What is your total impact?
Nomura Asset Management U.K. Limited

Nomura Global Sustainable Equity Strategy
Impact Report 2020

Page 2

Nomura Asset Management

For your reference, the following definitions will be used throughout this document:"NAM Group"
"NAM"
"Our"
"We"

These references relate to the whole Nomura Asset Management organisation and will generally be used whenreferring to matters such as investment philosophy, style, company structure and other policies which are consistentacross the Group.

"NAM Tokyo"

This refers to Nomura Asset Management Co., Ltd., the Head Office of the NAM Group based in Tokyo, Japan.

"NAM UK"

This refers to Nomura Asset Management U.K. Limited, the UK based subsidiary of NAM Tokyo.

Global Sustainable Equity Strategy Impact Report 2020

Page 1Introducing the Global Sustainable Equity Strategy
The Nomura Global Sustainable Equity (GSE) strategy is a concentrated global equity strategy that seeks to deliver a double bottom line of strong
investment returns and high positive impact on the environment and society through both investment and engagement activity. In keeping withthe team’s investment philosophy the strategy has a strong bias towards quality companies and does not invest in companies that have a clear
negative impact on our planet and society. The strategy capitalises on Nomura’s successful core global equity investment platform and longstanding track record as responsible investors.
The team focuses on individual stock selection with an emphasis on the timely purchase of a select number of high quality businesses trading
below their intrinsic values. It implements a unique, collegiate stock selection process combined with proprietary ‘Total Stakeholder Impact’
framework and UN Sustainable Development Goals (UN SDGs) analysis.

Introducing the Team
Portfolio management of the strategy is led by Alex Rowe with Tom Wildgoose as co-manager. The portfolio managers are supported by a teamof investment professionals, based in London and Malaysia. The strategy is team based but Alex Rowe has final decision making power.
Alex Rowe, CFA
Lead Portfolio Manager
Alex has been with Nomura Asset Management U.K. Ltd. since 2014, and has been a professional equity investor
for over 9 years. He holds a Masters of Chemistry (University of Oxford, First Class), and is a CFA Charterholder.
He is an alumni of the Oxford University Said Business School Impact Investing executive program. Alex has
specialised in sustainable investing since 2016.
Tom Wildgoose, CFA
Co-Manager, Head of Equity Investment
Tom is the Head of Equity Investment at Nomura Asset Management U.K. Ltd. and has been with the firm since2007. He has been an equity investor for 20 years. Tom holds a Masters of Engineering (Univesristy of Durham,First Class), a Masters in Computing (Imperial College, London), is a CFA Charterholder and an exam qualified
management accountant.

Daniela Dorelova
Sustainable Investment Specialist
Daniela joined Nomura Asset Management U.K. Ltd in 2017 as part of the Risk and Performance team, and in
January 2021 transferred to the Equity team as the Sustainable Investment Specialist and Global Utilities analyst.
Daniela holds a Bachelor’s degree in Financial Economics (Richmond the American International University in
London) and is a CFA Level II candidate.

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Nomura Asset Management

Foreword
We are excited to publish our second annual impact report for the Global Sustainable Equity strategy, and hope that all our stakeholders will findthis another positive step forward in the journey we are on together towards supporting better outcomes. 2020 was a tragic year in terms of theloss of human life and impact on quality of life from the coronavirus pandemic. One silver lining is, however, that we observe a turning point insociety’s appreciation for the huge environmental and social issues we face and the desire to take the opportunity to build back better.
The role that large public companies have to play in tackling the monumental issues that we face is also becoming better appreciated. It was,after all, the huge pharmaceutical companies, and their research and development (R&D) and human resources that were the primary driverin the development of vaccines, in unprecedented timescales, enabling society to start its recovery towards normality. The role that NGOs,
governments and investors are having to play to ensure that the most equitable and fair approaches are being taken, by pharmaceuticalcompanies, with respect to vaccine distribution also highlights the importance of other stakeholders in collaborating with these large companies
in steering them towards achieving the most positive outcomes.
The UN estimate that the annual funding gap for the Sustainable Development Goals (SDGs) to be achieved by 2030 is in the region of US$4trn
per year. The levels of investment that are required to tackle climate change for example, simply cannot be achieved without the mobilisation of
the investment firepower of large public companies. The message is very clear – large public companies and their vast investment and broader
resources must be mobilised to tackle the grave issues we are facing, and public equity investors have a huge role to play in having ‘impact’.
We are under no illusion that the task to attribute impact and report on it to our stakeholders is very difficult. The magnitude of the issues faced(e.g. climate change) and size of investee companies that are having vast, sometimes conflicting impacts, means attribution can never be anexact science. However, we believe the positives from reporting to the best extent currently possible and the benefits derived from investors
starting to consider public equities as an asset class for impact, supporting greater capital mobilisation, far outweighs the limitations.
The impact that we can have as public equity investors is also by no means limited to our investment activity. We can have a huge impact
through engagement and broader activity as investment professionals. Above all we believe the asset management industry has a huge
opportunity to have a more positive impact. We sit at the heart of an ecosystem in which there are multiple avenues to support better outcomes,
be that through collaboration with our responsible investment peers, supporting intercompany collaboration, working together with NGOs and the
media, how we behave as professionals and supporting the next generation of impact investors.
We will continue to work with companies to encourage a transparent and standardised reporting of impact. However, we believe that thetransparency of this report will support our stakeholders’ assessment of the impact of this strategy and the Nomura Asset Management Global
Equity Team.

Global Sustainable Equity Strategy Impact Report 2020

Page 3

Our Impact Investing Philosophy
Nomura Asset Management U.K. Limited (NAM UK) is committed to reporting credible impact data to support our clients’ understanding of
the impact that their capital is having on the world alongside the competitive financial returns. Whilst public equity funds are not traditionallyconsidered vehicles for having impact, listed companies have a unique role to play, alongside multiple other stakeholders, in solving many ofthe problems society faces. Indeed, for certain UN SDGs related targets no other stakeholder can have a greater impact than public companies,
which have the resources, scale and investment firepower, to bridge the huge funding gaps required to meet the goals. Institutional investors arefurthermore uniquely positioned to enhance the impact of public companies through targeted engagement.

