T. ROWE PRICE FUNDS SICAVDiversified Income Bond Fund – ESG Report
Providing transparency on Environment, Social and Governance aspects of the FundAs of 30 June 2024

ESG INTEGRATION APPROACH•

The Diversified Income Bond Fund uses ESG integration as part of its investment process for the purpose of
maximizing investment performance. By incorporating environmental, social, and governance (ESG) considerations into
our investment process, we seek to understand the range of ESG risks, together with many other investment criteria, tobetter position ourselves to pursue consistent, strong long-term returns for our clients.

•

The process of ESG integration takes place on two levels: first, with our research analysts as they incorporate
environmental, social and governance factors into issuer valuations and ratings; and, second, with the portfolio
manager as he balances these ESG factor exposures at the portfolio level. Both the analysts and portfolio manager areable to leverage dedicated, in-house resources to assist them in analyzing ESG criteria.

•

Our ESG specialist teams provide investment research on ESG issues at the company level and on thematic topics.
Additionally, they have built tools to help proactively and systematically analyze the environmental, social, andgovernance factors that could impact our investments. The foundation of the analysis is a proprietary flagging tool
called the Responsible Investing Indicator Model (RIIM). It covers over 15,000 companies and pulls from data sets thatare not in the wheelhouse of traditional financial analysis. These data sets include:- ESG performance data (e.g., number of accidents, carbon emissions, strength of whistle-blower programs, etc.);- ESG targets (e.g., plans to reduce carbon emissions, increase diversity, etc.)- ESG incidents and controversies (e.g., environmental fines paid, local community controversies/protests against acompany, etc.)•

The portfolio is constructed on the basis of identifying the best risk/reward opportunities from the global fixed income
universe. Key to this is proprietary bottom-up research that includes the assessment of ESG factors by our analysts
who work in collaboration with the dedicated ESG specialist team. We complement this approach with regular
screening of the portfolio using T. Rowe Price’s proprietary RIIM analysis. This helps us understand the ESG
characteristics of the portfolio and makes us aware of any elevated exposures to specific ESG factors from a risk
management perspective.

•

The fund is classified as Article 8 according to the Sustainable Finance Disclosure Regulation. Although the fund does
not have sustainable investment as an objective, the promotion of environmental and social characteristics is achieved
through the fund’s commitment to maintain at least 10% of the value of its portfolio invested in Sustainable Investments.
The fund avoids issuers whose activities we may consider harmful to the environment and/or society through theapplication of our proprietary screen, the T. Rowe Price Responsible Exclusion List.

INVESTMENT OBJECTIVE: To maximise the value of its shares through both growth in the value of, and income from, its
investments.
INVESTMENT PROCESS: The fund is actively managed and invests mainly in a diversified portfolio of bonds of all types
from issuers around the world, including emerging markets. Although the fund does not have sustainable investment as an
objective, the promotion of environmental and/or social characteristics is achieved through the fund’s commitment tomaintain at least 10% of the value of its portfolio invested in sustainable investments, as defined by the SFDR. In addition
to the E/S characteristics promoted, the fund also applies the investment manager’s proprietary responsible screen (the T.
Rowe Price Responsible Exclusion List). The fund may use derivatives for hedging, efficient portfolio management andinvestment purposes. The fund may also use derivatives to create synthetic short positions in currencies, debt securities,
credit indices and equities. For full investment objective and policy details refer to the prospectus. The manager is notconstrained by the fund’s benchmark, which is used for performance comparison purposes only.
This marketing communication is for investment professionals only. Not for further distribution.

T. Rowe Price Funds SICAV Diversified Income Bond FundAs of 30 June 2024

RECENT COMPANY ENGAGEMENTS
We maintain a regular dialogue with the management teams of companies represented across the portfolio. Our investmentdriven engagement program frequently identifies targets through our proprietary RIIM analysis, governance screening andanalysts’ fundamental research. While we engage with companies in a variety of different contexts, ESG engagement focuseson learning about, encouraging or exchanging perspectives on the environmental practices, corporate governance or social
issues affecting their business.
While most of the meetings we hold with company managements will include some discussion of ESG topics, we differentiate
meetings held with a heavy focus on ESG, meaning ESG issues were the sole items on the agenda or made up a meaningfulpart of the meeting. Agenda items are classified as “meaningful” when they take up a significant portion of the meeting or are asignificant factor in the investment case.
The following are selected examples of recent engagements with companies held in or considered for the portfolio. The
examples are not meant to be representative of every engagement held, but to illustrate the types of ESG engagements weare having with the managements of our investment companies.

