I NDEX G UIDELINE
SOLACTIVE ISS ESG FILTERED DEVELOPED MARKETSPAB INDEX

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INDEX GUIDELINETABLE OF CONTENTS
Introduction .............................................................................................................................................................................................................................. 3
1.

Index Specifications ................................................................................................................................................................................................... 4
1.1.

Scope of the Index ................................................................................................................................................................................................ 4

1.2.

Identifiers and Publication ................................................................................................................................................................................ 5

1.3.

Initial Level of the Index ..................................................................................................................................................................................... 5

1.4.

Prices and calculation frequency ................................................................................................................................................................... 5

1.5.

Licensing.................................................................................................................................................................................................................. 6

2.

Index Selection ............................................................................................................................................................................................................ 7
2.1.

Index Universe Requirements........................................................................................................................................................................... 7

2.2.

Selection of the Index Components ............................................................................................................................................................... 7

2.3.

Weighting of the Index Components .............................................................................................................................................................. 93.

Rebalance .................................................................................................................................................................................................................... 12
3.1.

Ordinary Rebalance ............................................................................................................................................................................................ 12

3.2.

Extraordinary Rebalance .................................................................................................................................................................................. 12

4.

Calculation of the Index ..........................................................................................................................................................................................13
4.1.

Index formula ........................................................................................................................................................................................................13

4.2.

Accuracy .................................................................................................................................................................................................................13

4.3. Adjustments ..........................................................................................................................................................................................................13
4.4. Corporate actions ................................................................................................................................................................................................144.5. Recalculation ........................................................................................................................................................................................................15
4.6. Market Disruption ................................................................................................................................................................................................15
5.

Miscellaneous .............................................................................................................................................................................................................16
5.1.

Discretion ...............................................................................................................................................................................................................16

5.2.

Methodology Review...........................................................................................................................................................................................16

5.3. Changes in calculation method ......................................................................................................................................................................16
5.4. Termination ........................................................................................................................................................................................................... 17
5.5.

Oversight ................................................................................................................................................................................................................ 17

6.

Definitions ....................................................................................................................................................................................................................18

7.

History of Index Changes ........................................................................................................................................................................................ 21

Contact ..................................................................................................................................................................................................................................... 22

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INDEX GUIDELINEINTRODUCTION
This document (the “GUIDELINE”) is to be used as a guideline with regard to the composition, calculation andmaintenance of the Solactive ISS ESG Filtered Developed Markets PAB Index (the “INDEX”). Anyamendments to the rules made to the GUIDELINE are approved by the OVERSIGHT COMMITTEE specified in
Section 5.5. The INDEX is owned, calculated, administered and published by Solactive AG (“SOLACTIVE”)
assuming the role as administrator (the “INDEX ADMINISTRATOR”) under the Regulation (EU) 2016/1011 (the“BENCHMARK REGULATION” or “BMR”). The name “Solactive” is trademarked.

The text uses defined terms which are formatted with “SMALL CAPS”. Such Terms shall have the meaning
assigned to them as specified in Section 6 (Definitions).
The GUIDELINE and the policies and methodology documents referenced herein contain theunderlying principles and rules regarding the structure and operation of the INDEX. SOLACTIVE does
not offer any explicit or tacit guarantee or assurance, neither pertaining to the results from the useof the INDEX nor the level of the INDEX at any certain point in time nor in any other respect. SOLACTIVE
strives to the best of its ability to ensure the correctness of the calculation. There is no obligationfor SOLACTIVE – irrespective of possible obligations to issuers – to advise third parties, including
investors and/or financial intermediaries, of any errors in the INDEX. The publication of the INDEX by
SOLACTIVE does not constitute a recommendation for capital investment and does not contain any
assurance or opinion of SOLACTIVE regarding a possible investment in a financial instrument basedon this INDEX.

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1.

INDEX SPECIFICATIONS

1.1.