Society&
Individuals

NGOs

Privatesmallbusiness

ct through engagement
Impa

Impact through operations, investment,
research, human resources,
supply chain pressure

MitigateclimatechangeGovernments
Multipleotherstakeholders



Renewable power developers and operators

Renewable technology manufacturers



Manufacturers of emission reduction techNetwork developers and operators

Publicglobalequities

Our Approach
Impact cannot be claimed without having first established clear environmental and social goals that have a definable objective. The ‘impact’
must be measurable in order to assess progress towards the goals and if required, adapt the approach. At the public company level it is possible
to report ‘inputs’ (such as R&D investment) or ‘outputs’ (number of patients receiving HIV treatment) but it is far more difficult to assess true
‘impact’. Our approach is:
1. Set ‘Impact Goals’ and establish Key Performance Indicators (KPIs) for each goal
2. Identify investee companies that support these goals and set Company Performance Indicators (CPIs)
3. Track both CPIs and KPIs and Engage with Companies to enhance individual impact
4. Report impact data and engagement activity
Impact goal
definedKPIs
establishedPublic investments
identified

CPIs
established

Renewable plant developers

e.g., MWh generated

Technology manufacturerse.g., MW sold, R&D investment

Electric vehicle OEMs

Tonnes carbon saved

Efficient building equipment

Tonnes carbon saved

Pharmaceutical stakeholders

Access metrics, R&D spend

Healthcare value chain

Company specific

KPI 1: Global Renewable
Energy Output
Mitigate Climate Change

KPI 2: Atmospheric CO2(parts per million)

Aligned with SDG 7.2 (increase themix of renewable energy), SDG 7.3(double global energy efficiency)

KPI 3: Global Carbon Emissions
per Capita

KPI 1: HIV Mortality Rates in
Emerging Markets
Eliminate communicable disease

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Nomura Asset Management

Defining Our Goals
The Environmental and Social Goals of NAM UK are focused on the most pressing issues facing our world today. Our “Impact Goals” areclosely aligned with the UN SDGs and Nomura Asset Management Group’s previously published Global ESG Statement. We have taken into
consideration where we believe listed equities can have a material impact and in which our engagement can support and enhance impact.

Setting Definable Impact Goals in line with NAM's ESG statement and the UN SDGs
Society

Environment
Access to Healthcare

Social Responsibility

EliminateCommunicable Disease

Global Access to
Basic Financial Services

Mitigate the Obesity
Epidemic

Global Access to
Clean Drinking Water

Material Consumption
per Capita

Deaths due to HIV, TB
and Malaria

Percentage of
population who
are Unbanked

Global Annual Tree
Cover Loss

Obesity related
Death Rate

Percentage of Global
Population with Accessto Safe Drinking Water

SDG 12.2
Achieve the sustainable
management and efficientuse of raw materials

SDG 3.3
By 2030, end epidemics of AIDS,
Tuberculosis and Malaria
SDG 3.4
Reduce mortality from
non-communicable diseases

SDG 1.4
By 2030, ensure all have equal
rights to economic resources
SDG 6.1
Achieve universal accessto clean water

Climate Change

Natural Capital

Mitigate Climate Change:
Keep global warming
to below 2°c

Mitigate Natural
Capital Depletion

ESG Statement

Impact Goals

Global Renewable
Energy Output

Key Performance
Indicators

Atmospheric
CO2 Levels
Global Carbon Emissions
per Capita

Alignment with
the UN SDGs

SDG 7.2
Increase the mix ofrenewable energy
SDG 7.3
Double global energy
efficiency

Global Sustainable Equity Strategy Impact Report 2020

Page 5Tracking Progress Towards our Environmental and Social Goals
Mitigate Climate Change
Global Renewable Energy Generation
Annual Output (millions GWh – IEA)

4
3
2
1

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

0
2004

Global Emissions Per Capita (RHS, tonnes, GCA)

5

2003

Atmospheric CO2 (LHS, ppm – NOAA)

6

2002

3.0

7

2001

320
2020

3.2
2018

3.4

330
2016

340

2014

3.6

2012

350

2010

3.8

2008

4.0

360

2006

370

2004

4.2

2002

4.4

380

2000

390

1998

4.6

1996

400

1994

4.8

1992

5.0

410

1990

420

2000

Atmospheric CO2 Levels and Emissions
per Capita

Progression towards our Goal and KPIs

Examples of our Investments

Global Carbon Emissions per Capita and Carbon Intensity per Capita: Havestarted to decline, but this is not enough given our rapidly growing population.
Atmospheric CO2 Levels: Have continued to increase at just under 1% per annum
driven by global population growth.
Global Renewable Energy Output: Is growing at 5-6% per annum with wind still
the primary driver of growth. However, solar is rapidly catching up as costs havedeclined significantly.

Umicore: Leading manufacturer of cathode material for EV batteries.
NextEra Energy: World's largest onshore wind enery generator.
Johnson Controls: Efficient HVAC and control systems drastically reduce building
emissions.
Schneider: World leading electrical equipment business with regards to managing
climate impact and enabling customer emissions reduction.

Examples of our Engagement for Impact
Supported inter-company collaboration engagements on managing climate impact
and aligning this with management remuneration. Led by DSM and Schneider.
Successfully engaged with NextEra Energy to report better impact data.

