PUBLIC TRANSPARENCY REPORT
2023
Nomura Asset Management Co., Ltd.
Generated 15-12-2023

About this report
PRI reporting is the largest global reporting project on responsible investment. It was developed with investors, for investors.
PRI signatories are required to report publicly on their responsible investment activities each year. In turn, they receive a number of
outputs, including a public and private Transparency Report.
The public Transparency Reports, which are produced using signatories’ reported information, provide accountability and support
signatories to have internal discussions about their practices and to discuss these with their clients, beneficiaries, and otherstakeholders.
This public Transparency Report is an export of the signatory’s responses to the PRI Reporting Framework during the 2023 reporting
period. It includes the signatory’s responses to core indicators, as well as responses to plus indicators that the signatory has agreed tomake public.
In response to signatory feedback, the PRI has not summarised signatories’ responses – the information in this document is presented
exactly as it was reported.
For each of the indicators in this document, all options selected by the signatory are presented, including links and qualitative
responses. In some indicators, all applicable options are included for additional context.

Disclaimers
Responsible investment definitions
Within the PRI Reporting Framework Glossary, we provide definitions for key terms to guide reporting on responsible investment
practices in the Reporting Framework. These definitions may differ from those used or proposed by other authorities and regulatory
bodies due to evolving industry perspectives and changing legislative landscapes. Users of this report should be aware of thesevariations, as they may impact interpretations of the information provided.

Data accuracy
This document presents information reported directly by signatories in the 2023 reporting cycle. This information has not been auditedby the PRI or any other party acting on its behalf. While this information is believed to be reliable, no representations or warranties are
made as to the accuracy of the information presented.
The PRI has taken reasonable action to ensure that data submitted by signatories in the reporting tool is reflected in their official PRI
reports accurately. However, it is possible that small data inaccuracies and/or gaps remain, and the PRI shall not be responsible or
liable for such inaccuracies and gaps.

2

Table of Contents
ModulePage

SENIOR LEADERSHIP STATEMENT (SLS)

4

ORGANISATIONAL OVERVIEW (OO)

6

POLICY, GOVERNANCE AND STRATEGY (PGS)

27

MANAGER SELECTION, APPOINTMENT AND MONITORING (SAM)

67

LISTED EQUITY (LE)81

FIXED INCOME (FI)92

SUSTAINABILITY OUTCOMES (SO)103

CONFIDENCE-BUILDING MEASURES (CBM)

134

3

SENIOR LEADERSHIP STATEMENT (SLS)SENIOR LEADERSHIP STATEMENTSENIOR LEADERSHIP STATEMENT
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

SLS 1

CORE

N/A

N/A

PUBLIC

Senior LeadershipStatement

GENERAL

Section 1. Our commitment■ Why does your organisation engage in responsible investment?
■ What is your organisation's overall approach to responsible investment, and what major responsible investmentcommitment(s) have you made?
As a responsible institutional investor, Nomura Asset Management aims to contribute to the realization of a sustainable and prosperous
society by helping our clients build wealth. Today, more than ever, investors have the opportunity to encourage companies to generate
not only economic value but also social value through their business activities, as symbolized by the SDGs. In addition to our asset
management business, we support the creation of social value by the companies held in our portfolios, through engagement and otherefforts. Our aim is to establish a virtuous cycle of investment in order to promote sustainable economic growth and a prosperous society,which will ultimately lead to better lives for our clients. In March 2019, we formulated our ESG statement, which we revised in Dec. 2021
and Dec. 2022, to identify the important ESG issues that matter to us. Based on this statement, we are committed to conducting ourbusiness with due attention to these ESG issues. We believe it is our responsibility as an asset manager to fulfill our commitment to ourclients while paying heed to these issues, and we will reflect them in our stewardship activities, investment decisions, and research
efforts.

Section 2. Annual overview■ Discuss your organisation’s progress during the reporting year on the responsible investment issue you consider most
relevant or material to your organisation or its assets.
■ Reflect on your performance with respect to your organisation’s responsible investment objectives and targets during thereporting year. Details might include, for example, outlining your single most important achievement or describing your generalprogress on topics such as the following (where applicable):• refinement of ESG analysis and incorporation• stewardship activities with investees and/or with policymakers• collaborative engagements• attainment of responsible investment certifications and/or awards
In 2022, we focused particularly on enhancing our ESG product governance. As regulatory requirements on ESG investing continue totighten globally, we believe it is important to have the capacity to comply with these regulations while providing high-quality investment
products and meeting our accountability obligations to earn the trust of our clients. For this reason, we are committed to ongoing efforts
in ESG product governance that encompass quality control of ESG investing, as well as disclosure of information. We manage not only
our own investments but also funds that involve external investment managers, and we are strengthening our ability to deal with themall.

4

We have established an ESG committee as the organization responsible for quality control of ESG investing decisions made in-house.
The committee goes beyond ensuring ESG process compliance for domestic funds in Japan and also oversees compliance withoverseas regulations such as SFDR, sets policy on ESG investment practices, and identifies disclosure items for foreign funds such as
UCITS. Our ESG Investment Process Evaluation and Review Committee, which evaluates how external investment managers arecarrying out their ESG management, monitors and evaluates the internal structures, engagement policies, ESG investment processes,
and more of such investment managers that have been contracted. In our prospectuses and reports, we have revised our description of
how to utilize ESG in more concrete terms and strengthened disclosure by describing how ESG considerations contribute to the growthof trust property in selected aliases and our evaluation of high-priority ESG issues.
We have also clarified our definition of an ESG fund and our management structure for it, which was disclosed in August 2022. We
definite ESG funds as those which actively utilize not only ESG integration and engagement/voting rights, but also other sustainablestrategies. We will continue to pursue essential ESG investment and work to strengthen information disclosure, aiming for it to serve asa source of investment information for our clients while keeping an eye on ESG-related regulations and trends going forward.

Section 3. Next steps■ What specific steps has your organisation outlined to advance your commitment to responsible investment in the next two
years?
Moving forward, climate change will remain the most significant issue, and we will visualize the decarbonization efforts of portfolio
companies in all our investment portfolios, while strengthening our investment process. Human rights issues are now one of the two
major ESG themes, alongside climate change. As an advisory committee member of PRI Advance, we will address human rights
issues. By strengthening the ability of the companies we invest in to respond to human rights issues, we will build a robust value chain
and promote their competitive advantage. The issues of natural capital and biodiversity are also pressing concerns. As an advisorycommittee member of PRI Nature, we will work with other investors to strengthen efforts in this field. In the area of impact investing, we
will enhance the added value of investing in the new area of balancing economic and social returns. Specifically, we will identify highimpact portfolio companies and aim to accumulate results that will contribute to resolving social issues around the world.

Section 4. Endorsement'The Senior Leadership Statement has been prepared and/or reviewed by the undersigned and reflects ourorganisation-wide commitment and approach to responsible investment'.
Name
Hiroyasu Koike

Position
President and CEO

Organisation’s Name
Nomura Asset Management Co., Ltd.

◉A'This endorsement applies only to the Senior Leadership Statement and should not be considered an endorsement of
the information reported by the above-mentioned organisation in the various modules of the Reporting Framework.
The Senior Leadership Statement serves as a general overview of the above-mentioned organisation's responsible
investment approach. The Senior Leadership Statement does not constitute advice and should not be relied upon as
such. Further, it is not a substitute for the skill, judgement and experience of any third parties, their management,
employees, advisors and/or clients when making investment and other business decisions'.
○ B

5

ORGANISATIONAL OVERVIEW (OO)
ORGANISATIONAL INFORMATIONREPORTING YEAR
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 1

CORE

N/A

N/A

PUBLIC

Reporting year

GENERAL

What is the year-end date of the 12-month period you have chosen to report for PRI reporting purposes?

Year-end date of the 12-month
period for PRI reporting purposes:

Date

Month

Year

31

12

2022

SUBSIDIARY INFORMATION
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 2

CORE

N/A

OO 2.1

PUBLIC

Subsidiary
information

GENERAL

Does your organisation have subsidiaries?
○ (A) Yes
◉ (B) No

6

ASSETS UNDER MANAGEMENTALL ASSET CLASSES
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 4

CORE

OO 3

N/A

PUBLICAll asset classes

GENERAL

What are your total assets under management (AUM) at the end of the reporting year, as indicated in [OO 1]?
USD(A) AUM of your organisation,
including subsidiaries, andexcluding the AUM subject toexecution, advisory, custody, or
research advisory only

US$ 501,000,000,000.00(B) AUM of subsidiaries that are
PRI signatories in their own rightand excluded from thissubmission, as indicated in [OO
2.2]

US$ 0.00(C) AUM subject to execution,
advisory, custody, or researchadvisory only

US$ 0.00

Additional information on the exchange rate used: (Voluntary)
JPY to USD $1=132.61JPY

7

ASSET BREAKDOWN
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 5

CORE

OO 3

Multiple
indicators

PUBLICAsset
breakdown

GENERAL

Provide a percentage breakdown of your total AUM at the end of the reporting year as indicated in [OO 1].
(1) Percentage of Internally managed AUM(2) Percentage of Externally managed AUM(A) Listed equity>50-75%>0-10%(B) Fixed income>10-50%>0-10%(C) Private equity

0%>0-10%(D) Real estate0%>0-10%(E) Infrastructure0%>0-10%(F) Hedge funds>0-10%>0-10%(G) Forestry0%0%(H) Farmland

0%0%(I) Other>0-10%>0-10%(J) Off-balance sheet0%0%(I) Other - (1) Percentage of Internally managed AUM - Specify:
Multi asset, Cash management(I) Other - (2) Percentage of Externally managed AUM - Specify:
cash others

8

ASSET BREAKDOWN: EXTERNALLY MANAGED ASSETS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 5.1CORE

OO 5

Multiple

PUBLIC

Asset breakdown:
Externally managed
assetsGENERAL

Provide a further breakdown of your organisation’s externally managed listed equity and/or fixed income AUM.

(1) Listed equity(2) Fixed income SSA(3) Fixed income corporate(4) Fixed income securitised(5) Fixed income private debt

(A) Active>75%>50-75%>10-50%>10-50%>0-10%(B)
Passive

0%>0-10%

0%

Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 5.2CORE

OO 5, OO 5.1

SAM 3,SAM 8

PUBLIC

Asset breakdown:
Externally managed
assetsGENERAL

Provide a breakdown of your organisation’s externally managed AUM between segregated mandates and pooled funds orinvestments.

(1) Segregated mandate(s)(2) Pooled fund(s) or pooled
investment(s)(A) Listed equity - active>0-10%>75%(C) Fixed income - active>0-10%>75%(D) Fixed income - passive

>75%

0%

(E) Private equity>50-75%>10-50%(F) Real estate

0%

>75%

(G) Infrastructure>75%>0-10%

9

(H) Hedge funds>0-10%>75%

ASSET BREAKDOWN: INTERNALLY MANAGED LISTED EQUITY
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 5.3 LE

CORE

OO 5

Multiple

PUBLIC

Asset breakdown:Internally managed
listed equity

GENERAL

Provide a further breakdown of your internally managed listed equity AUM.
(A) Passive equity>75%(B) Active – quantitative>0-10%(C) Active – fundamental>10-50%(D) Other strategies

0%

ASSET BREAKDOWN: INTERNALLY MANAGED FIXED INCOME
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 5.3 FI

CORE

OO 5

Multiple

PUBLIC

Asset breakdown:Internally managed
fixed income

GENERAL

Provide a further breakdown of your internally managed fixed income AUM.
(A) Passive – SSA>50-75%(B) Passive – corporate>0-10%(C) Active – SSA>10-50%(D) Active – corporate>10-50%10(E) Securitised0%(F) Private debt

0%

ASSET BREAKDOWN: INTERNALLY MANAGED HEDGE FUND
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 5.3 HF

CORE

OO 5

OO 11

PUBLIC

Asset breakdown:Internally managed
hedge fund

GENERAL

Provide a further breakdown of your internally managed hedge fund assets.
(A) Multi-strategy

0%(B) Long/short equity

0%(C) Long/short credit>75%(D) Distressed, special situations
and event-driven fundamental

0%(E) Structured credit0%(F) Global macro

0%(G) Commodity trading advisor

0%(H) Other strategies

0%11

MANAGEMENT BY PRI SIGNATORIES
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 6

CORE

OO 5

N/A

PUBLICManagement by PRI
signatories

GENERAL

What percentage of your organisation’s externally managed assets are managed by PRI signatories?
>75%

GEOGRAPHICAL BREAKDOWN
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 7

CORE

Multiple, seeguidance

N/A

PUBLIC

Geographicalbreakdown

GENERAL

How much of your AUM in each asset class is invested in emerging markets and developing economies?
AUM in Emerging Markets and Developing Economies(A) Listed equity(2) >0 to 10%(B) Fixed income – SSA(2) >0 to 10%(C) Fixed income – corporate(5) >30 to 40%(D) Fixed income – securitised(1) 0%(E) Fixed income – private debt

(1) 0%(F) Private equity(2) >0 to 10%(G) Real estate(2) >0 to 10%(H) Infrastructure(2) >0 to 10%12(I) Hedge funds(2) >0 to 10%

STEWARDSHIPSTEWARDSHIP
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 8

CORE

Multiple, seeguidance

Multiple
indicators

PUBLIC

Stewardship

GENERAL

Does your organisation conduct stewardship activities, excluding (proxy) voting, for any of your assets?
(1) Listed
equity active(2) Listed
equity passive(3) Fixed
income active(4) Fixed
income passive(5) Private
equity(A) Yes, through internal staff

☑

☑

☑

☑

☐

(B) Yes, through service providers

☑

☑

☑

☑

☐

(C) Yes, through externalmanagers

☑

☑

☑

☑

☑

(D) We do not conduct
stewardship

○

○

○

○

○

13

(6) Real estate(7) Infrastructure(8) Hedge funds(11) Other(A) Yes, through internal staff

☐

☐

☐

☐

(B) Yes, through service providers

☐

☐

☐

☐

(C) Yes, through external managers

☑

☑

☑

☑

(D) We do not conduct stewardship

○

○

○

○

STEWARDSHIP: (PROXY) VOTING
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 9 HF

CORE

OO 5

OO 9

PUBLIC

Stewardship: (Proxy)
votingGENERAL

Does your organisation have direct investments in listed equity across your hedge fund strategies?
○ (A) Yes
◉ (B) No
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 9

CORE

Multiple, seeguidance

Multiple
indicators

PUBLIC

Stewardship:(Proxy) voting

GENERAL

Does your organisation conduct (proxy) voting activities for any of your listed equity holdings?

14

(1) Listed equity - active(2) Listed equity - passive(A) Yes, through internal staff☑

☑

(B) Yes, through service providers☑

☑

(C) Yes, through externalmanagers☑

☑

(D) We do not conduct (proxy)
voting○○Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 9.1CORE

OO 9

PGS 10.1,
PGS 31

PUBLIC

Stewardship:(Proxy) voting

GENERALFor each asset class, on what percentage of your listed equity holdings do you have the discretion to vote?
Percentage of your listed equity holdings over which you have the discretion tovote(A) Listed equity – active(11) >90 to <100%(B) Listed equity - passive(12) 100%

15

ESG INCORPORATIONINTERNALLY MANAGED ASSETS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 11

CORE

Multiple, seeguidance

Multiple
indicators

PUBLICInternallymanaged assets

1

For each internally managed asset class, does your organisation incorporate ESG factors into your investment
decisions?
(1) Yes, we incorporate ESG factors
into our investment decisions(2) No, we do not incorporate ESG
factors into our investment decisions(A) Listed equity - passive◉○(B) Listed equity - active quantitative◉○(C) Listed equity - active fundamental◉○(E) Fixed income - SSA◉○(F) Fixed income - corporate◉○(N) Hedge funds - Long/shortcredit○◉(V) Other: Multi asset, Cashmanagement

◉

○

16

EXTERNAL MANAGER SELECTION
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 12

CORE

OO 5, OO 5.1

Multiple
indicators

PUBLIC

External manager
selection

1

For each externally managed asset class, does your organisation incorporate ESG factors when selecting external
investment managers?
(1) Yes, we incorporate ESG factors
when selecting external investment
managers(2) No, we do not incorporate ESG
factors when selecting external
investment managers(A) Listed equity - active◉○(C) Fixed income - active◉○(D) Fixed income - passive◉○(E) Private equity◉○(F) Real estate◉○(G) Infrastructure◉○(H) Hedge funds◉○(K) Other: cash others

◉

○

17

EXTERNAL MANAGER APPOINTMENT
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 13

CORE

OO 5, OO 5.1

Multiple
indicators

PUBLIC

External manager
appointment

1

For each externally managed asset class, does your organisation incorporate ESG factors when appointing external
investment managers?
(1) Yes, we incorporate ESG factors
when appointing external investment
managers(2) No, we do not incorporate ESG
factors when appointing external
investment managers(A) Listed equity - active◉○(C) Fixed income - active◉○(D) Fixed income - passive◉○(E) Private equity◉○(F) Real estate◉○(G) Infrastructure◉○(H) Hedge funds◉○(K) Other: cash others

◉

○

18

EXTERNAL MANAGER MONITORING
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 14

CORE

OO 5, OO 5.1

Multiple
indicators

PUBLIC

External manager
monitoring1

For each externally managed asset class, does your organisation incorporate ESG factors when monitoring external
investment managers?
(1) Yes, we incorporate ESG factors
when monitoring external investment
managers(2) No, we do not incorporate ESG
factors when monitoring external
investment managers(A) Listed equity - active◉○(C) Fixed income - active◉○(D) Fixed income - passive◉○(E) Private equity◉○(F) Real estate◉○(G) Infrastructure◉○(H) Hedge funds◉○(K) Other: cash others

◉

○

19

ESG IN OTHER ASSET CLASSES
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 15

CORE

OO 11, OO 12–
14

N/A

PUBLICESG in other asset
classes1

Describe how your organisation incorporates ESG factors into the following asset classes.
Internally managed(C) Other
For multi-asset assets, we conduct ESG integration in line with the strategy of each underlining asset.

Externally managed(F) Other
We carry out ESG integration similar to other externally assets.

ESG NOT INCORPORATED
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 16

CORE

OO 11, OO 12–
14

N/A

PUBLICESG not
incorporated

1

Describe why your organisation does not currently incorporate ESG factors into your investment decisions.
Internally managed(L) Hedge funds
The relevant strategy is subject to NAM's overall Responsible Investment policy. However, given the unconstrained investment
mandate, the relevant investment team has so far chosen not to integrate ESG in an explicit and fund strategy-specific manner. This
stance is subject to review and may change in the future.

20

ESG STRATEGIESLISTED EQUITY
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 17 LE

CORE

OO 11

OO 17.1 LE, LE 12

PUBLIC

Listed equity

1

Which ESG incorporation approach and/or combination of approaches does your organisation apply to your internallymanaged active listed equity?
Percentage out of total internally managed active listed equity(A) Screening alone

0%(B) Thematic alone

0%(C) Integration alone

0%(D) Screening and integration>75%(E) Thematic and integration

0%(F) Screening and thematic

0%(G) All three approaches combined0%(H) None0%

Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 17.1 LE

CORE

OO 17 LELE 9

PUBLIC

Listed equity

1

What type of screening does your organisation use for your internally managed active listed equity assets where ascreening approach is applied?

21

Percentage coverage out of your total listed equity assets where a screening
approach is applied(A) Positive/best-in-classscreening only

0%(B) Negative screening only

0%(C) A combination of screening
approaches>75%

FIXED INCOME
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 17 FI

CORE

OO 5.3 FI, OO
11Multiple, seeguidance

PUBLIC

Fixed
income1Which ESG incorporation approach and/or combination of approaches does your organisation apply to your internallymanaged active fixed income?
(1) Fixed income - SSA(2) Fixed income - corporate(A) Screening alone

0%0%(B) Thematic alone

0%0%(C) Integration alone

>75%

>75%

(D) Screening and integration>0-10%>0-10%(E) Thematic and integration

0%0%(F) Screening and thematic

0%0%(G) All three approaches combined>0-10%>0-10%(H) None

0%

0%

22

IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 17.1 FI

CORE

OO 17 FI

N/A

PUBLIC

Fixed income

1

What type of screening does your organisation use for your internally managed active fixed income where a screening
approach is applied?
(1) Fixed income - SSA(2) Fixed income - corporate(A) Positive/best-in-classscreening only0%0%(B) Negative screening only0%0%(C) A combination of screening
approaches

>75%

>75%

ESG/SUSTAINABILITY FUNDS AND PRODUCTSLABELLING AND MARKETING
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 18

CORE

OO 11–14

OO 18.1

PUBLIC

Labelling andmarketing1

Do you explicitly market any of your products and/or funds as ESG and/or sustainable?
◉ (A) Yes, we market products and/or funds as ESG and/or sustainable
Provide the percentage of AUM that your ESG and/or sustainability-marketed products or funds represent:>0-10%○ (B) No, we do not offer products or funds explicitly marketed as ESG and/or sustainable○ (C) Not applicable; we do not offer products or funds23

IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 18.1

CORE

OO 18

OO 18.2

PUBLIC

Labelling andmarketing1

Do any of your ESG and/or sustainability-marketed products and/or funds hold formal ESG and/or RI certification(s) orlabel(s) awarded by a third party?
○ (A) Yes, our ESG and/or sustainability-marketed products and/or funds hold formal labels or certifications◉ (B) No, our ESG and/or sustainability-marketed products and/or funds do not hold formal labels or certifications

PASSIVE INVESTMENTS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 19

CORE

OO 5.3 FI, OO
11

LE 8, FI 10

PUBLIC

Passiveinvestments

1

What percentage of your total internally managed passive listed equity and/or fixed income passive AUM utilise an ESG
index or benchmark?
Percentage of AUM that utilise an ESG index or benchmark(A) Listed equity - passive>0-10%(B) Fixed income - passive

0%

THEMATIC BONDS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 20

CORE

OO 17 FIFI 15, FI 17

PUBLIC

Thematic bonds

1

What percentage of your total environmental and/or social thematic bonds are labelled by the issuers in accordance withindustry-recognised standards?

