31-Dec-2022. Index (MSCI Emerging Markets - Net Return). All scope 3 emissions are estimated.

Climate Value-at-Risk (VaR)
Aggregated Climate VaR
Policy Climate VaR
Technology Climate VaR
Physical Climate VaR
Aggressive Scenario

1.5°C

2°C

3°C

Portfolio-15.20%-13.34%-14.12%Index-27.29%-23.54%-18.04%

Portfolio-4.57%-1.99%-0.17%

Index-14.58%-9.22%-1.77%

Portfolio

3.84%

3.12%

0.51%

Index

3.85%

2.23%

0.29%

Portfolio-14.47%Index-16.55%

Source: MSCI as of 31-Dec-2022. The “aggressive” physical risks scenario is used in the calculation of the Aggregated Climate VaR. Portfolio coverage: 97.77% of equity and equity-linked AUM. Index coverage rate
(MSCI Emerging Markets - Net Return): 99.48%.

Environmental Footprint
Environmental
footprint

Total

GHG

Water

Waste

Portfolio

1.04%

0.35%

0.38%

0.03%

Index

2.43%

0.95%

0.46%

0.12%

Soil & Water
Pollutants

Air Pollutants

Use of Natural
Resources

0.12%

0.15%

0.01%

0.19%

0.27%

0.44%

Source: Trucost, as of 31-Dec-2022. The environmental footprint estimates the apportioned ratio of annual costs linked to greenhouse gases, water abstraction, waste generation, air, land & waterpollutants, and natural resource use associated with the portfolio holdings per million of euros invested. Portfolio coverage: 98.60% of equity and equity-linked AUM. Index coverage rate (MSCI
Emerging Markets - Net Return): 99.10%.

GEM PLUS EQUITY STRATEGYAppendix VI

31 December 2022

PAGE 2 of 2

SOCIAL & GOVERNANCE

VOTING & ENGAGEMENT

Board Gender Diversity

Engagement Statistics

30%

Number of companies engaged

28

Number of engagements

53

Source: Comgest, 31-Dec-2022.

20%

21.58

ESG Engagement Topics

16.27
10%

23.08% ESG
34.62% E
17.31% S
25.00% G

0%Portfolio

Index

Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Portfolio coverage rate: 85.15% of equity and equity-linked AUM.
Index (MSCI Emerging Markets - Net Return) coverage rate: 99.31%. The above figures show the weighted average of female
board
members.
GEM
PLUS EQUITY STRATEGY

Source: Comgest, 31-Dec-2022.

GEM PLUS
EQUITYSTRATEGY

Voting statistics
UN Global Compact Signatories

Breakdown of Votes

%

60%

For

83.62

Against

12.62

40%

43.45

Abstentions or withholdings

2.48

In line with management

88.72

Against management

11.28

In line with Comgest policy

93.50

Against Comgest policy

6.50

Source: Comgest, 31-Dec-2022.
20%

24.15
ESG Quality Level (QL) Breakdown0%

Portfolio

14.18%ESG QL 1

Index

Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Portfolio coverage rate: 95.58% of equity and equity-linked AUM.
Index (MSCI Emerging Markets - Net Return) coverage rate: 100.00%. The above figures show the weighted average ofcompanies being signatories to the UN Global Compact.

ESG QL 2

Tax Rates

ESG QL 3

GEM PLUS EQUITY STRATEGY

36.55%

49.28%

30%

ESG QL 4

0.00%

ESG QLNot Assigned

0.00%

27.11
23.00

20%

21.12

0

30

60

90

Source: Comgest, 31-Dec-2022. Coverage: 100.00% of equity andequity-linked
AUM.
GEM PLUS
EQUITY STRATEGY

10%

0%

Portfolio
Effective Tax Rate

Portfolio
Statutory Tax Rate

Global Average
Statutory Tax Rate

Source: Calculated on MSCI Analytics, The Tax Foundation, as of 31-Dec-2022. Effective Tax Rate coverage rate 85.15% of
equity and equity-linked AUM. Statutory tax rate coverage rate: 92.47% of equity and equity-linked AUM.

GEM PLUS EQUITY STRATEGYThis 2022 data summary is based on
the Comgest GEM Plus Equity Strategy
representative account (hereafter, the“Portfolio”), a pooled investment vehicle
which has been managed in accordancewith the strategy discussed since inceptionof the strategy.

GLOBAL EQUITY STRATEGYAppendix VII

31 December 2022

PAGE 1 of 2

KEY ESG METRICSENVIRONMENTAL
Implied Temperature Rise (ITR °C)

SBTi Portfolio Coverage Rate

4

100%

3
2

2.76

2.27

1
0

80%

38.82

60%

16.65

40%

Committed to setting SBTi targets
Approved SBTi targets

44.54

20%

Portfolio

No SBTi targets

0%

Index

Source: Comgest and MSCI, as of 31-Dec-2022. Portfolio coverage: 100.00% of equity andequity-linked AUM. Index (MSCI AC World - Net Return) coverage: 99.55%.

Source: SBTi, as of 31-Dec-2022; Coverage rate: 100.00% of equity and equity-linked AUM.

Carbon Footprint – Carbon to Value(Scope 1, 2 & 3)

Financed Emissions – Portfolio: Top 3 Contributors(scope 1, 2 & 3)

tCO 2 e/M EUR

GLOBAL EQUITY STRATEGYGLOBAL EQUITY STRATEGY

600
407.86300
102.15150

Portfolio

17.00% Linde
8.00% Daikin

Scope 3
Scope 1 & 2

67.68

15.47

0

20.00% Inner Mongolia Yili

Scope 3
Scope 1 & 2

450

55.00% Other companies

Index

Source: Comgest and MSCI, as of 31-Dec-2022. Portfolio coverage: 100.00% of equity and
GLOBAL EQUITY STRATEGY
equity-linked AUM. Index (MSCI AC World - Net Return) coverage rate: 99.82%. The carbon
footprint estimates the apportioned scope 1, 2 and 3 greenhouse gases emissions of theportfolio holdings, per million of euros invested. The attributing factor used is the Enterprise
Value Including Cash (EVIC).

Source: Comgest and MSCI, as of 31-Dec-2022. The above figures show the top 3 contributors
to the Portfolio’s financed emissions considering scope 1,2 and 3 GHG emissions.