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Nomura Asset Management

Tracking Progress Towards our Environmental and Social Goals
Eliminate Communicable Disease
Global Deaths from HIV, TB and Malaria(millons)

Progression towards our Goal and KPIs
Deaths due to HIV, TB, Malaria: Deaths are falling steadily but 700k deaths from
HIV/AIDS and 1.2 million deaths from TB is still far too high.
Deaths from COVID-19: In 2020 there were 1.8 million reported deaths fromCOVID-19 just less than the combined death from HIV/AIDS and TB.

2.0
1.8
1.6
1.4

Examples of our Investments for Impact

1.2
1.0
0.8
0.6
0.4
0.2
0.0
2000

2002

2004

2006

2008

HIV (WHO Data)

2010

2012

TB (WHO Data)

2014

2016

2018

2020

Malaria (WHO Data)

Examples of our Engagement for Impact

Global COVID-19 Cases and Deaths(millions)
140

3.5

120

3.0

100

2.5

80

2.0

60

1.5

40

1.0

20

0.5

0

0.0
01-2020 03-2020 05-2020 07-2020 09-2020 11-2020 01-2021 03-2021
Cases (LHS, Total- Our World in Data)

Gilead: The world's leading HIV treatment pharmaceutical company. Drug
Remdesivir was one of the earliest treatments for COVID-19 to be introduced.
GlaxoSmithKline: Largest vaccine manufacturer globally with leading Accessstrategies. Supporting Sanofi with adjuvant technology for its proposed COVID-19
vaccine.
Johnson and Johnson: Pharmaceutical with strong HIV and vaccine franchises.
One of the first companies to have a vaccine for COVID-19 approved.

Deaths (RHS, Total- Our World in Data)

Collaborative engagements coordinated by Access to Medicine focusing on an
equitable response to COVID-19. We co-lead engagements with Gilead andGlaxoSmithKline.

Global Sustainable Equity Strategy Impact Report 2020

Page 7

Tracking Progress Towards our Environmental and Social Goals
Mitigate the Obesity Epidemic
US Obesity Related Death Rates(CDC, per 100,000)

Progression towards our Goal and KPIs

CV Disease Death Rate (LHS)

2019

2018

2017

2016

2015

2014

2013

2012

2011

15
2010

0
2009

17

2008

50

2007

19

2006

100

2005

21

2004

150

2003

23

2002

200

2001

25

2000

27

250

1999

300

Diabetes Death Rate (RHS)

6.0
5.5

400

5.0
300
4.5
200

4.0
3.5

Global Diabetes Sufferers (LHS)

Global Disease Deaths (RHS)

2019

2017

2015

2013

2011

2009

2007

2005

2003

2001

1999

1997

1995

100

Examples of our Investments for Impact
Novo Nordisk: Leading diabetes treatment manufacturer.
Becton Dickinson: Medical equipment applications across diabetes andcardiovascular disease.
Medtronic: MedTech company with large cardiovascular and diabetes businesses.

Examples of our Engagement for Impact

Global Number of People with Diabetes and Annual Deaths(IDF, millions)500

Obesity Related Death Rate: Within the United States the death rate from heartdisease has continued to decline modestly despite rapidly increasing levels ofobesity. Diabetes death rates had plateaued having been in steep decline but are
now rising.
Number of Individuals with Diabetes Globally: Continues to rise with very little
sign of moderating, currently growing at 4% annually. Deaths have not grown in linewith the number of people suffering from diabetes as a result of medcial advances.

Enagaged with Novo Nordisk to support the reporting of better impact data that
articulates the social impact the company is having through its world leading
diabetes treatment business.

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Nomura Asset Management

Tracking Progress Towards our Environmental and Social Goals
Global Access To Clean Drinking Water
Percentage of Global Population with Access to
Safe Drinking Water

Progression towards our Goal and KPIs
Percentage of Global Population with Access to Safe Drinking Water: The
WHO/ Unicef Joint Monitoring Programme (JMP) has not updated this metric since2017 when still 30% of the world's population did not have access to safe drinking
water. UN Environment Programme (UNEP) data used to track SDG 6.5.1, updated
in 2020 shows meaningful progress with regards to water resource management
globally since 2017, particularly across Asia and Africa.

73
71
69
67
65
63

Examples of our Investments for Impact

61
59
57
55

2000

2002

2004

2006

2008

2010

2012

2014

2016

Percentage of Population (WHO/Unicef Joint Monitoring Programme)

Degree of Integrated Water Resource Management(UNEP)

Examples of our Engagement for Impact
Engaged with Waters to support the reporting of better impact data that articulates
the impact the company is having through its world leading testing equipment.

80%
2017

2020

Sub-Saharan Central & S
Africa
Asia

LatAm

70%
60%
50%
40%
30%
Aus & NZ

EU & NA

E & SE
Asia

N&W
AfricaUnilever: Very strong water filtration business and commitment to supporting global
access.
Nestle: Has facilitated access to clean water within its supply chain to over 600k
people that would otherwise not have had access.
Pentair: Water filtration business with strong presence in Asia. 'Project Safewater'
has supported access to water for 3 million people.

Global Sustainable Equity Strategy Impact Report 2020

Page 9Tracking Progress Towards our Environmental and Social Goals
Global Access to Basic Financial Services
Percent of Population withBank Account Access

Progression towards our Goal and KPIs
Percentage of Population who are Unbanked: The World Bank have not updated
data on the proportion of the population that is unbanked since 2017, at which time
there were still 1.7bn people globally who did not have access to a bank account(down 15% since 2014).
More frequently published data from the IMF on the growth in mobile money
accounts across emerging economies shows the impact that mobile payment
technology is having in accelerating financial inclusion.

100%
90%
80%
70%
60%
50%

Examples of our Investments for Impact

40%

Safaricom: Mobile payments business is used by over 40% of the population of
Kenya, many of whom would not have access to financial services otherwise.
HDFC: A significant portion of the group's mortgage and loan portfolios are focusedon the the low income and economically weak sectors in India.
Mastercard and Visa: Whilst not core to their operations these businesses havesupported access to basic financial services for a huge number of individuals
previously excluded from financial services (ca 1bn people between the twocompanies).