SCOPE OF THE INDEX

Category
Asset Class

Strategy

Regional Allocation
Rebalancing Fee
Rebalancing Frequency

Description
EquityThe Solactive ISS ESG Filtered Developed Markets PAB Index aims
to track the global stock market. The underlying assets are
selected in such a manner that the resulting benchmark
portfolio’s GHG emissions are aligned with the long-term global
warming target of the Paris Climate Agreement, including only
companies operating in accordance with market standards forresponsible business conduct (Norms-Based Research) andcontroversial weapons. Those standards are based on establishednorms such as the United Nations Global Compact and theexclusion of significant involvement in defined sectors. In addition,certain activities are excluded from the index based on fixedrevenue thresholds, these include the production and distributionof alcohol, gambling, pornography, civil firearms and militaryequipment. The series operates in line with the regulations laidout for EU Paris-Aligned Benchmarks (EU PAB) in Commission
Delegated Regulation (EU) 2020/1818 of 17 July 2020
supplementing Regulation (EU) 2016/1011 of the European
Parliament and European Council as regards the minimum
standards for EU Climate Transition Benchmarks and EU Parisaligned Benchmarks.
Developed Markets
Semi-annually

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1.2. IDENTIFIERS AND PUBLICATIONThe INDEX is published under the following identifiers:
Name
Solactive ISS ESG Filtered
Developed Markets PAB SEK
Index PR
Solactive ISS ESG Filtered
Developed Markets PAB SEK
Index NTR
Solactive ISS ESG Filtered
Developed Markets PAB SEK
Index TR

ISIN

Currency TypeRIC

BBG ticker

DE000SL0J5E5

SEK

PR*

.SFDPABSP -DE000SL0J5F2

SEK

NTR*

.SFDPABSN -DE000SL0J5G0

SEK

GTR*

.SFDPABST -*PR, NTR, GTR means that the Index is calculated as price return, net total return & gross total return Index as described in the Equity Index Methodology, whichis available on the SOLACTIVE website: https://www.solactive.com/documents/equity-index-methodology/

The INDEX is published on the website of the INDEX ADMINISTRATOR (www.solactive.com) and is, in addition,
available via the price marketing services of Boerse Stuttgart GmbH and may be distributed to all of its
affiliated vendors. Each vendor decides on an individual basis as to whether it will distribute or display the
INDEX via its information systems.
Any publication in relation to the INDEX (e.g. notices, amendments to the GUIDELINE) will be available at thewebsite of the INDEX ADMINISTRATOR: https://www.solactive.com/news/announcements/.

1.3. INITIAL LEVEL OF THE INDEXThe initial level of the INDEX on the 02/08/2017, the START DATE, is 1000. Historical values from the
27/06/2023, the LIVE DATE, will be recorded in accordance with Article 8 of the BMR. Levels of the INDEX
published for a period prior to the LIVE DATE have been back-tested.

1.4. PRICES AND CALCULATION FREQUENCY
The level of the INDEX is calculated on each CALCULATION DAY from 1:00 a.m. to 10:50 p.m. CET based on the
TRADING PRICES on the EXCHANGES on which the INDEX COMPONENTS are listed. TRADING PRICES of INDEXCOMPONENTS not listed in the INDEX CURRENCY are converted using the current Intercontinental Exchange(ICE) spot foreign exchange rate. Should there be no current TRADING PRICE for an INDEX COMPONENT, the laterof: (i) the most recent CLOSING PRICE; or (ii) the last available TRADING PRICE for the preceding TRADING DAY isused in the calculation.
In addition to the intraday calculation a closing level of the INDEX for each CALCULATION DAY is also
calculated. This closing level is based on the CLOSING PRICES for the INDEX COMPONENTS on the respective
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INDEX GUIDELINEEXCHANGES on which the INDEX COMPONENTS are listed. The CLOSING PRICES of INDEX COMPONENTS not listed in
the INDEX CURRENCY are converted using the 04:00 p.m. London time rates provided by WM/ Refinitiv (the“WM/ Refinitiv Rate”). If there is no 04:00 p.m. London time WM/ Refinitiv Rate for the relevant CALCULATION
DAY, the last available 04:00 p.m. London time WM/ Refinitiv Rate will be used for the closing levelcalculation.

1.5. LICENSING
Licenses to use the INDEX as the underlying value for financial instruments, investment funds and financial
contracts may be issued to stock exchanges, banks, financial services providers and investment houses by
SOLACTIVE.

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2.

INDEX SELECTION

On each SELECTION DAY, the INDEX ADMINISTRATOR will revise the composition of the INDEX.
In a first step, the INDEX ADMINISTRATOR determines the INDEX UNIVERSE in accordance with Section 2.1. The
INDEX UNIVERSE comprises all those financial instruments which fulfill the INDEX UNIVERSE REQUIREMENTS (asspecified in Section 2.1) and will constitute a starting pool from which the components of the INDEX will beselected. Based on this INDEX UNIVERSE, the new composition of the INDEX will be determined by applying therules outlined in Section 2.2.
Each new INDEX COMPONENT will be assigned a weight as described in Section 2.3.

2.1.

