For professional investors/qualified investors only.

CT Responsible
Global Equity
Strategy2023

Responsible
ProfileCT Responsible Global Emerging Markets Equity Strategy

2023 Responsible Profile2023

a transformational year
A year can be a very long time in the markets. Nothing exemplifies this morethan 2023. With astonishing rapidity, investors shrugged off the gloom of2022 and embraced risk, confident that radical central bank action has tamed
inflation, and that rates are coming down, driving the MSCI World up almost
20%. This confidence has spilled over into 2024, despite the Fed keeping theworld waiting for its first rate cut, with the continued rally underpinned by
growth and technology stocks.
Given our bias towards innovative, quality-growthcompanies, it was particularly frustrating for us as a
strategy to underperform in 2023. There were a numberof headwinds, but much of this underperformance wasrooted in being underweight to the constellation ofstocks dubbed the Magnificent Seven – Nvidia, Tesla,Meta, Apple, Amazon, Microsoft and Alphabet – market
cap behemoths who drove the majority of performancein an extremely concentrated rally.

Many of these names we cannot own due to the screensthat safeguard this strategy. We firmly believe that having arigorous, impartially applied set of screens aligns with ourclient’s ethics and protects their capital in the long term, butthere will occasionally be performance penalties to thesescreens. Such was the case last year.
In a market where so many of the biggest businesses
are also its innovation leaders, it is vital to regularly
re-screen large benchmark weights to ascertain whether

The CT Responsible Global Equity Strategy is an actively managed
strategy aiming to achieve long term capital growth by investing inequities in any market.
Key Facts■

The Strategy is committed to achieve net zero emissions by 2050 or sooner.

■

The benchmark is the MSCI World Index.

Key risks3■

The value of investments and any income from them can go down as well as up and investors may not
get back the original amount invested.

■

Screening out sectors or companies may result in less diversification and hence more volatility ininvestment values.

our stance on them is still appropriate, and last year were-screened most of the Magnificent Seven, with Alphabet
moving from non-acceptable to acceptable due to material
improvements in its data management practices. We added
the stock towards the end of the year. We will continue toreview and refine our screens to ensure they are appropriate
for the world we are moving in to.
We live in era of continuous innovation, but even bythese standards, 2023 has been an extraordinary year oftechnological change, with history seeming to accelerate
in front of our eyes. Artificial intelligence has emerged
to become an almost all-consuming interest of markets,driving Nvidia’s historic run to become the second biggest
company in the world, and bringing hundreds of billions ofdollars of capex off the sidelines to invest in GPUs, semiconductors and data centre capacity, as corporates race toembrace this technology.
AI has the potential to augment and automate a huge
range of cerebral tasks the way the industrial evolution
substituted machines for muscles two and a half centuries
ago. That first industrial revolution was the greatest wealthunlock in human history, but it was accompanied by serious
social consequences. The implications of the AI revolution
could be equally profound. As responsible investors, wewant to attach ourselves to this growth, whilst also, just as
importantly, trying to ensure it is applied ethically, wisely
and sustainably.
We are a low turnover strategy by design, buying businesses
that we have long-term conviction in. This will not change.
But in a year of radical market and technological change, itis necessary that we are correspondingly nimble to grasp

opportunities before they evaporate. Our turnover in 2023
was consequentially higher than normal, but we believe thatthe trades we carried out leave us much better positioned
in emergent mega-trends. You will read more about these
trades in this report.
We are very mindful of the performances challengesof 2023 and 2022. They serve to keep us hungry anddisciplined in our investment approach. But it is gratifying to
see that trading activity we conducted in 2023 is positively
contributing to performance into 2024.
These are genuinely exciting times to be an investor, andthe opportunity set is rich. We hope to convey some ofthat excitement in this report, and remain committed
to investing your money into the most innovative global
businesses, which have both the potential to power longterm fund performance, and scope to make a positive
non-financial contribution for all employees, stakeholders
and shareholders.

Jamie Jenkins

Nick Henderson

Harry WaightManaging Director,
Head of Global
ESG Equities

Director, Portfolio
Manager, Global
Equities

Portfolio Manager,
Global Equities

Investment philosophy
Avoid

InvestImprove

Exclusions

Sustainability-focused

Driving change

Comprehensive exclusion
criteria, setting thresholdstandards to avoid
investment in socially or
environmentally damaging
products or unsustainablebusiness practices.

Invest in companies
providing sustainable
solutions and/or
companies making a
positive contribution
to society and/or theenvironment.

Engage to encouragecompanies to improve boththeir product and conduct,
including supporting theambitious UN Sustainable
Development Goals.

4CT Responsible Global Equity Strategy

2023 Responsible Profile

Repositioning into
emerging mega-trends
Investing involves an attempt, however imperfectly, to understand the future –both in terms of the themes that will define it, and the companies that will thrive
in it. 2023 was a year of higher-than-normal turnover for our Strategy, as we
increased our focus on powerful emerging themes that we believe could be
instrumental in driving social and environmental change and creating economic
value for shareholders in the process. Read our views and recent investments
in artificial intelligence and healthcare.

malicious, as well as to automate certain
parts of the incident response process. Ina world where data is perhaps the mostprecious resource, CrowdStrike helps its
clients, and by extension society, protectthat data more efficiently and effectively.

access to information, and information
catalyses human progress across almost
all dimensions. No company in the worldsits on a larger, higher-quality data pool,and it is this data that fuels AI models,
making them more sophisticated.

We also added Alphabet to the Strategy.
Alphabet has perhaps done more than any
other business in history to democratise

All of this data must of course be stored,
and we started to play this storage theme
through the addition of Equinix, a world

Healthcare – the next great breakthroughThe global increase in life expectancy overthe last century from less than 40 years toover 70 is one of the most impressive of
all human achievements. However, overthe last few years, health improvements
have stagnated in many countries.

Artificial intelligence
We believe that artificial intelligence is in
all likelihood the defining technologicaltheme of the decade, impacting almost
every industry and changing the way
we think about intelligence itself. The
potential positive impacts derived from AI
are enormous, but there are also potentialsocial and environmental risks, which we
as responsible investors must navigate
with care and caution.
In healthcare, AI can be used to analyse
medical scans for early disease detection
with a far higher degree of accuracy
than a human radiologist, and to thenpersonalise treatment plans. In education,
AI tutors can build personalised learning
experiences adapted to the nuancesof any given student, or bring a wealthof information to underserved groups
worldwide, democratising learning. In theenvironmental realm, AI can help with

5

precision agriculture, optimising water
usage or crop yields, while at the sametime analysing satellite imagery to predict
natural disasters, protecting people andinfrastructure against them.
Investment into this nascent technology iscommensurate with its transformational
power, and researchers are forecastingthat 2030’s global cloud AI capex willreach $300 billion. Alphabet, Amazon,
Meta and Microsoft alone have announced
a combined total of $200bn in capital
expenditure for 2024.
It is absolutely vital that we as investors
are on the right side of this megatrend, capitalising on the capital growth
opportunities it offers up. We want to bein the businesses underpinning this vital,
emergent technology, and as shareholders
we will continue to be active in ensuringthat these companies are themselves
developing AI in a responsible, ethicalmanner.
During 2023, we added materially to our
AI investment. We bought Nvidia, whose
GPUs are the workhorses that underpin
the complex calculations used in training
and implementing AI models. Nvidia has
a first mover advantage in this space, andits hardware and software ecosystem put
it several years ahead of its competitors,
something which has helped drive its
astounding market cap rally over the last
18 months.
We are also playing the AI theme throughsecond derivative winners. During the year,
we added cybersecurity firm CrowdStriketo the Strategy – a company using AI toanalyse vast quantities of security data tounderstand what activities are likely to beleader in the management of data centre
networks across over 35 countries, renting
IT infrastructure to a global client base.
As data volumes balloon, demand for
Equinix’s services grow as well, putting
them in an enviable position to drive
pricing power and revenue growth.