30%
2011

2014

2017

Men High Income

Women High Income

Men Low/Mid Income

Women Low/Mid Income

IMF Financial Access Survey
Number of Active Mobile Money Accounts (millions)
40
2013

2016

2019

Philippines

RwandaSenegal

30

20

10

0

Bangladesh Cambodia

Côte
d'Ivoire

Mali

Pakistan

Examples of our Engagement for Impact
Engaged with Safaricom to push for the positive social impact of its mobile
payments business to be increased with regards to its impact on management
remuneration.

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Nomura Asset Management

Tracking Progress Towards our Environmental and Social Goals
Mitigate Natural Capital Depletion
Global Material Consumption per Capita andGlobal Annual Tree Cover Loss

Progression towards our Goal and KPIs

13

30

12

25

11

20

10
9

15

8

10

7
6

5

5
4

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Examples of our Investments for Impact

0

Umicore: Company operates world leading industrial and precious metal recycling
operations that support a reduction in extraction requirements.
Inditex: Sustainability leader within apparel retail. Efforts have driven considerable
waste reduction within the supply chain.

Global Material Consumption per Capita (LHS, Tonnes – UNEP Data)
Global Annual Tree Cover Loss (RHS, Mha – Global Forest Watch)

Global Resource Consumption

Year

Oil
Consumed(mm bbl. a
day)

Coal
Consumed(mm tonnes)

Apparent
Steel Use
(mm tonnes)

Aluminium
production(mm tonnes)

Copperproduction(mm tonnes)

2015

92.6

5385.6

1626.1

58.5

19.3

2016

94.4

5305.91640.4

59.9

20.4

2017

96.0

5326.11759.9

63.4

20.0

2018

97.3

5418.2

1835.8

64.2

20.6

2019

98.3

5386.21888.963.7

20.7

Aluminium
production(kg)

Copperproduction(kg)

Global Resource Consumption Per Capita
Coal
Consumption
(kg)

Steel
Apparent
Use (kg)

Global Annual Tree Cover Loss: Rolling three year average deforestation levels
have moderated since peaking in 2018 following a sharp acceleration starting in2012.
Material Consumption per Capita: The UNEP have not updated this primary
metric that we use to track to mitigate natural capital depletion since 2017, however
more frequently published data on global individual natural resource consumption
suggests consumption is finally flattening on a per capita basis. Given current
population growth levels, sustainable development requires a considerable decline inper capita levels.

Year

Oil
Consumption(barrels)

2015

4.6

729.8

220.4

7.9

2.6

2016

4.6

710.9

219.8

8.0

2.7

2017

4.6

705.6

233.2

8.4

2.7

2018

4.7

710.0

240.6

8.4

2.7

2019

4.7

698.3

244.9

8.3

2.7

Examples of our Engagement for Impact
Joined a collaborative engagement initiative that is using satellite imaging andartificial intelligence (AI) to support us in holding companies accountable for
deforestation in supply chains.

Global Sustainable Equity Strategy Impact Report 2020

Page 11A Word on Company Level 'Impact' Data Reported
For each of our six impact goals we report multiple indicators (KPIs), which enable us to understand how society is progressing towards the goal,and supports our identification of investments and engagement activity that can have positive impact. At a company level we want to report datathat encapsulates the true ‘impact’ that the company has on the impact goal and its KPIs. However, as a result of both the scale and complexityof the issues faced and the degree of reporting by companies themselves, the company ‘impact’ data (CPIs) we report will span across a rangeof ‘proxies’ for impact. The levels of understanding and tracking ‘impact’ progress through the following levels – ‘Theory of Change’:
1. Input – Resources invested into the activity, for example R&D expense, workers
2. Activities – The activities that took place as a result
3. Output – Results (products, services) as a consequence of the activities and inputs
4. Outcomes – Changes that occurred because of the outputs
5. Impact – What was the impact on the initial goal (e.g. how did this mitigate climate change)
As we progress from Inputs through to Impact the metrics become harder to measure, more reliant on company reporting, and harder toattribute. Taking for example a HIV treatment company’s inputs might include the human resources and capital invested, activities might be theresearch, manufacturing, agreement of licensing agreements, outputs might be the number of HIV treatments manufactured and distributed.
Outcomes would articulate the change this had on human life (extension, lives saved), and Impact is the ultimate change this delivered
with regards to ‘eliminating HIV’. A number of pharmaceutical companies are currently working with academic institutions towards industry
standard true impact reporting, however currently our impact reporting is predominantly limited to Outputs as we would have to make too many
assumptions that we cannot credibly claim to have sufficient accurate insight into given the data that is available to us. However, through also
tracking KPIs, such as total deaths from certain diseases, and our knowledge of the proportion of patients being reached by a company we areable to develop a more qualitative understanding of the magnitude of the role the company is playing with regards to ‘Impact’ on our goal.
We know for a utility company it has made certain investments (inputs) and a certain capacity of renewable energy has been connected (output)
as a result of this activity. The outcome has been that the emissions of the country have been reduced and we have an understanding of theemissions reduction achieved by the region – attributing this between the network developer, renewable developer and other stakeholders isdifficult however. The final stage ‘Impact’ on climate change is more difficult still – we can start to calculate the impact this has on climatechange but this involves a huge number of assumptions.
Depending on the company and the quality of its reporting, and nature of operation we may have inputs, activities, outputs. We seek to report
the best data (CPIs) that reflects a ‘proxy’ for the ultimate impact it is having. We have included with the appendix full disclosure of all metrics
we are tracking for our underlying companies and welcome any opportunity to engage with stakeholders on these metrics.

Page 12

Nomura Asset Management

The Global Sustainable Equity Strategy Investee Company Impact
Per US$1 mm invested in the Global Sustainable Equity strategy underlying holdings achieved the following impact. More details on individualcompany contribution are available in the appendix.

