CLSA Asset Management Limited(“CLSAAM”, “the Company”, “we”)

SFC Climate Risk Disclosure

Scope and Applicability
The following disclosure has been prepared by CLSA Asset Management Limited in reference to the requirements setout in the Circular to Licensed Corporations on the Management and Disclosure of Climate-related Risks by fundmanagers responsible for the overall operation (“ROOF”) of Collective Investment Schemes (“CIS”) funds, which waspublished by the Securities and Futures Commission (“SFC”) in Hong Kong.
The climate-related processes and procedures apply to all our actively managed CIS funds. It is irrelevant to ourquantitative-driven strategies, given that the investment process is purely based on mathematical factor models.

1. Governancea. Board
As the most senior decision-making body, the Board of Directors (“Directors”) of CLSAAM
assumes the duty to review, approve, and supervise climate-risk-related matters across ourinvestment and operations.
The Directors are also accountable for delegating climate responsibility among different teams
and overseeing progress against goals for addressing climate issues. Hence, the Directors havedelegated the responsibility of executing the climate strategy and policies approved by theDirectors to the Investment Committee.
To factor in the climate risks and opportunities into CLSAAM’s investment and risk management
process, climate-related discussions are embedded in the Director Meetings which are heldquarterly.

b.

Management

Reporting to the Directors, the Investment Committee (“the Committee”) is in charge ofinvestment management of CLSAAM. Therefore, the firm-wide roll-out of climate risk
management is primarily carried out by the Committee.
The Committee reports to the Directors quarterly, where progress in climate-related riskmanagement on investments will be discussed.
Moreover, the Committee meets at least annually to discuss internal developments on climaterelated issues and the progress against the climate goals and inform the Directors of thediscussion results.

2. Investment Management and Risk
Managementa.

Relevance and Materiality

Climate risk is considered relevant to our investment strategy, and we proactively identify andassess climate-related factors in our investment decision-making.
At CLSAAM, the materiality of climate risk is informed by both the sectoral and geographic
exposure of our assets, with climate-sensitive positions carefully monitored post-investment.
To strengthen our firm-wide capacity for climate materiality assessment, we have adopted a
climate materiality dashboard for assessment at both security and portfolio levels.

b.
Climate integration into investment and risk
management processes
CLSAAM adopts a four-step approach to integrating relevant and material climate considerations
throughout our investment and risk management processes:
Step 1: Pre-investment screening for climate-related risk
With our proprietary climate risk screening tool, the investment team evaluates both the physicaland transition risk levels of the target investment opportunity by evaluating its industry
classification, sector list and country-based location of operations against independent climate
data sources.

Step 2: Climate risk threshold check
For investment targets deemed to be climate-related risk material, the investment team willfurther investigate the target by checking whether the investment size is substantial to exceed
the pre-determined climate risk threshold. The result will be further reviewed.

Step 3: Post-investment monitoring and engagement
For the ongoing climate risk management, the investment team would actively monitor climaterelated news, reports, and KPIs. For top holdings deemed climate material, we also adopt abespoke climate engagement checklist to strengthen the climate resilience of our portfolio
companies.

Step 4: Annual portfolio re-assessment
CLSAAM monitors and re-assesses the climate-related physical and transition risks of ourportfolio at least annually. An aggregated portfolio-level climate risk score is reviewed, and theportfolio overview will be submitted to the Investment Committee and Directors for theirperusal. Any major revisions to the climate risk management would be timely communicated toCLSAAM’s investors.