T. Rowe Price Funds SICAV Diversified Income Bond FundAs of 30 June 2024

Orsted (1st Quarter 2024 Engagement)

Focus

Environment

Company
Description

Orsted is a developer and operator of offshore wind power generation, operating in the UK, Germany,
Denmark, and the U.S.

Engagement
Objective

We engaged with the company for a discussion focused on blue/green financing, biodiversity, andclimate strategy.

Participants

From Orsted: Head of Sustainability; Associate Lead Funding Specialist; Investor Relations
representative; Senior ESG Engagement Specialist
From T. Rowe Price Associates, Inc: Investment Analyst; Responsible Investing Analyst
We discussed blue and green financing and disclosures around this. Regarding its outstanding blue
bond (issued in 2023), Orsted expects to allocate 60% towards marine
biodiversity projects and 40% to sustainable shipping. It aims (and is on track) to fully allocate theproceeds within three years of issuance, with the majority allocated in the first year. The company
intends to publish its blue bond allocation and impact report in May 2024, and it is currently working togather the relevant data and decide on the best metrics or key performance indicators (KPIs) to include.
However, this blue bond is likely to be a one-off for the time being. Orsted expects to focus more on
green issuance in the future, as this is better-aligned with its business model. The blue bond has helped
Orsted better understand the market and investor appetite for blue financing. The company also
confirmed that its impact metrics were externally audited for its 2023 annual report, including theestimated figure for groupwide greenhouse (GHG) emissions avoided.

Engagement
OutcomeWe also discussed biodiversity and water. In addition to its blue bond, Orsted has an ambition to have a
net positive biodiversity impact for all new renewable energy projects from 2030. This would follow ahierarchy of avoidance, mitigation, compensation, and restoration. The company walked us throughsome concrete examples of projects it is working on, such as growing corals on the foundations of an
offshore wind project. Orsted was an early adopter of the TNFD (Taskforce for Nature-related Financial
Disclosures) recommendations and its annual report this year includes a TNFD disclosure matrix. The
company also has a target to reduce freshwater intensity 40% by the end of 2025. Freshwater only
makes up a very small part of overall water usage, with the vast majority being seawater.

Finally, we discussed climate strategy. Orsted aims to reduce scope 1-21 emissions intensity 99% by2030, driven primarily by planned closure of its remaining three coal stations, alongside continued rolloutof renewable energy projects. It expects its coal units to close by August 2024, and there is no
expectation that this will be delayed. Regarding its updated renewable capacity target of 35-38 GW by2030, the main risk that Orsted sees to this is governments not running enough renewables auctions.
However, it is confident in its current pipeline and sees sizeable and attractive opportunities acrossmultiple markets. Biomass currently accounts for 20% of heat and power generation volume in 2023, but
this is a legacy business and should not expect to see any growth here. Orsted feels confident in its
sourcing strategy for sustainable biomass and stressed that its inputs are all waste by-products (e.g.,
sawdust) from the forestry/timber industry which have no other uses. It has very detailed policies related
to biomass sourcing which suppliers must follow. On scope 3, natural gas sales are the largest part ofthis. Again, this is a legacy business and the volumes of gas sold and traded will reduce over time and is
expected to reach net zero on scope 3 by 2040. This is aligned with the Science Based Targets initiative(SBTi) net zero pathway for the industry.
1 Scope 1: direct emissions from owned or controlled sources; scope 2: indirect emissions from the generation of purchased

electricity, steam, or cooling; scope 3: all other indirect emissions.

The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for the
SICAV sub-fund, and no assumption should be made that the securities identified and discussed were or will be profitable.

T. Rowe Price Funds SICAV Diversified Income Bond FundAs of 30 June 2024

Engie (1st Quarter 2024 Engagement)

Focus

Environment, Social, Governance

Company
Description

Engie is a French multinational utility company operating in the fields of electricity generation anddistribution, natural gas, nuclear energy, renewable energy, and petroleum.