Mitigate Natural Capital Depletion

Eliminate Communicable Disease
31 low income
patients reachedwith treatments
through accessstrategies – of which
7 represents HIV
treatment

Recovered 796
kgs of high value
industrial andprecious metals
through recycling

Mitigate Climate Change:
386 tonnes lower
CO2 emissions(scope 1+2+3)
relative to MSCIACWI
Equivalent to taking
84 cars off the road
2.63 kW ofrenewable energy
connected
Enough to power 3
homes

Global Access to Basic
Financial Services:
Supports 65
otherwise highly
underserved
individuals across
Kenya having accessto mobile payments

189 vaccinesdelivered last year

Provided $889
of mortgage
financing to theeconomically weaksector in India

per

US$1 mminvested

Have reached
59 previously
unbanked
individuals throughfinancial accessstrategies since
2015

COVID-19 (Eliminate
Communicable Disease):

72 kWh of cathodematerial produced
for electric vehicles
Enough to power
3 EVs

Global Access to Clean Drinking Water

1,582 litres of safe
and clean drinking
water

Provided insurance
solutions inemerging economies
for 33 individuals

Current annual run rate for COVID-19 testing
manufacture of 39 tests

Mitigate the Obesity Epidemic:*Targeted COVID-19 vaccine manufactured in
2021 of 54 vaccines*Current annual capacity for vaccine
administration of 44 vaccines

Provided treatment
for 7 diabetes
sufferers*Number of devices committed for COVID-19
vaccines 362
303 people reachedthrough hygiene
outreach and water
access programmes*For Coronavirus related impact, per $mm
invested, only we have provided forward looking
data instead of historic data, to better support
stakeholder understanding of the role companies
are playing (that have only recently establishedcapacity)

Source: NAM UK. Company sustainability data is collected from each company’s shareholder reports, regulatory filings, and/or other company-specific documentation. Impact data is susceptible toinconsistencies. There is currently no standardized, uniformly accepted methodology for companies to measure and report this data, which, in some cases, requires a conversion to allow for aggregation
across the strategy. The slide contains estimates produced by NAM UK and has been prepared on a best efforts basis with a view of supporting an understanding of the impact of underlying holdings.
Data has not been independently verified.
Impact per US$1 mm is taking into account the strategy’s effective ownership of underlying companies. The impact is calculated as a proportion of our ownership relative to the companies’ overall impact
and is aggregated across all holdings. For example, if Company A reached 15.2mm people with HIV treatment through its access strategies, and considering the strategy holds 2% of its AUM in thiscompany, US$1 mm in the strategy would have a $20k holding in Company A. To calculate the impact we use the market cap of the Company A and apply the following formula:($20k/$market cap) x 15.2mm. The end result represents the estimated number of people reached with HIV treatment by the underlying companies within the portfolio per US$1 mm invested.

13 members
covered withmedical insuranceGlobal Sustainable Equity Strategy Impact Report 2020

Page 13Engaging for Impact
At Nomura Asset Management we strongly believe the investment management industry has a huge opportunity to have a more positive
impact. We are at the heart of an ecosystem in which there are multiple avenues to support better outcomes be that through 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 one very important avenue through which we can
support better outcomes and over the year we undertook 41 engagements with portfolio companies. Mitigate Climate Change accounted for 20of these engagements as this was a particular focus of our intercompany collaboration project in which we engaged with a number of investee
companies to discuss the prospect for collaborating on best practice particularly around climate change.
Topic

Engagement Focus

Count

Mitigate Climate Change

20

Eliminate Communicable Disease5

Global Access to Clean Drinking Water

2

Mitigate Natural Capital Depletion

2

Global Access to Basic Financial Services

1

Mitigate the Obesity Epidemic

1

Other Sustainability

10

Total

41

Other
Sustainability 24%
Mitigate
the Obesity
Epidemic 2%
Mitigate Climate
Change 49%

Global Access to
Basic Financial
Services 3%
Mitigate Natural
Capital Depletion 5%
Global Access to
Clean Drinking
Water 5%

EliminateCommunicable
Disease 12%

Page 14

Nomura Asset Management

Case Studies
Case Study One: Intercompany Collaboration Project
We recognise that we have a unique insight from analysing the ESG performance of hundreds of companies, and that we can use this insight
to identify companies with weaknesses and connect them with other companies, in different regions and sectors, that might be able to shareexperiences and support better ESG outcomes. As such over the year we embarked on an intercompany collaboration project seeking to connect
companies on a non-competitive basis to work together towards better outcomes. We have found the response to the project highly promisingwith a number of companies willing to connect to either share positive experiences to support better outcomes at other companies, or eager tolearn how they might support better outcomes from more advanced peers on the sustainability front.
We identified a US portfolio holding with a weakness on climate reporting and in the incorporation of climate targets in management
remuneration and connected it with a European portfolio holding that is more advanced in those areas. We believe this connection will help thelaggard rapidly improve.
We also connected a European portfolio holding that is advanced on climate impact with a Malaysian company that is keen to learn and improve.
The feedback from this connection has been excellent. We continue to look to expand the initiative following initial success.