GLOBALEQUITYSTRATEGY

Estimated Versus Reported Emissions
Scope 1

Scope 2

Reported Emissions

Estimated Emissions

Reported Emissions

Portfolio

88.56%

11.44%

88.56%

Estimated Emissions
11.44%

Index

85.32%

14.68%

84.23%

15.77%

Source: Comgest and MSCI, as of 31-Dec-2022. Index (MSCI AC World - Net Return). All scope 3 emissions are estimated.

Climate Value-at-Risk (VaR)
Aggregated Climate VaR
Policy Climate VaR
Technology Climate VaR
Physical Climate VaR
Aggressive Scenario

1.5°C

2°C

3°C

Portfolio-6.15%-4.77%-3.79%

Index-12.64%-10.25%-7.83%

Portfolio-3.25%-1.51%-0.15%

Index-9.43%-4.98%-0.62%

Portfolio

0.79%

0.43%

0.05%

Index

4.26%

2.20%

0.26%

Portfolio-3.70%

Index-7.47%

Source: MSCI as of 31-Dec-2022. The “aggressive” physical risks scenario is used in the calculation of the Aggregated Climate VaR. Portfolio coverage: 100.00% of equity and equity-linked AUM. Index coverage rate
(MSCI AC World - Net Return): 99.56%.

Environmental Footprint
Environmental
footprint

Total

GHG

Water

Waste

Soil & Water
Pollutants

Air Pollutants

Use of Natural
Resources

Portfolio

0.59%

0.21%

0.21%

0.01%

0.07%

0.08%

0.01%

Index

1.36%

0.51%

0.40%

0.05%

0.11%

0.18%

0.10%

Source: Trucost, as of 31-Dec-2022. The environmental footprint estimates the apportioned ratio of annual costs linked to greenhouse gases, water abstraction, waste generation, air, land & waterpollutants, and natural resource use associated with the portfolio holdings per million of euros invested. Portfolio coverage: 100.00% of equity and equity-linked AUM. Index coverage rate (MSCI AC
World - Net Return): 99.35%.

GLOBAL EQUITY STRATEGYAppendix VII

31 December 2022

PAGE 2 of 2

SOCIAL & GOVERNANCE

VOTING & ENGAGEMENT

Board Gender Diversity

Engagement Statistics

40%

Number of companies engaged

14

Number of engagements

25

30%

32.62

Source: Comgest, 31-Dec-2022.

31.87

20%

ESG Engagement Topics
19.05% ESG

10%28.57% E
42.86% S
9.52% G

0%

Portfolio

Index

Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Portfolio coverage rate: 100.00% of equity and equity-linked
AUM. Index (MSCI AC World - Net Return) coverage rate: 99.74%. The above figures show the weighted average of female
board
members.
GLOBALEQUITY STRATEGY

Source: Comgest, 31-Dec-2022.

GLOBALEQUITYSTRATEGY

Voting statistics
UN Global Compact Signatories

Breakdown of Votes

%

60%

For

78.50

Against20.80

Abstentions or withholdings

50.31

40%

39.33

0.01

In line with management

74.48

Against management

25.52

In line with Comgest policy

95.10

Against Comgest policy

4.90

Source: Comgest, 31-Dec-2022.
20%

ESG Quality Level (QL) Breakdown0%

Portfolio

10.60%ESG QL 1

Index

Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Portfolio coverage rate: 100.00% of equity and equity-linked AUM.
Index (MSCI AC World - Net Return) coverage rate: 99.93%. The above figures show the weighted average of companies
being signatories to the UN Global Compact.

GLOBAL EQUITY STRATEGYESG QL 2

Tax Rates

ESG QL 3

70.81%

18.59%

30%

ESG QL 4

0.00%

ESG QLNot Assigned

0.00%

25.85
23.00

20%

19.24

0

30

60

90

Source: Comgest, 31-Dec-2022. Coverage: 100.00% of equity andequity-linked
GLOBAL AUM.
EQUITY STRATEGY

10%

0%

Portfolio
Effective Tax Rate

Portfolio
Statutory Tax Rate

Global Average
Statutory Tax Rate

Source: Calculated on MSCI Analytics, The Tax Foundation, as of 31-Dec-2022. Effective Tax Rate coverage rate 94.67% of
equity and equity-linked AUM. Statutory tax rate coverage rate: 100.00% of equity and equity-linked AUM.

GLOBAL EQUITY STRATEGYThis 2022 data summary is based on the
Comgest Global Equity Strategy representative
account (hereafter, the “Portfolio”), a pooled
investment vehicle which has been managed inaccordance with the strategy discussed since
inception of the strategy.

GLOBAL FLEX EQUITY STRATEGYAppendix VIII

31 December 2022

PAGE 1 of 2

KEY ESG METRICSENVIRONMENTAL
Implied Temperature Rise (ITR °C)

SBTi Portfolio Coverage Rate

4

100%

3
2

0

38.79
16.65

40%

2.27

1

80%
60%

No SBTi targets
Committed to setting SBTi targets
Approved SBTi targets

44.56

20%
0%

Portfolio

Source: Comgest and MSCI, as of 31-Dec-2022. Portfolio coverage: 100.00% of equity andequity-linked AUM.

Source: SBTi, as of 31-Dec-2022; Coverage rate: 100.00% of equity and equity-linked AUM.

Carbon Footprint – Carbon to Value(Scope 1, 2 & 3)

Financed Emissions – Portfolio: Top 3 Contributors(scope 1, 2 & 3)

tCO 2 e/M EUR

GLOBAL FLEX EQUITY STRATEGYGLOBAL FLEX EQUITY STRATEGY

150

20.21% Inner Mongolia Yili

100

16.61% Linde

Scope 3
Scope 1 & 2

102.2350

7.65% Daikin
55.53% Other companies

15.48

0

Portfolio
Source: Comgest and MSCI, as of 31-Dec-2022. Portfolio coverage: 100.00% of equity and
GLOBAL FLEX EQUITY STRATEGY
equity-linked AUM. The carbon footprint estimates the apportioned scope 1, 2 and 3
greenhouse gases emissions of the portfolio holdings, per million of euros invested. The
attributing factor used is the Enterprise Value Including Cash (EVIC).