INDEX UNIVERSE REQUIREMENTS

The INDEX UNIVERSE is comprised of all financial instruments which fulfill the below requirements(the “INDEX UNIVERSE REQUIREMENTS“):Part/ Component of the GBS INDEX UNIVERSE of the Solactive GBS Developed Markets Large & Mid
Cap USD Index PR (ISIN: DE000SLA41B6), on a SELECTION DAY.
The determination of the INDEX UNIVERSE is fully rule-based and the INDEX ADMINISTRATOR cannot make any
discretionary decisions.

2.2. SELECTION OF THE INDEX COMPONENTS
Based on the INDEX UNIVERSE, the initial composition of the INDEX as well as any selection for an ordinary
rebalance is determined on the SELECTION DAY in accordance with the following rules (the “INDEXCOMPONENT REQUIREMENTS“):
All companies in the respective INDEX UNIVERSE are evaluated based on the criteria outlined in the tablebelow. The evaluation is based on data provided by the DATA PROVIDER:
Theme
Norm-Based Research

Topic
Environment
Human Rights
Corruption
Labour Rights
Chemical weapons

Exclusion criterion
Verified failure to respect establishednorms as well as severe or very severe
controversies

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Controversial Weapons
Research

Biological weapons
Nuclear weapons
Depleted Uranium
Verified or alleged ongoing
Nuclear weapons outside the NPT involvement
Cluster munitions
Anti-personnel mines
Coal mining and power generation ≥ 1%
Fossil fuel production, exploration,≥ 10%
distribution, and services.
Electric power generation from≥ 50%
fossil fuel sources
Activity-BasedTobacco Cultivation & Production > 0%
Screening
Alcohol>5% Production <OR> Distribution
Gambling>5% Production <OR> Distribution
Pornography>5% Production <OR> Distribution
Civil Firearms>5% Production <OR> Distribution
Military Equipment>5% Production <OR> Distribution
Sustainable Development Goal 12:
Responsible Consumption and
Production
Sustainable Development Goal 13:
Environmental
Significant Negative Impact, i.e. single
Climate Action
Objectives
SDG Impact Rating of ≤ -5.1
Sustainable Development Goal 14:
Life Below Water
Sustainable Development Goal 15:
Life on Land
Explanation: % figures refer to revenue threshold (for degree of involvement) above which criterion isbreached
All companies violating any of the exclusion criteria above are excluded. All companies for which anevaluation of these exclusion criteria is not possible due to insufficient and/or missing information or data
are excluded.
The selection of the INDEX COMPONENTS is fully rule-based and the INDEX ADMINISTRATOR cannot make any
discretionary decisions.

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2.3. WEIGHTING OF THE INDEX COMPONENTS
On each SELECTION DAY the CARBON INTENSITY of each INDEX COMPONENT is calculated, based on data provided
by the DATA PROVIDER.
The weights on the BASE DAY are assigned according to the following steps:
1. The CARBON INTENSITY of the PARENT INDEX is calculated by weighting the CARBON INTENSITY of thecomponents of the GBS INDEX UNIVERSE of the PARENT INDEX by the weight of the respective
components of the GBS INDEX UNIVERSE of the PARENT INDEX.
2. Each INDEX COMPONENT is assigned a weight in line with the requirements for EU Paris-aligned
Benchmarks. I.e., an optimization is applied that minimizes the cumulative squared weightdeviation from the PARENT INDEX on each SELECTION DAY,subject to the following constraints:
a. Reduce the CARBON INTENSITY of the INDEX compared to the CARBON INTENSITY of the PARENTINDEX by at least 50%.
b. Maximum absolute weight deviation from the weight in the PARENT INDEX of 0.5%. Individual
Weights are capped at the maximum of 5% and the weight in the PARENT INDEX and flooredat 0.001%.
c. Cumulative weight of all index members with a weight higher than 4.5% must not exceed
36%.
d. Compared to the PARENT INDEX, absolute deviation of the sector weights is capped at theminimum of 5% and half of the weight of the sector in the PARENT INDEX. If the cumulative
maximum possible weight, as detailed in step 2.b., of all INDEX COMPONENTS in a sector is lessthan what is required to achieve this sector weight constraint, the cumulative maximum
possible weight of all INDEX COMPONENTS is set as the minimum sector weight for this sector.
e. Compared to the PARENT INDEX, absolute deviation of the country weights is capped at theminimum of 5% and half of the weight of the country in the PARENT INDEX. If the cumulative
maximum possible weight, as detailed in step 2.b., of all INDEX COMPONENTS in a country isless than what is required to achieve this country weight constraint, the cumulative
maximum possible weight of all INDEX COMPONENTS is set as the minimum country weight
for this country.
f.