Case Study Two: Supporting an Equitable Response to the COVID-19 Pandemic
In collaboration with Access to Medicine and a number of our fellow signatories, we supported the development of an open letter to thepharmaceutical industry urging companies to take a number of actions focused around collaboration and cooperation to support a responseto the pandemic. Following the letter we co-led two individual company engagements to focus on the most relevant actions the respective
companies should be taking. We engaged with GlaxoSmithKline, in which our conversation was focused around how the company could
use its vast resources and footprint to support peers that were more likely to develop a treatment. We also engaged with Gilead focusing on
how the company would responsibly price its treatment (Remdesivir) and the actions being taken to ensure access in emerging economies
through licensing agreements. We later co-signed an additional Access to Medicine statement supporting a fair and equitable response to
the Coronavirus pandemic, which recognised that the spread of new Covid strains had made it even more urgent to launch rapid vaccination
programs covering as many people as possible, including in low and middle-income countries. As co-leads of the Access to Medicine investor
collaboration with GlaxoSmithKline, we engaged again with the company to discuss vaccine efforts and strategies for ensuring access.
The coronavirus pandemic has also highlighted the severe lack of access to medical oxygen in emerging countries given the role this can playin improving outcomes for those that experience severe symptoms. During 3Q20 we participated in a roundtable led by the Access to Medicine
and the Every Breath Counts coalition, for companies, NGOs, donors and investors to openly discuss how stakeholders could work together totackle this grave issue. Working collaboratively across our firm we were also able to use our influence to support bringing a key Japanese player
within the medical oxygen space to the table to participate in the conversation. The initiative remains in the early stages but the first steps havebeen taken and highlight the important role institutional investors can play in supporting better outcomes.

Global Sustainable Equity Strategy Impact Report 2020

Page 15

Case Study Three: Satellite-based engagement towards No-Deforestation
In October 2020, Nomura Asset Management joined an investor initiative using satellite-based imaging to work towards no-deforestation. Thisinitiative represents a coalition of nine financial institutions with a total of €1.8 trillion in AUM. The project will use satellite imagery and artificial
intelligence (provided by Satelligence) to assess companies’ supply chain traceability and deforestation risks. The loss of biodiversity due toincreasing cases of deforestation is one of the greatest societal and economic risks we face today. Scrutiny of the financial and material risks, aswell as recent governmental and regulatory discussions, has brought analysis and risk management of deforestation to the forefront of investors’
minds. Hence, traceability and transparency of companies’ supply chains are crucial to investors in order to identify and mitigate natural capital
depletion risks in their portfolios holdings.
For the purpose of this engagement, 10 companies have been identified and split into two distinct groups. The first group consists of fivecompanies that are currently showing lack of traceability efforts and/or do not disclose their supplier lists. The second group of five companies
provide disclosures of their existing supply chain, however have been connected to cases of deforestation in the recent year based on satellite
information. The target companies are expected to meet the investors’ expectations in two to three years’ time. By means of innovative
tools, such as satellite imagery and artificial intelligence, investors would be able to assess independently the progress made by the subject
companies and determine whether their efforts are indeed leading to a reduction of deforestation in the monitored regions and suppliers. The
initial collaborative engagement reviews the palm oil sector in Malaysia, however the current approach used for monitoring could potentially be
expanded and applied to other soft commodities in the future.

Case Study Four: Engaging for Better Impact Data
NextEra Energy is a core enabler of our ‘Mitigate Climate Change’ impact goal and has been an important holding in the Global Sustainable
Equity strategy since inception. NextEra was one of the first movers into onshore wind and commands a dominant position within North America
as by far the largest renewables operator with over 26GW of renewable energy in operation or under construction, generating almost 50TWhof clean energy annually. We have been engaging for impact with NextEra Energy to support even more positive environmental outcomes.
We believe that impact data will play an important role in supporting positive outcomes as it enables investors to better understand the true
impact of what they are investing in, and we have been engaging with NextEra Energy to report the tonnes of carbon avoided as a result of
their renewable energy investment. The company has reacted to our engagement activity and now reports this metric – its renewable operating
portfolio resulted in over 28mm tonnes of avoided CO2 emissions in 2019, and combined with the transition of the generation portfolio at its
regulated utility the figure rises to 57mm tonnes of CO2 avoided in 2020. We are currently engaging with the company to support improved
disclosures around its recycling of renewable equipment.

Page 16

Nomura Asset Management

Appendix: Individual Company Contributions
Company CPI 1
Company

Alignment withNAM Impact Goal

DirectIntentionality

Measurement

Value
2020

Value
2019

Value
2018

DaVitaMitigate the Obesity Epidemic,
Eliminate Communicable
DiseaseYes

Total US Dialysis treatments given in the year

30.3mm

30.2mm

29.4mmPAYPAL HOLDINGS INC

Global Access to Basic
Financial Services

No

Small-medium business working capital loans (USD,
total since 2013)

CSR 2020
not out$14.5bn$7bn

APPLE INC

Mitigate Climate ChangeNo

Renewable energy capacity committed at suppliers'
facilities (GW)CSR 2020
not out

5.1GW

3.3GW

MICROSOFT CORP

Mitigate Climate ChangeNo

Renewable energy credits and power purchaseagreements (GWh)

10,244.06 8,744.25 GWh 7,357.24 GWh
GWh

JOHNSON CONTROLS

Mitigate Climate Change

Yes

Carbon saved as a result of perfomance contracting(tonnes pa and total since 2000)

CSR 2020
1.4mm
not out (26.7 mm total)

UNILEVER PLC

Global Access to Clean
Drinking Water

Yes

Estimated litres of safe drinking water provided from
Pureit devices (total & annual)

121bn(7bn in 2020)

ALLIANZ SE-REG

Mitigate Climate Change,
Global Access to Basic
Financial Services

No

Revenue from insuring 'sustainable solutions' (pa)CSR 2020
not out€1.333bn€1.279bn

MEDTRONIC PLC

Mitigate the Obesity Epidemic

Yes

Patients served (we estimate 60% of the business isrelated to fields impacted by obesity - CV, diabetesetc)

CSR 2020
not out

75mm

71mm

NOVO NORDISK A/S-B

Mitigate the Obesity Epidemic

Yes

Number of patients that received Novo Nordisk
treatment for diabetes

32.8mm

30mm

29.2mmAXA SA

Mitigate Climate Change,
Global Access to Basic
Financial Services

No

Divestment of Coal, Oil, Sands, Tobacco, Controversial
Weapons

CSR 2020
not out

7.5bn

7.2bn

SAFARICOM PLC

Global Access to Basic
Financial Services

Yes

Number of active customers (M-Pesa)