Source: Comgest and MSCI, as of 31-Dec-2022. The above figures show the top 3 contributors to
the Portfolio’s financed emissions considering scope 1,2 and 3 GHG emissions.

GLOBAL FLEXEQUITYSTRATEGY

Estimated Versus Reported Emissions
Scope 1

Scope 2

Reported Emissions

Estimated Emissions

Reported Emissions

Estimated Emissions

88.59%

11.41%

88.59%

11.41%

Portfolio

Source: Comgest and MSCI, as of 31-Dec-2022. All scope 3 emissions are estimated.

Climate Value-at-Risk (VaR)

1.5°C

2°C

3°C

Aggregated Climate VaR

Portfolio-6.15%-4.77%-3.79%

Policy Climate VaR

Portfolio-3.25%-1.51%-0.15%

Technology Climate VaR

Portfolio

0.79%

0.43%

0.05%

Physical Climate VaR
Aggressive Scenario

Portfolio-3.70%

Source: MSCI, as of 31-Dec-2022. The “aggressive” physical risks scenario is used in the calculation of the Aggregated Climate VaR. Portfolio coverage: 100.00% of equity and equity-linked AUM.

Environmental Footprint
Environmental
footprint

Total

GHG

Water

Waste

Soil & Water
Pollutants

Air Pollutants

Use of Natural
Resources

Portfolio

0.59%

0.21%

0.21%

0.01%

0.07%

0.08%

0.01%

Source: Trucost, as of 31-Dec-2022. The environmental footprint estimates the apportioned ratio of annual costs linked to greenhouse gases, water abstraction, waste generation, air, land & waterpollutants, and natural resource use associated with the portfolio holdings per million of euros invested. Portfolio coverage: 100.00% of equity and equity-linked AUM.

GLOBAL FLEX EQUITY STRATEGYAppendix VIII

31 December 2022

PAGE 2 of 2

SOCIAL & GOVERNANCE

VOTING & ENGAGEMENT

Board Gender Diversity

Engagement Statistics

40%

Number of companies engaged

14

Number of engagements

25

30%

Source: Comgest, 31-Dec-2022.

32.63
20%

ESG Engagement Topics
19.05% ESG

10%28.57% E
42.86% S
9.52% G

0%

Portfolio
Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Portfolio coverage rate: 100.00% of equity and equity-linked AUM.
The above figures show the weighted average of female board members.

GLOBAL FLEX EQUITY STRATEGY

Source: Comgest, 31-Dec-2022.

GLOBAL FLEXEQUITYSTRATEGY

Voting statistics

UN Global Compact Signatories

Breakdown of Votes

%

60%

For

78.74

Against

20.58

50.34

40%

Abstentions or withholdings

0.68

In line with management

75.17

Against management

24.83

In line with Comgest policy

95.07

Against Comgest policy

4.93

Source: Comgest, 31-Dec-2022.
20%

ESG Quality Level (QL) Breakdown
0%

10.62%ESG QL 1

Portfolio
Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Portfolio coverage rate: 100.00% of equity and equity-linked AUM.
The above figures show the weighted average of companies being signatories to the UN Global Compact.

GLOBAL FLEX EQUITY STRATEGYESG QL 2

Tax Rates

ESG QL 3

70.81%

18.57%

30%

25.85

20%

23.00

19.24

ESG QL 4

0.00%

ESG QLNot Assigned

0.00%
0

30

60

90

Source: Comgest, 31-Dec-2022. Coverage: 100.00% of equity andequity-linked
GLOBAL AUM.
FLEX EQUITY STRATEGY

10%

0%

Portfolio
Effective Tax Rate

Portfolio
Statutory Tax Rate

Global Average
Statutory Tax Rate

Source: Calculated on MSCI Analytics, The Tax Foundation, as of 31-Dec-2022. Effective Tax Rate coverage rate 94.66% of
equity and equity-linked AUM. Statutory tax rate coverage rate: 100.00% of equity and equity-linked AUM.

GLOBAL FLEX EQUITY STRATEGYThis 2022 data summary is based on the Comgest
Global Flex Equity Strategy representative
account (hereafter, the “Portfolio”), a pooled
investment vehicle which has been managed inaccordance with the strategy discussed since
inception of the strategy.

GLOBAL PLUS EQUITY STRATEGYAppendix IX

31 December 2022

PAGE 1 of 2

KEY ESG METRICSENVIRONMENTAL
Implied Temperature Rise (ITR °C)

SBTi Portfolio Coverage Rate

4

100%
40.45

80%

3

60%

2

2.76

2.29

1
0

15.32

40%

Approved SBTi targets

44.23

20%

Portfolio

No SBTi targets
Committed to setting SBTi targets

0%

Index

Source: Comgest and MSCI, as of 31-Dec-2022. Portfolio coverage: 100.00% of equity andequity-linked AUM. Index (MSCI AC World - Net Return) coverage: 99.55%.

Source: SBTi, as of 31-Dec-2022; Coverage rate: 100.00% of equity and equity-linked AUM.

Carbon Footprint – Carbon to Value(Scope 1, 2 & 3)

Financed Emissions – Portfolio: Top 3 Contributors(scope 1, 2 & 3)

tCO 2 e/M EUR

GLOBAL PLUS EQUITY STRATEGYGLOBAL PLUS EQUITY STRATEGY

600
400

407.86200

103.87

Portfolio

16.00% Linde
8.00% Daikin

Scope 3
Scope 1 & 2

67.68

15.04

0

20.00% Inner Mongolia Yili

Scope 3
Scope 1 & 2

56.00% Other companies

Index

Source: Comgest and MSCI, as of 31-Dec-2022. Portfolio coverage: 100.00% of equity and
GLOBAL PLUS EQUITY STRATEGY
equity-linked AUM. Index (MSCI AC World - Net Return) coverage rate: 99.82%. The carbon
footprint estimates the apportioned scope 1, 2 and 3 greenhouse gases emissions of theportfolio holdings, per million of euros invested. The attributing factor used is the Enterprise
Value Including Cash (EVIC).

Source: Comgest and MSCI, as of 31-Dec-2022. The above figures show the top 3 contributors
to the Portfolio’s financed emissions considering scope 1,2 and 3 GHG emissions.