Now, this stagnation could be at anend. The take-off of GLP-1 drugs offers
the prospect of a genuine scientificbreakthrough that addresses a huge
range of health issues around obesity, andpotentially returns us on the trajectory
towards greater health and longevity.
GLP-1 drugs mimic the actions of a natural
hormone, leading to better sugar control,
and, crucially, suppressing appetites,
leading to reduced calorific intake. The
health implications are profound. Manyof the most common causes of morbidity
around the world are connected to obesity,
including strokes, heart attacks, diabetes,
liver disease and even cancers.
These issues are shockingly prevalent, andmany have become more so as the world
has become more affluent, and accessto food much greater. They are diseasesof abundance. According to the World
Health Organization in 2016, over 1.9
billion adults were overweight, of which
over 650 million were classified as obese.
This translates to roughly 39% of adults

being overweight and 13% obese globally.
If current trends continue, the WHO
estimates that by 2025, nearly one in five
adults will be obese, and this epidemic is
spread across most continents.
Over 422 million people globally areliving with diabetes, according to theInternational Diabetes Federation. Thistranslates to roughly one in 11 adults.
Many people with diabetes remain
undiagnosed, leading to delayed treatment
and increased risk of complications.
Clearly this is concerning from a healthperspective, but it is also an economic
disaster, putting enormous strain on
already stretched global healthcare
systems, as well as reducing economic
productivity. The IDF estimated the total
economic cost at around $1.3 trillion.
Companies combatting obesity therefore
offer enormous societal benefits, and arealso swimming in very large, and growing,
economic pools. In 2023, we added Novo
Nordisk to the Strategy, one of the two
global leaders in the manufacturing anddevelopment of GLP-1 drugs. Its Ozempic
and Wegovy drugs are blockbusters,
and prescribed worldwide, and Novo isinvesting materially to refine and maintainits leadership position in the space.
Industry experts believe that the GLP-1

market could expand to $100bn by 2030,
a 10x increase on today’s market size.
Novo is further exploring the extension of
its GLP-1 applications outside of obesityand diabetes, into areas like Alzheimer’s
disease.
We also added Dexcom to the Strategy
last year – a global leader in Continuous
Glucose Monitoring (CGM) systems.
Unlike traditional finger pricking methods,
CGMs allow for real-time glucose
monitoring data, empowering diabetic
patients to have far better control overtheir condition, including around insulin
dosages and dietary choices. Again, thesize of this market is vast and impact onhuman health profound. Currently, only
a tiny fraction of diabetics use Dexcom’s
products, and the company could growinto this market for decades to come.
If in 20 years we are looking back at arenewed surge in global longevity andwellness, we believe it is companies like
Novo Nordisk and Dexcom that will havebeen at the heart of this journey.

6CT Responsible Global Equity Strategy

2023 Responsible Profile

Portfolio changes during 2023
Discover the companies bought and sold during 2023, and our reasoning.

Q1

Q2

Buys

Buys

Zoetis
Theme: Health & Wellbeing
Leading player in the global animal healthmarket, with vaccines, medications
and diagnostics improving the lives ofcompanion animals and livestock, whilst
also making food supply chains more
resilient.

Waste Connections
Theme: Resource Efficiency
Solid waste services company prioritising
recycling and resource recovery. They havethe lowest emissions intensity among
national solid waste companies in the US.

Sells
Crowdstrike Holdings
Principle Financial
Theme: Sustainable Finance
Reduced weight of market-sensitive
financials to free up cash for more
attractive names.

Theme: Connect & Protect
Global leader in cloud-native cybersecurity,
leveraging artificial intelligence to protect
vital systems and data online.

Infineon Technologies
International Flavors & Fragrances
Theme: Health & Wellbeing:
Exited name on thesis drift and poor
execution.

Theme: Digital Empowerment
Strong market presence in energy efficient
semiconductor chips, with a particularfocus on electric vehicles and industrial
automation.

Sells
Adidas
Theme: N/A
Leading global provider of sportswear,
helping to enable healthier lifestyles. Adidas
has a strong brand and an improving
margin profile.

Prudential
Theme: Sustainable Finance
Sold out on lack of momentum and weakness
in its China exposed business lines.

Sells

Theme: Connect & Protect
Exited name due to lack of momentum andhigher interest rate expense backdrop.

PayPalTheme: Sustainable Finance
Sold on intensifying competition in the
online payments space beginning to erode
PayPal’s moat.

Q3
Buys

Theme: Energy Transition
Concerns around long term outlook forcathode material demand, with othertechnologies taking share from Umicore’s
areas of expertise.

Q4
Buys

TrimbleTheme: Resource Efficiency
Enabler of improved industrial productivity
and resource efficiency, as demonstrated intheir precision agricultural capabilities.

DexcomNvidiaSVB Financial
Theme: Sustainable FinanceBank collapsed after duration mis-matchinghelped cause a run on the bank.

7

Theme: Digital Empowerment
Global leader in high-performance GPUs
that sit at the heart of artificial intelligence,high performance computing andautonomous driving.

Theme: Health & Wellbeing
Provides glucose monitoring systems thatenable people to accurately and safely
manage their glucose levels, making
informed decisions about food, medication
and activity. Operates in a huge addressable
market, with over 400mn people worldwide
living with diabetes.

10 sells
Sells

Alphabet
UmicoreCrown Castle

12 buys

Novo Nordisk
Theme: Health & Wellbeing
A leading global provider of anti-obesity
drugs, helping solve one of the mostprofound global health crises, as well as
alleviating strain on healthcare systems
long term.

Theme: Digital Empowerment
Globally dominant search businesshelping democratise access to the world’s
information. Alphabet sits on perhaps theworld’s richest data mine, which it can use tofuel its AI technology.

AirBnB
Theme: Sustainable Cities
Leading global brand in the travel spacewith a platform that becomes consistently
stronger with scale. Facilitates diverse
forms of tourism without the need for new
hotel construction.

VF Corp
Theme: N/A
Sold out of VF Corp as some of it key
brands began to lose market relevance,
and the business faced worsening levels of
consumer confidence.

DNB Bank
Theme: Sustainable Finance
Sold out of name on full valuation.

Murata Manufacturing

Equinix
Theme: Connect & Protect
Operates one of the world’s largest
networks of data centres, facilitatingsmooth, safe and fast data storage andconnectivity across a vast range
of industries.

Theme: Connect & Protect
Sold as low-priced Chinese competition
behind to undermine Murata’s market shareand pricing power for electronics into theChinese auto and smartphone markets.

Americold Realty Trust
Theme: Resource Efficiency
Sold out on concerns around slower food
distribution velocity and better opportunities
in the data centre REIT space.

8

CT Responsible Global Equity Strategy

Achieving positive outcomesthrough engagement
Time is running out to halt and reverse the damage thathas been inflicted on our environment and societies, and byextension our future economy.

One very effective and powerful way to drive positive change is to mobilise capital withintent and purpose. We distinguish between the contribution we can make to positiveenvironmental and social outcomes via our underlying investments – i.e. through investee
companies’ activities – and our own activities, primarily though engagement and voting.
Focusing on the latter, we engage our investee companies to better understand andencourage improvements in how they are managing ESG issues. We believe that engaging
in this way can help drive financial returns for our clients and contribute to a more resilientand sustainable global economy.
We measure and report on the success of our engagement through the assignmentof Milestones, which recognise improvements in companies’ ESG policy, management
systems or practices against the engagement objectives that we set. We align Milestones
to the SDGs to demonstrate how these outcomes can contribute towards a better, moresustainable future.

2023 Responsible Profile

Milestones recorded in 2023
Set circular economy
targets

Improved its decarbonisation
strategy disclosures

Disclosed high-level employee
engagement results in 2023
Corporate Responsibility Report

Zebra Technologies

Smurfit Kappa

Mettler-Toledo International

SDG target 12.5 – Reduce waste
through prevention, reduction,
recycling and reuse

SDG target 13.2 – Integrate
climate change plans into
policies and strategies

SDG target 8.5 – Achieve fulland productive employment
for all

Improved its emissions
reduction target

Conducted a civilrights audit

Participated in the WorkForce
Disclosure Initiative survey

Hoya

Apple

AstraZeneca

Discover the Milestones we achieved during 2023, and their alignment to the SDGs.

9

No SDGSDG target 13.2 – Integrate climatechange plans into policies andstrategies

SDG target 10.2 – Empower andpromote inclusivity for all

Committed to set Science
Based Targets Initiative (SBTi)emissions reduction targets

Published a commitment to
responsible AI and disclosed the
key principles it incorporates

Published a report on
concealment clauses

Waste Connections

Wolters Kluwer

Apple

SDG target 13.2 – Integrate climatechange plans into policies andstrategies

SDG target 12.6 – Encouragecompanies to adopt sustainable
practices and enhance ESG reporting

SDG target 10.3 – Ensure equal
opportunity and legislation for all

10

CT Responsible Global Equity Strategy

2023 Responsible Profile

Our climate
commitment

11%

Committed
The company has committed to net zeroby 2050 or sooner but has not yet set apathway or strategy to achieve its goals.
Examples: Waste Connections, Tractor
Supply Company and CSL

During 2023, we continued to implement our net zero by2050 commitment for the Strategy. The methodology we
use to implement our net zero commitment is based on
the Net Zero Investment Framework, developed by theParis Aligned Investment Initiative.