Compared to the PARENT INDEX, exposure to HIGH CLIMATE IMPACT SECTORS must not decrease.

g. Weights of companies with approved science-based targets, which in addition reduced
their CARBON INTENSITY over the past 3 years by at least 7% on average and have a CARBON
INTENSITY 50% lower than the weighted average CARBON INTENSITY of the PARENT INDEX, shall
increase compared to the respective weight in the PARENT INDEX.
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3. If no solution can be found, the constraints are relaxed in the following order:
a. Sector weight constraint: Compared to the PARENT INDEX, absolute deviation of the sector
weights is capped at the minimum of 5% and the weight of the sector in the benchmark.
Country weight constraint: Compared to the PARENT INDEX, absolute deviation of thecountry weights is capped at the minimum of 5% and the weight of the country in thebenchmark.
b. Sector weight constraint: Compared to the PARENT INDEX, absolute deviation of the sector
weights is capped at 5%.
Country weight constraint: Compared to the PARENT INDEX, absolute deviation of thecountry weights is capped at 5%.
c. Single weight constraint: Maximum absolute deviation from the weight in the PARENT INDEX
is iteratively increased by 0.25% until a solution is found.
If the minimum sector or country weight was defined according to 2.d & e. sentence 2, the minimum
sector or country weight is not affected by 3.a through c.
On each following SELECTION DAY each INDEX COMPONENT is assigned a weight subject to the following
constraints:
1. The CARBON INTENSITY of the PARENT INDEX is calculated by weighting the CARBON INTENSITY of thecomponents of the GBS INDEX UNIVERSE of the PARENT INDEX by the weight of the respective
components of the GBS INDEX UNIVERSE of the PARENT INDEX.
2. Each INDEX COMPONENT is assigned a weight in line with the requirements for EU Paris-aligned
Benchmarks. I.e., an optimization is applied that minimizes the cumulative squared weightdeviation from the PARENT INDEX,
subject to the following constraints:
a. The decarbonization trajectory is defined by an annual minimum Carbon Intensity
reduction of 7% compared to the CARBON INTENSITY of the INDEX on the BASE DAY in ageometric progression. The CARBON INTENSITY of the INDEX is capped at the minimum of the
CARBON INTENSITY of the decarbonization trajectory on the SELECTION DAY and 50% of PARENTINDEX CARBON INTENSITY on the SELECTION DAY.
b. Maximum absolute weight deviation from the weight in the PARENT INDEX of 0.5%. Individual
Weights are capped at the maximum of 5% and the weight in the PARENT INDEX and flooredat 0.001%.
c. Cumulative weight of all index members with a weight higher than 4.5% must not exceed
36%.
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d. Compared to the PARENT INDEX, absolute deviation of the sector weights is capped at theminimum of 5% and half of the weight of the sector in the PARENT INDEX. If the cumulative
maximum possible weight, as detailed in step 2.b., of all INDEX COMPONENTS in a sector is lessthan what is required to achieve this sector weight constraint, the cumulative maximum
possible weight of all INDEX COMPONENTS is set as the minimum sector weight for this sector.
e. Compared to the PARENT INDEX, absolute deviation of the country weights is capped at theminimum of 5% and half of the weight of the country in the PARENT INDEX. If the cumulative
maximum possible weight, as detailed in step 2.b., of all INDEX COMPONENTS in a country isless than what is required to achieve this country weight constraint, the cumulative
maximum possible weight of all INDEX COMPONENTS is set as the minimum country weight
for this country.
f.

Compared to the PARENT INDEX, exposure to HIGH CLIMATE IMPACT SECTORS must not decrease.

g. Weights of companies with approved science-based targets, which in addition reduced
their CARBON INTENSITY over the past 3 years by at least 7% on average and have a CARBON
INTENSITY 50% lower than the weighted average CARBON INTENSITY of the PARENT INDEX, shall
increase compared to the respective weight in the PARENT INDEX.
3. If no solution can be found, the constraints are relaxed in the following order:
a. Sector weight constraint: Compared to the PARENT INDEX, absolute deviation of the sector
weights is capped at the minimum of 5% and the weight of the sector in the benchmark.
Country weight constraint: Compared to the PARENT INDEX, absolute deviation of thecountry weights is capped at the minimum of 5% and the weight of the country in thebenchmark.
b. Sector weight constraint: Compared to the PARENT INDEX, absolute deviation of the sector
weights is capped at 5%.
Country weight constraint: Compared to the PARENT INDEX, absolute deviation of thecountry weights is capped at 5%.
c. Single weight constraint: Maximum absolute deviation from the weight in the PARENT INDEX
is iteratively increased by 0.25% until a solution is found.
If the minimum sector or country weight was defined according to 2.f & g. sentence 2, the minimum
sector or country weight is not affected by 3.a through c.