GLOBAL PLUS
EQUITYSTRATEGY

Estimated Versus Reported Emissions
Scope 1

Scope 2

Reported Emissions

Estimated Emissions

Reported Emissions

Estimated Emissions

Portfolio

86.62%

13.38%

86.62%

13.38%

Index

85.32%

14.68%

84.23%

15.77%

Source: Comgest and MSCI, as of 31-Dec-2022. Index (MSCI AC World - Net Return). All scope 3 emissions are estimated.

Climate Value-at-Risk (VaR)
Aggregated Climate VaR
Policy Climate VaR
Technology Climate VaR
Physical Climate VaR
Aggressive Scenario

1.5°C

2°C

3°C

Portfolio-5.91%-4.63%-3.78%

Index-12.64%-10.25%-7.83%

Portfolio-3.24%-1.50%-0.14%

Index-9.43%-4.98%-0.62%

Portfolio

1.03%

0.57%

0.06%

Index

4.26%

2.20%

0.26%

Portfolio-3.70%

Index-7.47%

Source: MSCI as of 31-Dec-2022. The “aggressive” physical risks scenario is used in the calculation of the Aggregated Climate VaR. Portfolio coverage: 100.00% of equity and equity-linked AUM. Index coverage rate
(MSCI AC World - Net Return): 99.56%.

Environmental Footprint
Environmental
footprint

Total

GHG

Water

Waste

Soil & Water
Pollutants

Air Pollutants

Use of Natural
Resources

Portfolio

0.60%

0.22%

0.21%

0.01%

0.07%

0.08%

0.01%

Index

1.36%

0.51%

0.40%

0.05%

0.11%

0.18%

0.10%

Source: Trucost, as of 31-Dec-2022. The environmental footprint estimates the apportioned ratio of annual costs linked to greenhouse gases, water abstraction, waste generation, air, land & waterpollutants, and natural resource use associated with the portfolio holdings per million of euros invested. Portfolio coverage: 100.00% of equity and equity-linked AUM. Index coverage rate (MSCI AC
World - Net Return): 99.35%.

GLOBAL PLUS EQUITY STRATEGYAppendix IX

31 December 2022

PAGE 2 of 2

SOCIAL & GOVERNANCE

VOTING & ENGAGEMENT

Board Gender Diversity

Engagement Statistics

40%

Number of companies engaged

15

Number of engagements

26

30%

Source: Comgest, 31-Dec-2022.

31.87

32.01
20%

ESG Engagement Topics
18.18% ESG

10%31.82% E
40.91% S
9.09% G

0%

Portfolio

Index

Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Portfolio coverage rate: 100.00% of equity and equity-linked
AUM. Index (MSCI AC World - Net Return) coverage rate: 99.74%. The above figures show the weighted average of female
board
members.
GLOBAL
PLUS EQUITY STRATEGY

Source: Comgest, 31-Dec-2022.

GLOBAL PLUS
EQUITYSTRATEGY

Voting statistics
UN Global Compact Signatories

Breakdown of Votes

%

60%

For

78.42

Against21.40

Abstentions or withholdings
In line with management

49.13

40%

39.33

0.18
76.08

Against management

23.92

In line with Comgest policy

94.78

Against Comgest policy

5.22

Source: Comgest, 31-Dec-2022.
20%

ESG Quality Level (QL) Breakdown0%

Portfolio

10.13%ESG QL 1

Index

Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Portfolio coverage rate: 100.00% of equity and equity-linked AUM.
Index (MSCI AC World - Net Return) coverage rate: 99.93%. The above figures show the weighted average of companies
being signatories to the UN Global Compact.

GLOBAL PLUS EQUITY STRATEGYESG QL 2

Tax Rates

ESG QL 3

72.53%

17.34%

30%

ESG QL 4

0.00%

ESG QLNot Assigned

0.00%

25.85
23.00

20%

19.51

0

30

60

90

Source: Comgest, 31-Dec-2022. Coverage: 100.00% of equity andequity-linked
GLOBAL AUM.
PLUS EQUITY STRATEGY

10%

0%

Portfolio
Effective Tax Rate

Portfolio
Statutory Tax Rate

Global Average
Statutory Tax Rate

Source: Calculated on MSCI Analytics, The Tax Foundation, as of 31-Dec-2022. Effective Tax Rate coverage rate 94.68% of
equity and equity-linked AUM. Statutory tax rate coverage rate: 100.00% of equity and equity-linked AUM.

GLOBAL PLUS EQUITY STRATEGYThis 2022 data summary is based on the Comgest
Global Plus Equity Strategy representative
account (hereafter, the “Portfolio”), a pooled
investment vehicle which has been managed inaccordance with the strategy discussed since
inception of the strategy.

JAPAN COMPOUNDERS EQUITY STRATEGYAppendix X

31 December 2022

PAGE 1 of 2

KEY ESG METRICSENVIRONMENTAL
Implied Temperature Rise (ITR °C)

SBTi Portfolio Coverage Rate

4

100%
60%

2

2.60

2.22

1
0

Committed to setting SBTi targets

13.91

40%
20%

Portfolio

No SBTi targets

49.55

80%

3

Approved SBTi targets

36.54

0%

Index

Source: Comgest and MSCI, as of 31-Dec-2022. Portfolio coverage: 100.00% of equity andequity-linked AUM. Index (Topix - Net Return) coverage: 96.79%.

Source: SBTi, as of 31-Dec-2022; Coverage rate: 100.00% of equity and equity-linked AUM.

Carbon Footprint – Carbon to Value(Scope 1, 2 & 3)

Financed Emissions – Portfolio: Top 3 Contributors(scope 1, 2 & 3)

tCO 2 e/M EUR

JAPAN COMPOUNDERS EQUITY STRATEGYJAPAN COMPOUNDERS EQUITY STRATEGY

1000
800
600

645.96

400

22.54

80.62

Portfolio

Index

0

9.00% Asahi Kasei
8.00% Hitachi

Scope 3
Scope 1 & 2

222.87200

16.00% Nippon Gas

Scope 3
Scope 1 & 2

Source: Comgest and MSCI, as of 31-Dec-2022. Portfolio coverage: 100.00% of equity andJAPAN COMPOUNDERS EQUITY STRATEGY
equity-linked AUM. Index (Topix - Net Return) coverage rate: 97.77%. The carbon footprint
estimates the apportioned scope 1, 2 and 3 greenhouse gases emissions of the portfolio
holdings, per million of euros invested. The attributing factor used is the Enterprise Value
Including Cash (EVIC).