15%
Not aligned

The company does not meet minimum
expectations on climate strategy.
Examples: A.O. Smith, Hoya and Shimano

The focus of our approach is on realworld change, engaging investee
companies to encourage improvement intheir own alignment to a net zero future.
We compare the Strategy’s overall carbon
footprint1 (Scope 1 & 2 emissions) witha net zero aligned trajectory, based ontaking the benchmark’s end-2019 carbon
footprint, and applying a 50% reduction
by end-2029. Due to the limitations oflooking at Scope 1 & 2 emissions in
isolation, we view this data as a way to
track progress rather than as a target,and hope to see these measures reflect

real-economy emissions cuts as ourissuers take action.
As the chart below demonstrates, theStrategy’s carbon footprint has alreadyreached the end-2029 reference trajectory.
The end-2023 figure has risen slightly
from end-2022, and we note that our
new holding in waste collection provider
Waste Connections is now the secondlargest contributor to the Strategy’s carbon
footprint. Industrial gases company Lindeis the largest contributor at the stock level,
and materials is the largest contributor at
a sector level.

The Strategy’s net zero trajectory
CO2e/$m invested
50

23.4

20

22

20.6
15.4

22

10

31 Dec 19

31 Dec 20

31 Dec 21

Strategy

Benchmark net zero trajectory

31 Dec 22

31 Dec 23

31 Dec 29

Alignment status of portfolio companies
by percentage weight of portfolio

15%
Examples: Vestas Wind Systems andNovo Nordisk.

51%
Aligning

Source: Columbia Threadneedle Investments and MSCI ESG, 31-12-23. Data for the Strategy dates back to when we began
reporting. Strategy figures for 31-Dec-22 and 31-Dec-23 use our company-wide Task Force on Climate-related Financial Disclosures(TCFD) system data. All previous figures are derived from our previous Responsible Investment impact reporting system.

The company is progressing towards
implementing sufficient commitments andtargets to progress toward a net zero future.

Financed emissions intensity, expressed as tonnes of CO2 emitted per $m invested.

Examples: Linde, Smurfit Kappa and SSE

1

11

8%

Not assessed
The company is not rated in the model.
This includes financials and companies
that are small and/or in sectors whereclimate change is less material.
Examples: Allianz and HDFC Bank
Source: Columbia Threadneedle Investments, as at 31
December 2023

The company has specific commitments,
targets, and a clear strategy in place to meetits net zero objectives by 2050 or sooner.

40

0

We use a selection of data sources torate companies on their alignment to a
net zero pathway including their targets,
strategy, governance, and disclosurearound net zero. This enables us toanalyse portfolios and identify issuers inneed of engagement.

Aligned44.1

30

Companies’ net zero alignment

14 companies engaged on climatechange in 2023
We engaged new holding Waste
Connections on its climate change
strategy. We appreciate that following
our engagement the company has done
more to distinguish its emissions offset
programmes from absolute emissions
reduction. In the most recent reporting
period, the company set an absoluteemissions reduction target, which weview favourably. However, we continue
to encourage the setting of a SBTi
verified reduction target and whist it isunlikely to mandatorily include scope 3
emissions, we highlighted best practicewould include this in the target. Waste
Connections is considered a growthcompany so key to emissions andemissions intensity management
will be their programme and mixof acquisitions, whereby additional
collection and sorting facilities arelikely to have a more limited impact
on increasing overall emissions thanthe purchase of landfills. That said,
Waste Connections is also good at
finding carbon capture solutions to
mitigate the risk of fugitive emissions.
Finally, we continued to encourage
disclosure to the CDP to facilitatecomparable peer to peer assessment
by asset managers. We also praised
Smurfit Kappa for the step forward
in its net zero transition disclosures,and highlighted a couple of areas for
improvement, in particular aroundthe process to identify strategic
decarbonisation projects and theevaluation of the impact of physicalrisks on Smurfit's suppliers.

 Waste Connections committed to
set SBTi emissions reduction targets.
This will bring more credibility to
Waste Connections' decarbonisation
strategy. We have engaged theCompany to engage with SBTI on its
emissions management program
since 2021.

We recorded three Milestones
related to climate change:

We still report the Strategy's carbon
intensity in terms of its weighted averagecarbon intensity (WACI) as a reference.
As reflected on the chart below, while
the Strategy's WACI fell slightly fromend-2022 to end-2023, we note a larger
decline for the benchmark – the MSCIWorld Index. Market trends, corporate
behaviour, regulatory influences andpotentially methodological changes
can all contribute to a lower WACI for
the index.

 Hoya improved its emissions
reduction target, by setting set 2030
and 2040 goals in terms of absolute
reduction. After its initial target wasannounced in 2021, we continued
engaging Hoya because we found its
target unambitious, and consider the
new absolute reduction targets to bea significant improvement.

 Smurfit Kappa improved its
decarbonisation strategy disclosures.
This includes more details on its
scenario analysis and improvementsin the detail provided on its net zerotransition plan. These have been
focus areas for our engagement
over the past two years, and we willcontinue to advocate for further
improvements moving forward.

The Strategy's weighted averagecarbon intensity

Scope 1 + 2 Intensity (tCO2e/USD million sales)
250
200
150
100
50
31/12/15

31/12/16

31/12/17

CT Responsible Global Equity Strategy

31/12/18

31/12/19

31/12/20

31/12/21

31/12/22

31/12/23

BenchmarkSource: MSCI ESG, as at 31 Dec 2023. Strategy and benchmark figures for 31-12-22 and 31-12-23 are based on our companywide Task Force on Climate-related Financial (TCFD) disclosures, which we transitioned to during 2023. All previous figures arederived from our previous Responsible Investment impact reporting system.

12

CT Responsible Global Equity Strategy

2023 Responsible Profile

Strategy alignment
with the SDGs
The UN Sustainable Development Goals (SDGs) are 17 goals and 169 underlying
targets that set out a roadmap for a more sustainable world by 2030, covering issues
such as poverty, climate change and health and wellbeing.
We map the Strategy against the SDGs, based on an analysis of the main sources of revenue for each of the investee companies.
Specifically, we measure how the individual sources of revenue for each company correspond to the 169 targets that underlie thegoals – so that one company, depending on its mix of goods and services, may have links to more than one goal. The results of thisanalysis are summarised here, with a full breakdown of each company and its relevant SDG links provided later in this report.

11%
3%

4%
2%

11%

20%

0.4%

positive alignment with SDG 8 – Decent
Work and Economic Growth.

positive alignment with SDG 3 – Good
Health and wellbeing.

negative alignment with
the SDGs.

Examples that align withtarget 8.2 – Achieve greater
productivity throughinnovation:
Keyence provides sensors and instruments
for monitoring and controlling various
industrial process variables.
Nvidia provides accelerated computing
systems that provide the infrastructure to
power applications such as data analytics
for better business forecasting, AI for
autonomous vehicles, and advanced
visualization for medical diagnosis.

Dexcom supports the treatment ofdiabetes through the provision of hometesting blood glucose meters.
US health insurer Humana
provides senior citizens with quality
medical coverage.

Positive alignment:

89%
positive revenue
alignmentwith the SDGs

36%

negativelyaligned

SDG 2: Zero Hunger

20%

2.1
2.4

3%

5%

2%

End hunger and ensure access to safe andnutritious food
Implement climate-resilient and sustainable
food production

89%
3%
1.7%
1.0%

SDG 3: Good Health and Wellbeing

20%

3.4

3.0%

3.6
3.8

Linde’s construction of chemical andindustrial plants is negatively alignedwith target 9.1 – develop resilient andsustainable infrastructure. Overall, however,
we remain compelled by the company’s
exposure to the hydrogen opportunity.