24Percentage of your total environmental and/or social thematic bonds labelled by
the issuers(A) Green or climate bonds>75%(B) Social bonds

0%(C) Sustainability bonds>10-50%(D) Sustainability-linked bonds>0-10%(E) SDG or SDG-linked bonds

0%(F) Other0%(G) Bonds not labelled by theissuer0%

SUMMARY OF REPORTING REQUIREMENTS
SUMMARY OF REPORTING REQUIREMENTS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 21

CORE

Multiple
indicators

Multiple
indicators

PUBLIC

Summary ofreportingrequirements

GENERAL

The following table shows which modules are mandatory or voluntary to report on in the separate PRI asset classmodules. Where a module is voluntary, indicate if you wish to report on it.
(1) Mandatory to report(pre-filled based on
previous responses)(2.1) Voluntary to report.
Yes, I want to opt-in toreporting on the module(2.2) Voluntary to report.
No, I want to opt-out ofreporting on the module

Policy, Governance and Strategy

◉

○

○

Confidence Building Measures

◉

○

○

(A) Listed equity – passive

◉

○

○

Applicable modules

25

(B) Listed equity – active –quantitative

◉

○

○

(C) Listed equity – active –fundamental

◉

○

○

(E) Fixed income – SSA

◉

○

○

(F) Fixed income – corporate

◉

○

○

(T) External manager selection,
appointment and monitoring (SAM)– listed equity - active

◉

○

○

(V) External manager selection,
appointment and monitoring (SAM)– fixed income - active

◉

○

○

(W) External manager selection,
appointment and monitoring (SAM)– fixed income - passive

○

○

◉

(X) External manager selection,
appointment and monitoring (SAM)– private equity

○

○

◉

(Y) External manager selection,
appointment and monitoring (SAM)– real estate

○

○

◉

(Z) External manager selection,
appointment and monitoring (SAM)– infrastructure

○

○

◉

(AA) External manager selection,
appointment and monitoring (SAM)– hedge funds

○

○

◉

26

SUBMISSION INFORMATIONREPORT DISCLOSURE
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 32

CORE

OO 3, OO 31

N/A

PUBLIC

Report disclosure

GENERAL

How would you like to disclose the detailed percentage figures you reported throughout the Reporting Framework?
○ (A) Publish as absolute numbers◉ (B) Publish as ranges

POLICY, GOVERNANCE AND STRATEGY (PGS)
POLICYRESPONSIBLE INVESTMENT POLICY ELEMENTS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 1

CORE

OO 8, OO 9Multiple
indicators

PUBLIC

Responsible
investment policy
elements

1, 2Which elements are covered in your formal responsible investment policy(ies)?
☑ (A) Overall approach to responsible investment☑ (B) Guidelines on environmental factors☑ (C) Guidelines on social factors☑ (D) Guidelines on governance factors☑ (E) Guidelines on sustainability outcomes☑ (F) Guidelines tailored to the specific asset class(es) we hold
☑ (G) Guidelines on exclusions☑ (H) Guidelines on managing conflicts of interest related to responsible investment☑ (I) Stewardship: Guidelines on engagement with investees☐ (J) Stewardship: Guidelines on overall political engagement☐ (K) Stewardship: Guidelines on engagement with other key stakeholders☑ (L) Stewardship: Guidelines on (proxy) voting☑ (M) Other responsible investment elements not listed here
Specify:Managing conflicts of interest related to responsible investment○ (N) Our organisation does not have a formal responsible investment policy and/or our policy(ies) do not cover any responsible
investment elements

27

IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 2

CORE

PGS 1

Multiple, seeguidance

PUBLIC

Responsible
investment policy
elements

1

Does your formal responsible investment policy(ies) include specific guidelines on systematic sustainability issues?
☑ (A) Specific guidelines on climate change (may be part of guidelines on environmental factors)☑ (B) Specific guidelines on human rights (may be part of guidelines on social factors)☑ (C) Specific guidelines on other systematic sustainability issues
Specify:
Specific guidelines on governance factors○ (D) Our formal responsible investment policy(ies) does not include guidelines on systematic sustainability issues
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 3

CORE

PGS 1, PGS 2

N/APUBLIC

Responsible
investment policy
elements

6

Which elements of your formal responsible investment policy(ies) are publicly available?
☑ (A) Overall approach to responsible investment
Add link:
https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf☑ (B) Guidelines on environmental factors
Add link:
https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf☑ (C) Guidelines on social factors
Add link:
https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf☑ (D) Guidelines on governance factors
Add link:
https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf☑ (E) Guidelines on sustainability outcomes
Add link:
https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf☑ (F) Specific guidelines on climate change (may be part of guidelines on environmental factors)

28

Add link:
https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf☑ (G) Specific guidelines on human rights (may be part of guidelines on social factors)
Add link:
https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf☑ (H) Specific guidelines on other systematic sustainability issues
Add link:
https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf☑ (I) Guidelines tailored to the specific asset class(es) we hold
Add link:
https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf☐ (J) Guidelines on exclusions☑ (K) Guidelines on managing conflicts of interest related to responsible investment
Add link:
https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf☑ (L) Stewardship: Guidelines on engagement with investees
Add link:
https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf☑ (O) Stewardship: Guidelines on (proxy) voting
Add link:
https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf☐ (P) Other responsible investment aspects not listed here
○ (Q) No elements of our formal responsible investment policy(ies) are publicly available
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 4

PLUS

PGS 1

N/A

PUBLIC

Responsible
investment policy
elements

1–6

Does your formal responsible investment policy(ies) identify a link between your responsible investment activities andyour fiduciary duties or equivalent obligations?
◉ (A) Yes
Elaborate:

29

The relationship between responsible investment behaviour and fiduciary duty is clearly stated in the basic policy for responsible
investment in management.” As an asset manager entrusted with the client's assets, we always act in good faith for the benefit of
our clients based on our fiduciary duty (obligation to conduct "customer-oriented business operations"), must carry out their duties
with the diligence that a person well versed in their duties should normally possess. In addition, regarding conflicts of interest issues
that may be faced in operation, we must appropriately manage them so as not to damage the interests of our customers and ensure
independence. We are entrusted not only with securities trading but also with a wide range of rights associated with securities
investment, such as voting rights. Sustainable growth and value creation of investee companies are essential for the medium- tolong-term growth of client assets. In order to achieve these goals, we consider engaging in purposeful dialogue (engagement) andstewardship activities such as the exercise of voting rights to be an important responsibility of an asset manager.

○ (B) No
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 5

CORE

PGS 1

N/A

PUBLIC

Responsible
investment policy
elements

2

Which elements are covered in your organisation’s policy(ies) or guidelines on stewardship?
☑ (A) Overall stewardship objectives☑ (B) Prioritisation of specific ESG factors to be advanced via stewardship activities☑ (C) Criteria used by our organisation to prioritise the investees, policy makers, key stakeholders, or other entities on
which to focus our stewardship efforts☑ (D) How different stewardship tools and activities are used across the organisation☑ (E) Approach to escalation in stewardship☑ (F) Approach to collaboration in stewardship☑ (G) Conflicts of interest related to stewardship☑ (H) How stewardship efforts and results are communicated across the organisation to feed into investment decisionmaking and vice versa☐ (I) Other○ (J) None of the above elements is captured in our policy(ies) or guidelines on stewardship
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 6

CORE

PGS 1

N/A

PUBLIC

Responsible
investment policy
elements

2

Does your policy on (proxy) voting include voting principles and/or guidelines on specific ESG factors?
☑ (A) Yes, it includes voting principles and/or guidelines on specific environmental factors☑ (B) Yes, it includes voting principles and/or guidelines on specific social factors☑ (C) Yes, it includes voting principles and/or guidelines on specific governance factors○ (D) Our policy on (proxy) voting does not include voting principles or guidelines on specific ESG factors

30

IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 7

CORE

OO 9

N/A

PUBLIC

Responsible
investment policy
elements

2

Does your organisation have a policy that states how (proxy) voting is addressed in your securities lending programme?
◉ (A) We have a publicly available policy to address (proxy) voting in our securities lending programme
Add link(s):https://global.nomura-am.co.jp/responsibility-investment/pdf/vote_policy_g.pdf○ (B) We have a policy to address (proxy) voting in our securities lending programme, but it is not publicly available○ (C) We rely on the policy of our external service provider(s)○ (D) We do not have a policy to address (proxy) voting in our securities lending programme○ (E) Not applicable; we do not have a securities lending programme

RESPONSIBLE INVESTMENT POLICY COVERAGE
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 8

CORE

PGS 1

N/A

PUBLIC

Responsible
investment policy
coverage1

What percentage of your total AUM is covered by the below elements of your responsible investment policy(ies)?
Combined AUM coverage of all policy elements(A) Overall approach toresponsible investment(B) Guidelines on environmental
factors(C) Guidelines on social factors(D) Guidelines on governancefactors(7) 100%

31

IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 9

CORE

PGS 2

N/A

PUBLIC

Responsible
investment policy
coverage1

What proportion of your AUM is covered by your formal policies or guidelines on climate change, human rights, or othersystematic sustainability issues?
AUM coverage(A) Specific guidelines on climatechange(1) for all of our AUM(B) Specific guidelines on humanrights(1) for all of our AUM(C) Specific guidelines on othersystematic sustainability issues(1) for all of our AUM

Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 10CORE

OO 8, OO 9,
PGS 1

N/A

PUBLIC

Responsible
investment policy
coverage2

Per asset class, what percentage of your AUM is covered by your policy(ies) or guidelines on stewardship with investees?
☑ (A) Listed equity(1) Percentage of AUM covered○ (1) >0% to 10%○ (2) >10% to 20%○ (3) >20% to 30%○ (4) >30% to 40%○ (5) >40% to 50%○ (6) >50% to 60%○ (7) >60% to 70%○ (8) >70% to 80%○ (9) >80% to 90%○ (10) >90% to <100%◉ (11) 100%
☑ (B) Fixed income32

(1) Percentage of AUM covered○ (1) >0% to 10%○ (2) >10% to 20%○ (3) >20% to 30%○ (4) >30% to 40%○ (5) >40% to 50%○ (6) >50% to 60%○ (7) >60% to 70%○ (8) >70% to 80%○ (9) >80% to 90%○ (10) >90% to <100%◉ (11) 100%
☐ (C) Private equity☐ (D) Real estate☐ (E) Infrastructure☐ (F) Hedge funds☐ (I) Other
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 10.1

CORE

OO 9.1, PGS
1

N/A

PUBLIC

Responsible
investment policy
coverage2

What percentage of your listed equity holdings is covered by your guidelines on (proxy) voting?
☑ (A) Actively managed listed equity(1) Percentage of your listed equity holdings over which you have the discretion to vote○ (1) >0% to 10%○ (2) >10% to 20%○ (3) >20% to 30%○ (4) >30% to 40%○ (5) >40% to 50%○ (6) >50% to 60%○ (7) >60% to 70%○ (8) >70% to 80%○ (9) >80% to 90%○ (10) >90% to <100%◉ (11) 100%
☑ (B) Passively managed listed equity(1) Percentage of your listed equity holdings over which you have the discretion to vote○ (1) >0% to 10%○ (2) >10% to 20%○ (3) >20% to 30%○ (4) >30% to 40%○ (5) >40% to 50%○ (6) >50% to 60%○ (7) >60% to 70%○ (8) >70% to 80%○ (9) >80% to 90%○ (10) >90% to <100%◉ (11) 100%33

GOVERNANCE
ROLES AND RESPONSIBILITIESIndicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 11CORE

N/A

Multiple
indicators

PUBLIC

Roles and
responsibilities

1

Which senior level body(ies) or role(s) in your organisation have formal oversight over and accountability for responsible
investment?
☑ (A) Board members, trustees, or equivalent☑ (B) Senior executive-level staff, or equivalentSpecify:
Chief Investment Officer（CIO）, Senior Investment Officer （SIO）and Chief Compliance Officer （CCO）☑ (C) Investment committee, or equivalentSpecify:
Responsible Investment Committee, Responsible Investment Council☑ (D) Head of department, or equivalentSpecify department:
Head of Investment / Research Division○ (E) None of the above bodies and roles have oversight over and accountability for responsible investment
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 11.1

CORE

PGS 1, PGS 2,
PGS 11

N/A

PUBLIC

Roles and
responsibilities

1, 2

Does your organisation's senior level body(ies) or role(s) have formal oversight over and accountability for the elements
covered in your responsible investment policy(ies)?

34

(1) Board members, trustees, or
equivalent(2) Senior executive-level staff,
investment committee, head of
department, or equivalent(A) Overall approach toresponsible investment☑

☑

(B) Guidelines on environmental,social and/or governance factors☑

☑

(C) Guidelines on sustainability
outcomes☑

☑

(D) Specific guidelines on climatechange (may be part of guidelines
on environmental factors)☑

☑

(E) Specific guidelines on humanrights (may be part of guidelines
on social factors)☑

☑

(F) Specific guidelines on othersystematic sustainability issues☑

☑

(G) Guidelines tailored to thespecific asset class(es) we hold☐☑

(H) Guidelines on exclusions☑

☑

(I) Guidelines on managing
conflicts of interest related toresponsible investment☑

☑

(J) Stewardship: Guidelines on
engagement with investees☑

☑

(M) Stewardship: Guidelines on(proxy) voting

☑

☑

35

(N) This role has no formal
oversight over and accountability
for any of the above elements
covered in our responsible
investment policy(ies)○○Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 11.2

CORE

N/A

N/A

PUBLIC

Roles and
responsibilities

1–6

Does your organisation have governance processes or structures to ensure that your overall political engagement isaligned with your commitment to the principles of PRI, including any political engagement conducted by third parties on
your behalf?
◉ (A) Yes
Describe how you do this:Our policy activities are reported regularly to the Responsible Investment Committee which is the highest decision-making body andcomposed solely of those responsible for decision-making in management and research. Responsible Investment Committee
oversees these activities and efforts, at the same time Responsible Investment Council, which is composed of a majority of highly
independent outside directors and outside experts, monitors discussions at the Responsible Investment Committee in real time,
makes recommendations for improvement to the Executive Committee or the Responsible Investment Committee as necessary, andreports the results to the Board of Directors and the Audit Committee.

○ (B) No○ (C) Not applicable, our organisation does not conduct any form of political engagement directly or through any third parties
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 12

CORE

N/A

N/A

PUBLIC

Roles and
responsibilities

1

In your organisation, which internal or external roles are responsible for implementing your approach to responsible
investment?
☑ (A) Internal role(s)Specify:
Board, Chief level staff, Investment committee, Head of department, Portfolio manager, Investment analysts, dedicatedresponsible
investment staff☐ (B) External investment managers, service providers, or other external partners or suppliers○ (C) We do not have any internal or external roles with responsibility for implementing responsible investment

36

IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 13

CORE

PGS 11

N/A

PUBLIC

Roles and
responsibilities

1

Does your organisation use responsible investment KPIs to evaluate the performance of your board members, trustees,or equivalent?
◉ (A) Yes, we use responsible investment KPIs to evaluate the performance of our board members, trustees, or
equivalent
Describe: (Voluntary)
Our Responsible Investment Committee is in charge of determining the company policy on ESG issues as well as promoting value
creation among investee companies, and also supervising the ESG related activities of the investment and research department. It
is the highest decision making entity focused on stewardship related activities including proxy voting and engagement. In order tofurther enhance its stewardship activities, we conduct a self-assessment every year, mainly by the members of the Responsible
Investment Committee. Specific KPIs are as follows (1) Was the review/decision process by the Responsible Investment Committee
appropriate for the revision of the basic policy for responsible investment? (2) Whether the composition and operation of the
Responsible Investment Committee members were appropriate; (3) Whether the Responsible Investment Committee and the
Responsible Investment Council properly identified and managed cases that could cause conflicts of interest; (4) Management's
efforts to strengthen governance and manage conflicts of interest; (5) Appropriate understanding of portfolio companies for thefulfillment of its stewardship responsibilities.(6) Appropriate selection of target companies for engagement and engagement activities(7) Follow-up, including milestone management, to ensure continuous engagement (8) Appropriate process and content of therevision of the basic policy and standards for the exercise of voting rights (9) Appropriate exercise of voting rights, publication of thebasic policy and standards for the exercise of voting rights, and aggregation and individual disclosure of the results of the exercise of
voting rights and (10) Regular reporting and disclosure to customers and beneficiaries regarding engagement and the exercise of
voting rights. .

○ (B) No, we do not use responsible investment KPIs to evaluate the performance of our board members, trustees, or equivalent
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 14

CORE

PGS 11

N/A

PUBLIC

Roles and
responsibilities

1

Does your organisation use responsible investment KPIs to evaluate the performance of your senior executive-level staff(or equivalent), and are these KPIs linked to compensation?
◉ (A) Yes, we use responsible investment KPIs to evaluate the performance of our senior executive-level staff (orequivalent)
Indicate whether these responsible investment KPIs are linked to compensation◉ (1) KPIs are linked to compensation○ (2) KPIs are not linked to compensation as these roles do not have variable compensation○ (3) KPIs are not linked to compensation even though these roles have variable compensation

37

Describe: (Voluntary)○ (B) No, we do not use responsible investment KPIs to evaluate the performance of our senior executive-level staff (orequivalent)
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 15

PLUS

PGS 11

N/A

PUBLIC

Roles and
responsibilities

1

What responsible investment competencies do you regularly include in the training of senior-level body(ies) or role(s) inyour organisation?

(1) Board members, trustees or
equivalent(2) Senior executive-level staff,
investment committee, head of
department or equivalent(A) Specific competence in climatechange mitigation and adaptation☑

☑

(B) Specific competence ininvestors’ responsibility to respecthuman rights☑

☑

(C) Specific competence in othersystematic sustainability issues☑

☑

(D) The regular training of thissenior leadership role does notinclude any of the above
responsible investmentcompetencies

○

○

38

EXTERNAL REPORTING AND DISCLOSURES
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 16

CORE

N/A

N/A

PUBLIC

External reportingand disclosures

6

What elements are included in your regular reporting to clients and/or beneficiaries for the majority of your AUM?
☑ (A) Any changes in policies related to responsible investment☑ (B) Any changes in governance or oversight related to responsible investment☑ (C) Stewardship-related commitments☑ (D) Progress towards stewardship-related commitments☑ (E) Climate–related commitments☑ (F) Progress towards climate–related commitments☑ (G) Human rights–related commitments☑ (H) Progress towards human rights–related commitments☑ (I) Commitments to other systematic sustainability issues☑ (J) Progress towards commitments on other systematic sustainability issues○ (K) We do not include any of these elements in our regular reporting to clients and/or beneficiaries for the majority of our AUM
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 17

CORE

N/A

N/A

PUBLIC

External reportingand disclosures

6

During the reporting year, did your organisation publicly disclose climate-related information in line with the Task Forceon Climate-Related Financial Disclosures' (TCFD) recommendations?
☑ (A) Yes, including all governance-related recommended disclosures☑ (B) Yes, including all strategy-related recommended disclosures☑ (C) Yes, including all risk management–related recommended disclosures☑ (D) Yes, including all applicable metrics and targets-related recommended disclosures○ (E) None of the above
Add link(s):https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf

39

IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 18

PLUS

N/A

N/A

PUBLIC

External reportingand disclosures

6

During the reporting year, to which international responsible investment standards, frameworks, or regulations did yourorganisation report?
☑ (A) Disclosures against the European Union's Sustainable Finance Disclosure Regulation (SFDR)
Link to example of public disclosures
https://www.nomura-asset.co.uk/responsible-investment-asset-management/esg-sustainable-investment/☐ (B) Disclosures against the European Union's Taxonomy☐ (C) Disclosures against the CFA's ESG Disclosures Standard☐ (D) Disclosures against other international standards, frameworks or regulations☐ (E) Disclosures against other international standards, frameworks or regulations☐ (F) Disclosures against other international standards, frameworks or regulations☐ (G) Disclosures against other international standards, frameworks or regulations
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 19

CORE

N/A

N/A

PUBLIC

External reportingand disclosures

6

During the reporting year, did your organisation publicly disclose its membership in and support for trade associations,
think tanks or similar bodies that conduct any form of political engagement?
◉ (A) Yes, we publicly disclosed our membership in and support for trade associations, think tanks, or similar bodies
that conduct any form of political engagement
Add link(s):https://www.keidanren.or.jp/policy/woman/ap09069.html○ (B) No, we did not publicly disclose our membership in and support for trade associations, think tanks, or similar bodies that
conduct any form of political engagement○ (C) Not applicable, we were not members in or supporters of any trade associations, think tanks, or similar bodies that conduct
any form of political engagement during the reporting year

40

STRATEGYCAPITAL ALLOCATION
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 20

CORE

N/A

N/A

PUBLIC

Capital allocation

1

Which elements do your organisation-level exclusions cover?
☑ (A) Exclusions based on our organisation's values or beliefs regarding particular sectors, products or services☐ (B) Exclusions based on our organisation's values or beliefs regarding particular regions or countries☐ (C) Exclusions based on minimum standards of business practice aligned with international norms such as the OECD
Guidelines for Multinational Enterprises, the International Bill of Human Rights, UN Security Council sanctions or the UN Global
Compact☐ (D) Exclusions based on our organisation’s climate change commitments☐ (E) Other elements○ (F) Not applicable; our organisation does not have any organisation-level exclusions
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 21

CORE

N/A

N/A

PUBLIC

Capital allocation

1

How does your responsible investment approach influence your strategic asset allocation process?
☑ (A) We incorporate ESG factors into our assessment of expected asset class risks and returns
Select from dropdown list:◉ (1) for all of our AUM subject to strategic asset allocation○ (2) for a majority of our AUM subject to strategic asset allocation○ (3) for a minority of our AUM subject to strategic asset allocation☑ (B) We incorporate climate change–related risks and opportunities into our assessment of expected asset class risks
and returns
Select from dropdown list:◉ (1) for all of our AUM subject to strategic asset allocation○ (2) for a majority of our AUM subject to strategic asset allocation○ (3) for a minority of our AUM subject to strategic asset allocation☑ (C) We incorporate human rights–related risks and opportunities into our assessment of expected asset class risks
and returns
Select from dropdown list:◉ (1) for all of our AUM subject to strategic asset allocation○ (2) for a majority of our AUM subject to strategic asset allocation○ (3) for a minority of our AUM subject to strategic asset allocation☑ (D) We incorporate risks and opportunities related to other systematic sustainability issues into our assessment of
expected asset class risks and returns
Select from dropdown list:◉ (1) for all of our AUM subject to strategic asset allocation○ (2) for a majority of our AUM subject to strategic asset allocation○ (3) for a minority of our AUM subject to strategic asset allocation

41

Specify: (Voluntary)
governance-related risks and opportunities○ (E) We do not incorporate ESG factors, climate change, human rights or other systematic sustainability issues into ourassessment of expected asset class risks and returns○ (F) Not applicable; we do not have a strategic asset allocation process

STEWARDSHIP: OVERALL STEWARDSHIP STRATEGY
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 22CORE

OO 8, OO 9N/A

PUBLIC

Stewardship: Overall
stewardship strategy

2

For the majority of AUM within each asset class, which of the following best describes your primary stewardshipobjective?
(1) Listed
equity(2) Fixed
income(3) Private
equity(4) Real
estate(5)(6) Hedge
Infrastructure funds(A) Maximise our portfolio-level riskadjusted returns. In doing so, we
seek to address any risks to overall
portfolio performance caused byindividual investees’ contribution tosystematic sustainability issues.