67.00% Other companies

Source: Comgest and MSCI, as of 31-Dec-2022. The above figures show the top 3 contributors
to the Portfolio’s financed emissions considering scope 1,2 and 3 GHG emissions.

JAPAN
COMPOUNDERSEQUITYSTRATEGY

Estimated Versus Reported Emissions
Scope 1

Scope 2

Reported Emissions

Estimated Emissions

Reported Emissions

Estimated Emissions

Portfolio

68.44%

31.56%

68.44%

31.56%

Index

68.15%

31.85%

67.66%

32.34%

Source: Comgest and MSCI, as of 31-Dec-2022. Index (Topix - Net Return). All scope 3 emissions are estimated.

Climate Value-at-Risk (VaR)
Aggregated Climate VaR
Policy Climate VaR
Technology Climate VaR
Physical Climate VaR
Aggressive Scenario

1.5°C

2°C

3°C

0.67%

-2.07%-7.17%

Index-9.12%-10.23%-14.74%

Portfolio-4.45%-1.84%-0.14%

Index-11.99%-5.60%-0.44%

Portfolio

12.98%

7.63%

0.83%

Index

18.53%

11.02%

1.35%

Portfolio

Portfolio-7.86%

Index-15.65%

Source: MSCI as of 31-Dec-2022. The “aggressive” physical risks scenario is used in the calculation of the Aggregated Climate VaR. Portfolio coverage: 100.00% of equity and equity-linked AUM. Index coverage rate
(Topix - Net Return): 97.03%.

Environmental Footprint
Environmental
footprint

Total

GHG

Water

Waste

Soil & Water
Pollutants

Air Pollutants

Use of Natural
Resources

Portfolio

0.87%

0.36%

0.27%

0.02%

Index

2.75%

0.94%

1.02%

0.08%

0.06%

0.13%

0.02%

0.25%

0.39%

0.08%

Source: Trucost, as of 31-Dec-2022. The environmental footprint estimates the apportioned ratio of annual costs linked to greenhouse gases, water abstraction, waste generation, air, land & waterpollutants, and natural resource use associated with the portfolio holdings per million of euros invested. Portfolio coverage: 100.00% of equity and equity-linked AUM. Index coverage rate (Topix Net Return): 99.87%.

JAPAN COMPOUNDERS EQUITY STRATEGYAppendix X

31 December 2022

PAGE 2 of 2

SOCIAL & GOVERNANCE

VOTING & ENGAGEMENT

Board Gender Diversity

Engagement Statistics

20%

Number of companies engaged

16

Number of engagements

21

15%

16.77

Source: Comgest, 31-Dec-2022.

15.31
10%

ESG Engagement Topics
35.00% ESG

5%50.00% E
5.00% S
10.00% G

0%Portfolio

Index

Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Portfolio coverage rate: 100.00% of equity and equity-linked AUM.
Index (Topix - Net Return) coverage rate: 97.13%. The above figures show the weighted average of female board members.

JAPAN COMPOUNDERS EQUITY STRATEGY

Source: Comgest, 31-Dec-2022.

JAPAN
COMPOUNDERSEQUITY
Votingstatistics
STRATEGY

UN Global Compact Signatories

Breakdown of Votes

%

60%

For

92.83

Against

53.57

51.48

40%

7.17

Abstentions or withholdings

0.00

In line with management

92.83

Against management

7.17

In line with Comgest policy

95.33

Against Comgest policy

4.67

Source: Comgest, 31-Dec-2022.
20%

ESG Quality Level (QL) Breakdown0%

Portfolio

9.10%

ESG QL 1

Index

Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Portfolio coverage rate: 100.00% of equity and equity-linked AUM.
Index (Topix - Net Return) coverage rate: 97.83%. The above figures show the weighted average of companies being
signatories to the UN Global Compact.

JAPAN COMPOUNDERS EQUITY STRATEGYESG QL 2

Tax Rates

ESG QL 3

51.71%

39.18%

30%

ESG QL 4

0.00%

ESG QLNot Assigned

0.00%

27.32

27.04

23.00

20%

0

30

60

90

Source: Comgest, 31-Dec-2022. Coverage: 100.00% of equity andequity-linked
AUM.
JAPAN COMPOUNDERSEQUITY STRATEGY

10%

0%

Portfolio
Effective Tax Rate

Portfolio
Statutory Tax Rate

Global Average
Statutory Tax Rate

Source: Calculated on MSCI Analytics, The Tax Foundation, as of 31-Dec-2022. Effective Tax Rate coverage rate 99.51% of
equity and equity-linked AUM. Statutory tax rate coverage rate: 100.00% of equity and equity-linked AUM.

JAPAN COMPOUNDERS EQUITY STRATEGYThis 2022 data summary is based on the
Comgest Japan Compounders Equity
Strategy representative account (hereafter,
the “Portfolio”), a pooled investment vehicle
which has been managed in accordancewith the strategy discussed since inceptionof the strategy.

JAPAN EQUITY STRATEGYAppendix XI

31 December 2022

PAGE 1 of 2

KEY ESG METRICSENVIRONMENTAL
Implied Temperature Rise (ITR °C)

SBTi Portfolio Coverage Rate

4

100%
80%

3
2

2.52

1

40%

2.60

Portfolio

Approved SBTi targets

26.82

0%

Index

Committed to setting SBTi targets

7.32

20%

0

No SBTi targets

65.86

60%

Source: Comgest and MSCI, as of 31-Dec-2022. Portfolio coverage: 100.00% of equity andequity-linked AUM. Index (Topix - Net Return) coverage: 96.79%.

Source: SBTi, as of 31-Dec-2022; Coverage rate: 100.00% of equity and equity-linked AUM.