Reduce mortality from non-communicablediseases and promote mental healthHalve deaths and injuries from roadtraffic accidents
Access to medicines and health-care

SDG 8: Decent Work and Economic Growth36%

8.2 Achieve greater productivity through innovation
8.3 Promote development-oriented policies
8.10 Increase access to finance

29.0%
1.0%
6.2%

SDG 9: Industry, Innovation and Infrastructure

11%

9.3
9.4

0.6%
8.0%

9.c

Increase access to finance for SME’s
Upgrade and retrofit industries toincrease sustainability
Ensure universal and affordable access to ICT

0.7%

0.6%

SDG 11: Sustainable Cities and Communities

2%

15.7%

11.6 Reduce the negative environmental
externalities of cities

2.0%

SDG 4: Quality Education2%

SDG 17: Partnerships for the goals

4%

4.4

1.6%

17.6 Enhance international cooperation andaccess to knowledge
17.16 Leverage multi-stakeholder partnerships
to share resources

1.6%

SDGs <2% positively aligned

3%

Increase the number of technically andvocational trained individuals

SDG 6: Clean Water & Sanitation

3%

6.4

3.4%

Increase water-use efficiency toaddress water scarcity

SDG 7: Affordable and Clean Energy

5%

7.2

3.1%

7.3

13

Intuitive Surgicaldevelops and manufactures robotic
products to assist with minimallyinvasive surgeries.

Our analysis also identifies companies’
negative contributions to the SDGs. That is,
those products or services that companies
in our Strategy offer which might hinder
the achievement of some of the SDGs.
Whilst the Strategy screens remove manysuch companies, we did still identify one
remaining negative link:

SDG revenue alignment breakdown

3%

0.4%

Source: Columbia Threadneedle Investments, as at 31st
December 2023, designed for illustrative purposes, subject
to change. Only >0.5% alignment is shown on the chart.

Examples that align withtarget 3.8 – access to
medicines and healthcare:

Accenture’s IT and consultancy services
are designed to improve client companies’
operating efficiency and business capabilities.

NEUTRAL

SDGS < 2%
POSITIVELYALIGNED36%

Substantially increase the global share of
renewable energy
Double the global rate of improvement
in energy efficiency

1.8%

2.5%

Neutral alignment:		

11%

Negative alignment		

0.4%

SDGs <2% negatively aligned		

0.4%.

Source: Columbia Threadneedle Investments, as at 31st December 2023, designed for illustrative purposes, subject to change.
Only SDG targets that are more than 0.5% aligned are shown on the table.

14

CT Responsible Global Equity Strategy

2023 Responsible Profile

Sustainability metrics
Over the following pages we show how the Strategy ranks versus its
benchmark and the previous year relative to various sustainability-oriented
metrics related to environmental stewardship, fairness and equality.

Environmental stewardship

Fairness and equality

We consider the Strategy’s environmental performance versus its benchmark, by focusing on water
and waste intensity metrics.

Here we provide two metrics to give an indication of the Strategy’s performance in relation to
aspects of fairness and equality in the workplace versus its benchmark: gender equality and theboard level, and the ratio of executive to average employee pay.

Water intensity

GenderThousands of cubic metres of fresh waterused per $1m revenue
10

9.0

8

6.5

5.6

6

8.8

4.1
4

2.0

2
0

3.7

1.6

31/12/20
31/12/21
CT Responsible Global Equity Strategy
MSCI World Index

31/12/22

31/12/23

Source: Impact Cubed, as at 31-12-2023

Waste intensity
Tonnes of solid waste generated to create$1m revenue
400

350.3

350

272.1

300
250

246.4

239.2

200
150
100
50
0

4.9
31/12/20

5.1
31/12/21

CT Responsible Global Equity Strategy
MSCI World Index

Source: Impact Cubed, as at 31-12-202315

5.0
31/12/22

4.8
31/12/23

The Strategy’s low waste and water intensity versus thebenchmark is largely due to the sector composition,
which itself is a product both of the exclusion of resourceintensive sectors such as oil & gas, as well as the focus
on sustainability solution providers. Energy company SSE
is the largest contributor to the Strategy’s water intensity.
SSE operates 91 hydro dams in north Scotland, accounting
for the majority of water extracted by the company. Water
is taken from rivers and lochs and returned to the water
almost immediately after being run through the turbines togenerate electricity.
Smurfit Kappa is the largest contributor to the Strategy’s
waste intensity. We highlight again that while the company’s
packaging solutions help prevent waste generation, its
involvement in paper recycling impacts its overall waste
metrics. Encouragingly, during 2023 Smurfit Kappa reduced its
waste sent to landfill from its mill system by 35.8% from 2013
levels, ahead of its target to decrease this by 30% by 2025.
Kerry Group is the second-largest contributor to the Strategy’s
waste intensity. In November, we spoke with the sustainability
director and investor relations directors. We learned that
progress is being made to make all plastic packaging reusable,
recyclable or compostable by 2025, with the current figure at
70%. While there is not explicit target to increased recycledmaterials, Kerry Group is committed to reducing virgin plastic
by 25% by 2025.

% female directors on company board
40

34%

35%

34%

35%

31/12/22

31/12/23

32%

31%
30

31%

28%
20
10
0

31/12/20

31/12/21

CT Responsible Global Equity Strategy
MSCI World Index

Source: MSCI ESG, as at 31-12-2023

Executive pay
Ratio of CEO to average employee pay
120

118.0
100

90.0
81.2

80

60.0
60
40

90.7
79.3

71.1

52.3
31/12/20

31/12/21

CT Responsible Global Equity Strategy
MSCI World Index

Source: Impact Cubed, as at 31-12-2023

31/12/22

31/12/23

The Strategy is in line with the benchmark in terms ofgender diversity at the board level, and outperforms on CEO
to average employee pay ratios. Overall, we are pleased
to see that gender equality on the board has improved
over the past few years. The majority of companies in theStrategy have at least one-third female representation on
their boards. Financial exchange Intercontinental ExchangeGroup and publishing company Wolters Kluwer continue tohave more than 50% female representation on their boards,
while several companies including Accenture and Schneider
Electric sit at 50% exactly. Laggards with less than onethird female board representation include several Asiancompanies – including TSMC and Kubota – where genderdisparity is a relatively pronounced issue. During the year, we
engaged both companies on improving their board gender
diversity. Kubota noted that gender diversity remains difficult
to achieve, particularly at board-level. They are considering
overseas directors, which could be positive given theirhigh share of overseas revenues. TSMC stated that board
diversity is a key consideration when evaluating director
candidates, and its importance will increase as the company
continues to expand its global footprint.
Executive pay ratios have increased within the Strategy andbenchmark over the past few years. A variety of healthcare
and technology companies feature relatively high executive
to average employee pay ratios, such as eBay, Apple,
AstraZeneca and CVS Health. We spoke with Apple ahead of
its AGM, to discuss among other topics its overall approach
to executive compensation. We appreciated the CEO pay cut
after the 2022 say-on-pay vote and shareholder feedback,but would encourage the company to disclose metrics
under the long-term incentive plan to include an appropriate
operational metric in addition to the relative total shareholder
return (TSR) metric currently used.

16

CT Responsible Global Equity Strategy

2023 Responsible Profile

Engagementin 2023
We have constructive dialogue with companies on a
range of risks and opportunities, including those linked
to ESG factors, that could have a material impact on
their businesses and, where necessary, encourage
improvement in management practices that we believe
could help drive financial returns.

As outlined on p9, we measure and report on the success of our engagement through theassignment of Milestones.

29

9

88%

Engagements by theme

Milestones achieved by theme

Milestones by SDG

companies engaged■ Climate change■ Environmental stewardship■ Business conduct■ Human rights■ Labour standards■ Public health■ Corporate governance

Milestones achieved

23%
10%
3%
11%
22%
8%
23%

■ Climate change■ Environmental stewardship■ Business conduct■ Human rights■ Labour standards■ Public health■ Corporate governance

Milestones are ascribed using athree-star rating system, with threestars indicating the most significant
impact of change and one starreflecting smaller, incremental
change along a pathway for theissuer, or across a broader context,
for the relevant industry as a whole.

Milestones aligned to SDGs

33%
11%
0%
11%
44%
0%
0%

■ 8 Decent Work and		 Economic Growth■ 10 Reduced Inequalities■ 12	Responsible
Consumption
and Production■ 13 Climate Action■		 No SDG

How we voted for theStrategy in 2023
Good corporate governance isat the heart of any successful
business, instrumental in
supporting the delivery ofstrategic objectives and in driving

Milestones achieved by rating

11%
22%
22%
33%
11%

■ 1 star			■	2 stars			
■ 3 stars			sustainable performance, as well as
maintaining legal requirements andethical standing.
Our Corporate Governance
Guidelines set out our expectationsof investee companies in terms ofgood governance and guide how wevote. These address matters related
to topics such as shareholder rights,
boards of directors, corporate
governance, compensation, capitalmanagement, environmental, socialand governance practices andcertain other matters.