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3. REBALANCE
3.1. ORDINARY REBALANCE
In order to reflect the new selection of the INDEX COMPONENTS determined on the SELECTION DAY (inaccordance with Section 2.1 and 2.2) the INDEX is adjusted on the REBALANCE DAY after CLOSE OF BUSINESS.
This is carried out by implementing the shares as determined on the FIXING DAY based on the weights
calculated on the SELECTION DAY.
For more information on the rebalance procedure please refer to the Equity Index Methodology, which isincorporated
byreference
andavailable
onthe
Solactive
website:https://www.solactive.com/documents/equity-index-methodology/.
SOLACTIVE will publish any changes made to the INDEX COMPONENTS with sufficient notice before the
REBALANCE DAY on the SOLACTIVE website under the section “Announcement”, which is available athttps://www.solactive.com/news/announcements/

3.2. EXTRAORDINARY REBALANCE
The INDEX is not rebalanced extraordinarily.

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INDEX GUIDELINE4.

CALCULATION OF THE INDEX

4.1. INDEX FORMULA
The INDEX is calculated as a price return, net total return and gross total return Index.
The calculation is performed according to the Equity Index Methodology, which is available on the SOLACTIVE
website: https://www.solactive.com/documents/equity-index-methodology/. The divisor index formula
stipulates that the level of the INDEX changes based on the change of the prices of its INDEX COMPONENTS
taking into account their weight in the INDEX and any currency conversion in case the price of an INDEXCOMPONENT is quoted in a currency other than the INDEX CURRENCY.
Any dividends or other distributions are reinvested across the entire basket of INDEX COMPONENTS by meansof a divisor at the opening of the effective date (the so-called ex-date) of the payment of such dividend orother distribution.
A more detailed description of the mechanics of the index calculation formula can be found in the Equity
Index Methodology under Section 1.2.

4.2. ACCURACY
The level of the INDEX will be rounded to two decimal places. Divisors will be rounded to six decimal places.
TRADING PRICES and foreign exchange rates will be rounded to six decimal places.

4.3. ADJUSTMENTS
Under certain circumstances, an adjustment of the INDEX may be necessary between two regular REBALANCE
DAYS. Such adjustment has to be made if a corporate action (as specified in Section 4.4 below) in relation of
an INDEX COMPONENT occurs. Such adjustment may have to be done in relation to an INDEX COMPONENT and/or
may also affect the number of INDEX COMPONENTS and/or the weighting of certain INDEX COMPONENTS and will
be made in compliance with the Solactive Equity Index Methodology, which is incorporated by reference andavailable on the SOLACTIVE website: https://www.solactive.com/documents/equity-index-methodology/.
SOLACTIVE will announce the INDEX adjustment giving a notice period of at least two TRADING DAYS (withrespect to the affected INDEX COMPONENT) on the SOLACTIVE website under the Section “Announcements”,
which is available at https://www.solactive.com/news/announcements/. The INDEX adjustments will be
implemented on the effective day specified in the respective notice.