Carbon Footprint – Carbon to Value(Scope 1, 2 & 3)

Financed Emissions – Portfolio: Top 3 Contributors(scope 1, 2 & 3)

tCO 2 e/M EUR

JAPAN EQUITY STRATEGYJAPAN EQUITY STRATEGY

800
600
400
200

20.20

80.62

Portfolio

Index

8.00% Toray Industries
8.00% Daikin

Scope 3
Scope 1 & 2

234.54034.00% Suzuki Motor

Scope 3
Scope 1 & 2

645.96

Source: Comgest and MSCI, as of 31-Dec-2022. Portfolio coverage: 100.00% of equity andJAPAN EQUITY STRATEGY
equity-linked AUM. Index (Topix - Net Return) coverage rate: 97.77%. The carbon footprint
estimates the apportioned scope 1, 2 and 3 greenhouse gases emissions of the portfolio
holdings, per million of euros invested. The attributing factor used is the Enterprise Value
Including Cash (EVIC).

50.00% Other companies

Source: Comgest and MSCI, as of 31-Dec-2022. The above figures show the top 3 contributors
to the Portfolio’s financed emissions considering scope 1,2 and 3 GHG emissions.

JAPAN EQUITYSTRATEGY

Estimated Versus Reported Emissions
Scope 1

Scope 2

Reported Emissions

Estimated Emissions

Reported Emissions

Estimated Emissions

Portfolio

69.60%

30.40%

69.60%

30.40%

Index

68.15%

31.85%

67.66%

32.34%

Source: Comgest and MSCI, as of 31-Dec-2022. Index (Topix - Net Return). All scope 3 emissions are estimated.

Climate Value-at-Risk (VaR)
Aggregated Climate VaR
Policy Climate VaR
Technology Climate VaR
Physical Climate VaR
Aggressive Scenario

Portfolio

1.5°C

2°C

3°C

-0.12%-2.40%-6.69%

Index-9.12%-10.23%-14.74%

Portfolio-4.56%-1.84%-0.13%

Index-11.99%-5.60%-0.44%

Portfolio

11.70%

6.71%

0.70%

Index

18.53%

11.02%

1.35%

Portfolio-7.26%

Index-15.65%

Source: MSCI as of 31-Dec-2022. The “aggressive” physical risks scenario is used in the calculation of the Aggregated Climate VaR. Portfolio coverage: 100.00% of equity and equity-linked AUM. Index coverage rate
(Topix - Net Return): 97.03%.

Environmental Footprint
Environmental
footprint

Total

GHG

Water

Waste

Soil & Water
Pollutants

Air Pollutants

Use of Natural
Resources

Portfolio

0.91%

0.33%

0.28%

0.07%

Index

2.75%

0.94%

1.02%

0.08%

0.07%

0.13%

0.02%

0.25%

0.39%

0.08%

Source: Trucost, as of 31-Dec-2022. The environmental footprint estimates the apportioned ratio of annual costs linked to greenhouse gases, water abstraction, waste generation, air, land & waterpollutants, and natural resource use associated with the portfolio holdings per million of euros invested. Portfolio coverage: 100.00% of equity and equity-linked AUM. Index coverage rate (Topix Net Return): 99.87%.

JAPAN EQUITY STRATEGYAppendix XI

31 December 2022

PAGE 2 of 2

SOCIAL & GOVERNANCE

VOTING & ENGAGEMENT

Board Gender Diversity

Engagement Statistics

20%

15%

17.79

16.77

Number of companies engaged

26

Number of engagements

34

Source: Comgest, 31-Dec-2022.

10%

ESG Engagement Topics
28.13% ESG

5%56.25% E
6.25% S
9.38% G

0%

Portfolio

Index

Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Portfolio coverage rate: 100.00% of equity and equity-linked AUM.
Index (Topix - Net Return) coverage rate: 97.13%. The above figures show the weighted average of female board members.

JAPAN EQUITY STRATEGY

Source: Comgest, 31-Dec-2022.

JAPAN EQUITYSTRATEGY

Voting statistics
UN Global Compact Signatories

Breakdown of Votes

60%

For

51.48
40%

35.93

%
94.30

Against5.70

Abstentions or withholdings

0.00

In line with management

94.30

Against management

5.70

In line with Comgest policy

93.54

Against Comgest policy

6.46

Source: Comgest, 31-Dec-2022.

20%

ESG Quality Level (QL) Breakdown0%

Portfolio

12.52%ESG QL 1

Index

Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Portfolio coverage rate: 100.00% of equity and equity-linked AUM.
Index (Topix - Net Return) coverage rate: 97.83%. The above figures show the weighted average of companies being
signatories to the UN Global Compact.

JAPAN EQUITY STRATEGYESG QL 2

Tax Rates

ESG QL 3

39.78%

44.24%

30%

27.76

ESG QL 4

3.46%

ESG QLNot Assigned

0.00%

28.12
23.00

20%

0

30

60

90

Source: Comgest, 31-Dec-2022. Coverage: 100.00% of equity andequity-linked
AUM. STRATEGYJAPAN EQUITY

10%

0%

Portfolio
Effective Tax Rate

Portfolio
Statutory Tax Rate

Global Average
Statutory Tax Rate

Source: Calculated on MSCI Analytics, The Tax Foundation, as of 31-Dec-2022. Effective Tax Rate coverage rate 96.78% of
equity and equity-linked AUM. Statutory tax rate coverage rate: 100.00% of equity and equity-linked AUM.

JAPAN EQUITY STRATEGYThis 2022 data summary is based on the
Comgest Japan Equity Strategy representative
account (hereafter, the “Portfolio”), a pooled
investment vehicle which has been managed inaccordance with the strategy discussed since
inception of the strategy.

PAN EUROPE EQUITY STRATEGYAppendix XII

31 December 2022

PAGE 1 of 2

KEY ESG METRICSENVIRONMENTAL
Implied Temperature Rise (ITR °C)

SBTi Portfolio Coverage Rate

4

100%

26.77

80%

3
2
2.04

2.19

Portfolio

Index

1
0

No SBTi targets

60%

15.92

Committed to setting SBTi targets

40%

57.31

Approved SBTi targets

20%
0%

Source: Comgest and MSCI, as of 31-Dec-2022. Portfolio coverage: 97.67% of equity andequity-linked AUM. Index (MSCI Europe - Net Return) coverage: 99.85%.

Source: SBTi, as of 31-Dec-2022; Coverage rate: 100.00% of equity and equity-linked AUM.