Voting in 2023

67%
22%
11%

■ With management■ Against management

93%
7%

We believe that voting is an
important tool for driving
improvement in company
practices and market standards,
and re-enforcing objectives set inengagement.

Votes against management most commonly related to compensationand director elections.

Source for all charts: Columbia Threadneedle Investments, as at 31-12-2023. Rounding may result in chart figures not totaling 100%.

1718

CT Responsible Global Equity Strategy

2023 Responsible Profile

Engagement case studies
Apple

Discover examples of where we worked in partnership with companies to drive
improvements in their approach to sustainability and outcomes.

Zebra Technologies
Background: Zebra Technologies provides digital solutions,hardware and software to businesses in retail, manufacturing,transportation and logistics, healthcare and other industries. The
company is at the heart of innovation trends in robotics, machine
vision and automation – allowing companies to operate more
efficiently.
Our engagement experience: In our experience, persistentdialogue on meaningful topics yields the best engagement
outcomes. Through repeated engagement, we can help
companies better understand the ESG issues most pertinent tothem and that matter to us, as investors.
This is the journey we’ve been on with Zebra. Having first invested
in the company in 2022, we have engaged the company several
times in the intervening period and were pleased to observe ourfirst Milestone in 2023.
Engagement in 2023: We have engaged Zebra across the gamutof ESG issues, but our priorities have been climate, e-waste,
supply chain management and human capital management. We
have returned to these topics, sharing best practice and guidanceon our expectations.
On climate, we were encouraged that Zebra set a science-based
emissions reduction target, aligned with a 1.5C future which
represents the industry gold standard.
Zebra’s supply chain extends to many areas of the globe andis exposed to ESG risks. We have encouraged the company toexpand on the results of its supply chain audits, and are pleased
it conducts its own audits and in-person monitoring of its supply
chain, in addition to using the Responsible Business Alliance.
We assess Zebra to be at quite an early stage of its ESG
reporting, with the publication of its first sustainability report in
2023. We provided insights on appropriate metrics related tohuman capital management that could be included in the nextreport, highlighting the Workforce Disclosure Initiative.

19

Zebra established a Green Product Council to drive sustainableproducts and packaging initiatives and have a continued
partnership with the Ellen MacArthur Foundation to advance its
circular economy efforts. We have encouraged the company
to set metrics to measure the success of its circular economy
programme.
Outlook: We are encouraged by Zebra’s continued focus on its
material ESG priorities, including resource conservation, climatechange and human capital. The company is at the early stagesof its sustainability disclosure journey and going forward we
will continue to advocate for the inclusion of additional humancapital metrics. Diversity, equity and inclusion will be an area of
focus for our engagement discussions, as we encourage thedevelopment of an internal diverse talent pipeline, not justdiverse hiring.
Milestone in detail: During 2023, we noted a positive change
made by the company on a topic we have engaged on, enabling
us to record a milestone:

Target 12.5 – Reduce waste through prevention,
reduction, recycling and reuse.

Set circular economy targets
Zebra committed to achieving 1 million circular economy
devices by year end 2024. We had previously spoken to
the company to encourage target setting to get a better
understanding of its e-waste management and how it measures
the success of its circular product life cycle. We awarded thismilestone a two-star rating.

Background: The demands on companies from an ESG
perspective have ramped up significantly in recent years, withstandards, regulations and expectations evolving fast and putting
increased pressure on companies. As investors, we can engage
with companies to provide a constructive and practical viewpointon our expectations and priorities. Apple is of course one of thelargest companies in the world, and we know we are only oneof many investors engaging it; nevertheless, we seek to drivechange through our deep subject matter expertise and dialogue
on specific, material issues.
Engagement in 2023: We have had meaningful engagementwith Apple during 2023 and believe there is scope to progressthese discussions going forward. As is well-reflected elsewherein this report, AI has the capacity to transform industries andthe companies and people that work within them. It is therefore
crucial to consider what Responsible AI looks like. To us, it’s avalues-driven approach that ensures AI systems are designed,
deployed and governed in a way that considers the societal
impact of the technology – including the potential benefits
and harm. The purpose of Responsible AI is to instil trust andconfidence as we scale the adoption of AI.
In discussing AI with Apple, the company reiterated it has not
published specific principles and is continuing to monitor regulatory
and industry efforts to ensure it develops inclusive technology. We
shared our guidance and expectations on responsible AI principles,governance and risk management.
We also discussed carbon neutrality. Apple reiterated its
commitment to use high-quality carbon credits (ones that are
real, measurable, quantifiable and avoid double counting) thatalign with international standards. Apple has high expectationsof its suppliers, aiming to have a carbon-neutral supply chain
by 2030. They informed us of their continued focus on supplierengagement through communication expectations and aratcheting up of commitments.
Outlook: As a holding in a Responsible portfolio, Apple has both
positive and negative attributes that must be carefully balanced.
We view the company positively in terms of disclosure and thepositive impact they’re driving through supply chain expectations.
In reviewing their newly published civil rights audit report, we
would like to see more clarity on which of the recommendations
will be actioned or prioritised. Regarding governance, Appleacknowledges it has long-tenured board members and isplanning succession while taking diversity into consideration.
However, we believe there is room for improvement, which we willencourage through further engagement and voting.

Milestones in detail: During 2023, we noted two positive changes
made by Apple on topics we have engaged on, enabling us torecord two Milestones:

SDG target 10.3 – Ensure equal opportunity andlegislation for all.

Published a report on concealment clauses
In 2022 we supported a shareholder resolution requesting Apple
to release a report to assess the potential risks to the company
associated with its use of concealment clauses. We wereencouraged that Apple engaged outside counsel and publisheda report to review and evaluate documentation around its useof these clauses. This report would help shareholders better
assess the potential risks of the company's standard arbitration
provision. As this information may bring information to lightthat could result in improved recruitment, development, andretention and could help the company prepare for pending
federal legislation on the matter.

SDG target 10.2 – Empower and promote
inclusivity for all.

Conducted a civil rights audit
Apple conducted its first civil rights audit, assessing thecompany's initiatives to address not only racial equity andopportunity, but also civil rights more broadly, with respect
to gender, age, ethnicity, sexual orientation, disability, andother dimensions of identity. This covered all aspects of thecompany's business from products and services, workforce,
customer experience and efforts to promote its values.
The conclusion was that Apple had taken significant steps
to respect civil rights internally and externally but there arenonetheless opportunities for the company to do more, which
they acknowledged. We had previously supported a shareholder
resolution in 2022 requesting the company to conduct a civilrights audit to help shareholders better assess the effectivenessof Apple's efforts to address the issue of any inequality in its
workforce and its management of related risks.

20

CT Responsible Global Equity Strategy

Our Strategy in detail
Discover how the companies held in the Strategy correspond to
our seven sustainability themes, as well as details such as SDG
alignment, any engagement conducted during the year and any
positive outcomes (Milestones) achieved.

2023 Responsible Profile

Connect & Protect
Delivering Technological advances create huge opportunities to accelerate ourcollective connectivity, as well as bringing in a swathe of technologies to progresssocial wellbeing, supply chain efficiencies and sustainable cities. We look for thosecompanies that are promoting public ‘good’ and doing so in a safe, secure, andcustomer-centric way..
Company

Company descriptionApple

2008 buy date, 6.4% weighting
Apple aims to have a carbon-neutral
supply chain by 2030 by constantly
improving its manufacturing supply chain
and products lifecycle. We also welcome
their strong line on data privacy.

SDG alignment	67% – 8.2 – Enables gains in economic productivity through theuse of technology and payment services	11% – 3.8 – Enables users to take more control of their health bymaking it easier to track, record and share health information,such as heart rate

Number and subject ofengagement(s) in 2023

2023
milestones

2: Climate change, humanrights, labour standards,
corporate governancePublishedreport on
concealment
clauses
Conducted acivil rights
audit

22% – Neutral

21

Crowdstrike
Holdings
Information
technology
United States

2023 buy date, 1.5% weighting
Global cybersecurity company thatprovides cloud-delivered protection of
endpoints, cloud workloads, identity anddata.

	94% – 16.10 – Provision of network security to protect against
unauthorised use or harmful cyber-threats.