◉

◉

◉

◉

◉

◉

(B) Maximise our individual
investments’ risk-adjusted returns. In
doing so, we do not seek to address
any risks to overall portfolio
performance caused by individual
investees’ contribution to systematicsustainability issues.

○

○

○

○

○

○

42

IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 23

PLUS

OO 5, OO 8,
OO 9

N/A

PUBLIC

Stewardship: Overall
stewardship strategy

2

How does your organisation, or the external service providers or external managers acting on your behalf, prioritise theinvestees or other entities on which to focus its stewardship efforts?
The Responsible Investment Committee determines the basic policy for responsible investment in investment and key themes forengagement based on the basic policy. Prioritize companies with high holdings amount, high holding ratios, ESG issue companies,
companies that desire dialogue with shareholders, etc., and narrow down the companies to be engaged.

Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 24CORE

OO 8, OO 9N/A

PUBLIC

Stewardship: Overall
stewardship strategy

2Which of the following best describes your organisation's default position, or the position of the external service
providers or external managers acting on your behalf, concerning collaborative stewardship efforts?
◉ (A) We recognise the value of collective action, and as a result, we prioritise collaborative stewardship efforts
wherever possible○ (B) We collaborate on a case-by-case basis○ (C) Other○ (D) We do not join collaborative stewardship efforts
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 24.1

PLUS

OO 8, OO 9N/A

PUBLIC

Stewardship: Overall
stewardship strategy

2

Elaborate on your organisation’s default position on collaborative stewardship, or the position of the external service
providers or external investment managers acting on your behalf, including any other details on your overall approach tocollaboration.
We collaborate with peers to engage with investee companies in order to addresses ESG issues, to achieve outcomes in line with theSDGs, impact the economic cycle through investment outcomes and create a virtuous cycle of investment capital. Collaboration allows us topool knowledge, time and resources and influence investee companies in a unified voice on areas of common concern so that the successrate of the engagement become higher. Collaboration is therefore central to better practice regarding stewardship.

43

IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 25

PLUS

OO 5, OO 8,
OO 9

N/A

PUBLIC

Stewardship: Overall
stewardship strategy

2

Rank the channels that are most important for your organisation in achieving its stewardship objectives.
☑ (A) Internal resources, e.g. stewardship team, investment team, ESG team, or staff
Select from the list:◉1☑ (B) External investment managers, third-party operators and/or external property managers, if applicable
Select from the list:◉4☑ (C) External paid specialist stewardship services (e.g. engagement overlay services or, in private markets,sustainability consultants) excluding investment managers, real assets third-party operators, or external property
managers
Select from the list:◉3☑ (D) Informal or unstructured collaborations with investors or other entities
Select from the list:◉5☑ (E) Formal collaborative engagements, e.g. PRI-coordinated collaborative engagements, Climate Action 100+, or
similar
Select from the list:◉2○ (F) We do not use any of these channels
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 26

PLUS

OO 8, OO 9,
PGS 1

N/A

PUBLIC

Stewardship: Overall
stewardship strategy

2

How does your organisation ensure that its policy on stewardship is implemented by the external service providers towhich you have delegated stewardship activities?
☑ (A) Example(s) of measures taken when selecting external service providers:

44The following factors shall be comprehensively taken into consideration when selecting an external providers.
(1) The technical level to execute the outsourced work
(2) Ability to manage deadlines, etc.
(3) Appropriateness of the quoted price(4) Track record of delivery of the consigned work and similar systems, and evaluation by the client(5) Organizational structure(6) Status of information security measures(7) Status of safety management system for personal information and confidential information(8) Management situation(9) Knowledge of the business to be outsourced(10) Knowledge of the system to be outsourced☑ (B) Example(s) of measures taken when designing engagement mandates and/or consultancy agreements for external
service providers:
We conduct collaborative engagement meetings with an external engagement provider. We have introduced a system whereby we workwith the engagement provider to narrow the scope of engagement to particular topics, set specific time frames (they have milestone
management system similar to that of NAM to manage the progress of engagement) , and engage in a focused manner. Currently, in
addition to the topic of the compliance with international norms, we are promoting, engagement related to corporate governance, climatechange, responsible cleantech, modern slavery, human rights accelerator and feeding in the future. We also have bespoke corporate
governance cases engagement where we set engagement objectives by ourselves (before the meeting, our team member and an external
engagement provider discuss which company/topics would be engaged.).

☐ (C) Example(s) of measures taken when monitoring the stewardship activities of external service providers:
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 27

PLUS

OO 8, OO 9N/A

PUBLIC

Stewardship: Overall
stewardship strategy

2

How are your organisation’s stewardship activities linked to your investment decision making, and vice versa?
We regard engagement as one of the most powerful means to fulfil our stewardship responsibilities and ESG considerations are integral to
our investment stewardship. Therefore, ESG specialist, ESG investment manager, analysts, country specialist and portfolio managers
collaborate to hold constructive dialogue with investee companies to identify how they respond to ESG issues and to encourage them toaddress these challenges through stewardship-related activities. The content of engagement with target company issues by the person in
charge is monitored using a milestone management tool, which facilitates smooth information sharing. We regard the exercise of voting
rights as a part of our engagement, and we align ESG research and engagement into proxy voting decision. The Responsible Investment
Committee, which in principle consists solely of those responsible for decision-making in investment research, makes decisions on
proposals of all portfolio companies in accordance with our own guidelines for the exercise of voting rights.

Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 28

PLUS

OO 8, OO 9N/A

PUBLIC

Stewardship: Overall
stewardship strategy

245

If relevant, provide any further details on your organisation's overall stewardship strategy.
Our mission is to offer our clients consistently high-quality asset management services that meet their investment needs. We thereby
contribute to social development whilst maintaining client and public confidence in the asset management business.
As an asset manager fulfilling its fiduciary responsibilities, we are committed to act in the best interest of our clients. We ensure thatconflicts of interest are handled based on independent judgment and in such a manner so that client interests are always upheld. We havebeen entrusted with our clients' proxy voting rights and other rights relating to securities investment. We must properly exercise these rights
in an effort to maximize the interests of our clients. We cannot achieve growth in our clients' assets over the medium to long term unlessinvestee companies achieve sustainable growth and create corporate value. To this end, we are committed to stewardship-related activities,
including purposeful dialogue with investees (engagement) and proxy voting, to execute the important responsibilities as a fiduciary asset
manager.
ESG (Environmental, Social and Governance) issues are basic concerns to be addressed by companies, requiring them to engage inbusiness activities as a member of society and to generate corporate value. ESG considerations are integral to our investment stewardship.
Therefore, we hold constructive dialogue with investee companies to identify how they respond to ESG issues and to encourage them toaddress these challenges through stewardship-related activities.

STEWARDSHIP: (PROXY) VOTING
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 29CORE

OO 9, PGS 1

N/A

PUBLIC

Stewardship: (Proxy)
voting2

When you use external service providers to give recommendations, how do you ensure those recommendations are
consistent with your organisation's (proxy) voting policy?
☑ (A) Before voting is executed, we review external service providers' voting recommendations for controversial andhigh-profile votes
Select from the below list:◉ (1) in all cases○ (2) in a majority of cases○ (3) in a minority of cases☑ (B) Before voting is executed, we review external service providers' voting recommendations where the application of
our voting policy is unclear
Select from the below list:◉ (1) in all cases○ (2) in a majority of cases○ (3) in a minority of cases○ (D) We do not review external service providers’ voting recommendations○ (E) Not applicable; we do not use external service providers to give voting recommendations46

IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 30

CORE

OO 9

N/A

PUBLIC

Stewardship: (Proxy)
voting2

How is voting addressed in your securities lending programme?
○ (A) We recall all securities for voting on all ballot items◉ (B) When a vote is deemed important according to pre-established criteria (e.g. high stake in the company), we recall
all our securities for voting
Provide details on these criteria:
We have a public policy to address voting in our securities lending programme. When securities are offered for loan as of the record
date of exercising a proxy vote, they need to be collected before exercising the vote. We may not exercise a proxy vote after
considering the practical implications of such an exercise and the cost incurred for collecting such securities.
https://global.nomura-am.co.jp/responsibility-investment/pdf/vote_policy_g.pdf○ (C) Other○ (D) We do not recall our securities for voting purposes○ (E) Not applicable; we do not have a securities lending programme
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 31CORE

OO 9.1

N/A

PUBLIC

Stewardship: (Proxy)
voting2

For the majority of votes cast over which you have discretion to vote, which of the following best describes your decision
making approach regarding shareholder resolutions (or that of your external service provider(s) if decision making isdelegated to them)?
◉ (A) We vote in favour of resolutions expected to advance progress on our stewardship priorities, including affirming acompany's good practice or prior commitment○ (B) We vote in favour of resolutions expected to advance progress on our stewardship priorities, but only if the investee
company has not already publicly committed to the action(s) requested in the proposal○ (C) We vote in favour of shareholder resolutions only as an escalation measure○ (D) We vote in favour of the investee company management’s recommendations by default○ (E) Not applicable; we do not vote on shareholder resolutions

47

IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 32

CORE

OO 9

N/A

PUBLIC

Stewardship: (Proxy)
voting2

During the reporting year, how did your organisation, or your external service provider(s), pre-declare voting intentions
prior to voting in annual general meetings (AGMs) or extraordinary general meetings (EGMs)?
☐ (A) We pre-declared our voting intentions publicly through the PRI's vote declaration system on the Resolution Database☐ (B) We pre-declared our voting intentions publicly by other means, e.g. through our website☑ (C) We privately communicated our voting decision to investee companies prior to the AGM/EGM○ (D) We did not privately or publicly communicate our voting intentions prior to the AGM/EGM○ (E) Not applicable; we did not cast any (proxy) votes during the reporting year
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 33CORE

OO 9

PGS 33.1

PUBLIC

Stewardship: (Proxy)
voting2

After voting has taken place, do you publicly disclose your (proxy) voting decisions or those made on your behalf by yourexternal service provider(s), company by company and in a central source?
○ (A) Yes, for all (proxy) votes◉ (B) Yes, for the majority of (proxy) votes
Add link(s):https://www.nomura-am.co.jp/special/esg/pdf/vote2023_q1.pdf○ (C) Yes, for a minority of (proxy) votes○ (D) No, we do not publicly report our (proxy) voting decisions company-by-company and in a central source
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 33.1

CORE

PGS 33

N/A

PUBLIC

Stewardship: (Proxy)
voting2

In the majority of cases, how soon after an investee's annual general meeting (AGM) or extraordinary general meeting(EGM) do you publish your voting decisions?
◉ (A) Within one month of the AGM/EGM○ (B) Within three months of the AGM/EGM○ (C) Within six months of the AGM/EGM○ (D) Within one year of the AGM/EGM○ (E) More than one year after the AGM/EGM

48

IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 34

CORE

OO 9

N/A

PUBLIC

Stewardship: (Proxy)
voting2

After voting has taken place, did your organisation, and/or the external service provider(s) acting on your behalf,
communicate the rationale for your voting decisions during the reporting year?
(1) In cases where we abstained or
voted against management
recommendations(2) In cases where we voted against
an ESG-related shareholder resolution(1) for all votes(1) for all votes(C) We did not publicly or privately
communicate the rationale, or we
did not track this information○○(D) Not applicable; we did not
abstain or vote against
management recommendations or
ESG-related shareholder
resolutions during the reporting
year

○

○

(A) Yes, we publicly disclosed therationale(B) Yes, we privately
communicated the rationale to thecompany(A) Yes, we publicly disclosed the rationale - Add link(s):https://www.nomura-am.co.jp/special/esg/pdf/vote2023_q1.pdf

Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 35

PLUS

OO 9

N/A

PUBLIC

Stewardship: (Proxy)
voting2

49

How does your organisation ensure vote confirmation, i.e. that your votes have been cast and counted correctly?
Regarding external service providers regarding the exercise of voting rights, we receive audit reports issued by independent auditors,
review the contents, and confirm the control status of information systems. In addition, we conduct due diligence (DD) at our US base, andthrough documents submitted to the US SEC, conflict of interest management policy, code of ethics, audit reports, etc., We have also
confirmed the conflict of interest management system. For customers who do not use external service providers, we have moved all
possible voting rights exercise to an electronic voting system and have established a system to confirm that voting rights have been
exercised.

STEWARDSHIP: ESCALATION
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 36CORE

OO 8, OO 9N/A

PUBLIC

Stewardship:
Escalation2

For your listed equity holdings, what escalation measures did your organisation, or the external investment managers orservice providers acting on your behalf, use in the past three years?

(1) Listed equity(2) Direct listed equity holdings inhedge fund portfolios(A) Joining or broadening an
existing collaborative engagement
or creating a new one☑

☑

(B) Filing, co-filing, and/or
submitting a shareholder resolution
or proposal☐☐(C) Publicly engaging the entity,e.g. signing an open letter☑

☑

(D) Voting against the re-electionof one or more board directors☑

☑

(E) Voting against the chair of theboard of directors, or equivalent,e.g. lead independent director☑

☑

(F) Divesting

☑

☑

50

(G) Litigation☐☐(H) Other☐☐(I) In the past three years, we did
not use any of the above
escalation measures for our listed
equity holdings○○

Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 37

CORE

Multiple, seeguidance

N/A

PUBLIC

Stewardship:
Escalation2

For your corporate fixed income assets, what escalation measures did your organisation, or the external investment
managers or service providers acting on your behalf, use in the past three years?
☑ (A) Joining or broadening an existing collaborative engagement or creating a new one☑ (B) Publicly engaging the entity, e.g. signing an open letter☑ (C) Not investing☑ (D) Reducing exposure to the investee entity☑ (E) Divesting☐ (F) Litigation☐ (G) Other○ (H) In the past three years, we did not use any of the above escalation measures for our corporate fixed income assets

STEWARDSHIP: ENGAGEMENT WITH POLICY MAKERS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 39CORE

OO 8, OO 9

PGS 39.1,
PGS 39.2

PUBLIC

Stewardship:
Engagement with
policy makers

2

Did your organisation, or the external investment managers or service providers acting on your behalf, engage with policy
makers as part of your responsible investment approach during the reporting year?
☑ (A) Yes, we engaged with policy makers directly☐ (B) Yes, we engaged with policy makers through the leadership of or active participation in working groups or collaborative
initiatives, including via the PRI☐ (C) Yes, we were members of, supported, or were in another way affiliated with third party organisations, including tradeassociations and non-profit organisations, that engage with policy makers, excluding the PRI○ (D) We did not engage with policy makers directly or indirectly during the reporting year beyond our membership in the PRI

51

IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 39.1

CORE

PGS 39N/A

PUBLIC

Stewardship:
Engagement with
policy makers

2During the reporting year, what methods did you, or the external investment managers or service providers acting on yourbehalf, use to engage with policy makers as part of your responsible investment approach?
☑ (A) We participated in 'sign-on' letters☑ (B) We responded to policy consultations☑ (C) We provided technical input via government- or regulator-backed working groups
Describe:
We provided technical input as a Chair, Constructive Dialogue Promotion Working group, Committee on Financial and CapitalMarkets (Keidanren). Also we are a member of Industry Advisory Panel and Working Group on the ASEAN Taxonomy establishedby ASEAN regulatory authority, and a Committee member of Impact Investing Roundtable co-hosted by GSG and FSA.

☑ (D) We engaged policy makers on our own initiative
Describe:
We conducted direct engagement with around 20 supra-nationals and government agencies that visited Japan.

☐ (E) Other methods
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 39.2

CORE

PGS 39N/A

PUBLIC

Stewardship:
Engagement with
policy makers

2During the reporting year, did your organisation publicly disclose details of your engagement with policy makers
conducted as part of your responsible investment approach, including through external investment managers or service
providers?
☑ (A) We publicly disclosed all our policy positions
Add link(s):https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf☑ (B) We publicly disclosed details of our engagements with policy makers
Add link(s):https://www.keidanren.or.jp/policy/woman/ap09069.html○ (C) No, we did not publicly disclose details of our engagement with policy makers conducted as part of our responsible
investment approach during the reporting year

52

STEWARDSHIP: EXAMPLES
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 40PLUS

OO 8, OO 9N/A

PUBLIC

Stewardship:
Examples2

Provide examples of stewardship activities that you conducted individually or collaboratively during the reporting yearthat contributed to desired changes in the investees, policy makers or other entities with which you interacted.
(A) Example 1:
Title of stewardship activity:
Engagement to redefine the Board of Directors(1) Led by◉ (1) Internally led○ (2) External service provider led○ (3) Led by an external investment manager, real assets third-party operator and/or external property manager(2) Primary focus of stewardship activity☐ (1) Environmental factors☐ (2) Social factors☑ (3) Governance factors(3) Asset class(es)☑ (1) Listed equity☐ (2) Fixed income☐ (3) Private equity☐ (4) Real estate☐ (5) Infrastructure☐ (6) Hedge funds☐ (7) Forestry☐ (8) Farmland☐ (9) Other(4) Description of the activity and what was achieved. For collaborative activities, provide detail on your individual contribution.
We hold an engagement meeting with senior executive officers of the major retail sector company and encouraged them to appoint
outside director to chair the Nomination and Compensation committee and separate oversight and execution of decision – making.
The company took action to address this governance structure and placed all outside directors on the Nomination andCompensation Committee. Outside directors were also appointed as committee chair.

(B) Example 2:
Title of stewardship activity:
Climate Change Engagement(1) Led by◉ (1) Internally led○ (2) External service provider led○ (3) Led by an external investment manager, real assets third-party operator and/or external property manager

53

(2) Primary focus of stewardship activity☑ (1) Environmental factors☐ (2) Social factors☐ (3) Governance factors(3) Asset class(es)☑ (1) Listed equity☐ (2) Fixed income☐ (3) Private equity☐ (4) Real estate☐ (5) Infrastructure☐ (6) Hedge funds☐ (7) Forestry☐ (8) Farmland☐ (9) Other(4) Description of the activity and what was achieved. For collaborative activities, provide detail on your individual contribution.
We hold an engagement meeting with vice president of Petroleum and coal products company and encouraged them to release acarbon neutral plan. Industry peers had announced carbon neutral plans, but the company was lagging in this respect, so quickconsideration was required. The company released a carbon neutral plan. There will still be GHG emissions remaining in 2050, but
the plan is to absorb these emissions with CCS, etc. The company is also considering obtaining SBT certification, which
demonstrates their forward-looking approach towards climate change issues.

(C) Example 3:
Title of stewardship activity:
Diversity Engagement(1) Led by◉ (1) Internally led○ (2) External service provider led○ (3) Led by an external investment manager, real assets third-party operator and/or external property manager(2) Primary focus of stewardship activity☐ (1) Environmental factors☑ (2) Social factors☐ (3) Governance factors(3) Asset class(es)☑ (1) Listed equity☐ (2) Fixed income☐ (3) Private equity☐ (4) Real estate☐ (5) Infrastructure☐ (6) Hedge funds☐ (7) Forestry☐ (8) Farmland☐ (9) Other(4) Description of the activity and what was achieved. For collaborative activities, provide detail on your individual contribution.
We hold an engagement meeting with representative director and president of electrical equipment company and encouraged themto promote the active participation of women. The company has disclosed a target for the ratio of female managers. This
accompanies a specific plan to target and develop talented women, and this plan has been found to be effective.

54

(D) Example 4:
Title of stewardship activity:
Climate Change Engagement(1) Led by◉ (1) Internally led○ (2) External service provider led○ (3) Led by an external investment manager, real assets third-party operator and/or external property manager(2) Primary focus of stewardship activity☑ (1) Environmental factors☐ (2) Social factors☐ (3) Governance factors(3) Asset class(es)☑ (1) Listed equity☐ (2) Fixed income☐ (3) Private equity☐ (4) Real estate☐ (5) Infrastructure☐ (6) Hedge funds☐ (7) Forestry☐ (8) Farmland☐ (9) Other(4) Description of the activity and what was achieved. For collaborative activities, provide detail on your individual contribution.
We engaged with US electric utility company regarding SBT commitment. After extensive engagement with them, and despite themethodological challenges they were facing, the company announced in November 2022 their near –term target commitment.
Through conversations with the company and putting them in touch with the CDP, they were encouraged to hire external consultants
who successfully assisted of engagement for positive impact.