Engagement
Objective

We engaged with Engie on governance matters ahead of its upcoming annual general meeting (AGM)
and also discussed recent safety performance and the company’s climate strategy.
From Engie: Head of Governance; Head of Investor Relations, Sustainable Finance Manager

Participants

From T. Rowe Price Associates, Inc: Head of Governance EMEA & APAC; Governance Analyst;
Responsible Investing Analyst
We discussed Engie’s governance structure. The company’s new director is at the limit of the number ofboard commitments, but he will not renew one of his current mandates this year. The company wanted acustomer of the energy sector to join.
On safety, it was disappointing to hear that there were six fatalities in 2023, up from five in 2022, as
management had launched an action plan on safety in 2022 and one of the leadership qualities is safety.
The company reduced compensation for managers in the impacted units.
We also discussed the company’s climate strategy. Engie continues to make good progress against its
climate plan, including on its renewables rollout and coal closures. The company plans to publish an
updated climate plan in early 2025, in line with its commitment to publish an updated plan every three
years.

Engagement
OutcomeEngie has targets covering its scope 1-3¹ emissions over the medium and long term, including a target tobe net zero by 2045. The company also has a specific target on its use of sold products, which primarily
relates to sales from Engie’s gas business, for 2030. We asked the company about this target since
emissions would stay flat from now until 2030 under the target. The company responded that part of thereason for a decrease in emissions in 2023 was transient due to a mild winter and as a demand
response to higher energy prices. Engie is still working through how much of the decrease so far istransient versus structural, and the company will update its target in the 2025 climate plan if appropriate.
Since our meeting with Engie in the second quarter of 2023, Moody’s has certified the company’s targets
as being aligned with a 1.5° Celsius trajectory. In Moody’s assessment, the one area where Engie does
not score well relates to the long-term greening of the gas grid, since Engie’s plans to decarbonize its
gas networks rely on third parties producing green gas while the company does not produce green gas
itself. On the other hand, the Science Based Targets initiative (SBTi) has only validated Engie’s targets
as being aligned with a “well below 2°” scenario, or not exactly aligned with the 1.5° Celsius trajectory.
Engie believes that its targets actually fall somewhere between the two pathways per the SBTi
definitions. On SBTi’s website, it indicates that Engie has had its net zero commitment removed —however, this is an error on the part of SBTi and Engie has never made such a commitment with SBTi. It
has tried to communicate with the SBTi to have this inaccuracy removed, but without success so far.
Engie continues to make progress toward its decarbonization goals and is set to publish its updated
climate plan, which may include new scope 3 targets, before its 2025 AGM. The engagement allowed us
to impart our view of best practices on a number of ESG topics.

1 Scope 1: direct emissions from owned or controlled sources; scope 2: indirect emissions from the generation of purchased

electricity, steam, or cooling; scope 3: all other indirect emissions.

The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for the
SICAV sub-fund, and no assumption should be made that the securities identified and discussed were or will be profitable.

T. Rowe Price Funds SICAV Diversified Income Bond FundAs of 30 June 2024

ESG RIIM PROFILEThe T. Rowe Price Responsible Investing Indicator Model (RIIM) rates companies, governments and securitized assets in a
traffic light system measuring their environmental, social, and governance profile and flagging issuers with elevated risks. For
certain types of investments, including, but not limited to, cash, currency positions, and particular types of derivatives, an ESG
analysis may not be relevant or possible due to a lack of data. Where ESG considerations are integrated into the investment
research process, we may conclude that other attributes of an investment outweigh ESG considerations when making
investment decisions.
Portfolio

BenchmarkNo. ofsecurities% weight

No. ofsecurities% weight

195

78.0

19,589

68.8

42

11.1

3,723

13.0

1

0.4

207

0.3

33

2.3

6,827

17.9

1

8.3

0

0.0

272

100.0

30,346100.0

 Green Orange
 Red
Not in scope / not covered Reserves
Total No/few Flags  Medium Flags  High Flags

The comparator benchmark of the Fund is the Bloomberg Global Aggregate Bond USD Hedged Index. The manager is notconstrained by the fund's benchmark, which is used for performance comparison purposes only.

SUSTAINABILITY INDICATOR
The fund is classified as Article 8 according to the Sustainable Finance Disclosure Regulations (SFDR).
The sustainability indicator used by the fund is a minimum of 10% of the value of the fund’s portfolio held in securities that theinvestment manager identifies as sustainable investments.
The percentage exposure of the fund to sustainable investments is:

Sustainable Investments

TargetMinimum
Commitment
%
10.0%

Fund
Exposure%
15.6%

with Environmental Objectives

0.5%

5.3%

with Social Objectives

0.5%

10.3%

PRINCIPAL ADVERSE IMPACT (PAI) INDICATORS
Under the European Union Sustainable Finance Disclosure Regulations (SFDR), investment managers are required to take into
account Principal Adverse Impact (PAI) indicators, a set of metrics that highlight the potential negative impacts on sustainability
factors that result from investment decisions. This is integrated into our ESG analysis at a security level.
Some PAI indicators have limited data availability which may lead to misrepresentative values for the fund. In these cases, themetric vale and data coverage are displayed as n/a in the following tables.