Equinix
Real estate
United States

2023 buy date, 1.4% weighting
Global data centre and colocation
provider for enterprise network and cloudcomputing.

Keyence Corp
Information
technologyJapan

1: Corporate governance0	100% – 8.2 – Promotes productivity through the provision ofinternet colocation and data centers that safeguard data andenable its productive use by businesses and organisations

2: Climate change0

pre-2000 buy date, 2.4% weighting
With a proven ability to remain highly
profitable even in a downturn, Keyencefits into our Connect & protect theme inmaking production lines safer, and more
efficient.

100% – 8.2 – Supports economic efficiency by producing
	sensors, lasers and measuring equipmentto makemanufacturing and research processes more effective

2: Climate change, humanrights, labour standards,
corporate governance

0

Roper
Technologies
Industrials
United States2013 buy date, 2.6% weighting
Diversified technology business providing
innovative engineering solutions ranging
from industrial (water efficiency) tohealthcare (diagnostics) end markets.

100% – 8.2 – Enables greater economic productivity by	providing communications and software solutions

Zebra
Technologies
Information
technology
United States

2022 buy date, 1.2% weighting
Zebra Technologies is a global leader indesign and manufacture of enterprise mobile
computers, advanced data capture systems
and specialty printers. Its products enablebusinesses in ecommerce /retail, logistics,
manufacturing and health care to achieve
greater accuracy and efficiency of bothhuman capital and natural resource usage.
The increasing shift to digitise theglobal economy plays right into Zebra
Technologies' strengths.

100% – 8.2 – Enables gains in economic productivity through	
automating and protecting supply chains and logistics

6% – 8.2 – Helps promote productivity through the provision of	
security and management consulting services

0

1: Climate change,
environmental stewardship,labour standards, corporate
governance

022CT Responsible Global Equity Strategy

2023 Responsible Profile

Digital Empowerment
The explosion of data in recent years has been nothing short of mind-blowing,
especially when we consider that data interactions went up by 5000% between 2010
and 2020. There is a huge opportunity for this data to be harnessed for good; better
informing our climate change efforts, enabling better healthcare, and empowering
smaller businesses, leading to broader competition and employment opportunities.
Company

Company description

SDG alignment

Number and subject ofengagement(s) in 2023

2023
milestones

Accenture
Health careIndia

2009 buy date, 2.9% weightingHigh quality global consultancy, withincredible brand strength, helping drive
enterprise level efficiency. Sustainableconsultancy also a growing part of thebusiness.

	80% – 8.2 – Technology consultancy drives potential for technologicalupgrading and innovation

1: Labour standards

1: Disclosureof Scope 3
emissions

Alphabet
Information
technology
United States

2023 buy date, 3.9% weighting
Multinational technology based around a
Search franchise, which aims to make all theworld's information accessible and easily
navigable.

	67% – 8.2 – Helps increase productivity through the provision of Google
Search for user-friendly web navigations and Google Cloud for digital
storage solutions

ASML Holding
Information
technology
The Netherlands

2022 by date, 2.7% weighting
ASML is a global leader in the semi-conductor
supply chain, with a dominant global market
share of EUV machines used to patternleading edge chips, which are usedeverywhere from phones to medical
equipment, as well as in emergent
technologies like AI, robotics, and electrified
cars.

100% – 8.2 – Enables gains in economic and technological productivity	by enabling the manufacture of high-end chips and pushing electrification

eBay
Consumer
discretionary
United States2010 buy date, 1.0% weighting
Enabling entrepreneurs and small-medium
sized companies to grow their businesses
and reach a global audience through the eBay
ecosystem, now reinforced by their managed
payments service.

100% – 8.3 – Encouraging small and medium-sized enterprises through	
access to financial services

1: Human rights,
labour standards,
corporate governance0

InfineonTechnologies
Information
technology
Germany2023 buy date, 1.2% weighting
Designer, developer and manufacturer ofsemiconductors and related systemsolutions.

	70% – 8.2 – Promotes producitivity through the manufacture ofsemiconductors used for a variety of applications such ascommunications, security and robotics

2: Human rights, labour
standards, corporate
governance

020% – Neutral

1: Corporate
governance

Company description

NvidiaInformation
technology
United States

2023 buy date, 3.0% weighting
Fabless semiconductor chip designer, at theforefront of accelerated computing and AI.

100% – 8.2 – Accelerated computing providing GPUs that sit at the heart	of enabling artificial intelligence, and all of the efficiency gains that
accompany it

TSMCInformation
technology
Taiwan2016 buy date, 1.9% weighting
TSMC is the world's leading
semiconductor manufacturer. Its
leading edge technology enables theirclients to create innovative products
using more powerful processors that
consume less energy.

	56% – 8.2 – Supports greater energy efficiency in a wide range oftechnologies through the production of semiconductors

Wolters Kluwer 2017 buy date, 1.2% weighting
Industrials
Wolters Kluwer provide their clients in
The Netherlands

the health, tax & accounting,governance, risk & compliance and legal& regulatory sectors with expert
solutions and productivity tools, whichempower customers to make better
decisions when it matters most.

SDG alignment

Number and subject ofengagement(s) in 2023

	39% – 9.c – Increasing access to information and communications
technology through it smartphone platform

2023
milestones
0

2: Climate change,
environmental
stewardship, labour
standards, corporate
governance0

1: Human rights

Published acommitment
toResponsibleAI

5% – 3.6 –Reducing death and injury from road traffic accidents via
	
automotive technology	78% – 4.4 – Supports access to health, governmental and legal education
through the provision of consulting services and educational materials	9% – 8.2 – Enables gains in economic productivity through its software
offerings
	8% – 16.3 – Promote the rule of law at the national and international
levels through its legal services and data
	3% – 4.6 – Improves access to education and literacy through its print
books
3% –Neutral	

033% – Neutral0	17% – 3.6 – Can help prevent road traffic accidents through the provisionof specialty technology to increase safety in passenger cars
13% – 9.1 – Supports the development of resilient and sustainable	
infrastructure through the provision of microcrontoller units, which enablereduced power consumption, as well as safety and security

Mastercard
Information
technology
United States

2014 buy date, 4.3% weighting
Strong market position and brand strength;
growth underpinned by accelerating cashlessand mobile transactions. Provides access tofinance for under-developed markets andcommunities whilst also providing education
to boost financial literacy.

100%– 8.10 – Improving access to banking and financial services	through the provision of payment services

NetAppInformation
technology
United States

2021 buy date, 0.9% weighting
Provider of storage and data management
soltuions, serving enterprises, government
agencies and universities worldwide.

	100% – 8.2 – Enables gains in economic productivity throughcloud-based solutions and data storage providing technological upgrading
and innovation

23

Company

Energy Transition
The energy transition is the pathway towards transforming the global energy
sector from one dominated by fossil fuel-based systems of energy production andconsumption – including oil, natural gas, and coal – to a system of zero-carbon andrenewable energy sources, such as solar, wind and hydropower.
Company

Company description

Aptiv
Consumer discretionary
United States2015 buy date, 2.0% weighting
With a mission of Safe, Green andConnected, Aptiv provide sustainablemobility solutions globally including
automated driving hardware and software,
as well as EV architecture.

79% – 9.4 – Manufactures a range of vehicle	powertrain solutions which can help improvetransport energy efficiency

2010 buy date, 2.9% weighting
High-quality industrial gases business
operating in consolidated sector with strong
moat. Provides gases allowing customers to
reduce carbon emissions and has boostedhydrogen investments as part of its
decarbonisation focus.

	86% – 9.4 – Produces a range of industrial
gases which are used to make industrial
processes more efficient0
Linde
Materials
Germany
2: Climate change,business conduct,
labour standards,
corporate governance0

SDG alignment	21% – 3.6 – Reducing death and injury fromroad traffic accidents via autonomous driving
technology

Number and subject ofengagement(s) in 2023

2023 milestones

4: Climate change,
human rights, labour
standards, corporate
governance

1: Improved employee
engagement reporting0	8% – 9.1 – Provides solutions to nuclear andfossil energy and process plant construction	6% – Neutral

24

CT Responsible Global Equity Strategy

2023 Responsible Profile

Company

Company description

Schneider ElectricIndustrials
France2020 buy date, 2.4% weighting
Schneider Electric is a global leader inenergy management and automation
solution, selling into end markets like
Buildings, Industrials, and Data Centers.
They are at the heart of the transition to amore energy efficient world.