(E) Example 5:
Title of stewardship activity:(1) Led by○ (1) Internally led○ (2) External service provider led○ (3) Led by an external investment manager, real assets third-party operator and/or external property manager(2) Primary focus of stewardship activity☐ (1) Environmental factors☐ (2) Social factors☐ (3) Governance factors(3) Asset class(es)☐ (1) Listed equity☐ (2) Fixed income☐ (3) Private equity☐ (4) Real estate☐ (5) Infrastructure☐ (6) Hedge funds☐ (7) Forestry☐ (8) Farmland☐ (9) Other55

(4) Description of the activity and what was achieved. For collaborative activities, provide detail on your individual contribution.

CLIMATE CHANGE
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 41

CORE

N/A

PGS 41.1

PUBLICClimate change

General

Has your organisation identified climate-related risks and opportunities affecting your investments?
☑ (A) Yes, within our standard planning horizon
Specify the risks and opportunities identified and your relevant standard planning horizon:
We recognize a wide range of short-, medium- and long-term climate-related risks and opportunities. In terms of transition risks, weare closely watching carbon pricing, the stranding of assets, and changes in consumer behaviour and preferences. For physicalrisks, we are focusing on abnormal weather, which is increasing in recent years. Meanwhile, with respect to opportunities, we arepaying close attention to products and services related to renewable energy and energy eff¬ciency and conservation, electricity
storage, hydrogen, ammonia, CCUS, carbon recycling, as well as disaster prevention and mitigation. In addition, in line with our
long-term strategy aiming to realize a decarbonized society, we are focusing on transition fi¬nance to support companies that are
working to reduce GHG emissions. In principle, we do
not divest from (and thereby lose the chance for engagement with) portfolio companies with high levels of GHG emissions. Instead,by continuing to hold on to such companies, we use engagement as a means to encourage these portfolio companies to takemeasures to combat climate change.
In addition to Institutional Shareholder Services’ (ISS) analysis methodology for climate-related risk and opportunities, we arecarefully analyzing the impact that climate-related risks and opportunities have on
our business, strategy, financial plans, and portfolio. This includes our financial analysis and transition risk analysis using internalcarbon price in our ESG scores for Japanese equities.

☐ (B) Yes, beyond our standard planning horizon○ (C) No, we have not identified climate-related risks and/or opportunities affecting our investments
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 41.1

CORE

PGS 41

N/A

PUBLICClimate change

General

Does your organisation integrate climate-related risks and opportunities affecting your investments in its overall
investment strategy, financial planning and (if relevant) products?
◉ (A) Yes, our overall investment strategy, financial planning and (if relevant) products integrate climate-related risks
and opportunities
Describe how climate-related risks and opportunities have affected or are expected to affect your investment strategy, financial
planning and (if relevant) products:

56

We submitted our 2050 Net Zero Goal and 2030 Interim Target to the Net Zero Asset Managers initiative (NZAM) and both wereapproved. In setting our 2030 Interim Target, we used the Science Based Targets initiative for Financial Institutions, which is afinancial institution version of the Science Based Targets (SBT) and one of the methodologies recommended by NZAM, andestablished an SBT portfolio coverage ratio of 55% as our 2030 Interim Target. A 55% SBT portfolio coverage ratio refers to 55% (byweight) of the portfolio companies in our investment portfolio having attained SBT approval. We monitor the ratio of portfolio
companies whose targets have been approved by SBTi (SBT portfolio coverage ratio) as well as the temperature ratings developedby the CDP and the WWF. We are utilizing ISS’s analytical tools to monitor GHG reduction targets of portfolio companies in theinvestment portfolio (including SBT approval)○ (B) No, our organisation has not yet integrated climate-related risks and opportunities into its investment strategy, financial
planning and (if relevant) products
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 42

PLUS

N/A

N/A

PUBLICClimate change

GeneralWhich sectors are covered by your organisation’s strategy addressing high-emitting sectors?
☑ (A) Coal
Describe your strategy:
In line with our long-term strategy aiming to realize a decarbonized society, we are focusing on transition finance to support
companies that are working to reduce GHG emissions. In principle, we do not divest from (and thereby lose the chance forengagement with) portfolio companies with high levels of GHG emissions. Instead, by continuing to hold on to such companies, we
use engagement as a means to encourage these portfolio companies to take measures to combat climate change.

☑ (B) Gas
Describe your strategy:
In line with our long-term strategy aiming to realize a decarbonized society, we are focusing on transition finance to support
companies that are working to reduce GHG emissions. In principle, we do not divest from (and thereby lose the chance forengagement with) portfolio companies with high levels of GHG emissions. Instead, by continuing to hold on to such companies, we
use engagement as a means to encourage these portfolio companies to take measures to combat climate change.

☑ (C) Oil
Describe your strategy:
In line with our long-term strategy aiming to realize a decarbonized society, we are focusing on transition finance to support
companies that are working to reduce GHG emissions. In principle, we do not divest from (and thereby lose the chance forengagement with) portfolio companies with high levels of GHG emissions. Instead, by continuing to hold on to such companies, we
use engagement as a means to encourage these portfolio companies to take measures to combat climate change.

☑ (D) Utilities
Describe your strategy:
In line with our long-term strategy aiming to realize a decarbonized society, we are focusing on transition finance to support
companies that are working to reduce GHG emissions. In principle, we do not divest from (and thereby lose the chance forengagement with) portfolio companies with high levels of GHG emissions. Instead, by continuing to hold on to such companies, we
use engagement as a means to encourage these portfolio companies to take measures to combat climate change.

☑ (E) Cement
Describe your strategy:57

In line with our long-term strategy aiming to realize a decarbonized society, we are focusing on transition finance to support
companies that are working to reduce GHG emissions. In principle, we do not divest from (and thereby lose the chance forengagement with) portfolio companies with high levels of GHG emissions. Instead, by continuing to hold on to such companies, we
use engagement as a means to encourage these portfolio companies to take measures to combat climate change.

☑ (F) Steel
Describe your strategy:
In line with our long-term strategy aiming to realize a decarbonized society, we are focusing on transition finance to support
companies that are working to reduce GHG emissions. In principle, we do not divest from (and thereby lose the chance forengagement with) portfolio companies with high levels of GHG emissions. Instead, by continuing to hold on to such companies, we
use engagement as a means to encourage these portfolio companies to take measures to combat climate change.

☑ (G) Aviation
Describe your strategy:
In line with our long-term strategy aiming to realize a decarbonized society, we are focusing on transition finance to support
companies that are working to reduce GHG emissions. In principle, we do not divest from (and thereby lose the chance forengagement with) portfolio companies with high levels of GHG emissions. Instead, by continuing to hold on to such companies, we
use engagement as a means to encourage these portfolio companies to take measures to combat climate change.

☑ (H) Heavy duty road
Describe your strategy:
In line with our long-term strategy aiming to realize a decarbonized society, we are focusing on transition finance to support
companies that are working to reduce GHG emissions. In principle, we do not divest from (and thereby lose the chance forengagement with) portfolio companies with high levels of GHG emissions. Instead, by continuing to hold on to such companies, we
use engagement as a means to encourage these portfolio companies to take measures to combat climate change.

☑ (I) Light duty road
Describe your strategy:
In line with our long-term strategy aiming to realize a decarbonized society, we are focusing on transition finance to support
companies that are working to reduce GHG emissions. In principle, we do not divest from (and thereby lose the chance forengagement with) portfolio companies with high levels of GHG emissions. Instead, by continuing to hold on to such companies, we
use engagement as a means to encourage these portfolio companies to take measures to combat climate change.

☑ (J) Shipping
Describe your strategy:
In line with our long-term strategy aiming to realize a decarbonized society, we are focusing on transition finance to support
companies that are working to reduce GHG emissions. In principle, we do not divest from (and thereby lose the chance forengagement with) portfolio companies with high levels of GHG emissions. Instead, by continuing to hold on to such companies, we
use engagement as a means to encourage these portfolio companies to take measures to combat climate change.

☑ (K) Aluminium
Describe your strategy
In line with our long-term strategy aiming to realize a decarbonized society, we are focusing on transition finance to support
companies that are working to reduce GHG emissions. In principle, we do not divest from (and thereby lose the chance forengagement with) portfolio companies with high levels of GHG emissions. Instead, by continuing to hold on to such companies, we
use engagement as a means to encourage these portfolio companies to take measures to combat climate change.

☑ (L) Agriculture, forestry, fishery
Describe your strategy:
In line with our long-term strategy aiming to realize a decarbonized society, we are focusing on transition finance to support
companies that are working to reduce GHG emissions. In principle, we do not divest from (and thereby lose the chance forengagement with) portfolio companies with high levels of GHG emissions. Instead, by continuing to hold on to such companies, we
use engagement as a means to encourage these portfolio companies to take measures to combat climate change.

☑ (M) Chemicals

58

Describe your strategy:
In line with our long-term strategy aiming to realize a decarbonized society, we are focusing on transition finance to support
companies that are working to reduce GHG emissions. In principle, we do not divest from (and thereby lose the chance forengagement with) portfolio companies with high levels of GHG emissions. Instead, by continuing to hold on to such companies, we
use engagement as a means to encourage these portfolio companies to take measures to combat climate change.

☑ (N) Construction and buildings
Describe your strategy:
In line with our long-term strategy aiming to realize a decarbonized society, we are focusing on transition finance to support
companies that are working to reduce GHG emissions. In principle, we do not divest from (and thereby lose the chance forengagement with) portfolio companies with high levels of GHG emissions. Instead, by continuing to hold on to such companies, we
use engagement as a means to encourage these portfolio companies to take measures to combat climate change.

☑ (O) Textile and leather
Describe your strategy:
In line with our long-term strategy aiming to realize a decarbonized society, we are focusing on transition finance to support
companies that are working to reduce GHG emissions. In principle, we do not divest from (and thereby lose the chance forengagement with) portfolio companies with high levels of GHG emissions. Instead, by continuing to hold on to such companies, we
use engagement as a means to encourage these portfolio companies to take measures to combat climate change.

☑ (P) Water
Describe your strategy:
In line with our long-term strategy aiming to realize a decarbonized society, we are focusing on transition finance to support
companies that are working to reduce GHG emissions. In principle, we do not divest from (and thereby lose the chance forengagement with) portfolio companies with high levels of GHG emissions. Instead, by continuing to hold on to such companies, we
use engagement as a means to encourage these portfolio companies to take measures to combat climate change.

☐ (Q) Other○ (R) We do not have a strategy addressing high-emitting sectors
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 43

CORE

N/A

N/A

PUBLICClimate change

General

Has your organisation assessed the resilience of its investment strategy in different climate scenarios, including one inwhich the average temperature rise is held to below 2 degrees Celsius (preferably to 1.5 degrees Celsius) above preindustrial levels?
☐ (A) Yes, using the Inevitable Policy Response Forecast Policy Scenario (FPS) or Required Policy Scenario (RPS)☐ (B) Yes, using the One Earth Climate Model scenario☑ (C) Yes, using the International Energy Agency (IEA) Net Zero scenario☐ (D) Yes, using other scenarios○ (E) No, we have not assessed the resilience of our investment strategy in different climate scenarios, including one that holds
temperature rise to below 2 degrees

59IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 44

CORE

N/A

N/A

PUBLICClimate change

General

Does your organisation have a process to identify, assess, and manage the climate-related risks (potentially) affecting
your investments?
☑ (A) Yes, we have a process to identify and assess climate-related risks(1) Describe your process
In addition to Institutional Shareholder Services’ (ISS) analysis methodology for climate-related risk and opportunities, we arecarefully analyzing the impact that climate-related risks and opportunities have on our business, strategy, financial plans, andportfolio. This includes our financial analysis and transition risk analysis using internal carbon price in our ESG scores for Japaneseequities.

(2) Describe how this process is integrated into your overall risk management
The results of climate risk analysis are integrated into the overall risk management process, including being shared within theinvestment & research unit, monitored by the Responsible Investment Committee, and reported to the executive committee andboard of directors.

☑ (B) Yes, we have a process to manage climate-related risks(1) Describe your process
When it comes to a portfolio company’s climate-related risks, instead of looking only at carbon metrics for the company alone, we
believe it is important to discern and analyze carbon metrics throughout the entire life cycle of a company’s products and services aswell as throughout the supply chain. Furthermore, we refer to GHG removal and avoided emissions, etc. in our analysis of climaterelated risks.
We manage portfolio risk using ISS’s analysis methods for transition risk and physical risk. In addition, we identify and manage
portfolio companies’ transition risks and physical risks using our own corporate analysis and ESG scores, as well as throughengagement.
Such risk management analysis outcomes are integrated into the comprehensive risk management process. As such, they areshared within the Investment and Research Unit, and are reported to both the Executive Management Committee and the Board of
Directors after being monitored by the Responsible Investment Committee.

(2) Describe how this process is integrated into your overall risk management
We have established a 2050 Net Zero Goal as well as a 2030 Interim Target. Under the 2050 Net Zero Goal, we will work to achieve
net-zero GHG emissions both from our own business operations as well as for assets under management (our investment portfolio).
Under the 2030 Interim Target, we will work to ensure that, by 2030, 55% of our investment portfolio assets are approved by SBTi.
We will verify and report on our track record with regard to these targets in accordance with the methodology recognized andendorsed by NZAM.

○ (C) No, we do not have any processes to identify, assess, or manage the climate-related risks affecting our investments
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 45

CORE

N/A

N/A

PUBLICClimate change

General60

During the reporting year, which of the following climate risk metrics or variables affecting your investments did yourorganisation use and disclose?
☑ (A) Exposure to physical risk
(1) Indicate whether this metric or variable was used and disclosed, including the methodology○ (1) Metric or variable used
○ (2) Metric or variable used and disclosed◉ (3) Metric or variable used and disclosed, including methodology(2) Provide link to the disclosed metric or variable, including the methodology followed, as applicable
https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf☑ (B) Exposure to transition risk
(1) Indicate whether this metric or variable was used and disclosed, including the methodology○ (1) Metric or variable used
○ (2) Metric or variable used and disclosed◉ (3) Metric or variable used and disclosed, including methodology(2) Provide link to the disclosed metric or variable, including the methodology followed, as applicable
https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf☑ (C) Internal carbon price(1) Indicate whether this metric or variable was used and disclosed, including the methodology○ (1) Metric or variable used
○ (2) Metric or variable used and disclosed◉ (3) Metric or variable used and disclosed, including methodology(2) Provide link to the disclosed metric or variable, including the methodology followed, as applicable
https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf☑ (D) Total carbon emissions(1) Indicate whether this metric or variable was used and disclosed, including the methodology○ (1) Metric or variable used
○ (2) Metric or variable used and disclosed◉ (3) Metric or variable used and disclosed, including methodology(2) Provide link to the disclosed metric or variable, including the methodology followed, as applicable
https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf☑ (E) Weighted average carbon intensity(1) Indicate whether this metric or variable was used and disclosed, including the methodology○ (1) Metric or variable used
○ (2) Metric or variable used and disclosed◉ (3) Metric or variable used and disclosed, including methodology(2) Provide link to the disclosed metric or variable, including the methodology followed, as applicable
https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf☑ (F) Avoided emissions(1) Indicate whether this metric or variable was used and disclosed, including the methodology○ (1) Metric or variable used
○ (2) Metric or variable used and disclosed◉ (3) Metric or variable used and disclosed, including methodology(2) Provide link to the disclosed metric or variable, including the methodology followed, as applicable61https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf☑ (G) Implied Temperature Rise (ITR)(1) Indicate whether this metric or variable was used and disclosed, including the methodology○ (1) Metric or variable used
○ (2) Metric or variable used and disclosed◉ (3) Metric or variable used and disclosed, including methodology(2) Provide link to the disclosed metric or variable, including the methodology followed, as applicable
https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf☐ (H) Non-ITR measure of portfolio alignment with UNFCCC Paris Agreement goals☑ (I) Proportion of assets or other business activities aligned with climate-related opportunities(1) Indicate whether this metric or variable was used and disclosed, including the methodology○ (1) Metric or variable used
○ (2) Metric or variable used and disclosed◉ (3) Metric or variable used and disclosed, including methodology(2) Provide link to the disclosed metric or variable, including the methodology followed, as applicable
https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf☐ (J) Other metrics or variables○ (K) Our organisation did not use or disclose any climate risk metrics or variables affecting our investments during the reportingyear
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 46

CORE

N/A

N/A

PUBLICClimate change

GeneralDuring the reporting year, did your organisation disclose its Scope 1, Scope 2, and/or Scope 3 greenhouse gas
emissions?
☑ (A) Scope 1 emissions(1) Indicate whether this metric was disclosed, including the methodology○ (1) Metric disclosed◉ (2) Metric and methodology disclosed(2) Provide links to the disclosed metric and methodology, as applicable
https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf☑ (B) Scope 2 emissions(1) Indicate whether this metric was disclosed, including the methodology○ (1) Metric disclosed◉ (2) Metric and methodology disclosed(2) Provide links to the disclosed metric and methodology, as applicable
https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf☑ (C) Scope 3 emissions (including financed emissions)(1) Indicate whether this metric was disclosed, including the methodology○ (1) Metric disclosed◉ (2) Metric and methodology disclosed62

(2) Provide links to the disclosed metric and methodology, as applicable
https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf○ (D) Our organisation did not disclose its Scope 1, Scope 2, or Scope 3 greenhouse gas emissions during the reporting year

SUSTAINABILITY OUTCOMES
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 47CORE

N/A

Multiple
indicators

PUBLIC

Sustainability
outcomes1, 2

Has your organisation identified the intended and unintended sustainability outcomes connected to its investment
activities?
◉ (A) Yes, we have identified one or more specific sustainability outcomes connected to our investment activities○ (B) No, we have not yet identified the sustainability outcomes connected to any of our investment activities
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 47.1

CORE

PGS 47

N/A

PUBLIC

Sustainability
outcomes

1, 2Which widely recognised frameworks has your organisation used to identify the intended and unintended sustainability
outcomes connected to its investment activities?
☑ (A) The UN Sustainable Development Goals (SDGs) and targets☑ (B) The UNFCCC Paris Agreement☑ (C) The UN Guiding Principles on Business and Human Rights (UNGPs)☑ (D) OECD frameworks: OECD Guidelines for Multinational Enterprises and Guidance on Responsible BusinessConduct for Institutional Investors☐ (E) The EU Taxonomy☐ (F) Other relevant taxonomies☐ (G) The International Bill of Human Rights☐ (H) The International Labour Organization’s Declaration on Fundamental Principles and Rights at Work and the eight core
conventions☑ (I) The Convention on Biological Diversity☐ (J) Other international framework(s)☐ (K) Other regional framework(s)☐ (L) Other sectoral/issue-specific framework(s)○ (M) Our organisation did not use any widely recognised frameworks to identify the intended and unintended sustainability
outcomes connected to its investment activities

63

IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 47.2

CORE

PGS 47

PGS 48

PUBLIC

Sustainability
outcomes

1, 2What are the primary methods that your organisation has used to determine the most important intended and unintended
sustainability outcomes connected to its investment activities?
☑ (A) Identify sustainability outcomes that are closely linked to our core investment activities☑ (B) Consult with key clients and/or beneficiaries to align with their priorities☑ (C) Assess which actual or potential negative outcomes for people are most severe based on their scale, scope, andirremediable character☑ (D) Identify sustainability outcomes that are closely linked to systematic sustainability issues☐ (E) Analyse the input from different stakeholders (e.g. affected communities, civil society, trade unions or similar)☐ (F) Understand the geographical relevance of specific sustainability outcome objectives☐ (G) Other method○ (H) We have not yet determined the most important sustainability outcomes connected to our investment activities
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 48

CORE

PGS 47.2

PGS 48.1,
SO 1

PUBLIC

Sustainability
outcomes1, 2

Has your organisation taken action on any specific sustainability outcomes connected to its investment activities,
including to prevent and mitigate actual and potential negative outcomes?
◉ (A) Yes, we have taken action on some of the specific sustainability outcomes connected to our investment activities○ (B) No, we have not yet taken action on any specific sustainability outcomes connected to our investment activities
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 48.1

PLUS

PGS 48N/A

PUBLIC

Sustainability
outcomes

1, 2

Why has your organisation taken action on specific sustainability outcomes connected to its investment activities?
☑ (A) We believe that taking action on sustainability outcomes is relevant to our financial risks and returns over both
short- and long-term horizons☐ (B) We believe that taking action on sustainability outcomes, although not yet relevant to our financial risks and returns, will
become so over a long-time horizon☐ (C) We have been requested to do so by our clients and/or beneficiaries64☐ (D) We want to prepare for and respond to legal and regulatory developments that are increasingly addressing sustainability
outcomes☐ (E) We want to protect our reputation, particularly in the event of negative sustainability outcomes connected to investments☐ (F) We want to enhance our social licence-to-operate (i.e. the trust of beneficiaries, clients, and other stakeholders)☐ (G) We believe that taking action on sustainability outcomes in parallel to financial return goals has merit in its own right☐ (H) OtherHUMAN RIGHTS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 49PLUS

PGS 47

PGS 49.1

PUBLIC

Human rights

1, 2

During the reporting year, what steps did your organisation take to identify and take action on the actual and potentiallynegative outcomes for people connected to your investment activities?
☑ (A) We assessed the human rights context of our potential and/or existing investments and projected how this could
connect our organisation to negative human rights outcomes
Explain how these activities were conducted:
After the Juukan Gorge incident, we engaged with the Australian mining company about their remedy agreement for the destructionof the Juukan Gorge and financial support for Aboriginal cultural projects.