Carbon Footprint – Carbon to Value(Scope 1, 2 & 3)

Financed Emissions – Portfolio: Top 3 Contributors(scope 1, 2 & 3)

PAN EUROPE EQUITY STRATEGYtCO 2 e/M EUR

PAN EUROPE EQUITY STRATEGY

800
600
535.66

400
200

94.36
22.56

86.29

Portfolio

Index

0

18.00% Linde

Scope 3
Scope 1 & 2

10.00% Jeronimo Martins

Scope 3
Scope 1 & 2

63.00% Other companies

Source: Comgest and MSCI, as of 31-Dec-2022. Portfolio coverage: 100.00% of equity andPAN EUROPE EQUITY STRATEGY
equity-linked AUM. Index (MSCI Europe - Net Return) coverage rate: 100.00%. The carbon
footprint estimates the apportioned scope 1, 2 and 3 greenhouse gases emissions of theportfolio holdings, per million of euros invested. The attributing factor used is the Enterprise
Value Including Cash (EVIC).

9.00% Essilorluxottica

Source: Comgest and MSCI, as of 31-Dec-2022. The above figures show the top 3 contributors
to the Portfolio’s financed emissions considering scope 1,2 and 3 GHG emissions.

PAN EUROPE
EQUITYSTRATEGY

Estimated Versus Reported Emissions
Scope 1

Scope 2

Reported Emissions

Estimated Emissions

Reported Emissions

Estimated Emissions

Portfolio

99.13%

0.87%

99.13%

0.87%

Index

95.32%

4.68%

94.33%

5.67%

Source: Comgest and MSCI, as of 31-Dec-2022. Index (MSCI Europe - Net Return). All scope 3 emissions are estimated.

Climate Value-at-Risk (VaR)
Aggregated Climate VaR
Policy Climate VaR
Technology Climate VaR
Physical Climate VaR
Aggressive Scenario

1.5°C

2°C

3°C

Portfolio-7.86%-6.17%-4.33%

Index-13.94%-11.94%-8.74%

Portfolio-4.82%-2.65%-0.33%

Index-13.29%-7.38%-1.02%

Portfolio

1.02%

0.55%

0.06%

Index

7.50%

3.59%

0.42%

Portfolio-4.07%

Index-8.14%

Source: MSCI as of 31-Dec-2022. The “aggressive” physical risks scenario is used in the calculation of the Aggregated Climate VaR. Portfolio coverage: 97.67% of equity and equity-linked AUM. Index coverage rate
(MSCI Europe - Net Return): 99.85%.

Environmental Footprint
Environmental
footprint

Total

GHG

Water

Waste

Soil & Water
Pollutants

Air Pollutants

Use of Natural
Resources

Portfolio

0.59%

0.19%

0.23%

0.01%

0.07%

0.07%

0.01%

Index

1.71%

0.69%

0.46%

0.05%

0.11%

0.24%

0.15%

Source: Trucost, as of 31-Dec-2022. The environmental footprint estimates the apportioned ratio of annual costs linked to greenhouse gases, water abstraction, waste generation, air, land & waterpollutants, and natural resource use associated with the portfolio holdings per million of euros invested. Portfolio coverage: 100.00% of equity and equity-linked AUM. Index coverage rate (MSCI
Europe - Net Return): 98.70%.

PAN EUROPE EQUITY STRATEGYAppendix XII

31 December 2022

PAGE 2 of 2

SOCIAL & GOVERNANCE

VOTING & ENGAGEMENT

Board Gender Diversity

Engagement Statistics

60%

Number of companies engaged

14

50%

Number of engagements

15

40%

Source: Comgest, 31-Dec-2022.

40.12

30%

39.92

ESG Engagement Topics

20%

14.29% ESG
42.86% E

10%

0.00% S42.86% G

0%Portfolio

Index

Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Portfolio coverage rate: 100.00% of equity and equity-linked
AUM. Index (MSCI Europe - Net Return) coverage rate: 99.97%. The above figures show the weighted average of female
board
members.
PAN
EUROPE EQUITY STRATEGY

Source: Comgest, 31-Dec-2022.

PAN EUROPE
EQUITYSTRATEGY

Voting statistics
UN Global Compact Signatories

Breakdown of Votes

%

90%

For

86.18

Against13.64

Abstentions or withholdings
In line with management

75.76

60%

59.54

0.17
83.43

Against management

16.57

In line with Comgest policy

93.78

Against Comgest policy

6.22

Source: Comgest, 31-Dec-2022.
30%

ESG Quality Level (QL) Breakdown0%

Portfolio

32.13%ESG QL 1

Index

Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Portfolio coverage rate: 100.00% of equity and equity-linked AUM.
Index (MSCI Europe - Net Return) coverage rate: 100.00%. The above figures show the weighted average of companies being
signatories to the UN Global Compact.

PAN EUROPE EQUITY STRATEGYESG QL 2

Tax Rates

ESG QL 3

4.15%

ESG QL 4

0.00%

ESG QLNot Assigned

0.00%

63.72%

30%

24.95

20%

21.94

23.00

0

30

60

90

Source: Comgest, 31-Dec-2022. Coverage: 100.00% of equity andequity-linked
AUM. EQUITY STRATEGYPAN EUROPE

10%

0%

Portfolio
Effective Tax Rate

Portfolio
Statutory Tax Rate

Global Average
Statutory Tax Rate

Source: Calculated on MSCI Analytics, The Tax Foundation, as of 31-Dec-2022. Effective Tax Rate coverage rate 93.96% of
equity and equity-linked AUM. Statutory tax rate coverage rate: 100.00% of equity and equity-linked AUM.

PAN EUROPE EQUITY STRATEGYThis 2022 data summary is based on
the Comgest Pan Europe Equity Strategy
representative account (hereafter, the“Portfolio”), a pooled investment vehicle
which has been managed in accordancewith the strategy discussed since inceptionof the strategy.

US EQUITY STRATEGYAppendix XIII

31 December 2022

PAGE 1 of 2

KEY ESG METRICSENVIRONMENTAL
Implied Temperature Rise (ITR °C)

SBTi Portfolio Coverage Rate

4

100%

2

60%

2.64

1
0

Approved SBTi targets

39.63

20%

PortfolioCommitted to setting SBTi targets

9.72

40%

1.84

No SBTi targets

50.64

80%

3

0%

Index

Source: Comgest and MSCI, as of 31-Dec-2022. Portfolio coverage: 100.00% of equity andequity-linked AUM. Index (S&P 500 - Net Return) coverage: 99.74%.