	77% – 9.4 – Provides energy management
products and services that enable companies
to improve their energy efficiency

2022 buy date, 1.5% weighting
A UK energy business generating,transmitting and distributing electricity, anda key player in UK net-zero plans, with its
target of increasing its renewables output
fivefold by 2030.

	99% – 7.2 – Contributing to substantially
increase the share of renewable energy in the
global energy mix through their on andoffshore wind capabilities

2021 buy date, 1.6% weighting
Danish wind turbine manufacturer andservice company, focused on the provisionof sustainable energy solutions to address
climate change.

	100% – 7.2 – Contributing to substantially
increase the share of renewable energy in the
global energy mix through their turbine
products and servicing

SSE
Utilities
United Kingdom

Vestas Wind Systems
Industrials
Denmark

SDG alignment

Number and subject ofengagement(s) in 2023

2023 milestones

Company

Company description0

CVS Health
Health care
United States2005 buy date, 1.1% weighting
An integrated health insurer, pharmacy benefit
manager and retail pharmacy, providing
services which are core to day-to-day life formillions of Americans.

	99% – 3.8 – Provides access to healthcare through its retail pharmacy
stores and clinics

DexcomHealth care
United States

2023 buy date, 1.4% weighting
Medical device company focused on diabetes
care technology through glucose monitoring
systems.

	100% – 3.8 – Helps enable access to healthcare and medicine throughthe provision of home glucose testing and diabetes monitoring products

0

Hoya
Health careJapan

2018 buy date, 1.4% weighting
Supporting vision globally through productionof eyeglass lenses, contact lenses andintraocular lenses used for cataract
operations, combatting the leading cause ofblindness worldwide. Leading player in theequipment supply-chain for miniaturisingsemi-conductors, driving technologicalinnovation.

	65% – 3.8 – Provides access to healthcare through the production ofeyeglass and lens products, and of medical endoscopes

Improved
emissions
reduction
targetHumanaHealth care
United States

2019 buy date, 1.3% weighting
A leading US health insurer providing seniorcitizens with quality medical coverage, as wellas various value-based care programmes tosupport both mental and physical wellbeing.

	100% – 3.8 – Provides access to healthcare through its medical
insurance products

Intuitive
Surgical
Health care
United States

2022 buy date, 2.1% weighting
The world number one designer andmanufacturer of surgical robots, with an 80%
market share in a rapidly growing industry.
Intuitive Surgical's robots lead to fewer
surgical errors and faster operating times,
driving better patient outcomes andprotecting healthcare budgets.

	100% – 3.8 – Protects patient health through through its surgical robots
that enable safer, faster more automated surgical procedures

Kerry Group
Consumerstaples
Ireland2016 buy date, 1.6% weighting
Kerry Group is a specialist ingredientprovider to the food and beverage
markets, where clients depend on theirinnovative solutions to drive better
nutrition, clean up labels and lower theiringredients' environmental footprint.

	99% – 2.1 – Produces ingredients which contribute to the provision ofsafe, nutritious food	23% – 8.2 – Supports economic productivity
through the provision of industrial automationand software solutions0	1% – 9.1 – Provides electricity utility networks
in Europe, as well as power generation
infrastructure0

Health & Wellbeing
Robust and efficient healthcare systems around the world are essential. The demandfor health and healthcare access equality is rising – and opportunities created fromthe change must not be ignored.
Company

Company description

AstraZeneca
Health care
United Kingdom

2021 buy date, 1.9% weighting
One of the world's major pharmaceuticalfirms, researching, manufacturing and selling
pharmaceutical and medical products,
improving the health of its consumers.

SDG alignment	53% – 3.4 – Produces a range of biopharmaceuticals aimed at thetreatment of noncommunicable diseases	45% – 3.8 – Provides access to healthcare through the production of
essential medicines

Number and subject ofengagement(s) in 2023

2023
milestones

3: Labour standards,
public health,
corporate governanceParticipationin theWorkforce
Disclosure
Initiative's
2022 survey	2% – 3.3 – Prevention and treatment of non-communicable diseases
through vaccines and antivirals
2019 buy date, 1.9% weighting
BectonDickinson & Co A global provider of medical equipment,
devices and consumable supplies to various
Health carehealthcare facilities, serving more than 90%
United States of healthcare patients worldwide.

	100% – 3.8 – Provides access to healthcare through the production of
essential medical supplies such as needles, syringes and surgicalproducts

CSL
Health care
Australia	71% – 3.8 – Supports the treatment of non-communicable diseases
through the development of a range of innovative biotheraphy treatments

2015 buy date, 2.2% weighting
The science of CSL saves lives. They develop
and deliver innovative medicines that help
people with serious and life-threatening
conditions live full lives, and protect
communities around the world.

	15% – 3.4 – Provides access to healthcare through its treatments forserious medical conditions	13% – 3.3 – Produces vaccines for influenza and other communicablediseases	1% – Neutral25

0

1: Corporate
governance0

SDG alignment

Number and subject ofengagement(s) in 2023

2023
milestones

2: Climate change,
labour standards,
public health,
corporate
governance0

1: Climate change,
human rights, labour
standards, corporate	34% – 8.2 – Enables gains in economic productivity through technologies governanceused in a range of digital products such as phones
	1% – Neutral

1: Public health,
corporate
governance00	1% – Neutral

3: Climate change,
environmental
stewardship, labour
standards,
corporate
governanceMettler-Toledo 2011 buy date, 1.4% weighting
International Laboratory and industrial equipment
Health caredriving better healthcare and enabling
United States precision manufacturing. Goodsustainability practices, including a
recent commitment to reduce water
intensity by 20%, and achieve zerowaste to landfill.

	57% – 3.8 – Helps access to safe and high-quality medicines through its
laboratory testing services and analytical instruments

1: Human rights,
Labour standards

Disclosureof high-level
employeeengagement results

Novo Nordisk
Health care
Denmark	55% – 3.4 – Promotes good health and a reduction in non-communicablediseases through the provision of treatments for diabetes and obesity, as
well as hemophilia

1: Public health0

1: Public health02023 buy date, 1.2% weighting
Global healthcare company engaged indiabetes care, as well as the discovery,
development, manufacturing andmarketing of pharmaceutical products.

	38% – 8.2 – Contributes to economic efficiency through its range oftesting products and services	5% – Neutral	45% – 3.8 – Promotes access to healthcare and medicine by providing
treatment for diabetes and obesity, as well as rare diseases

Thermo Fisher 2018 buy date, 1.9% weighting
Scientific
Global provider of high-quality,
Health careinnovative life sciences equipment andUnited States services which enhance accuracy andsafety in clinical research, drug
development, and diagnostics testing.

	100% – 3.8 – Supports access to healthcare via its range of analyticaland data tools

ZoetisHealth care
United States	5% – 2.1 – Manufactures feed used in livestock farming

2023 buy date, 1.7% weighting
Animal health company focused on the
discovery, development andmanufacture of medicines, vaccines,
diagnostics, biodevices, genetic tests
and precision animal health.

0	1% – 3.8 – A small part of the business is focused on contract
manufacturing and human health services	94% – Neutral

26

CT Responsible Global Equity Strategy

2023 Responsible Profile

Resource Efficiency
Resource efficiency is the art of using the Earth’s limited resources in a moresustainable way, whilst minimising the impact that we have on the environment– doing more with less. Resource inefficiency, as we are all too aware, isdistressingly common.
Company

Company description

SDG alignment

A.O. Smith
Industrials
United States

2018 buy date, 1.4% weighting
Water heaters and boilers play into energy
efficiency and water conservation thematics.
Water filtration systems replace the need forsingle-use plastic bottles. Also attractive
linkage to rising Chinese middle class.

	100% – 6.4 – Enables greater water efficiency through the provision ofwater filtration products

KubotaIndustrials
Japan

2011 buy date, 1.0% weighting
Leading manufacturer of agriculturaland industrial machinery, with a leadmarket share in sub 40hp tractors in the
U.S. and a key player in themechanisation of agriculture in South
East Asia.

	68% – 2.4 – Supports sustainable food production through the sale ofagricultural machinery	26% – 9.1 – Promotes sustainable infrastructure, particularly in waterwhere it has a range of engineering solutions and products	5% – 6.4 – Enables greater water efficiency through the provision ofwater products and solutions

Number and subject ofengagement(s) in 2023

2023
milestones
0

4: Climate change,business conduct,human rights,
labour standards,
corporate
governance0

4: Climate change,
environmental
stewardship,
human rights

Improvement indecarbonisation
strategy
disclosures	94% – Neutral

Smurfit Kappa
Group
Materials
Ireland2018 buy date, 1.4% weighting
Smurfit is exposed to a number ofmegatrends, such as eCommerce, andis leading the way in the shift fromplastic packaging to paper, with amanagement that is committed tosustainability.