☐ (B) We assessed whether individuals at risk or already affected might be at heightened risk of harm
☐ (C) We consulted with individuals and groups who were at risk or already affected, their representatives and/or other relevant
stakeholders such as human rights experts☐ (D) We took other steps to assess and manage the actual and potentially negative outcomes for people connected to ourinvestment activities○ (E) We did not identify and take action on the actual and potentially negative outcomes for people connected to any of ourinvestment activities during the reporting year
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 49.1

PLUS

PGS 49N/A

PUBLIC

Human rights

1, 2

During the reporting year, which stakeholder groups did your organisation include when identifying and taking action on
the actual and potentially negative outcomes for people connected to your investment activities?
☐ (A) Workers☑ (B) Communities
Sector(s) for which each stakeholder group was included☐ (1) Energy☑ (2) Materials☐ (3) Industrials☐ (4) Consumer discretionary☐ (5) Consumer staples☐ (6) Healthcare☐ (7) Finance☐ (8) Information technology☐ (9) Communication services☐ (10) Utilities☐ (11) Real estate65☐ (C) Customers and end-users☐ (D) Other stakeholder groups
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 49.2

PLUS

PGS 47

N/A

PUBLIC

Human rights

1, 2

During the reporting year, what information sources did your organisation use to identify the actual and potentiallynegative outcomes for people connected to its investment activities?
☑ (A) Corporate disclosures
Provide further detail on how your organisation used these information sources:☑ (B) Media reports
Provide further detail on how your organisation used these information sources:☐ (C) Reports and other information from NGOs and human rights institutions☐ (D) Country reports, for example, by multilateral institutions, e.g. OECD, World Bank☐ (E) Data provider scores or benchmarks☐ (F) Human rights violation alerts☐ (G) Sell-side research☐ (H) Investor networks or other investors☐ (I) Information provided directly by affected stakeholders or their representatives☐ (J) Social media analysis☐ (K) Other
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 50PLUS

PGS 47

N/A

PUBLIC

Human rights

1, 2

During the reporting year, did your organisation, directly or through influence over investees, enable access to remedy forpeople affected by negative human rights outcomes connected to your investment activities?
☑ (A) Yes, we enabled access to remedy directly for people affected by negative human rights outcomes we caused orcontributed to through our investment activities
Describe:
The company created the Juukan Gorge Legacy Foundation as part of a remedy agreement for the destruction of the Juukan Gorge
and financial support for Aboriginal cultural projects. The company have strengthened heritage management and social performance
governance, capacity and capability to better integrate mine-based practitioners into mine operations, risk management, mineplanning and closure.

☐ (B) Yes, we used our influence to ensure that our investees provided access to remedies for people affected by negative
human rights outcomes we were linked to through our investment activities○ (C) No, we did not enable access to remedy directly, or through the use of influence over investees, for people affected bynegative human rights outcomes connected to our investment activities during the reporting year

66

MANAGER SELECTION, APPOINTMENT AND
MONITORING (SAM)
OVERALL APPROACH
EXTERNAL INVESTMENT MANAGERS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

SAM 1

CORE

OO 21

N/A

PUBLIC

External investment
managers

4

For the majority of your externally managed AUM in each asset class, which responsible investment aspects does yourorganisation consider important in the assessment of external investment managers?
(1) Listed equity (active)(3) Fixed income (active)(A) Commitment to and experience
in responsible investment☑

☑

(B) Responsible investment
policy(ies)☑

☑

(C) Governance structure andsenior-level oversight andaccountability☑

☑

(D) Adequate resourcing andincentives☑

☑

(E) Staff competencies andexperience in responsible
investment☑

☑

Organisation

People and Culture

Investment Process

67

(F) Incorporation of material ESG
factors in the investment process☑

☑

(G) Incorporation of risks
connected to systematicsustainability issues in theinvestment process☑

☑

(H) Incorporation of material ESG
factors and ESG risks connected
to systematic sustainability issues
in portfolio risk assessment☑

☑

(I) Policy(ies) or guidelines on
stewardship☑

☑

(J) Policy(ies) or guidelines on(proxy) voting☑

☑

(K) Use of stewardship tools andactivities☑

☑

(L) Incorporation of risks
connected to systematicsustainability issues in stewardshippractices☑

☑

(M) Involvement in collaborative
engagement and stewardshipinitiatives☑

☑

(N) Engagement with policy
makers and other non-investee
stakeholders☑

☑

(O) Results of stewardship
activities

☑

☑

☑

☑

Stewardship

Performance and Reporting(P) ESG disclosure in regular client
reporting68

(Q) Inclusion of ESG factors incontractual agreements☐☐(R) We do not consider any of theabove responsible investment
aspects important in theassessment of external investment
managers○○

SERVICE PROVIDERS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

SAM 2

CORE

OO 21

N/A

PUBLIC

Service providers

4

Which responsible investment aspects does your organisation consider important when assessing all service providers
that advise you in the selection, appointment and/or monitoring of external investment managers?
☑ (A) Incorporation of their responsible investment policy into advisory services☑ (B) Ability to accommodate our responsible investment policy☑ (C) Level of staff’s responsible investment expertise☑ (D) Use of data and analytical tools to assess the external investment manager’s responsible investment performance☐ (E) Other○ (F) We do not consider any of the above responsible investment aspects important when assessing service providers thatadvise us in the selection, appointment and/or monitoring of external investment managers○ (G) Not applicable; we do not engage service providers in the selection, appointment or monitoring of external investment
managers

SELECTIONRESPONSIBLE INVESTMENT PRACTICES
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

SAM 4

CORE

OO 12, OO 21

SAM 5, SAM
6, SAM 7

PUBLIC

Responsible
investment
practices

GeneralDuring the reporting year, did your organisation select new external investment managers or allocate new mandates toexisting investment managers?
◉ (A) Yes, we selected external investment managers or allocated new mandates to existing investment managers
during the reporting year
○ (B) No, we did not select new external investment managers or allocate new mandates to existing investment managers during
the reporting year69

○ (C) Not applicable; our organisation is in a captive relationship with external investment managers, which applies to 90% ormore of our AUM
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

SAM 5

CORE

SAM 4

N/A

PUBLIC

Responsible
investment practices

4

During the reporting year, what responsible investment aspects did your organisation, or the service provider acting on
your behalf, review and evaluate when selecting new external investment managers or allocating new mandates toexisting investment managers?
Organisation☑ (A) Commitment to and experience in responsible investment (e.g. commitment to responsible investment principles
and standards)
Select from dropdown list
◉ (1) for all of our mandates○ (2) for a majority of our mandates○ (3) for a minority of our mandates☑ (B) Responsible investment policy(ies) (e.g. the alignment of their responsible investment policy with the investment
mandate)Select from dropdown list
◉ (1) for all of our mandates○ (2) for a majority of our mandates○ (3) for a minority of our mandates☐ (C) Governance structure and senior-level oversight and accountability (e.g. the adequacy of their governance structure andreported conflicts of interest)
People and Culture☑ (D) Adequate resourcing and incentives (e.g. their team structures, operating model and remuneration structure,including alignment of interests)
Select from dropdown list
◉ (1) for all of our mandates○ (2) for a majority of our mandates○ (3) for a minority of our mandates☑ (E) Staff competencies and experience in responsible investment (e.g. level of responsible investment responsibilities
in their investment team, their responsible investment training and capacity building)Select from dropdown list
◉ (1) for all of our mandates○ (2) for a majority of our mandates○ (3) for a minority of our mandates
Investment Process☑ (F) Incorporation of material ESG factors in the investment process (e.g. detail and evidence of how such factors areincorporated into the selection of individual assets and in portfolio construction)
Select from dropdown list
◉ (1) for all of our mandates○ (2) for a majority of our mandates○ (3) for a minority of our mandates70☐ (G) Incorporation of risks connected to systematic sustainability issues in the investment process (e.g. detail and evidence of
how such risks are incorporated into the selection of individual assets and in portfolio construction)☑ (H) Incorporation of material ESG factors and ESG risks connected to systematic sustainability issues in portfolio risk
assessment (e.g. their process to measure and report such risks)
Select from dropdown list
○ (1) for all of our mandates○ (2) for a majority of our mandates◉ (3) for a minority of our mandates
Performance and Reporting☑ (I) ESG disclosure in regular client reporting
Select from dropdown list
○ (1) for all of our mandates○ (2) for a majority of our mandates◉ (3) for a minority of our mandates☐ (J) Inclusion of ESG factors in contractual agreements○ (K) We did not review and evaluate any of the above responsible investment aspects when selecting new external investment
managers or allocating new mandates to existing investment managers during the reporting year

STEWARDSHIP
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

SAM 6

CORE

OO 8, SAM 4

N/A

PUBLIC

Stewardship

4

During the reporting year, which aspects of the stewardship approach did your organisation, or the service provider
acting on your behalf, review and evaluate when selecting new external investment managers or allocating new mandates
to existing investment managers?
☑ (A) The alignment of their policy(ies) or guidelines on stewardship with the investment mandate
Select from dropdown list
◉ (1) for all of our mandates○ (2) for a majority of our mandates○ (3) for a minority of our mandates☑ (B) Evidence of how they implemented their stewardship objectives, including the effectiveness of their activities
Select from dropdown list
◉ (1) for all of our mandates○ (2) for a majority of our mandates○ (3) for a minority of our mandates☑ (C) Their participation in collaborative engagements and stewardship initiatives
Select from dropdown list
○ (1) for all of our mandates○ (2) for a majority of our mandates◉ (3) for a minority of our mandates☑ (D) Details of their engagements with companies or issuers on risks connected to systematic sustainability issues
Select from dropdown list
○ (1) for all of our mandates○ (2) for a majority of our mandates◉ (3) for a minority of our mandates☑ (E) Details of their engagement activities with policy makers

71Select from dropdown list
○ (1) for all of our mandates○ (2) for a majority of our mandates◉ (3) for a minority of our mandates☑ (F) Their escalation process and the escalation tools included in their policy on stewardship
Select from dropdown list
○ (1) for all of our mandates○ (2) for a majority of our mandates◉ (3) for a minority of our mandates○ (G) We did not review and evaluate any of the above aspects of the stewardship approach when selecting new external
investment managers or allocating new mandates to existing investment managers during the reporting year
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

SAM 7

CORE

OO 9, SAM 4

N/A

PUBLIC

Stewardship

4

During the reporting year, which aspects of (proxy) voting did your organisation, or the service provider acting on yourbehalf, review and evaluate when selecting new external investment managers or allocating new mandates to existing
investment managers?
☑ (A) The alignment of their policy(ies) or guidelines on (proxy) voting with the investment mandate
Select from dropdown list
◉ (1) for all of our mandates○ (2) for a majority of our mandates○ (3) for a minority of our mandates☑ (B) Historical information on the number or percentage of general meetings at which they voted
Select from dropdown list
○ (1) for all of our mandates○ (2) for a majority of our mandates◉ (3) for a minority of our mandates☑ (C) Analysis of votes cast for and against
Select from dropdown list
○ (1) for all of our mandates○ (2) for a majority of our mandates◉ (3) for a minority of our mandates☑ (D) Analysis of votes cast for and against resolutions related to risks connected to systematic sustainability issues
Select from dropdown list
○ (1) for all of our mandates○ (2) for a majority of our mandates◉ (3) for a minority of our mandates☑ (E) Details of their position on any controversial and high-profile votes
Select from dropdown list
○ (1) for all of our mandates○ (2) for a majority of our mandates◉ (3) for a minority of our mandates☑ (F) Historical information of any resolutions on which they voted contrary to their own voting policy and the reasons
why72Select from dropdown list
○ (1) for all of our mandates○ (2) for a majority of our mandates◉ (3) for a minority of our mandates☐ (G) Details of all votes involving companies where the external investment manager or an affiliate has a contractual
relationship or another potential conflict of interest○ (H) We did not review and evaluate any of the above aspects of (proxy) voting when selecting new external investment
managers or allocating new mandates to existing investment managers during the reporting year
○ (I) Not applicable; our organisation did not select new external investment managers or allocated new mandates to existing
investment managers for listed equity and/or hedge funds that hold equity.

APPOINTMENTSEGREGATED MANDATES
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

SAM 8

CORE

OO 5.2, OO
13N/A

PUBLIC

Segregatedmandates

4

Which responsible investment aspects do your organisation, or the service provider acting on your behalf, explicitly
include in clauses within your contractual agreements with your external investment managers for segregated mandates?
☑ (A) Their commitment to following our responsible investment strategy in the management of our assets
Select from dropdown list
○ (1) for all of our segregated mandates◉ (2) for a majority of our segregated mandates○ (3) for a minority of our segregated mandates☑ (B) Their commitment to incorporating material ESG factors into their investment activities
Select from dropdown list
○ (1) for all of our segregated mandates◉ (2) for a majority of our segregated mandates○ (3) for a minority of our segregated mandates☑ (C) Their commitment to incorporating material ESG factors into their stewardship activities
Select from dropdown list
○ (1) for all of our segregated mandates◉ (2) for a majority of our segregated mandates○ (3) for a minority of our segregated mandates☐ (D) Their commitment to incorporating risks connected to systematic sustainability issues into their investment activities☐ (E) Their commitment to incorporating risks connected to systematic sustainability issues into their stewardship activities☐ (F) Exclusion list(s) or criteria☑ (G) Responsible investment communications and reporting obligations, including stewardship activities and results
Select from dropdown list
○ (1) for all of our segregated mandates◉ (2) for a majority of our segregated mandates○ (3) for a minority of our segregated mandates☑ (H) Incentives and controls to ensure alignment of interests

73Select from dropdown list
○ (1) for all of our segregated mandates◉ (2) for a majority of our segregated mandates○ (3) for a minority of our segregated mandates☐ (I) Commitments on climate-related disclosure in line with internationally-recognised frameworks such as the TCFD
☐ (J) Commitment to respect human rights as defined in the OECD Guidelines for Multinational Enterprises and the UN Guiding
Principles on Business and Human Rights☑ (K) Their acknowledgement that their appointment is conditional on the fulfilment of their agreed responsible
investment commitments
Select from dropdown list
○ (1) for all of our segregated mandates◉ (2) for a majority of our segregated mandates○ (3) for a minority of our segregated mandates☐ (L) Other○ (M) We do not include responsible investment aspects in clauses within our contractual agreements with external investment
managers for segregated mandates

MONITORINGRESPONSIBLE INVESTMENT PRACTICES
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

SAM 9

CORE

OO 14, OO 21

N/A

PUBLIC

Responsible
investment practices

4

For the majority of your externally managed AUM in each asset class, which aspects of your external investment
managers’ responsible investment practices did your organisation, or the service provider acting on your behalf, monitor
during the reporting year?
(1) Listed equity (active)(3) Fixed income (active)(A) Commitment to and experience
in responsible investment (e.g.
commitment to responsible
investment principles andstandards)☑

☑

(B) Responsible investment
policy(ies) (e.g. the continuedalignment of their responsible
investment policy with theinvestment mandate)☑

☑

Organisation

74

(C) Governance structure andsenior level oversight andaccountability (e.g. the adequacyof their governance structure andreported conflicts of interest)☑

☑

(D) Adequate resourcing andincentives (e.g. their teamstructures, operating model andremuneration structure, includingalignment of interests)☑

☑

(E) Staff competencies andexperience in responsible
investment (e.g. level of
responsible investment
responsibilities in their investment
team, their responsible investment
training and capacity building)☑

☑

(F) Incorporation of material ESG
factors in the investment process(e.g. detail and evidence of how
such factors are incorporated into
the selection of individual assets
and in portfolio construction)☑

☑

(G) Incorporation of risks
connected to systematicsustainability issues in theinvestment process (e.g. detail andevidence of how such risks areincorporated into the selection ofindividual assets and in portfolio
construction)☑

☑

People and Culture

Investment Process75

(H) Incorporation of material ESG
factors and ESG risks connected
to systematic sustainability issues
in portfolio risk assessment (e.g.
their process to measure andreport such risks, their response to
ESG incidents)☑

☑

(I) ESG disclosure in regular client
reporting (e.g. any changes in theirregular client reporting)☑

☑

(J) Inclusion of ESG factors incontractual agreements☐☐(K) We did not monitor any of theabove aspects of our external
investment managers’ responsible
investment practices during thereporting year○○

Performance and Reporting

Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

SAM 12CORE

OO 14, OO 21

N/A

PUBLIC

Responsible
investment practices

1

For the majority of your externally managed AUM in each asset class, how often does your organisation, or the service
provider acting on your behalf, monitor your external investment managers’ responsible investment practices?
(1) Listed equity (active)(3) Fixed income (active)(A) At least annually☑

☑

(B) Less than once a year☐☐(C) On an ad hoc basis

☑

☑

76

STEWARDSHIP
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

SAM 13CORE

OO 8, OO 21

N/A

PUBLIC

Stewardship1, 2

For the majority of your externally managed AUM in each asset class, which aspects of your external investment
managers’ stewardship practices did your organisation, or the service provider acting on your behalf, monitor during thereporting year?
(1) Listed equity (active)(3) Fixed income (active)(A) Any changes in their policy(ies)or guidelines on stewardship☑

☑

(B) The degree of implementationof their policy(ies) or guidelines on
stewardship☑

☑

(C) How they prioritise material
ESG factors☑

☑

(D) How they prioritise risks
connected to systematicsustainability issues☑

☑

(E) Their investment team's levelof involvement in stewardship
activities☑

☑

(F) Whether the results ofstewardship actions were fed backinto the investment process anddecisions☐☐(G) Whether they used a variety of
stewardship tools and activities toadvance their stewardshippriorities☐☐(H) The deployment of theirescalation process in cases where
initial stewardship efforts were
unsuccessful

☑

☑

77

(I) Whether they participated incollaborative engagements andstewardship initiatives☑

☑

(J) Whether they had an active rolein collaborative engagements andstewardship initiatives☑

☑

(K) Other☐☐(L) We did not monitor our external
investment managers’ stewardshippractices during the reporting year○○

Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

SAM 14CORE

OO 9, OO 21

N/A

PUBLIC

Stewardship1, 2

For the majority of your AUM in each asset class where (proxy) voting is delegated to external investment managers,which aspects of your external investment managers’ (proxy) voting practices did your organisation, or the service
provider acting on your behalf, monitor during the reporting year?
(1) Listed equity (active)(A) Any changes in their policy(ies)or guidelines on (proxy) voting☑

(B) Whether their (proxy) voting
decisions were consistent with
their stewardship priorities asstated in their policy and with theirvoting policy, principles and/or
guidelines☑

(C) Whether their (proxy) voting
decisions were consistent with
their stated approach on theprioritisation of risks connected tosystematic sustainability issues☐

78

(D) Whether their (proxy) voting
track record was aligned with ourstewardship approach andexpectations☑

(E) The application of their policy
on securities lending and any
implications for implementing theirpolicy(ies) or guidelines on (proxy)
voting (where applicable)☐(F) Other☐(G) We did not monitor our
external investment managers’(proxy) voting practices during thereporting year○

ENGAGEMENT AND ESCALATION
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

SAM 16CORE

OO 14, OO 21

N/A

PUBLICEngagement andescalation

4

What actions does your organisation, or the service provider acting on your behalf, include in its formal escalation
process to address concerns raised during monitoring of your external investment managers’ responsible investment
practices?
(1) Listed equity (active)(3) Fixed income (active)(A) Engagement with theirinvestment professionals,
investment committee or otherrepresentatives☑

☑

(B) Notification about theirplacement on a watch list or
relationship coming under review

☑

☑

79

(C) Reduction of capital allocation
to the external investment
managers until any concerns havebeen rectified☐☐(D) Termination of the contract if
failings persist over a (notified)period, including an explanation of
the reasons for termination☑

☑

(E) Holding off selecting theexternal investment managers for
new mandates or allocating
additional capital until any
concerns have been rectified☐☐(F) Other☐☐(G) Our organisation does nothave a formal escalation process
to address concerns raised during
monitoring○○

VERIFICATION
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

SAM 17CORE

OO 14, OO 21

N/A

PUBLIC

Verification

1

For the majority of your externally managed AUM in each asset class, how did your organisation, or the service provider
acting on your behalf, verify that the information reported by external investment managers on their responsible
investment practices was correct during the reporting year?

80(1) Listed equity (active)(3) Fixed income (active)(A) We checked that the
information reported was verified
through a third-party assurance
process☑

☑

(B) We checked that the
information reported was verified
by an independent third party☑

☑

(C) We checked for evidence ofinternal monitoring or compliance☑

☑

(D) Other☐☐(E) We did not verify the
information reported by external
investment managers on their
responsible investment practices
during the reporting year○○

LISTED EQUITY (LE)OVERALL APPROACH
MATERIALITY ANALYSIS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

LE 1

CORE

OO 21

N/A

PUBLIC

Materiality analysis

1

Does your organisation have a formal investment process to identify and incorporate material ESG factors across yourlisted equity strategies?

81(1) Passive equity(2) Active - quantitative(3) Active - fundamental(A) Yes, our investment processincorporates material governancefactors(1) for all of our AUM(1) for all of our AUM(1) for all of our AUM(B) Yes, our investment processincorporates material
environmental and social factors(1) for all of our AUM(1) for all of our AUM(1) for all of our AUM(C) Yes, our investment processincorporates material ESG factors
beyond our organisation's average
investment holding period(1) for all of our AUM(1) for all of our AUM(1) for all of our AUM(D) No, we do not have a formal
process. Our investment
professionals identify material ESG
factors at their discretion

○

○

○

(E) No, we do not have a formal orinformal process to identify andincorporate material ESG factors

○

○

○

MONITORING ESG TRENDS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

LE 2

CORE

OO 21

N/A

PUBLIC

Monitoring ESG
trends1

Does your organisation have a formal process for monitoring and reviewing the implications of changing ESG trends
across your listed equity strategies?

82

(1) Passive equity(2) Active - quantitative(3) Active - fundamental(1) for all of our AUM(1) for all of our AUM(1) for all of our AUM(C) We do not have a formal
process for our listed equity
strategies; our investment
professionals monitor how ESG
trends vary over time at theirdiscretion

○

○

○

(D) We do not monitor and review
the implications of changing ESG
trends on our listed equity
strategies

○

○

○

(A) Yes, we have a formal processthat includes scenario analyses(B) Yes, we have a formal process,but it does not include scenario
analyses(A) Yes, we have a formal process that includes scenario analysis - Specify: (Voluntary)
The Responsible Investment Committee, the highest decision-making body for responsible investment, reviews the status of ESG initiativesof investee companies, including Japan, and global ESG trends, and periodically reviews the engagement policies and voting standards forinvestee companies. In recent years, we have recognized a wide range of ESG issues, including not only climate change issues andcorporate governance, but also natural capital, biodiversity, human rights, human capital, diversity and wellbeing, as key issues, and havereflected them in our basic policy on responsible investment and our engagement policy.