24.91mm

22.6mm

20.5mm

ALPHABET INC-CL A

Mitigate Climate ChangeNo

Renewable energy secured under PPA's (cumulative
GW)

CSR 2020
not out

5.4GW

3.8GW

WATERS CORP

Eliminate Communicable
Disease, Global Access to
Clean Drinking Water

Yes

Track R&D spend as a proxy for impact of solutions as
we continue to engage for better data

$141mm$143mm$143mmMASTERCARD INC - A

Global Access to Basic
Financial Services

Yes

Number of people reached previously excluded fromfinancial services

CSR 2020
not out

500mm

400mm

SMITH (A.O.) CORP

Mitigate Climate Change,
Global Access to Clean
Drinking Water

Yes

Tonnes carbon saved from AOS' efficient technology(pa)

CSR 2020
not out

462k
tonnes309k
tonnesPENTAIR PLC

Global Access to Clean
Drinking Water

No

Number of people providing clean drinking water to indeveloping economies under Project Safewater

3mm

SCHNEIDER ELECTRIC SE

Mitigate Climate Change

Yes

Tonnes of CO2 saved by customers as a result ofoffering

122mm/239mm109mm
tonnes

91mm
tonnesCISCO SYSTEMS INC

Mitigate Climate ChangeNo

GHG emissions reduced in supply chain (cumulative
tonnes since 2016)-

1.15mmtonnes0.91mmtonnesAIA GROUP LTD

Global Access to Basic
Financial Services

Yes

Number of individual life insurance policies

CSR 2020
not out

36mm

33mm

BECTON DICKINSON
AND CO

Mitigate the Obesity Epidemic,
Eliminate Communicable
DiseaseYes

R&D expenditure used as a proxy for investment
in solutions for Mitigate the Obesity Epidemic andEliminate Communicable Disease$1.1bn$1.1bn$1.0bn25.3mm total

114bn
106bn
(8bn in 2019) (10bn in 2019)

Global Sustainable Equity Strategy Impact Report 2020

Page 17Company CPI 2

Company CPI 3
Value
2020

Value
2019

Value
2018 Measurement

Hospitalisation rate (% lower than the industry
average)

CSR 2020
not out

25%

25%

Scope 2 Emissions avoided as a result of
renewable energy sourcing (metric tonnes CO2e)

CSR 2020
not out899,000

Reduced emissions across all scopes (metrictonnes of CO2e)586,683

Number of people reached through health andhygiene push - note a large portion of this is throughTV (Total, but 2020 methodology impated by Covid)

1.30bnTotal investment in 'sustainable investments'

Measurement

690,000 Population of IOS smartphone users
wordwide (billions)

Value
2020

Value
2019

Value
2018

1.00

0.86

0.78

Airband Initiative to close the broadband gap(cumulative in millions)17.2mm1.30bn1.24bnCSR 2020
not out€29.4bn€25.1bn Affordable and effective insurance solutions
to customers in the emerging consumers
segment (mm)CSR 2020
not out

49.4mm

44.1mmR&D expenditure (proxy for investment into
technology supporting mitigate the obesity epidemic- we estimate ca. 60% of business)$2.3bn$2.3bn$2.3bnDiabetes sufferers treated with human insulin (ata cost <$4/ vial) through access programme

3.2mm

2.9mm

0.3mm Research and Developmnt Expense (ofwhich the majority is into obesity and relateddiseases)

DKK 15.5bn

DKK 14.2bn

DKK 14.8bn

CSR 2020
not out

11.8bnCSR 2020
not out

17mm

9.3mm

Volume of payments processed by M-Pesa(million Kenyan Shillings)

13,90011,7209,179 Volume of transactions processed by M-Pesa
per customer per month

12.9

12.2

11

Household energy saved by Nest thermostat
customers (cumulative GWh)

CSR 2020
not out

47,02029,894 Population of Android smartphone users
wordwide (billions)

2.8

2.9

2.9

Gallons of drinking water filtered by AOS water
treatment systems

CSR 2020
not out

154mm
gallons

Metrics tonnes of carbon saved from efficient pumps(total)CSR 2020
not out

Tonnes of avoided primary resource consumption
from recycling and take back programs

157k

Total 'Green investments'

Positively impact 1 billion people through social
impact grants and signature programs by 2025
(cumulative)

527mm

Current production run rate of Antigen tests for
COVID-19 (per month, FY21 forecast)

8mm€350mm Emerging markets customers insured by
AXA (mm)

15.5mm
12.7mm(since 2005) tonnes (since
2007)
120k

100k

Number of devices committed for COVID-19
vaccines (needles, syringes)

1bnPage 18

Nomura Asset Management

Appendix: Individual Company Contributions
Company CPI 1
Company

Alignment withNAM Impact Goal

DirectIntentionality

INDUSTRIA DE DISENOTEXTIL

Mitigate Natural Capital
Depletion

No

Tonnes of product recovered for recycling andcollected for closing the loop strategy (annual)

Yes

Number of associates on assignments daily (people
provided flexible work for)ADECCO GROUP AG-REG

Measurement

Value
2020

Value
2019

Value
2018

CSR 2020
not out

37k
tonnes34k
tonnes

600k

600k

700k

193mm

102mm

GLAXOSMITHKLINE PLC

Eliminate Communicable
DiseaseYes

Patients reached through access strategies

267mm

NATIONAL GRID PLC

Mitigate Climate Change

Yes

GW of Renewables connected

4.8GW

JOHNSON & JOHNSON

Eliminate Communicable
DiseaseYes

Number of patients benfitting from JNJ solutions thatprevent, control and eliminate global diseases (16-19
total)CSR 2020
not out