T. Rowe Price Funds SICAV Diversified Income Bond FundAs of 30 June 2024

In addition, the investment manager considers the following PAI indicators at an aggregate fund level. Metric values areshown in the Base Currency of the fund (USD):
MetricValue

MetricCoverage(%)

PAI Indicator

Metric Description

Unit ofMeasurement

10. Violations of UNGC
principles and OECD
guidelines for Multinational
Enterprises

Share of investments in investee companies thathave been involved in violations of the UNGC
principles or OECD Guidelines for Multinational
Enterprises

Percentage of
total invested

0.0%

37.8%

13. Board gender diversity

Average ratio of female to male board members ininvestee companies, expressed as a percentage ofboard members

Average ratio of
female board
members

11.0%

32.4%

14. Exposure to controversial
weapons

Share of investments in investee companies involvedin the manufacture or selling of controversial
weapons (anti-personnel mines, cluster munitions,chemical weapons and biological weapons)Percentage of
total invested

0.0%

36.6%

GLOSSARY OF TERMS
Metric coverage - The percentage of the portfolio for which PAI data is available
GHG - Greenhouse gas emissions
Scope 1 GHG emissions - Direct greenhouse gas emissions by the fund
Scope 2 GHG emissions - Indirect greenhouse gas emissions made by the fund
Scope 3 GHG emissions - All other indirect emissions that occur in the funds value chain
mtCO2e - Metric tonnes of carbon dioxide equivalent
Carbon footprint (Scope 1,2 & 3 emissions) - The total greenhouse gas emissions per million invested in the fundGWh - Gigawatt Hours
Ktons - Kilotonnes
UNGC - The United Nations Global Compact
OECD - The Organization for Economic Co-operation and Development
No data - no data is available or can be calculated for the indicator

T. Rowe Price Funds SICAV Diversified Income Bond FundAs of 30 June 2024

RISKS - The following risks are materially relevant to the fund (refer to prospectus for further details): ABS and MBS Asset-Backed Securities (ABS) and Mortgage-Backed Securities (MBS) may be subject to greater liquidity, credit, default andinterest rate risk compared to other bonds. They are often exposed to extension and prepayment risk. Contingent convertible
bond - Contingent Convertible Bonds may be subject to additional risks linked to: capital structure inversion, trigger levels,
coupon cancellations, call extensions, yield/valuation, conversions, write downs, industry concentration and liquidity, among
others. Credit - Credit risk arises when an issuer's financial health deteriorates and/or it fails to fulfill its financial obligations to
the fund. Currency - Currency exchange rate movements could reduce investment gains or increase investment losses.
Default - Default risk may occur if the issuers of certain bonds become unable or unwilling to make payments on their bonds.
Derivative - Derivatives may be used to create leverage which could expose the fund to higher volatility and/or losses that are
significantly greater than the cost of the derivative. Emerging markets - Emerging markets are less established than developed
markets and therefore involve higher risks. High yield bond - High yield debt securities are generally subject to greater risk ofissuer debt restructuring or default, higher liquidity risk and greater sensitivity to market conditions. Interest rate - Interest raterisk is the potential for losses in fixed-income investments as a result of unexpected changes in interest rates. Issuer
concentration - Issuer concentration risk may result in performance being more strongly affected by any business, industry,
economic, financial or market conditions affecting those issuers in which the fund's assets are concentrated. Liquidity Liquidity risk may result in securities becoming hard to value or trade within a desired timeframe at a fair price. Prepayment
and extension - Mortgage- and asset-backed securities could increase the fund's sensitivity to unexpected changes in interest
rates. Real estate - Real estate and related investments can be hurt by any factor that makes an area or individual property
less valuable. Sector concentration - Sector concentration risk may result in performance being more strongly affected by any
business, industry, economic, financial or market conditions affecting a particular sector in which the fund's assets areconcentrated. Total Return Swap - Total return swap contracts may expose the fund to additional risks, including market,
counterparty and operational risks as well as risks linked to the use of collateral arrangements.
General fund risks - to be read in conjunction with the fund specific risks above. Counterparty - Counterparty risk may
materialise if an entity with which the fund does business becomes unwilling or unable to meet its obligations to the fund. ESG
and sustainability - ESG and Sustainability risk may result in a material negative impact on the value of an investment andperformance of the fund. Geographic concentration - Geographic concentration risk may result in performance being morestrongly affected by any social, political, economic, environmental or market conditions affecting those countries or regions inwhich the fund's assets are concentrated. Hedging - Hedging measures involve costs and may work imperfectly, may not be
feasible at times, or may fail completely. Investment fund - Investing in funds involves certain risks an investor would not face if
investing in markets directly. Management - Management risk may result in potential conflicts of interest relating to the
obligations of the investment manager. Market - Market risk may subject the fund to experience losses caused by unexpectedchanges in a wide variety of factors. Operational - Operational risk may cause losses as a result of incidents caused bypeople, systems, and/or processes.