PRE-INVESTMENTESG INCORPORATION IN RESEARCH
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

LE 3

CORE

OO 21

N/A

PUBLICESG incorporation in
research

1

How does your financial analysis and equity valuation or security rating process incorporate material ESG risks?

83

(1) Active - quantitative(2) Active - fundamental(A) We incorporate material
governance-related risks into ourfinancial analysis and equity
valuation or security rating process(1) in all cases(1) in all cases(B) We incorporate material
environmental and social risks into
our financial analysis and equity
valuation or security rating process(1) in all cases(1) in all cases(C) We incorporate material
environmental and social risks
related to companies' supply
chains into our financial analysis
and equity valuation or security
rating process(1) in all cases(1) in all cases(D) We do not incorporate material
ESG risks into our financial
analysis, equity valuation or
security rating processes○○

Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

LE 4

CORE

OO 21

N/A

PUBLICESG incorporation in
research

1

What information do you incorporate when you assess the ESG performance of companies in your financial analysis,benchmark selection and/or portfolio construction process?

84

(1) Passive equity(2) Active - quantitative(3) Active - fundamental(A) We incorporate qualitative
and/or quantitative information on
current performance across a
range of material ESG factors(1) in all cases(1) in all cases(1) in all cases(B) We incorporate qualitative
and/or quantitative information on
historical performance across a
range of material ESG factors(1) in all cases(1) in all cases(1) in all cases(C) We incorporate qualitative
and/or quantitative information onmaterial ESG factors that may
impact or influence future
corporate revenues and/or
profitability(1) in all cases(1) in all cases(1) in all cases(D) We incorporate qualitative
and/or quantitative information
enabling current, historical and/or
future performance comparison
within a selected peer groupacross a range of material ESG
factors(1) in all cases(1) in all cases(1) in all cases(E) We do not incorporate
qualitative or quantitative
information on material ESG
factors when assessing the ESG
performance of companies in our
financial analysis, equity
investment or portfolio construction
process

○

○

○

85

ESG INCORPORATION IN PORTFOLIO CONSTRUCTION
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

LE 5

PLUS

OO 21

N/A

PUBLICESG incorporation in
portfolio construction

1

Provide an example of how you incorporated ESG factors into your equity selection and research process during thereporting year.
We utilize proprietary ESG evaluations of portfolio companies when making investment decisions. In order to effectively incorporate ESG
considerations and other non-financial information into the investment process to supplement the analysis of a company’s fundamentals, we
conduct our own ESG assessment for both equity investing and fixed income investing.
Our analysts and ESG specialists collaborate to independently calculate and utilize the ESG Score, which evaluates the ESG capabilities ofJapanese companies. By researching, analyzing, and scoring the non-financial information of investee companies, we are able to measurecorporate value in consideration of ESG, which we believe will lead to the improvement of added value in investment management.
Our ESG score is composed of environmental, social, governance, and SDGs. There are a total of approximately 100 evaluation items, witha good balance between risks and opportunities. In addition, in order to take into account the characteristics of each company's industry,materiality (important management issues) has been introduced to reflect differences in industry characteristics. Furthermore, the evaluation
axes of "opportunities" and "risks" have been clearly defined. The "opportunities" category evaluates the management's vision andcommitment with respect to ESG issues (ability to explain, plan, and execute initiatives, as well as past achievement), along with the future
growth potential of companies that contribute to the achievement of SDGs, as well as the management resources that contribute to this.
Meanwhile, for risks, our evaluations emphasize items that can be quantitatively analysed, such as whether or not a company has provided
disclosure and/or obtained certification, as well as the data disclosed and trends for such data. Furthermore, in order to take unique sector
characteristics and other factors into consideration, we use materiality to reflect the differences in the unique characteristics of each sector
into our evaluations.

86

As for contents by each major item, in the "environment" category, we look at whether a company is managing transition risks and physicalrisks related to climate change and incorporating such risks into its business strategy. We also look at whether the company’s management
has expressed a commitment to the environment. With respect to matters such as the TCFD, we analyze and evaluate based on acompany’s integrated report and materials posted on its website. With respect to evaluating natural capital and other environmental
assessments, we evaluate items such as those related to waste management, conservation of river and marine resources, and biodiversity(including preventing marine pollution).
The "society" category is divided into internal and external risks and responses. The former relates to the evaluation of human rights of
employees and the utilization of human capital, while the latter relates to issues surrounding the quality of products and services as well as
supply chain management. Recently, much attention around the world has been given to human rights initiatives. For Japanese companies
in particular, we emphasize the evaluation of supply chain management at business sites both in Japan and overseas. In the area ofgovernance, there are several evaluation items to check the formality, such as the composition of the board of directors, the independenceof outside directors, and the establishment of committees for nomination and compensation. On the other hand, there are also qualitativeevaluation items such as dialogue with top management and succession planning, which reflect the strengths of our analysts who havebeen deeply researching and analyzing companies for many years. For SDGs, we proactively evaluate whether companies areappropriately incorporating solutions to the issues identified in the SDGs into their management strategies, viewing them as business
opportunities. In doing so, the evaluation is not simply based on the existence of businesses that can contribute to the achievement of eachgoal, but also on the existence of superior human and technological resources that can differentiate the company from its competitors, aswell as the projected sales mix of businesses that can contribute to achieving the SDG goals.

Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

LE 6

CORE

OO 21

N/A

PUBLICESG incorporation in
portfolio construction

1

How do material ESG factors contribute to your stock selection, portfolio construction and/or benchmark selection
process?

87

(1) Passive equity(2) Active - quantitative(3) Active - fundamental(A) Material ESG factors contributeto the selection of individual assets
and/or sector weightings within our
portfolio construction and/or
benchmark selection process(1) for all of our AUM(1) for all of our AUM(1) for all of our AUM(B) Material ESG factors contributeto the portfolio weighting ofindividual assets within our
portfolio construction and/or
benchmark selection process(1) for all of our AUM(1) for all of our AUM(1) for all of our AUM(C) Material ESG factors contributeto the country or region weightingof assets within our portfolio
construction and/or benchmark
selection process(1) for all of our AUM(1) for all of our AUM(1) for all of our AUM

○

○

○

(D) Other ways material ESG
factors contribute to your portfolio
construction and/or benchmark
selection process(E) Our stock selection, portfolio
construction or benchmark
selection process does not include
the incorporation of material ESG
factors

88

PASSIVE INVESTMENTS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

LE 7

PLUS

OO 21

N/A

PUBLIC

Passive investments

1

Provide an example of how material ESG factors influenced weightings and tilts in the design of your passively managed
funds.
ESG Product Governance for Index Funds] We are working to expand ESG investment solutions by providing individual and institutional
investors with funds that track ESG indices. We are also endeavouring to improve the quality of these ESG index funds by reviewing the
ESG profiles of the adopted benchmark indices and bolstering communication with index providers.
Reasons for Selecting ESG indices]In selecting ESG indices, we examine whether an index’ methodology aligns with solving the particular
ESG issues that index seeks to address, whether the index will provide an effective solution for beneficiaries, as well as compare it tosimilar indices to determine if it is superior to them. In addition to qualitative considerations, we also look at quantitative assessments of the
ESG profiles of ESG indices prior to selecting them.
Due Diligence on ESG Index Providers] We regularly interview index providers to check on matters including the status of their efforts toensure index quality and secure the transparency of ESG evaluations. Based on the results of these interviews, we evaluate index providers
in cooperation with the Investment Department, the Responsible Investment Department and other relevant departments, and report theresults to the ESG Committee. Through the evaluation of ESG providers, we learn about the relative strengths and issues for each provider.
Also, we consult with the index providers and request improvements, as necessary.
Communication with ESG index Providers] We regularly communicate with ESG index providers regarding matters such as whether their
ESG indices are maintaining methodologies aligned with addressing ESG issues, as well as whether they are appropriately reflecting
market structural changes in their indices. In addition, in response to consultations about ESG indices, we communicate our opinions,request improvements, or urge them to enhance index quality, as needed.

Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

LE 8

PLUS

OO 19, OO 21

N/A

PUBLIC

Passive investments

1

How does your organisation select the ESG index(es) or benchmark(s) for your passive listed equity assets?
☑ (A) We commission customised indexes
Explain:☑ (B) We compare the methodology amongst the index providers available
Explain:We regularly interview index providers to check on matters including the status of their efforts to ensure index quality and secure thetransparency of ESG evaluations. Based on the results of these interviews, we evaluate index providers in cooperation with theInvestment Department, the Responsible Investment Department and other relevant departments, and report the results to the ESG
Committee.

☑ (C) We compare the costs of different options available in the market
Explain:Through the evaluation of ESG providers, we learn about the relative strengths and issues for each provider. Also, we consult with
the index providers and request improvements, as necessary.

☐ (D) Other

89

POST-INVESTMENTESG RISK MANAGEMENT
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

LE 9

CORE

OO 17.1 LE, OO
21N/A

PUBLICESG riskmanagement

1

What compliance processes do you have in place to ensure that your listed equity assets subject to negative exclusionary
screens meet the screening criteria?
☑ (A) We have internal compliance procedures that ensure all funds or portfolios that are subject to negative
exclusionary screening have pre-trade checks☑ (B) We have an external committee that oversees the screening implementation process for all funds or portfolios thatare subject to negative exclusionary screening☑ (C) We have an independent internal committee that oversees the screening implementation process for all funds or
portfolios that are subject to negative exclusionary screening○ (D) We do not have compliance processes in place to ensure that we meet our stated negative exclusionary screens
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

LE 10

CORE

OO 21

N/A

PUBLICESG riskmanagement1

For the majority of your listed equity assets, do you have a formal process to identify and incorporate material ESG risks
and ESG incidents into your risk management process?

90

(1) Active - quantitative(2) Active - fundamental(A) Yes, our formal processincludes reviews of quantitative
and/or qualitative information onmaterial ESG risks and ESG
incidents and their implications forindividual listed equity holdings☑

☑

(B) Yes, our formal processincludes reviews of quantitative
and/or qualitative information onmaterial ESG risks and ESG
incidents and their implications forother listed equity holdings
exposed to similar risks and/or
incidents☑

☑

(C) Yes, our formal processincludes reviews of quantitative
and/or qualitative information onmaterial ESG risks and ESG
incidents and their implications forour stewardship activities☑

☑

(D) Yes, our formal processincludes ad hoc reviews ofquantitative and/or qualitative
information on severe ESG
incidents☑

☑

(E) We do not have a formal
process to identify and incorporatematerial ESG risks and ESG
incidents into our risk management
process; our investment
professionals identify andincorporate material ESG risks and
ESG incidents at their discretion

○

○

91

(F) We do not have a formal
process to identify and incorporatematerial ESG risks and ESG
incidents into our risk management
process○○DISCLOSURE OF ESG SCREENS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

LE 12

CORE

OO 17 LE, OO
21N/A

PUBLIC

Disclosure of ESG
screens6

For all your listed equity assets subject to ESG screens, how do you ensure that clients understand ESG screens andtheir implications?
☑ (A) We share a list of ESG screens☑ (B) We share any changes in ESG screens☑ (C) We explain any implications of ESG screens, such as their deviation from a benchmark or impact on sector
weightings○ (D) We do not share the above information for all our listed equity assets subject to ESG screens

FIXED INCOME (FI)OVERALL APPROACH
MATERIALITY ANALYSIS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

FI 1

CORE

OO 21

N/A

PUBLIC

Materiality analysis

1

Does your organisation have a formal investment process to identify and incorporate material ESG factors across yourfixed income assets?

92

(1) SSA(2) Corporate(A) Yes, our investment processincorporates material governancefactors(1) for all of our AUM(1) for all of our AUM(B) Yes, our investment processincorporates material
environmental and social factors(1) for all of our AUM(1) for all of our AUM(C) Yes, our investment processincorporates material ESG factors
depending on different investment
time horizons(1) for all of our AUM(1) for all of our AUM(D) No, we do not have a formal
process; our investment
professionals identify material ESG
factors at their discretion○○(E) No, we do not have a formal orinformal process to identify andincorporate material ESG factors○○

MONITORING ESG TRENDS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

FI 2

CORE

OO 21

N/A

PUBLIC

Monitoring ESG
trends1

Does your organisation have a formal process for monitoring and reviewing the implications of changing ESG trends
across your fixed income assets?

93

(1) SSA(2) Corporate(2) for a majority of our AUM(1) for all of our AUM(C) We do not have a formal
process for our fixed income
assets; our investment
professionals monitor how ESG
trends vary over time at theirdiscretion○○(D) We do not monitor and review
the implications of changing ESG
trends on our fixed income assets○○(A) Yes, we have a formal processthat includes scenario analyses(B) Yes, we have a formal process,but does it not include scenario
analyses(A) Yes, we have a formal process that includes scenario analyses - Specify: (Voluntary)
Three scenarios in the World Energy Outlook 2021 issued by the International Energy Agency (IEA):(1) Sustainable Development Scenario (SDS)(2) Announced Pledges Scenario (APS)(3) Stated Policies Scenario (STEPS)

PRE-INVESTMENTESG INCORPORATION IN RESEARCH
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

FI 3

CORE

OO 21

N/A

PUBLICESG incorporation in
research

1

For the majority of your fixed income investments, does your organisation incorporate material ESG factors whenassessing their credit quality?

94(1) SSA(2) Corporate(A) We incorporate material
environmental and social factors☑

☑

(B) We incorporate material
governance-related factors☑

☑

(C) We do not incorporate material
ESG factors for the majority of our
fixed income investments○○

Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

FI 4

CORE

OO 21

N/A

PUBLICESG incorporation in
research

1

Does your organisation have a framework that differentiates ESG risks by issuer country, region and/or sector?
(1) SSA(2) Corporate(A) Yes, we have a framework thatdifferentiates ESG risks by country
and/or region (e.g. local
governance and labour practices)(1) for all of our AUM(1) for all of our AUM(B) Yes, we have a framework thatdifferentiates ESG risks by sector(1) for all of our AUM(1) for all of our AUM(C) No, we do not have aframework that differentiates ESG
risks by issuer country, region
and/or sector

○

○

95

(D) Not applicable; we are not able
to differentiate ESG risks by issuer
country, region and/or sector due
to the limited universe of ourissuers○○

Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

FI 6

CORE

OO 21

N/A

PUBLICESG incorporation in
research

1

How do you incorporate significant changes in material ESG factors over time into your fixed income asset valuation
process?
(1) SSA(2) Corporate(A) We incorporate it into theforecast of financial metrics orother quantitative assessments(1) for all of our AUM(1) for all of our AUM(B) We make a qualitative
assessment of how material ESG
factors may evolve(1) for all of our AUM(1) for all of our AUM(C) We do not incorporatesignificant changes in material
ESG factors○○

ESG INCORPORATION IN PORTFOLIO CONSTRUCTION
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

FI 8

CORE

OO 21

N/A

PUBLICESG incorporation in
portfolio construction

1

How do material ESG factors contribute to your security selection, portfolio construction and/or benchmark selection
process?

96(1) SSA(2) Corporate(A) Material ESG factors contributeto the selection of individual assets
and/or sector weightings within our
portfolio construction and/or
benchmark selection process(1) for all of our AUM(1) for all of our AUM(B) Material ESG factors contributeto determining the holding period
of individual assets within our
portfolio construction and/or
benchmark selection process(1) for all of our AUM(1) for all of our AUM(C) Material ESG factors contributeto the portfolio weighting ofindividual assets within our
portfolio construction and/or
benchmark selection process(1) for all of our AUM(1) for all of our AUM(D) Material ESG factors contributeto the country or region weightingof assets within our portfolio
construction and/or benchmark
selection process(1) for all of our AUM(1) for all of our AUM○○(E) Material ESG factors contributeto our portfolio construction and/or
benchmark selection process inother ways
(F) Our security selection, portfolio
construction or benchmark
selection process does not include
the incorporation of material ESG
factors

97

PASSIVE INVESTMENTS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

FI 9

PLUS

OO 5.3 FI, OO
21

N/A

PUBLIC

Passiveinvestments

1

Provide an example of how material ESG factors influenced weightings and tilts in the design of your passively managed
funds.
With regard to investment in corporate and emerging market sovereign issuers, our investment policy is not to overweight issuers that we
assesses to be very low both from quantitative and qualitative ESG perspective, as long as tracking errors are kept within a certain
predetermined range.
We also have a policy not to overweight issuers that face serious issues in light of international norms under the condition that tracking
errors are maintained within a certain range.
In addition, in the area of SSA issuers (Sovereign, Supranational organizations and Agencies), we focus on creating environmental andsocial impacts through investment in ESG labeled bonds such as green, social and sustainable bonds.
Major MNDBs have established “Sustainable Financing Frameworks” that cover most of their lending activities to reflect their policy
obligations. The use of disclosure data makes it possible for us to analyze impact at the portfolio level by impact category and project type.
We believe that we can also allocate capital to our preferred set of impact areas with portfolio aggregate impact data.

POST-INVESTMENTESG RISK MANAGEMENT
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

FI 11

CORE

OO 21

N/A

PUBLICESG riskmanagement

1

How are material ESG factors incorporated into your portfolio risk management process?
(1) SSA(2) Corporate(A) Investment committee
members, or the equivalentfunction or group, can vetoinvestment decisions based on
ESG considerations(1) for all of our AUM(1) for all of our AUM(B) Companies, sectors, countries
and/or currencies are monitored
for changes in exposure tomaterial ESG factors and any
breaches of risk limits(1) for all of our AUM(1) for all of our AUM

98

(C) Overall exposure to specificmaterial ESG factors is measured
for our portfolio construction, andsizing or hedging adjustments are
made depending on the individual
issuer or issue sensitivity to thesefactors(1) for all of our AUM(1) for all of our AUM○○(D) We use another method ofincorporating material ESG factors
into our portfolio's risk
management process(E) We do not have a process toincorporate material ESG factors
into our portfolio's risk
management process

Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

FI 12

CORE

OO 21

N/A

PUBLICESG riskmanagement1

For the majority of your fixed income assets, do you have a formal process to identify and incorporate material ESG risks
and ESG incidents into your risk management process?

99

(1) SSA(2) Corporate(A) Yes, our formal processincludes reviews of quantitative
and/or qualitative information onmaterial ESG risks and ESG
incidents and their implications forindividual fixed income holdings☑

☑

(B) Yes, our formal processincludes reviews of quantitative
and/or qualitative information onmaterial ESG risks and ESG
incidents, and their implications forother fixed income holdings
exposed to similar risks and/or
incidents☑

☑

(C) Yes, our formal processincludes reviews of quantitative
and/or qualitative information onmaterial ESG risks and ESG
incidents, and their implications forour stewardship activities☑

☑

(D) Yes, our formal processincludes ad hoc reviews ofquantitative and/or qualitative
information on severe ESG
incidents☑

☑

(E) We do not have a formal
process to identify and incorporate
ESG risks and ESG incidents; ourinvestment professionals identify
and incorporate ESG risks and
ESG incidents at their discretion○○(F) We do not have a formal
process to identify and incorporate
ESG risks and ESG incidents into
our risk management process

○

○

100

PERFORMANCE MONITORING
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

FI 14

PLUS

OO 5.3 FI, OO
21

N/A

PUBLIC

Performancemonitoring

1

Provide an example of how the incorporation of environmental and/or social factors in your fixed income valuation or
portfolio construction affected the realised returns of those assets.
The NAM FI Corporate Credit ESG Score system includes a quantitative measure of Accounting Quality as part of the "Governance
Quality" Sustainability Issue within the "Governance" Key Issue. ESG weights are calculated by a formula based on our fixed-income
specific industry subsector specific materiality mapping. For the "Data and Transaction Processing" subsector, "Governance Quality" isdetermined to have the highest relative weight in the model based on this process. At the same time, certain ESG-integrated portfolios
may not hold issuers with NAM FI ESG scores below a certain numerical threshold, based on our internal analysis of the long term (20+years) relationship between NAM FI ESG scores and risk adjusted credit returns. A European issuer in the Financial Transaction andProcessing sub-sector was at one point considered for inclusion in the ESG credit portfolio. At the time the issuer credit rating wasinvestment grade with a BBB ESG rating from a major ratings provider. However based on the NAM FI Corporate Credit ESG Score
model, this issuer was identified as having extremely poor accounting quality, leading to a model score that placed it outside of theallowable range for the portfolio, based on pre-determined investment guidelines. The issuer was thus rejected for inclusion in theportfolio. In 2020 the issuer defaulted and the bond lost 90% of its value. With zero holdings, the ESG portfolio value was not affected.

Additionally, in the case for EM sovereigns, qualitative ESG consideration is also a key factor built into our portfolio construction. We placestrong emphasis on evolving governance risks of sovereigns, which was the case with Russia. Observing the aggressive behavior by
Russia growing during 2021, we concluded that the country was uninvestable due to what we perceived as the rapidly deteriorating
governance control of the country, Hence we sold off our positions in the country by late 2021, successfully avoiding Russia prior to theinvasion, protecting the portfolio from the devastating effects and providing alpha from the event risk that surfaced.