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4.4. CORPORATE ACTIONS
As part of the INDEX maintenance SOLACTIVE will consider various events – also referred to as corporate
actions – which result in an adjustment to the INDEX between two regular REBALANCE DAYS. Such events havea material impact on the price, weighting or overall integrity of INDEX COMPONENTS. Therefore, they need tobe accounted for in the calculation of the INDEX. Corporate actions will be implemented from the cum-day
to the ex-day of the corporate action, so that the adjustment to the INDEX coincides with the occurrence ofthe price effect of the respective corporate action.
Adjustments to the INDEX to account for corporate actions will be made in compliance with the Equity Index
Methodology, which is available on the SOLACTIVE website: https://www.solactive.com/documents/equityindex-methodology/. This document contains for each corporate action a brief definition and specifies therelevant adjustment to the INDEX variables.
While SOLACTIVE aims at creating and maintaining its methodology for treatment of corporate actions as
generic and transparent as possible and in line with regulatory requirements, it retains the right inaccordance with the Equity Index Methodology to deviate from these standard procedures in case of any
unusual or complex corporate action or if such a deviation is made to preserve the comparability andrepresentativeness of the INDEX over time.
SOLACTIVE considers following, but not conclusive, list of corporate actions as relevant for INDEX
maintenance:
Cash Distributions (e.g. payment of a dividend)
Stock distributions (e.g. payment of a dividend in form of additional shares)
Stock distributions of another company (e.g. payment of a dividend in form of additional shares ofanother company (e.g. of a subsidiary))
Share splits (company's present shares are divided and therefore multiplied by a given factor)
Reverse splits (company's present shares are effectively merged)
Capital increases (such as issuing additional shares)
Share repurchases (a company offer its shareholders the option to sell their shares to a fixed price)
Spin-offs (the company splits its business activities into two or more entities and distributes newequity shares in the created entities to the shareholders of the former entity)
Mergers & Acquisitions (transaction in which the ownership of a company (or other businessorganizations) are transferred or consolidated with other entities, e.g. fusion of two or more
separate companies into one entity)
Delistings (company's shares are no longer publicly traded at a stock exchange)
Nationalization of a company (effective control of a legal entity is taken over by a state)
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Insolvency

4.5. RECALCULATIONSOLACTIVE makes the greatest possible efforts to accurately calculate and maintain its indices. However,errors in the determination process may occur from time to time for variety reasons (internal or external)
and therefore, cannot be completely ruled out. SOLACTIVE endeavors to correct all errors that have been
identified within a reasonable period of time. The understanding of “a reasonable period of time” as well as
the general measures to be taken are generally depending on the underlying and is specified in the
Solactive Correction Policy, which is incorporated by reference and available on the SOLACTIVE website:
https://www.solactive.com/documents/correction-policy/.

4.6. MARKET DISRUPTION
In periods of market stress SOLACTIVE calculates its indices following predefined and exhaustive
arrangements as described in the Solactive Disruption Policy, which is incorporated by reference andavailable on the SOLACTIVE website: https://www.solactive.com/documents/disruption-policy/. Suchmarket stress can arise due to a variety of reasons, but generally results in inaccurate or delayed prices forone or more INDEX COMPONENTS. The determination of the INDEX may be limited or impaired at times of illiquid
or fragmented markets and market stress.

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INDEX GUIDELINE5.

MISCELLANEOUS

5.1. DISCRETION
Any discretion which may need to be exercised in relation to the determination of the INDEX (for example
the determination of the INDEX UNIVERSE (if applicable), the selection of the INDEX COMPONENTS (if applicable)or any other relevant decisions in relation to the INDEX) shall be made in accordance with strict rules
regarding the exercise of discretion or expert judgement.

5.2. METHODOLOGY REVIEWThe methodology of the INDEX is subject to regular review, at least annually. In case a need of a change ofthe methodology has been identified within such review (e.g. if the underlying market or economic reality
has changed since the launch of the INDEX, i.e. if the present methodology is based on obsolete
assumptions and factors and no longer reflects the reality as accurately, reliably and appropriately as
before), such change will be made in accordance with the Solactive Methodology Policy, which isincorporated
byreference
andavailable
on
the
SOLACTIVE
website:https://www.solactive.com/documents/methodology-policy/.
Such change in the methodology will be announced on the SOLACTIVE website under the Section“Announcement”, which is available at https://www.solactive.com/news/announcements/. The date of
the last amendment of this INDEX is contained in this GUIDELINE.

5.3. CHANGES IN CALCULATION METHOD
The application by the INDEX ADMINISTRATOR of the method described in this document is final and binding.
The INDEX ADMINISTRATOR shall apply the method described above for the composition and calculation of the
INDEX. However, it cannot be excluded that the market environment, supervisory, legal and financial or tax
reasons may require changes to be made to this method. The INDEX ADMINISTRATOR may also make changes
to the terms and conditions of the INDEX and the method applied to calculate the INDEX that it deems to benecessary and desirable in order to prevent obvious or demonstrable error or to remedy, correct or
supplement incorrect terms and conditions. The INDEX ADMINISTRATOR is not obliged to provide information
on any such modifications or changes. Despite the modifications and changes, the INDEX ADMINISTRATOR willtake the appropriate steps to ensure a calculation method is applied that is consistent with the method
described above.