ADDITIONAL DISCLOSURES
Bloomberg®” and Bloomberg Global Aggregate Bond USD Hedged Index are service marks of Bloomberg Finance L.P. andits affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the index (collectively, “Bloomberg”)
and have been licensed for use for certain purposes by T. Rowe Price. Bloomberg is not affiliated with T. Rowe Price, andBloomberg does not approve, endorse, review, or recommend T. Rowe Price Funds SICAV. Bloomberg does not guarantee
the timeliness, accurateness, or completeness of any data or information relating to T. Rowe Price Funds SICAV.
Holdings-based analytics are calculated using T. Rowe Price's internal Investment Book of Records (IBOR). Due to timing
and accounting methodology differences, IBOR data may differ from the Accounting Book of Records (ABOR) data provided
by the Fund’s accountant.

T. Rowe Price Funds SICAV Diversified Income Bond FundAs of 30 June 2024

IMPORTANT INFORMATIONThe Funds are sub-funds of the T. Rowe Price Funds SICAV, a Luxembourg investment company with variable capital whichis registered with Commission de Surveillance du Secteur Financier and which qualifies as an undertaking for collective
investment in transferable securities (“UCITS”). Full details of the objectives, investment policies and risks are located in theprospectus which is available with the key investor information documents (KIID) and/or key information document (KID) in
English and in an official language of the jurisdictions in which the Funds are registered for public sale, together with thearticles of incorporation and the annual and semi-annual reports (together “Fund Documents”). Any decision to invest should
be made on the basis of the Fund Documents which are available free of charge from the local representative, local
information/paying agent or from authorised distributors. They can also be found along with a summary of investor rights in
English at www.troweprice.com. The Management Company reserves the right to terminate marketing arrangements.
This material is being furnished for general informational and/or marketing purposes only. The material does notconstitute or undertake to give advice of any nature, including fiduciary investment advice, nor is it intended to serve as theprimary basis for an investment decision. Prospective investors are recommended to seek independent legal, financial and tax
advice before making any investment decision. T. Rowe Price group of companies including T. Rowe Price Associates, Inc.
and/or its affiliates receive revenue from T. Rowe Price investment products and services. Past performance is not a reliableindicator of future performance. The value of an investment and any income from it can go down as well as up. Investors
may get back less than the amount invested.
The material does not constitute a distribution, an offer, an invitation, a personal or general recommendation or solicitation tosell or buy any securities in any jurisdiction or to conduct any particular investment activity. The material has not beenreviewed by any regulatory authority in any jurisdiction.
Information and opinions presented have been obtained or derived from sources believed to be reliable and current; however,
we cannot guarantee the sources' accuracy or completeness. There is no guarantee that any forecasts made will come topass. The views contained herein are as of the date noted on the material and are subject to change without notice; theseviews may differ from those of other T. Rowe Price group companies and/or associates. Under no circumstances should thematerial, in whole or in part, be copied or redistributed without consent from T. Rowe Price.
The material is not intended for use by persons in jurisdictions which prohibit or restrict the distribution of the material and incertain countries the material is provided upon specific request.
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Wheelock Place, Singapore 238880. T. Rowe Price Singapore Private Ltd. is licensed and regulated by the Monetary Authorityof Singapore. For Institutional and Accredited Investors only.
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The sub-funds of the T. Rowe Price Funds SICAV are not available to US persons, as defined under Rule 902(k) of the UnitedStates Securities Act of 1933, as amended (“Securities Act”). The shares of the funds have not been nor will they be registeredunder the Securities Act or under any state securities law. In addition the funds will not be registered under the United States
Investment Company Act of 1940 (the "1940 Act"), as amended and the investors will not be entitled to the benefits of the1940 Act. Provided to global firms in the US by T. Rowe Price Investment Services, Inc.
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