101

THEMATIC BONDS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

FI 15

PLUS

OO 20, OO 21

N/A

PUBLIC

Thematic bonds

3

What percentage of environmental, social and/or other labelled thematic bonds held by your organisation has beenverified?
As a percentage of your total labelled bonds:(A) Third-party assurance(5) >75%(B) Second-party opinion(5) >75%(C) Approved verifiers or external
reviewers (e.g. via CBI or ICMA)(5) >75%

Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

FI 16

CORE

OO 17 FI, OO 21

N/A

PUBLIC

Thematic bonds

1

What pre-determined criteria does your organisation use to identify which non-labelled thematic bonds to invest in?
☑ (A) The bond's use of proceeds☑ (B) The issuers' targets☑ (C) The issuers' progress towards achieving their targets☑ (D) The issuer profile and how it contributes to their targets○ (E) We do not use pre-determined criteria to identify which non-labelled thematic bonds to invest in○ (F) Not applicable; we do not invest in non-labelled thematic bonds
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

FI 17

CORE

Multiple, seeguidance

N/A

PUBLIC

Thematic
bonds

1, 2, 6

During the reporting year, what action did you take in the majority of cases when you felt that the proceeds of a thematicbond were not allocated appropriately or in accordance with the terms of the bond deal or prospectus?
☑ (A) We engaged with the issuer☐ (B) We alerted thematic bond certification agencies☐ (C) We sold the security☑ (D) We blacklisted the issuer☐ (E) Other action102

○ (F) We did not take any specific actions when the proceeds of a thematic bond were not allocated according to the terms of thebond deal during the reporting year
○ (G) Not applicable; in the majority of cases, the proceeds of thematic bonds were allocated according to the terms of the bonddeal during the reporting year

DISCLOSURE OF ESG SCREENS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

FI 18

CORE

OO 17 FI, OO
21

N/A

PUBLIC

Disclosure of ESG
screens6

For all your fixed income assets subject to ESG screens, how do you ensure that clients understand ESG screens andtheir implications?
☑ (A) We share a list of ESG screens☑ (B) We share any changes in ESG screens☑ (C) We explain any implications of ESG screens, such as any deviation from a benchmark or impact on sector
weightings○ (D) We do not share the above information for all our fixed income assets subject to ESG screens

SUSTAINABILITY OUTCOMES (SO)SETTING TARGETS AND TRACKING PROGRESSSETTING TARGETS ON SUSTAINABILITY OUTCOMES
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

SO 1

PLUS

PGS 48

SO 2, SO
2.1, SO 3

PUBLIC

Setting targets onsustainability
outcomes

1, 2What specific sustainability outcomes connected to its investment activities has your organisation taken action on?
☑ (A) Sustainability outcome #1(1) Widely recognised frameworks used to guide action on this sustainability outcome☑ (1) The UN Sustainable Development Goals (SDGs) and targets☑ (2) The UNFCCC Paris Agreement☑ (3) The UN Guiding Principles on Business and Human Rights (UNGPs)☐ (4) OECD frameworks: OECD Guidelines for Multinational Enterprises and Guidance on Responsible Business Conduct
for Institutional Investors☐ (5) The EU Taxonomy☐ (6) Other relevant taxonomies☐ (7) The International Bill of Human Rights☐ (8) The International Labour Organization’s Declaration on Fundamental Principles and Rights at Work and the eightcore conventions☐ (9) The Convention on Biological Diversity☐ (10) Other international, regional, sector-based or issue-specific framework(s)103

(2) Classification of sustainability outcome☑ (1) Environmental☐ (2) Social☐ (3) Governance-related☐ (4) Other(3) Sustainability outcome name
Mitigate climate change(4) Number of targets set for this outcome○ (1) No target○ (2) One target◉ (3) Two or more targets☑ (B) Sustainability outcome #2(1) Widely recognised frameworks used to guide action on this sustainability outcome☑ (1) The UN Sustainable Development Goals (SDGs) and targets☑ (2) The UNFCCC Paris Agreement☑ (3) The UN Guiding Principles on Business and Human Rights (UNGPs)☐ (4) OECD frameworks: OECD Guidelines for Multinational Enterprises and Guidance on Responsible Business Conduct
for Institutional Investors☐ (5) The EU Taxonomy☐ (6) Other relevant taxonomies☐ (7) The International Bill of Human Rights☐ (8) The International Labour Organization’s Declaration on Fundamental Principles and Rights at Work and the eightcore conventions☐ (9) The Convention on Biological Diversity☐ (10) Other international, regional, sector-based or issue-specific framework(s)(2) Classification of sustainability outcome☑ (1) Environmental☐ (2) Social☐ (3) Governance-related☐ (4) Other(3) Sustainability outcome name
Mitigate natural capital depletion(4) Number of targets set for this outcome○ (1) No target○ (2) One target◉ (3) Two or more targets☑ (C) Sustainability outcome #3(1) Widely recognised frameworks used to guide action on this sustainability outcome☑ (1) The UN Sustainable Development Goals (SDGs) and targets☑ (2) The UNFCCC Paris Agreement☑ (3) The UN Guiding Principles on Business and Human Rights (UNGPs)☐ (4) OECD frameworks: OECD Guidelines for Multinational Enterprises and Guidance on Responsible Business Conduct
for Institutional Investors☐ (5) The EU Taxonomy☐ (6) Other relevant taxonomies☐ (7) The International Bill of Human Rights☐ (8) The International Labour Organization’s Declaration on Fundamental Principles and Rights at Work and the eightcore conventions☐ (9) The Convention on Biological Diversity☐ (10) Other international, regional, sector-based or issue-specific framework(s)104

(2) Classification of sustainability outcome☐ (1) Environmental☑ (2) Social☐ (3) Governance-related☐ (4) Other(3) Sustainability outcome name
Mitigate the obesity epidemic(4) Number of targets set for this outcome○ (1) No target◉ (2) One target○ (3) Two or more targets☑ (D) Sustainability outcome #4(1) Widely recognised frameworks used to guide action on this sustainability outcome☑ (1) The UN Sustainable Development Goals (SDGs) and targets☑ (2) The UNFCCC Paris Agreement☑ (3) The UN Guiding Principles on Business and Human Rights (UNGPs)☐ (4) OECD frameworks: OECD Guidelines for Multinational Enterprises and Guidance on Responsible Business Conduct
for Institutional Investors☐ (5) The EU Taxonomy☐ (6) Other relevant taxonomies☐ (7) The International Bill of Human Rights☐ (8) The International Labour Organization’s Declaration on Fundamental Principles and Rights at Work and the eightcore conventions☐ (9) The Convention on Biological Diversity☐ (10) Other international, regional, sector-based or issue-specific framework(s)(2) Classification of sustainability outcome☐ (1) Environmental☑ (2) Social☐ (3) Governance-related☐ (4) Other(3) Sustainability outcome nameEliminate communicable disease(4) Number of targets set for this outcome○ (1) No target◉ (2) One target○ (3) Two or more targets☑ (E) Sustainability outcome #5(1) Widely recognised frameworks used to guide action on this sustainability outcome☑ (1) The UN Sustainable Development Goals (SDGs) and targets☑ (2) The UNFCCC Paris Agreement☑ (3) The UN Guiding Principles on Business and Human Rights (UNGPs)☐ (4) OECD frameworks: OECD Guidelines for Multinational Enterprises and Guidance on Responsible Business Conduct
for Institutional Investors☐ (5) The EU Taxonomy☐ (6) Other relevant taxonomies☐ (7) The International Bill of Human Rights☐ (8) The International Labour Organization’s Declaration on Fundamental Principles and Rights at Work and the eightcore conventions☐ (9) The Convention on Biological Diversity☐ (10) Other international, regional, sector-based or issue-specific framework(s)105

(2) Classification of sustainability outcome☐ (1) Environmental☑ (2) Social☐ (3) Governance-related☐ (4) Other(3) Sustainability outcome name
Global access to basic financial services(4) Number of targets set for this outcome○ (1) No target◉ (2) One target○ (3) Two or more targets☑ (F) Sustainability outcome #6(1) Widely recognised frameworks used to guide action on this sustainability outcome☑ (1) The UN Sustainable Development Goals (SDGs) and targets☑ (2) The UNFCCC Paris Agreement☑ (3) The UN Guiding Principles on Business and Human Rights (UNGPs)☐ (4) OECD frameworks: OECD Guidelines for Multinational Enterprises and Guidance on Responsible Business Conduct
for Institutional Investors☐ (5) The EU Taxonomy☐ (6) Other relevant taxonomies☐ (7) The International Bill of Human Rights☐ (8) The International Labour Organization’s Declaration on Fundamental Principles and Rights at Work and the eightcore conventions☐ (9) The Convention on Biological Diversity☐ (10) Other international, regional, sector-based or issue-specific framework(s)(2) Classification of sustainability outcome☐ (1) Environmental☑ (2) Social☐ (3) Governance-related☐ (4) Other(3) Sustainability outcome name
Global access to clean drinking water(4) Number of targets set for this outcome○ (1) No target◉ (2) One target○ (3) Two or more targets☐ (G) Sustainability outcome #7☐ (H) Sustainability outcome #8☐ (I) Sustainability outcome #9☐ (J) Sustainability outcome #10

106

IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

SO 2

PLUS

SO 1

SO 2.1, SO
4, SO 5

PUBLIC

Setting targets onsustainability
outcomes1

For each sustainability outcome, provide details of up to two of your nearest-term targets.
(A1) Sustainability Outcome #1: Target details(A1) Sustainability Outcome #1:

Mitigate climate change(1) Target name

Global Renewable Energy Output(2) Baseline year
(3) Target to be met by

2030(4) Methodology

Global Renewable Energy Generation Annual Output(5) Metric used (if relevant)Global Renewable Energy Generation Annual Output (millions GWh – IEA)

(6) Absolute or intensity-based (ifrelevant)(1) Absolute(7) Baseline level or amount (ifrelevant):(8) Target level or amount (ifrelevant)

Global renewable energy generation needs to increase to 65% of electricity generation
by 2030(9) Percentage of total AUM
covered in your baseline year fortarget setting(10) Do you also have a longerterm target for this?

(1) Yes107

(A2) Sustainability Outcome #1: Target details(A2) Sustainability Outcome #1:

Mitigate climate change(1) Target nameAtmospheric CO2 Levels(2) Baseline year
(3) Target to be met by

2030(4) Methodology

Atmospheric CO2 Levels and Emissions per Capita(5) Metric used (if relevant)Atmospheric CO2 Levels and Emissions (tonnes) per Capita(6) Absolute or intensity-based (ifrelevant)(2) Intensity-based(7) Baseline level or amount (ifrelevant):(8) Target level or amount (ifrelevant)

Annual emissions must decline towards 25Gt (aligned with IRENA World Energy
Transition Outlook) requiring a ca. 30% reduction in Emissions per Capita by 2030

(9) Percentage of total AUM
covered in your baseline year fortarget setting(10) Do you also have a longerterm target for this?

(1) Yes(B1) Sustainability Outcome #2: Target details(B1) Sustainability Outcome #2:

Mitigate natural capital depletion(1) Target name

Material Consumption per Capita(2) Baseline year
(3) Target to be met by(4) Methodology

Global Material Consumption per Capital108

(5) Metric used (if relevant)Material Consumption per Capita: Defined as tonnes of biomass, fossil fuels, metalores and non-metal ores.

(6) Absolute or intensity-based (ifrelevant)(2) Intensity-based(7) Baseline level or amount (ifrelevant):(8) Target level or amount (ifrelevant)

This is a multi-layered target, which is quite difficult to define and achieve. From ourperspective, the initial target we would set is to see the companies in our portfolio(s)achieve sustainable supply chain practices and monitoring of deforestation andbiodiversity loss

(9) Percentage of total AUM
covered in your baseline year fortarget setting(10) Do you also have a longerterm target for this?

(2) No(B2) Sustainability Outcome #2: Target details(B2) Sustainability Outcome #2:

Mitigate natural capital depletion(1) Target name

Global Annual Tree Cover Loss

(2) Baseline year
(3) Target to be met by(4) Methodology

Global Annual Tree Cover Loss

(5) Metric used (if relevant)Global Annual Tree Cover Loss (Mha – Global Forest Watch)(6) Absolute or intensity-based (ifrelevant)(1) Absolute(7) Baseline level or amount (ifrelevant):

109

(8) Target level or amount (ifrelevant)

This is a multi-layered target, which is quite difficult to define and achieve. From ourperspective, the initial target we would set is to see the companies in our portfolio(s)achieve sustainable supply chain practices and monitoring of deforestation andbiodiversity loss

(9) Percentage of total AUM
covered in your baseline year fortarget setting(10) Do you also have a longerterm target for this?

(2) No(C1) Sustainability Outcome #3: Target details(C1) Sustainability Outcome #3:

Mitigate the obesity epidemic(1) Target name

Reduce obesity related death rate(2) Baseline year

2016(3) Target to be met by

2030(4) Methodology

Reduce obesity related death rates through better medical treatment(5) Metric used (if relevant)

US Obesity Related (Diabete and Cardio Vascular)
Death Rates(Deaths per 100,000)
Global Number of People with Diabetes and Annual Deaths, US obesity rates (CDC)(6) Absolute or intensity-based (ifrelevant)(1) Absolute(7) Baseline level or amount (ifrelevant):

Deaths from diabetes (21 per 100,000) and cardiovascular disease (175 per 100,000)(8) Target level or amount (ifrelevant)

By 2030, mortality from obesity related diseases to decreases to decrease by a thirdfrom 2016 base(9) Percentage of total AUM
covered in your baseline year fortarget setting

110

(10) Do you also have a longerterm target for this?

(1) Yes(D1) Sustainability Outcome #4: Target details(D1) Sustainability Outcome #4:

Eliminate communicable disease(1) Target name

Deaths due to HIV, TB and Malaria(2) Baseline year

2016(3) Target to be met by

2030(4) Methodology

Reduce communicable diseases death rate such as HIV, TB and Malaria throughbetter access to medicine(5) Metric used (if relevant)Global Deaths from HIV, TB and Malaria (millions)(6) Absolute or intensity-based (ifrelevant)(1) Absolute(7) Baseline level or amount (ifrelevant):

Deaths from HIV(0.9mil) Tuberculosis(1.4mil), and Malaria(0.6mil) in 2016(8) Target level or amount (ifrelevant)

By 2030, deaths from HIV, TB and malaria to each decline by greater than 50% from a2016 base(9) Percentage of total AUM
covered in your baseline year fortarget setting(10) Do you also have a longerterm target for this?

(1) Yes(E1) Sustainability Outcome #5: Target details(E1) Sustainability Outcome #5:

Global access to basic financial services(1) Target name

Percentage of population who are Unbanked(2) Baseline year

2016

111

(3) Target to be met by

2030(4) Methodology

Reduce percent of Population who are unbanked(5) Metric used (if relevant)

Percent of Population with Bank Account Access (WorldBank)(6) Absolute or intensity-based (ifrelevant)(1) Absolute(7) Baseline level or amount (ifrelevant):

account ownership Men Low/Middle income 68% Women Low/Middle income 59% in
2017(8) Target level or amount (ifrelevant)

By 2030 low/mid income account ownership to converge with high income achieving
95%+ and for the gender gap to close completely(9) Percentage of total AUM
covered in your baseline year fortarget setting(10) Do you also have a longerterm target for this?

(1) Yes(F1) Sustainability Outcome #6: Target details(F1) Sustainability Outcome #6:

Global access to clean drinking water(1) Target name

Global Population with Access to SafeDrinkingWater(2) Baseline year

2020(3) Target to be met by

2030(4) Methodology

Global Population with Access to Safe Drinking Water(5) Metric used (if relevant)

Percentage of Global Population with Access to Safe Drinking Water (Worldbank)(6) Absolute or intensity-based (ifrelevant)(1) Absolute(7) Baseline level or amount (ifrelevant):

61.7% of Global Population with Access to Safe Drinking Water in 2020. 28.6% of
Global Population with Access to Safely Managed Sanitation Facilities (World Bank)112

(8) Target level or amount (ifrelevant)

Our initial target would be for every individual universally to have access to at leastbasic drinking water and sanitation facilities. Once this is achieved, we would
ultimately want for safe access to such facilities to be provided to all(9) Percentage of total AUM
covered in your baseline year fortarget setting(10) Do you also have a longerterm target for this?

(1) Yes

Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

SO 2.1

PLUS

SO 1, SO 2

N/A

PUBLIC

Setting targets onsustainability
outcomes1

For each sustainability outcome, provide details of up to two of your long-term targets.

(1) Target name(2) Long-term target tobe met by(3) Long-term target
level or amount (ifrelevant)

Global Renewable Energy
OutputGlobal renewable energy
generation needs toincrease to 65% ofelectricity generation by
2030(A2) Sustainability Outcome #1:
Mitigate climate change

Atmospheric CO2 Levels

Annual emissions must
decline towards 25Gt
(aligned with IRENAWorld Energy Transition
Outlook) requiring a ca.
30% reduction in
Emissions per Capita by
2030(C1) Sustainability Outcome #3:
Mitigate the obesity epidemic

Reduce obesity related
death rate

By 2030, mortality fromobesity related diseases
to decreases to decreaseby a third from 2016 base(A1) Sustainability Outcome #1:
Mitigate climate change113

(D1) Sustainability Outcome #4:
Eliminate communicable disease(E1) Sustainability Outcome #5:
Global access to basic financial
services(F1) Sustainability Outcome #6:
Global access to clean drinking
water

Deaths due to HIV, TB
and Malaria

By 2030, deaths from HIV,TB and malaria to eachdecline by greater than
50% from a 2016 base

Percentage of population
who are Unbanked

By 2030 low/mid income
account ownership toconverge with highincome achieving 95%+
and for the gender gap toclose completely

Global Population with
Access to
SafeDrinkingWater

Our initial target would befor every individual
universally to haveaccess to at least basic
drinking water andsanitation facilities. Once
this is achieved, we would
ultimately want for safe
access to such facilities tobe provided to all

FOCUS: SETTING NET-ZERO TARGETS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

SO 3

PLUS

SO 1

Multiple, seeguidance

PUBLIC

Focus: Setting
net-zero targets

GeneralIf relevant to your organisation, you can opt-in to provide further details on your net-zero targets.
☑ (A) Yes, we would like to provide further details on our organisation’s asset class-specific net-zero targets☐ (B) Yes, we would like to provide further details on our organisation’s net-zero targets for high-emitting sectors☐ (C) Yes, we would like to provide further details on our organisation’s mandate or fund-specific net-zero targets○ (D) No, we would not like to provide further details on our organisation’s asset class, high-emitting sectors or mandate or fundspecific net-zero targets○ (E) No, our organisation does not have any asset class, high-emitting sectors or mandate or fund-specific net-zero targets

114

IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

NZAM 1

PLUS

NZAM, SO 3

SO 3.1, SO
3.2

PUBLIC

Focus: Setting netzero targets

General

Select the relevant asset class breakdown for your organisation to report on your net-zero targets.
◉ (A) PRI's standard asset class breakdown○ (B) Asset class breakdown as per the NZAOA’s Target Setting Protocol
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

SO 3.1

PLUS

SO 3

N/A

PUBLIC

Focus: Setting netzero targets

GeneralProvide details of your nearest-term net-zero targets per asset class.
(A) PRI asset class breakdown☑ Listed equity
Target details(A) PRI asset class breakdown: Listed equity(1) Baseline year
(2) Target to be met by(3) Emissions included in target(4) Methodology(5) Metric used

2030
(1) Scope 1(2) Scope 2(3) Scope 3
Science based Targets initiative for Financial Institutions ( recommended by NZAM)(9) Other(6) Baseline amount115

(7) Current amount (if different
from baseline amount)

36.4% of measurable portfolio as of end 2022

(8) Targeted reduction with respect
to baseline(9) Percentage of total AUM
covered in your baseline year fortarget setting(10) If coverage is below 100% forthis asset class, explain why☑ Fixed income
Target details(A) PRI asset class breakdown: Fixed income(1) Baseline year
(2) Target to be met by(3) Emissions included in target(4) Methodology(5) Metric used

2030
(1) Scope 1(2) Scope 2(3) Scope 3
Science based Targets initiative for Financial Institutions ( recommended by NZAM)(9) Other(6) Baseline amount(7) Current amount (if different
from baseline amount)

36.4% of measurable portfolio as of end 2022

(8) Targeted reduction with respect
to baseline(9) Percentage of total AUM
covered in your baseline year fortarget setting

116

(10) If coverage is below 100% forthis asset class, explain why☐ Private equity☐ Real estate☐ Infrastructure☐ Hedge funds☐ Forestry☐ Farmland☐ Other

TRACKING PROGRESS AGAINST TARGETS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

SO 4

PLUS

SO 2

SO 4.1

PUBLIC

Tracking progressagainst targets

1

Does your organisation track progress against your nearest-term sustainability outcomes targets?
(A1) Sustainability outcome #1:(A1) Sustainability outcome #1:

Mitigate climate change

Target name:

Global Renewable Energy Output

Does your organisation trackprogress against your nearest-termsustainability outcome targets?

(1) Yes(A2) Sustainability outcome #1:(A2) Sustainability outcome #1:

Mitigate climate change

Target name:Atmospheric CO2 Levels

Does your organisation trackprogress against your nearest-termsustainability outcome targets?

(1) Yes117

(B1) Sustainability outcome #2:(B1) Sustainability outcome #2:

Mitigate natural capital depletion

Target name:

Material Consumption per Capita

Does your organisation trackprogress against your nearest-termsustainability outcome targets?

(1) Yes(B2) Sustainability outcome #2:(B2) Sustainability outcome #2:

Mitigate natural capital depletion

Target name:

Global Annual Tree Cover Loss

Does your organisation trackprogress against your nearest-termsustainability outcome targets?

(1) Yes(C1) Sustainability outcome #3:(C1) Sustainability outcome #3:

Mitigate the obesity epidemic

Target name:

Reduce obesity related death rate

Does your organisation trackprogress against your nearest-termsustainability outcome targets?

(1) Yes(D1) Sustainability outcome #4:(D1) Sustainability outcome #4:

Eliminate communicable disease

Target name:

Deaths due to HIV, TB and Malaria

118

Does your organisation trackprogress against your nearest-termsustainability outcome targets?

(1) Yes(E1) Sustainability outcome #5:(E1) Sustainability outcome #5:

Global access to basic financial services

Target name:

Percentage of population who are Unbanked

Does your organisation trackprogress against your nearest-termsustainability outcome targets?

(1) Yes(F1) Sustainability outcome #6:(F1) Sustainability outcome #6:

Global access to clean drinking water

Target name:

Global Population with Access to SafeDrinkingWater

Does your organisation trackprogress against your nearest-termsustainability outcome targets?