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5.4. TERMINATIONSOLACTIVE makes the greatest possible efforts to ensure the resilience and continued integrity of its indicesover time. Where necessary, SOLACTIVE follows a clearly defined and transparent procedure to adapt Index
methodologies to changing underlying markets (see Section 5.2 “Methodology Review”) in order to maintaincontinued reliability and comparability of the indices. Nevertheless, if no other options are available theorderly cessation of the INDEX may be indicated. This is usually the case when the underlying market or
economic reality, which an index is set to measure or to reflect, changes substantially and in a way notforeseeable at the time of inception of the index, the index rules, and particularly the selection criteria, canno longer be applied coherently or the index is no longer used as the underlying value for financial
instruments, investment funds and financial contracts.
SOLACTIVE has established and maintains clear guidelines on how to identify situations in which the
cessation of an index is unavoidable, how stakeholders are to be informed and consulted and theprocedures to be followed for a termination or the transition to an alternative index. Details are specified
in the Solactive Termination Policy, which is incorporated by reference and available on the SOLACTIVE
website: https://www.solactive.com/documents/termination-policy/.

5.5. OVERSIGHT
An oversight committee composed of staff from SOLACTIVE and its subsidiaries (the “OVERSIGHT COMMITTEE”)
is responsible for decisions regarding any amendments to the rules of the INDEX. Any such amendment,
which may result in an amendment of the GUIDELINE, must be submitted to the OVERSIGHT COMMITTEE for priorapproval and will be made in compliance with the Methodology Policy, which is available on the SOLACTIVE
website: https://www.solactive.com/documents/methodology-policy/.

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6.

DEFINITIONS“BASE DAY” shall have the meaning as defined in Section “Index Specifications”.
“BENCHMARK REGULATION” shall have the meaning as defined in Section “Introduction”.
“BMR” shall have the meaning as defined in Section “Introduction”.
“CALCULATION DAY” is every weekday from Monday to Friday.
“CARBON INTENSITY” on the SELECTION DAY is calculated as:
CARBON INTENSITY =

GHG
EVIC

If the CARBON INTENSITY is not computable for a company due to missing data, the company receives themedian CARBON INTENSITY of all the securities in the same industry. If the company is not classified in anindustry, the company receives the median CARBON INTENSITY of all companies classified in an industry.
If the average EVIC of the PARENT INDEX has increased or decreased during the last calendar year, the EVICof an INDEX COMPONENT shall be adjusted by an adjustment factor. The factor is calculated as the average
EVIC of the PARENT INDEX at the end of the latest calendar year, divided by the average EVIC of the PARENTINDEX at the end of the previous calendar year.
“CLOSE OF BUSINESS” is the calculation time of the closing level of the INDEX as outlined in Section 1.4.
The “CLOSING PRICE” in respect of an INDEX COMPONENT and a TRADING DAY is a security's final regular-hours
TRADING PRICE published by the EXCHANGE and determined in accordance with the EXCHANGE regulations. If
the EXCHANGE has no or has not published a CLOSING PRICE in accordance with the EXCHANGE rules for an INDEXCOMPONENT, the last TRADING PRICE will be used.
“DATA PROVIDER” is ISS. For more information, please visit: https://www.issgovernance.com/.
“ELIGIBLE GBS REBALANCE DAY” is each day that is a TRADING DAY at the New York Stock Exchange, theLondon Stock Exchange, the EUREX Exchange, and the Tokyo Stock Exchange.
“ELIGIBLE REBALANCE DAY” is each day that is a TRADING DAY at the New York Stock Exchange, the London
Stock Exchange, the EUREX Exchange, and the Tokyo Stock Exchange.
“EVIC” is the Enterprise Value including Cash in USD as of the last fiscal year-end, on the respective
SELECTION DAY.
“EXCHANGE” is with respect to the INDEX and every INDEX COMPONENT, the respective exchange where the
INDEX COMPONENT has its listing as determined in accordance with the rules in Section 2.
“FIXING DAY” is the SELECTION DAY.
“GBS INDEX UNIVERSE” is the INDEX UNIVERSE as defined in the guideline of the SOLACTIVE Global Benchmark
Series (https://solactive.com/downloads/Guideline-Solactive-GBS-Benchmark-Series.pdf) for the for the
GBS Index specified in Section 2.1.
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INDEX GUIDELINE“GHG” are the Greenhouse Gas Emissions of a company as of the SELECTION DAY. According to the GHG
Protocol1, the GHG metric is calculated as the sum of Scope 1, Scope 2, and Scope 3 emissions. In particular:
Scope 1 emissions: All direct Greenhouse Gas Emissions;
Scope 2 emissions: Indirect Greenhouse Gas Emissions from consumption of purchased electricity,heat or steam;
Scope 3 emissions: Other indirect emissions, such as the extraction and production of purchasedmaterials and fuels, transport-related activities in vehicles not owned or controlled by thereporting entity, electricity-related activities (e.g. transmission and distribution losses) not coveredin Scope 2, outsourced activities, use of sold products, waste disposal, etc. There are existing
international and European standards on the matter, i.e. ISO 14064 on standards for greenhousegas accounting and verification, and the Product Environmental Footprint (PEF) and Organisation
Environmental Footprint (OEF), that could serve for the calculation of scope 3 emissions“GUIDELINE” shall have the meaning as defined in Section “Introduction”.
“HIGH CLIMATE IMPACT SECTORS” are sectors that are key to the low-carbon transition. HIGH CLIMATE IMPACT
SECTORS are the following:

1

NACE Section Code

NACE Section NameA

AGRICULTURE, FORESTRY AND FISHINGB

MINING AND QUARRYINGCMANUFACTURING

D

ELECTRICITY;GAS;CONDITIONING SUPPLY

E

WATER
SUPPLY;SEWERAGE;
WASTE
MANAGEMENT AND REMEDIATION ACTIVITIESFCONSTRUCTION

G

WHOLESALE AND RETAIL TRADE; REPAIR OF
MOTOR VEHICLES AND MOTORCYCLES

H

TRANSPORTATION AND STORAGEL

REAL ESTATE ACTIVITIES

STEAM

AND

AIR

See Greenhouse Gas Protocol at https://ghgprotocol.org/.
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INDEX GUIDELINE“INDEX” shall have the meaning as defined in Section “Introduction”.
“INDEX ADMINISTRATOR” shall have the meaning as defined in Section “Introduction”.
“INDEX COMPONENT” is each security reflected in the INDEX.
“INDEX COMPONENT REQUIREMENTS” shall have the meaning as defined in Section 2.2.
“INDEX CURRENCY” is the currency specified in the column “Currency” in the table in Section 1.2.
“INDEX UNIVERSE REQUIREMENTS” shall have the meaning as defined in Section 2.1.
“INDEX UNIVERSE” is the sum of all financial instruments which fulfill the INDEX UNIVERSE REQUIREMENTS.
“LIVE DATE” shall have the meaning as defined in Section 1.3.
“OVERSIGHT COMMITTEE” shall have the meaning as defined in Section 5.5.
“PARENT INDEX” is the Solactive GBS Developed Markets Large & Mid Cap USD Index PR (ISIN:
DE000SLA41B6)“REBALANCE DAY” is the close of the first Wednesday in February and August. If that day is not an ELIGIBLE
REBALANCE DAY, the REBALANCE DAY will be the following ELIGIBLE REBALANCE DAY.
“SELECTION DAy” is 20 weekdays (Monday to Friday) before the scheduled REBALANCE DAY.
“SOLACTIVE” shall have the meaning as defined in Section “Introduction”.
“START DATE” shall have the meaning as defined in Section 1.3.
“TRADING DAY” is with respect to an INDEX COMPONENT included in the INDEX at the REBALANCE DAY and every
INDEX COMPONENT included in the INDEX at the CALCULATION DAY immediately following the REBALANCE DAY (forclarification: this provision is intended to capture the TRADING DAYS for the securities to be included in the
INDEX as new INDEX COMPONENTS with close of trading on the relevant EXCHANGE on the REBALANCE DAY) a dayon which the relevant EXCHANGE is open for trading (or a day that would have been such a day if a market
disruption had not occurred), excluding days on which trading may be ceased prior to the scheduled
EXCHANGE closing time and days on which the EXCHANGE is open for a scheduled shortened period. The INDEXADMINISTRATOR is ultimately responsible as to whether a certain day is a TRADING DAY.
The “TRADING PRICE” in respect of an INDEX COMPONENT and a TRADING DAY is the most recent published priceat which the INDEX COMPONENT was traded on the respective EXCHANGE.

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INDEX GUIDELINE7.

HISTORY OF INDEX CHANGES
VersionDate

1.0

27 June 2023

Description
Index Guideline creation (initial version)

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INDEX GUIDELINECONTACT
Solactive AG
German Index Engineering
Platz der Einheit 1
60327 Frankfurt am Main
Germany
Tel.:
Fax:
Email:
Website:+49 (0) 69 719 160 00+49 (0) 69 719 160 25
info@solactive.com
www.solactive.com© Solactive AG
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