	100% – 12.5 – Provides environmentally sustainable paper-based
packaging, reducing waste generation

TrimbleInformation
technology
United States

2023 buy date, 1.5% weighting
Industrial technology company
providing hardware, software andservices across agriculture,
construction, geospatial andtransportation industries.

	61% – 9.1 – Provides project management software to support buildings
and infrastructure construction, as well as advanced surveying andmapping solutions to support geospatial analysis

2023 buy date, 2.7% weighting
Provides solid waste collection, transfer,
recycling and disposal services, alongwith recycling and resource recovery.

	75% – 11.6 – Provides residential and commercial waste collection
services, as well as the disposal of hazardous industrial waste

Waste
Connections
Industrials
Canada0	22% – 2.4 – Agriculture technologies enable data-driven farming
decisions through modern industry solutions.
	17% – Neutral	2% – 12.4 – Provides intermodal services for the movement of cargo andsolid waste containers

1: Climate change,
environmental
stewardship

Commited
to set SBTiemissions
reduction
targets

	2% – 12.5 – Supports waste reduction through the provision ofcommercial and residential recycling services	21% – Neutral

Xylem
Industrials
United States

27

2016 buy date, 2.6% weighting
Strong and diverse portfolio addressing
global water challenges, such as
improving water efficiency andaccessibility in local communities.
Structural growth driven by the need toaddress scarcity by delivering
operational efficiencies.

	75% – 6.4 – Enables greater water efficiency through its comprehensive
range of water solutions

0	25% – 9.4 – Supports greater water resource efficiency by producing
measurement and control systems

28

CT Responsible Global Equity Strategy

2023 Responsible Profile

Sustainable Cities

Sustainable FinanceA growing global population coupled with urban migration is putting cities
under increasing stress, from social issues such as the provision of reliable
healthcare and education, to environmental challenges like global warming.
This creates compelling opportunities for companies who can address thesechallenges head on and create sustainable urban environments for humanity
to thrive in.

The financial sector is uniquely positioned to adapt and promote innovation toaddress global sustainability challenges — including climate change, population
growth and resource scarcity. The provision of training to improve financial
literacy can not only serve to improve standards of personal finances, but also
has an important role in addressing the needs of the most vulnerable in society,including closing the gender gap and lifting people out of the poverty trap.

Company

Company description

Acuity Brands
Industrials
United States

2014 buy date, 1.9% weighting
Distributor of energy-efficient indoor andoutdoor lighting and control systems
delivering energy savings through higher
efficiencies, longer source life and smaller
form factors.

AirbnbConsumer
discretionary
United States

2023 buy date, 1.0% weighting
Operates a global platform for stays andexperiences, using a marketplace model
to connect hosts and guests online.

	100% – Neutral

Autodesk
Information
technology
United States2020 buy date, 2.1% weighting
Autodesk is a global leader in software
to improve efficiency in theArchitectural, Engineering, Construction,
Manufacturing and Media industries.
The growing move to digital solutions
should drive demand.

	94% – 8.2 – Provides architects with the technological tools to improveenergy and material efficiency within real estate2017 buy date, 1.2% weighting
World leader in gears and brakes forbicycles, with expert metal-working
skills, supporting sustainable cities andmobility, and facilitating healthy
lifestyles.

	82% – 3.4 – Produces bicycle components, contributing to good healthand the reduction in non-communicable diseases

ShimanoConsumer
discretionaryJapan

Tractor Supply 2012 buy date, 1.6% weighting
Company
US rural life retailer, with a clear focus
Consumeron being a responsible operator, both
discretionary for customers and employees alike, as
United States evidenced by lower employee attrition
rates.

SDG alignment

Number and subject ofengagement(s) in 2023

	94% – 7.3 – Supports sustainable food production through the sale ofagricultural machinery2023
milestones

Company

Company description

0

Allianz
Financials
Germany

2014 buy date,
Provision of financial services to individuals
and corporates, incorporating ESG andclimate risks into sustainable solutions
offerings.

	6% – 8.2 – Supports economic efficiency through the provision of
payment services

1: Businessconduct, labour
standards, publichealth	18% – Neutral	100% – Neutral0	46% – 8.10 – Promotes access to financial services for all through its
retail banking operations

2017 buy date, 2.0% weighting
High-quality Indian bank with strong
market position; addressing the almost
190mn unbanked adults in India,
providing financial education along theway.

	46% – 8.10 – Promotes access to financial services for all through its
retail banking operations, including a particular focus on rural customers

Intercontinental
Exchange
Group
Financials
United States2010 buy date, 3.1% weighting
One of the world's leading financial
exchanges allowing efficient capitalraising and risk management for global
businesses. Has been at forefront ofdevelopment of environmental markets.

	67% – 17.16 – Facilitates the sharing of financial knowledge andinformation through the operation of exchanges

London Stock
Exchange
Group
Financials
UnitedKingdom2021 buy date, 2.3% weighting
The UK's primary stock exchange
exchange, allowing efficient capitalraising and risk management forbusinesses.

	70% – 17.6 – Provides data and technology services that support
international information-sharing

HDFC Bank
Financials
India	6% – Neutral0	49% – 3.8 – Improves access to health-care through their healthinsurance products

Number and subject ofengagement(s) in 2023

2023
milestones

1: Labour
standards,
corporate
governance0

1: Climate change,
corporate
governance0	5% – 12.6 – Promotes responsible investment through providing asset
management services with ESG integration, and specialist SRI funds.

00

SDG alignment	30% – 9.3 – Promotes socioeconomic growth by enabling access tofinancial services for small, medium and large enterprises, including
affordable credit	24% – Neutral0	22% – 4.4 – Provides financial reference data on more than 35 million
financial instruments to support a range of use cases such as trade
execution and decision support, and enabling skills development	12% – 9.1 – Contributing to development of resilient infrastructure
through mortgage technology

0	20% – 17.16 – Facilitates the sharing of financial knowledge andinformation through the operation of exchanges	10% – 8.10 – Improving access to financial services

No theme

29

Company

Company description

AdidasConsumer
discretionary
Germany2023 buy date, 1.4% weighting
Designs, develops, produces, and markets a
range of athletic and sports lifestyle products.

SDG alignment	100% – Neutral

Number and subject ofengagement(s) in 2023

2023
milestones

1: Labour
standards,
corporate
governance

030

Contact us
clientsupport@columbiathreadneedle.com

To find out more visit columbiathreadneedle.com© 2024 Columbia Threadneedle Investments. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.
For professional investors and qualified investors only.
Issued for information purposes only by Columbia Threadneedle Investments.
This material should not be considered as an offer, solicitation, advice or an investment recommendation. This communication is valid at the date of publication and may be subject to change without notice. Information from external sources is considered reliable but there is no guarantee as to its accuracy or completeness.
In the UK: Issued by Threadneedle Asset Management Limited, No. 573204 and/or Columbia Threadneedle Management Limited, No. 517895, both registered in England and Wales and authorised and regulated in the UK by the Financial Conduct Authority.
In the EEA: Issued by Threadneedle Management Luxembourg S.A., registered with the Registre de Commerce et des Sociétés (Luxembourg), No. B 110242 and/or Columbia Threadneedle Netherlands B.V., regulated by the Dutch Authority for the Financial Markets (AFM), registered No. 08068841.
In Switzerland: Issued by Threadneedle Portfolio Services AG, an unregulated Swiss firm or Columbia Threadneedle Management (Swiss) GmbH, acting as representative office of Columbia Threadneedle Management Limited, authorised and regulated by the Swiss Financial Market Supervisory Authority (FINMA).
In the Middle East: This document is distributed by Columbia Threadneedle Investments (ME) Limited, which is regulated by the Dubai Financial Services Authority (DFSA). For Distributors: This document is intended to provide distributors with information about Group products and services and is not for further distribution. For Institutional Clients: The information in this document is not intended as financial advice
and is only intended for persons with appropriate investment knowledge and who meet the regulatory criteria to be classified as a Professional Client or Market Counterparties and no other Person should act upon it.
WF2199926 (08/24)