(1) Yes

Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

SO 4.1

PLUS

SO 4

N/A

PUBLIC

Tracking progressagainst targets

1

During the reporting year, what qualitative or quantitative progress did your organisation achieve against your nearestterm sustainability outcome targets?

119

(A1) Sustainability Outcome #1: Target details(A1) Sustainability Outcome #1:

Mitigate climate change(1) Target name

Global Renewable Energy Output(2) Target to be met by

2030(3) Metric used (if relevant)Global Renewable Energy Generation Annual Output (millions GWh – IEA)(4) Current level or amount (ifrelevant)

7.8 millions GWh in 2022

(5) Other qualitative or quantitative
progress(6) Methodology for tracking
progress

Monitor IEA data

(A2) Sustainability outcome #1: Target details(A2) Sustainability outcome #1:

Mitigate climate change(1) Target nameAtmospheric CO2 Levels(2) Target to be met by

2030(3) Metric used (if relevant)Atmospheric CO2 Levels and Emissions (tonnes) per Capita(4) Current level or amount (ifrelevant)

4.7 tonnes per capita in 2021

(5) Other qualitative or quantitative
progress(6) Methodology for tracking
progress

Monitor NOAA Mauna Loa Observatory data120

(B1) Sustainability Outcome #2: Target details(B1) Sustainability Outcome #2:

Mitigate natural capital depletion(1) Target name

Material Consumption per Capita(2) Target to be met by(3) Metric used (if relevant)Material Consumption per Capita: Defined as tonnes of biomass, fossil fuels, metalores and non-metal ores.

(4) Current level or amount (ifrelevant)

Global Resource Consumption Per Capita in 2021: 4.4 barrels for oil, 693.7kg for Coal,
232.9kg for Steel, 8.5kg for Aluminium production, 2.7kg for Copper production(5) Other qualitative or quantitative
progress(6) Methodology for tracking
progress

Monitor Statistical Review of World Energy data, World Steel Association data,
International Aluminium Institute data(B2) Sustainability Outcome #2: Target details(B2) Sustainability Outcome #2:

Mitigate natural capital depletion(1) Target name

Global Annual Tree Cover Loss

(2) Target to be met by(3) Metric used (if relevant)Global Annual Tree Cover Loss (Mha – Global Forest Watch)(4) Current level or amount (ifrelevant)

Global Annual Tree Cover Loss 3yr Average 25 Mha in 2021

(5) Other qualitative or quantitative
progress(6) Methodology for tracking
progress

Monitor Global Annual Tree Cover Loss (Mha – Global Forest Watch)

121

(C1) Sustainability Outcome #3: Target details(C1) Sustainability Outcome #3:

Mitigate the obesity epidemic(1) Target name

Reduce obesity related death rate(2) Target to be met by

2030(3) Metric used (if relevant)

US Obesity Related (Diabete and Cardio Vascular) Death Rates(Deaths per 100,000)
Global Number of People with Diabetes and Annual Deaths, US obesity rates (CDC)(4) Current level or amount (ifrelevant)

US Obesity Related (Diabete and Cardio Vascular)
Death Rates (Deaths per 100,000) 25 in 2021
Global Number of People with Diabetes and Annual Deaths 7mil in 2021
US obesity rates (CDC) 33% in 2021

(5) Other qualitative or quantitative
progress(6) Methodology for tracking
progress

Monitor US Obesity Related (Diabete and Cardio Vascular) Death Rates, Global
Number of People with Diabetes and Annual Deaths and US obesity rates (CDC)(D1) Sustainability Outcome #4: Target details(D1) Sustainability Outcome #4:

Eliminate communicable disease(1) Target name

Deaths due to HIV, TB and Malaria(2) Target to be met by

2030(3) Metric used (if relevant)Global Deaths from HIV, TB and Malaria (millions)(4) Current level or amount (ifrelevant)

Deaths from HIV 0.7mil in 2021, TB 1.4mil in 2021, Malaria 0.7mil in 2021

(5) Other qualitative or quantitative
progress(6) Methodology for tracking
progress

Monitor Global Deaths from HIV, TB and Malaria (WHO)122

(E1) Sustainability Outcome #5: Target details(E1) Sustainability Outcome #5:

Global access to basic financial services(1) Target name

Percentage of population who are Unbanked(2) Target to be met by

2030(3) Metric used (if relevant)

Percent of Population with Bank Account Access (WorldBank)(4) Current level or amount (ifrelevant)

Bank Account ownership Men high income 96% Women high incom97% Men Low/middle income 74% Women Low/Middle incom70% in 2021

(5) Other qualitative or quantitative
progress(6) Methodology for tracking
progress

Monitor Percent of Population with Bank Account Access (WorldBank)(F1) Sustainability Outcome #6: Target details(F1) Sustainability Outcome #6:

Global access to clean drinking water(1) Target name

Global Population with Access to SafeDrinkingWater(2) Target to be met by

2030(3) Metric used (if relevant)

Percentage of Global Population with Access to Safe Drinking Water (Worldbank)(4) Current level or amount (ifrelevant)

74.3% of Global Population with Access to Safe Drinking Water (Worldbank) in 2020

(5) Other qualitative or quantitative
progress(6) Methodology for tracking
progress

Monitor % of Global Population with Access to Safe Drinking Water (World Bank)123

INDIVIDUAL AND COLLABORATIVE INVESTOR ACTION ON OUTCOMES
LEVERS USED TO TAKE ACTION ON SUSTAINABILITY OUTCOMES
Indicator

SO 5

Type of indicator

PLUS

Dependent on

SO 2

Gateway toMultiple

Disclosure

Subsection

PRI Principle

PUBLIC

Levers used to takeaction on
sustainability
outcomes

1, 2, 5

During the reporting year, which of the following levers did your organisation use to take action on sustainability
outcomes, including to prevent and mitigate actual and potential negative outcomes?
☑ (A) Stewardship with investees, including engagement, (proxy) voting, and direct influence with privately held assets
Select from drop down list:☑ (1) Individually☑ (2) With other investors or stakeholders☐ (B) Stewardship: engagement with external investment managers☐ (C) Stewardship: engagement with policy makers☑ (D) Stewardship: engagement with other key stakeholders
Select from drop down list:☑ (1) Individually☑ (2) With other investors or stakeholders☐ (E) Capital allocation○ (F) Our organisation did not use any of the above levers to take action on sustainability outcomes during the reporting year

STEWARDSHIP WITH INVESTEES
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

SO 8

PLUS

SO 5

N/A

PUBLIC

Stewardship withinvestees

2

During the reporting year, how did your organisation use stewardship with investees to take action on sustainability
outcomes, including preventing and mitigating actual and potential negative outcomes?

124

(A) Across all sustainability outcomes(1) Describe your approach(2) Stewardship tools or activities
used(3) Example(B) Sustainability Outcome #1:(B) Sustainability Outcome #1:

Mitigate climate change(1) Describe your approach

Engaged with all portfolio companies that have not yet committed to setting Science
Based Targets initiative (SBTi) approved emissions targets to push these companies tomake more explicit commitments to reduce their emissions. One engagement
programme we were particularly pleased with was the commitment of Eversource tosetting SBTi approved targets following a series of engagements and working closelywith other external parties. Please see the Engagement for Impact Section of thisreport for full details.

(2) Stewardship tools or activities
used(3) Example(1) Engagement

NextEra Energy: World's largest onshore wind energy generator; rapidly growing solar
portfolio.

125

(C) Sustainability Outcome #2:(C) Sustainability Outcome #2:

Mitigate natural capital depletion(1) Describe your approach

As part of a Satellite based collaborative engagement towards zero deforestation,
NAM UK is leading the engagements with both Nestlé and Unilever. The investor
coalition collaborates with Satelligence who provides us with satellite imaging andartificial intelligence (AI) to support us in holding companies accountable for
deforestation in supply chains. Another example of our differentiated engagement work
towards mitigating natural capital depletion is NAM UK’s participation, along with otherasset managers, in an innovative bioacoustics study.
The investor group along with Green Praxis collaborated to conduct an on-the-groundstudy of biodiversity richness and abundance at a palm oil plantation in Indonesia. This
project aimed to inform, the investment group and the participating corporate, on theeffects on biodiversity life in conservation areas versus monoculture production areas.

(2) Stewardship tools or activities
used(3) Example(1) Engagement

Umicore: Company operates world leading industrial and precious metal recycling
operations that support a reduction in extraction requirements. In 2022, the company
recycled ca. 500k tonnes of high value industrial and precious metals.
Adobe: Although indirectly the team believes that through products and services
Adobe supports mitigation of climate change and natural capital depletion. In 2022, thecompany reported that 400 billion of PDFs were opened in Adobe Products.
(D) Sustainability Outcome #3:(D) Sustainability Outcome #3:

Mitigate the obesity epidemic(1) Describe your approach

Engaged extensively with Novo Nordisk to push for a more responsible approach tothe supporting of access to diabetes treatment in the United States.
Novo Nordisk’s SELECT trial was designed to target a 17% reduction in cardiovascular
events (CV events) across the 5-year trial for patients taking Wegovy compared to thecontrol arm. A successful outcome of this trial could support the usage of anti-obesity
medicines in millions of adults worldwide and improve health outcomes.

126

Novo Nordisk has estimated 764mm people are suffering from obesity with around halfof this in developed markets. So far around 10% of that population (76mm) seek help
for obesity but very few (15mm) are treated with anti-obesity medicines. If all thoseseeking help (76mm) were treated with Wegovy, which was able to reduce CV eventsby 17%, it is conceivable that over 12 million CV events could be prevented over time.
Given the trial length was 5 years and the take-up of Wegovy has been rapid, it could
be possible that these benefits accrue already by 2035 globally.
Longer-term the benefits are likely to be even greater as demand for these medicines
continues to scale.
The 76mm we modelled above is just 10% of today’s obese population, which is still
growing, and the penetration rate could move meaningfully higher. Why is it importantto reduce CV events?
Reducing cardiovascular events at scale should improve key health metrics such as
life expectancy both directly (less fatal heart attacks/ strokes) but also because CV
events can contribute to other debilitating conditions (just 10% of patients fully recoverfrom a stroke according to the National Stroke Association for example).
(2) Stewardship tools or activities
used(3) Example(1) Engagement

Novo Nordisk: Global leader in diabetes treatment (36.3mm patients received diabetes
treatment in 2022) and has been the early leader in obesity treatment through thedevelopment of the semaglutide molecule.
Wegovy, the brand name for semaglutide in weight control, showed 15% weight loss in
the STEP-1 trial published in 2021.
Medtronic: MedTech company with large cardiovascular and diabetes businesses.
Becton Dickinson: Medical equipment applications across diabetes and cardiovasculardisease.
(E) Sustainability Outcome #4:(E) Sustainability Outcome #4:

Eliminate communicable disease(1) Describe your approach

Engaged extensively with those companies involved in the delivery of COVID-19
vaccines and treatment and continued to lead the Access to Medicine collaborative
engagement programme with GlaxoSmithKline. Please see our Engagement for
Impact section for further details.

(2) Stewardship tools or activities
used(1) Engagement127

(3) Example

Gilead: World’s leading HIV treatment pharmaceutical company and has been apioneer in supporting access in emerging economies. As at 2022, 20mm HIV sufferers
receive treatment in low/ mid income countries through access strategies. Remdesivir
was one of the earliest treatments for COVID-19 and continues to be important for use
in hospitalised patients.
GlaxoSmithKline: One of the largest vaccine manufacturers globally with leading
Access strategies, and number two in HIV treatment. In 2022 reached 73mm patientsin low income countries through access strategies with its treatments. AstraZeneca:
The company has taken a sustainable approach in offering its COVID-19 vaccine on a
not-for-profit basis during the pandemic.
The company is also currently in its advanced research process to find new medicinesthat will protect the immunocompromised against new variants.
(F) Sustainability Outcome #5:(F) Sustainability Outcome #5:

Global access to basic financial services(1) Describe your approach

Engaged with HDFC to report better impact data that encapsulates the outcomes it is
supporting through its mortgage lending to lower income segments of the Indian
economy.

(2) Stewardship tools or activities
used(3) Example(1) Engagement

Safaricom: Operates M-Pesa a mobile payments business with 33mm active users in
Kenya. Further role supporting access to financial services through building out of thetelecom network.
Bank Rakyat: Indonesian bank with a focus on micro loans via its large network ofagents across the archipelago. Provided IDR 849trn of loans to micro small andmedium sized enterprises in 2022.
HDFC: Leading provider of mortgages and loans in India with strong presence acrossthe low and economically weak segment of the economy to which provided INR 216bn
of loans (2021/FY22).

128

(G) Sustainability Outcome #6:(G) Sustainability Outcome #6:

Global access to clean drinking water(1) Describe your approach

The team engaged with Pentair and A. O. Smith, which operate within the water
filtration space and asked for disclosure of better data on the positive impact of water
filtration products and broader clean water efforts. Although it is still very much a workin progress, we are pleased to see that the companies are now starting to report on
metrics, such as number of people provided with cleaner, safer drinking water every
day in the developing world The team engaged with Pentair and A.
O. Smith, which operate within the water filtration space and asked for disclosure ofbetter data on the positive impact of water filtration products and broader clean water
efforts. Although it is still very much a work in progress, we are pleased to see that thecompanies are now starting to report on metrics, such as number of people provided
with cleaner, safer drinking water every day in the developing world through water
access projects and number of single-use plastic water bottles avoided by using
residential filtration systems.
Given the semiconductor space is very water intensive, we engaged with TSMC on
their water impact in production and links to efficiency. We further encouraged thecompany to start reporting more detail around their water conservation measures. We
are pleased that the company now reports a full breakdown of metric tons of additional
water conserved through various measures undertaken, such as decreasing water
discharge loss, reducing consumption, and increasing wastewater recycling.

(2) Stewardship tools or activities
used(3) Example(1) Engagement

Tetra Tech: Provides services such as design and engineering for water infrastructure
projects across both the United States and global markets. The company has a very
high positive impact on Global Access to Clean Drinking Water especially through its
involvement with international development projects that take place in developing
nations as well as supporting access where it is needed the most.
The impact of supporting clean water access in the US, its country of domicile, is alsohigh. Tetra Tech reported that its projects enabled 328,000 mega litres of water to betreated, saved or reduced in 2021.
Pentair: The company manufactures pumps and filtration systems. These products
enable the processing and treatment of both water and wastewater.

129

Pentair have a particularly strong presence within emerging markets, where they
support global access to clean drinking water. 'Project Safewater' has supported
access to water for 3mm people.
Unilever: Very strong water filtration business and commitment to supporting global
access.
Nestlé: Has facilitated access to clean water within its supply chain to over 600k
people that would otherwise not have had access.

Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

SO 9

PLUS

SO 5

N/A

PUBLIC

Stewardship withinvestees2

How does your organisation prioritise the investees you conduct stewardship with to take action on sustainability
outcomes, including preventing and mitigating actual and potential negative outcomes?
☑ (A) We prioritise the most strategically important companies in our portfolio.
Describe how you do this:At Nomura Asset Management (NAM) we strongly believe the investment management industry has a huge opportunity to have amore positive impact. We are at the heart of an ecosystem in which there are multiple avenues to support better outcomes be thatthrough collaboration with our responsible investment peers, supporting intercompany collaboration or working together with NGOs
and the media, how we behave as professionals or supporting the next generation of impact investors. Engaging for impact is onevery important avenue through which we can support better outcomes and over the year we undertook 83 engagements withportfolio companies.

Select from the list:◉1○ 4☑ (B) We prioritise the companies in our portfolio most significantly connected to sustainability outcomes.
Describe how you do this:At Nomura Asset Management (NAM) we strongly believe the investment management industry has a huge opportunity to have amore positive impact. We are at the heart of an ecosystem in which there are multiple avenues to support better outcomes be thatthrough collaboration with our responsible investment peers, supporting intercompany collaboration or working together with NGOs
and the media, how we behave as professionals or supporting the next generation of impact investors. Engaging for impact is onevery important avenue through which we can support better outcomes and over the year we undertook 83 engagements withportfolio companies.

Select from the list:◉2○ 4☑ (C) We prioritise the companies in our portfolio to ensure that we cover a certain proportion of the sustainability
outcomes we are taking action on.
Describe how you do this:130

At Nomura Asset Management (NAM) we strongly believe the investment management industry has a huge opportunity to have amore positive impact. We are at the heart of an ecosystem in which there are multiple avenues to support better outcomes be thatthrough collaboration with our responsible investment peers, supporting intercompany collaboration or working together with NGOs
and the media, how we behave as professionals or supporting the next generation of impact investors. Engaging for impact is onevery important avenue through which we can support better outcomes and over the year we undertook 83 engagements withportfolio companies.

Select from the list:◉3○ 4☐ (D) Other

STEWARDSHIP: ENGAGEMENT WITH OTHER KEY STAKEHOLDERS
Indicator

SO 12

Type of indicator

PLUS

Dependent on

SO 5

Gateway to

N/ADisclosure

Subsection

PRI Principle

PUBLIC

Stewardship:
Engagement withother keystakeholders

2, 5Does your organisation engage with other key stakeholders to support the development of financial products, services,
research, and/or data aligned with global sustainability goals and thresholds?
(A) Across all sustainability outcomes(1) Key stakeholders engaged(1) Standard setters(8) NGOs(2) Provide further detail on yourengagement

We support Access to Medicine and Access to Nutrition and lead engagements withtarget companies. We also participate the webinars and conference organized bythose NGOs to support the development of research.
(B) Sustainability Outcome #1:(B) Sustainability Outcome #1:

Mitigate climate change(1) Key stakeholders engaged(2) Provide further detail on yourengagement

131(C) Sustainability Outcome #2:(C) Sustainability Outcome #2:

Mitigate natural capital depletion(1) Key stakeholders engaged(2) Provide further detail on yourengagement(D) Sustainability Outcome #3:(D) Sustainability Outcome #3:

Mitigate the obesity epidemic(1) Key stakeholders engaged(2) Provide further detail on yourengagement(E) Sustainability Outcome #4:(E) Sustainability Outcome #4:

Eliminate communicable disease(1) Key stakeholders engaged(2) Provide further detail on yourengagement(F) Sustainability Outcome #5:(F) Sustainability Outcome #5:

Global access to basic financial services(1) Key stakeholders engaged(2) Provide further detail on yourengagement

132

(G) Sustainability Outcome #6:(G) Sustainability Outcome #6:

Global access to clean drinking water(1) Key stakeholders engaged(2) Provide further detail on yourengagement

STEWARDSHIP: COLLABORATION
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

SO 13

PLUS

SO 5

N/A

PUBLIC

Stewardship:
Collaboration2

During the reporting year, to which collaborative initiatives did your organisation contribute to take action onsustainability outcomes, including preventing and mitigating actual and potential negative outcomes?
(A) Initiative #1(1) Name of the initiative

NZAM, PCAF, TCFD, Climate Action 100+(2) Indicate how your organisation
contributed to this collaborative
initiative(E) We supported the coordination of the initiative (e.g. facilitating group meetings) or
provided other administrative support(3) Provide further detail on yourparticipation in this collaborative
initiative

We participated the panel discussion “TCFD summit” organized by Japanese Ministryof Economy,Trade and Industry in Oct 2022

(B) Initiative #2(1) Name of the initiative(2) Indicate how your organisation
contributed to this collaborative
initiative

FAIRR, Commitment to no-deforestation together with other financial institutions(A) We were a lead investor in one or more focus entities (e.g. investee companies)133

(3) Provide further detail on yourparticipation in this collaborative
initiative

We lead engagement with Swiss consumer company and co-lead UK consumer
company.

(C) Initiative #3(1) Name of the initiative(2) Indicate how your organisation
contributed to this collaborative
initiative(3) Provide further detail on yourparticipation in this collaborative
initiative

Access to Nutrition(A) We were a lead investor in one or more focus entities (e.g. investee companies)

We lead engagement with UK healthcare company.

(D) Initiative #4(1) Name of the initiative(2) Indicate how your organisation
contributed to this collaborative
initiative(3) Provide further detail on yourparticipation in this collaborative
initiative

Access to Medicine(A) We were a lead investor in one or more focus entities (e.g. investee companies)

We lead engagement with UK healthcare company.

CONFIDENCE-BUILDING MEASURES (CBM)
CONFIDENCE-BUILDING MEASURESAPPROACH TO CONFIDENCE-BUILDING MEASURES
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

CBM 1

CORE

N/A

Multiple
indicators

PUBLICApproach toconfidence-building
measures6

How did your organisation verify the information submitted in your PRI report this reporting year?
☐ (A) We conducted independent third-party assurance of selected processes and/or data related to the responsible investment
processes reported in our PRI report, which resulted in a formal assurance conclusion134☐ (B) We conducted a third-party readiness review and are making changes to our internal controls or governance processes tobe able to conduct independent third-party assurance next year
☐ (C) We conducted an internal audit of selected processes and/or data related to the responsible investment processes
reported in our PRI report☐ (D) Our board, trustees (or equivalent), senior executive-level staff (or equivalent), and/or investment committee (or equivalent)signed off on our PRI report☑ (E) We conducted an external ESG audit of our holdings to verify that our funds comply with our responsible
investment policy☑ (F) We conducted an external ESG audit of our holdings as part of risk management, engagement identification or
investment decision-making☑ (G) Our responses in selected sections and/or the entirety of our PRI report were internally reviewed before
submission to the PRI○ (H) We did not verify the information submitted in our PRI report this reporting year

INTERNAL REVIEW
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

CBM 6

CORE

CBM 1

N/A

PUBLICInternal review

6

Who in your organisation reviewed the responses submitted in your PRI report this year?
☐ (A) Board, trustees, or equivalent☑ (B) Senior executive-level staff, investment committee, head of department, or equivalent
Sections of PRI report reviewed◉ (1) the entire report○ (2) selected sections of the report○ (C) None of the above internal roles reviewed selected sections or the entirety of the responses submitted in our PRI report
this year

135