Source: SBTi, as of 31-Dec-2022; Coverage rate: 100.00% of equity and equity-linked AUM.

Carbon Footprint – Carbon to Value(Scope 1, 2 & 3)

Financed Emissions – Portfolio: Top 3 Contributors(scope 1, 2 & 3)

tCO 2 e/M EUR

US EQUITY STRATEGYUS EQUITY STRATEGY

400

17.00% Costco

271.60

Scope 3
Scope 1 & 2

14.00% Avery Dennison

73.72
9.73

44.62

Scope 3
Scope 1 & 2

56.00% Other companies

Portfolio

Index

300
200
100
0

Source: Comgest and MSCI, as of 31-Dec-2022. Portfolio coverage: 100.00% of equity andUS EQUITY STRATEGY
equity-linked AUM. Index (S&P 500 - Net Return) coverage rate: 99.88%. The carbon
footprint estimates the apportioned scope 1, 2 and 3 greenhouse gases emissions of theportfolio holdings, per million of euros invested. The attributing factor used is the Enterprise
Value Including Cash (EVIC).

13.00% J.B. Hunt Transport Services

Source: Comgest and MSCI, as of 31-Dec-2022. The above figures show the top 3 contributors
to the Portfolio’s financed emissions considering scope 1,2 and 3 GHG emissions.

US EQUITYSTRATEGY

Estimated Versus Reported Emissions
Scope 1

Scope 2

Reported Emissions

Estimated Emissions

Reported Emissions

Estimated Emissions

Portfolio

87.93%

12.07%

87.93%

12.07%

Index

87.55%

12.45%

85.91%

14.09%

Source: Comgest and MSCI, as of 31-Dec-2022. Index (S&P 500 - Net Return). All scope 3 emissions are estimated.

Climate Value-at-Risk (VaR)
Aggregated Climate VaR
Policy Climate VaR
Technology Climate VaR
Physical Climate VaR
Aggressive Scenario

Portfolio

1.5°C

2°C

3°C

-5.13%-3.92%-3.04%

Index-9.59%-7.26%-5.17%

Portfolio-2.41%-1.09%-0.10%

Index-7.08%-3.49%-0.34%

Portfolio

0.23%

0.13%

0.02%

Index

2.44%

1.18%

0.13%

Portfolio-2.95%

Index-4.95%

Source: MSCI as of 31-Dec-2022. The “aggressive” physical risks scenario is used in the calculation of the Aggregated Climate VaR. Portfolio coverage: 100.00% of equity and equity-linked AUM. Index coverage rate
(S&P 500 - Net Return): 99.74%.

Environmental Footprint
Environmental
footprint

Total

GHG

Water

Waste

Soil & Water
Pollutants

Air Pollutants

Use of Natural
Resources

Portfolio

0.42%

0.14%

0.10%

0.01%

0.02%

0.06%

0.09%

Index

0.87%

0.36%

0.27%

0.03%

0.07%

0.12%

0.02%

Source: Trucost, as of 31-Dec-2022. The environmental footprint estimates the apportioned ratio of annual costs linked to greenhouse gases, water abstraction, waste generation, air, land & waterpollutants, and natural resource use associated with the portfolio holdings per million of euros invested. Portfolio coverage: 100.00% of equity and equity-linked AUM. Index coverage rate (S&P 500- Net Return): 99.79%.

US EQUITY STRATEGYAppendix XIII

31 December 2022

PAGE 2 of 2

SOCIAL & GOVERNANCE

VOTING & ENGAGEMENT

Board Gender Diversity

Engagement Statistics

40%

Number of companies engaged

14

Number of engagements

16

30%

33.65

33.28

Source: Comgest, 31-Dec-2022.

20%

ESG Engagement Topics
14.29% ESG

10%50.00% E
28.57% S
7.14% G

0%

Portfolio

Index

Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Portfolio coverage rate: 100.00% of equity and equity-linked AUM.
Index (S&P 500 - Net Return) coverage rate: 99.88%. The above figures show the weighted average of female board members.

US EQUITY STRATEGY

Source: Comgest, 31-Dec-2022.

US EQUITYSTRATEGY

Voting statistics
UN Global Compact Signatories

Breakdown of Votes

%

40%

For

63.84

Against

28.68

30%

31.57

31.40
20%

Abstentions or withholdings

7.48

In line with management

57.61

Against management

42.39

In line with Comgest policy

96.01

Against Comgest policy

3.99

Source: Comgest, 31-Dec-2022.

10%

ESG Quality Level (QL) Breakdown0%

Portfolio

4.65%

ESG QL 1

Index

Source: Calculated on MSCI Analytics, as of 31-Dec-2022. Portfolio coverage rate: 100.00% of equity and equity-linked AUM.
Index (S&P 500 - Net Return) coverage rate: 99.88%. The above figures show the weighted average of companies being
signatories to the UN Global Compact.

US EQUITY STRATEGYESG QL 2

Tax Rates

ESG QL 3

65.02%

28.34%

30%

ESG QL 4

1.49%

ESG QLNot Assigned

0.51%

26.18
23.00

20%

0

18.29

30

60

90

Source: Comgest, 31-Dec-2022. Coverage: 100.00% of equity andequity-linked
AUM.
US EQUITYSTRATEGY

10%

0%

Portfolio
Effective Tax Rate

Portfolio
Statutory Tax Rate

Global Average
Statutory Tax Rate

Source: Calculated on MSCI Analytics, The Tax Foundation, as of 31-Dec-2022. Effective Tax Rate coverage rate 96.50% of
equity and equity-linked AUM. Statutory tax rate coverage rate: 100.00% of equity and equity-linked AUM.

US EQUITY STRATEGYThis 2022 data summary is based on the
Comgest US Equity Strategy representative
account (hereafter, the “Portfolio”), a pooled
investment vehicle which has been managed inaccordance with the strategy discussed since
inception of the strategy.

Comgest is an independent, international asset management group, which since its creation in 1985,
has pursued a long-term “Quality Growth” and responsible investment style. Comgest serves investors
around the world who share its ­long-term investment horizon.

comgest.com

FOR FURTHER INFORMATION, PLEASE CONTACT:The ESG Team
Comgest17 Square Edouard VII
75009 Paris
FranceAMSTERDAM

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