417mm

306mm

SAP SE

Mitigate Climate ChangeNo

Total GHG Emissions offset & avoided fromrenewables investments (metric tonnes per annum)

250.38k448.15k383.74k

INTEL CORP

Mitigate Climate Change

No

Energy savings from conservation projects (since2012)

CSR 2020
not out

4.5bn kWh

4bn kWh

HOUSING DEVELOPMENTFINANCE

Global Access to Basic
Financial Services

Yes

Number of loans to 'economically weak' and 'Low
Income Group' in India

115k

113k

100k

VISA INC-CLASS A SHARES Global Access to Basic
Financial Services

Yes

Number of previously unbanked customers who
received a first-time account from Visa (annual)

CSR 2020
not out

In excess of
104mm

115mm

UMICORE

Mitigate Climate Change

Yes

GWh of capacity - battery cathode material for electricvehicles

45GWh

30GWh

HUMANA INC

Mitigate the Obesity EpidemicNo

Number of plan members

16.8mm

16.7mm

16.6mmGILEAD SCIENCES INC

Eliminate Communicable
DiseaseYes

HIV sufferers that have received GILD drugs in low/
mid income countries through access strategies

17.4mm

15.2mm

11.5mmEVERSOURCE ENERGY

Mitigate Climate Change

Yes

Annual CO2 reduced (metric tonnes)

CSR 2020
not out

247,288

301,226

CVS HEALTH CORP

Mitigate the Obesity EpidemicNo

Number of medical plan members (Aetna)

23.0mm

22.1mm

22.1mm

CIGNA CORP

Mitigate the Obesity EpidemicNo

Number of plan members

17mm

17mm

17mm

NESTLE SA-REG

Global Access to Clean
Drinking Water

No

Beneficiaries receiving direct access to water through
WASH programme (cumulative in millions)

1.407mm

0.896mm0.759mm

FIDELITY NATIONAL INFOSERVGlobal Access to Basic
Financial Services

No

FIS Working Capital solution funding to small andmedium-sized businesses (SMBs) in the US and theUK (cumulative, mm, since Mar 2019)

CSR 2020
not out

20mm

KONINKLIJKE DSM NV

Mitigate Climate Change

Yes

Tonnes of carbon avoided as a result of products

CSR 2020
not out

28mm

NEXTERA ENERGY INC

Mitigate Climate Change

Yes

TWh of carbon free energy generated from windcapacity

56TWh

48.6TWh

44.5TWh

NETWORK INTERNATIONAL Global Access to BasicHOLDIN
Financial Services

Yes

Total processed volumes ($mm)

$34bn

$44bn

$40bn

COMPASS GROUP PLC

No

Number of restaurants offering healthy foodalternatives

0.87

0.83

18.2k

Mitigate Natural Capital
Depletion and Mitigate theObesity EpidemicGlobal Sustainable Equity Strategy Impact Report 2020

Page 19

Company CPI 2

Company CPI 3

Measurement

Value
2020

Value
2019

Number of people trained and coached in the year

500k

500k

2mm/ day

1.9mm/ day

181

210

Total R&D Expense

CSR 2020
not out

Total installed capacity of alternative energy andgreen power (onsite)

Vaccines distributed on a daily basis globally

Value
2018 Measurement

Value
2019

Value
2018

£5.1bn£4.6bn248 Capital expenditure within transmission is
one proxy for network role in supporting
energy transition£1,043mm£925mm£999mm

11.4bn10.8bn Patients provided with access to HIV / TB
treatment

CSR 2020
not out

105k/106k

51k/76k

CSR 2020
not out

50MW

48MW

Value of loans to 'economically weak' and 'Low
Income Group' in India (INR bn)

190.68169

157

Tonnes of industrial and precious metals recycled(capacity is used as a proxy)

500kt

500kt

R&D Expense$5.0bn$4.1bnTotal emissions (metric tonnes CO2e)

CSR 2020
not out

659,088815,15051.71mmtonnes25.4mmtonnesAverage carbon intensity of British electricity (gCO2/
kWh)2mm/ day R&D Expense

Value
2020

$3.9bnCapacity for vaccine adminstration made available(per month), as at March 2021

20-25mm

GW of Renewable Energy capacity (including
contracted under construction)

CSR 2020
not out

26GW

23GW Avoided CO2 emissions from renewables
portfolio and transitioning generation assets(million tonnes)

Number of transactions (mm)758.1mm

752mm

681mm

30mm

6.9mm

Plastic straws and cutlery removed (2018 just UK &NA data, from 2019 will be groupwide figure)Page 20

Nomura Asset Management

Global Sustainable Equity Strategy Impact Report 2020

Page 21

About Nomura Asset Management
The Nomura Asset Management Group is a leading global investment manager with over US$490 billion of assets under management.
Headquartered in Tokyo, Nomura has additional investment offices throughout the world including London, Singapore, Malaysia, Hong
Kong, Shanghai, Taipei, Frankfurt and New York. With a global workforce of over 1,300 employees it has been operating in Europe forover 30 years.
Today Nomura Asset Management provides its clients with a wide range of innovative investment strategies including global, regionaland single country equities, high yield bonds, alternative investments and global fixed income strategies.

1,312

225

assets undermanagement globally

staff employed
across 14 offices

portfolio managers locatedstrategically around the world

112

1959

30years

dedicated professionals committed tofundamental and quantitative research

Our investment management capability wasestablished in Japan over 50 years ago

Operating in Europe
for over 30 years

US$

573 bnSource: Nomura Asset Management as at 31st December 2020

DISCLOSURESThis report was prepared by Nomura Asset Management U.K. Ltd. for information purposes only on the general environment of investment conditions. Although this report isbased upon sources we believe to be reliable, we do not guarantee its accuracy or completeness. Unless otherwise stated, all statements, figures, graphs and other information
included in this report are as of the date of this report and are subject to change without notice. The contents of this report are not intended in anyway to indicate or guarantee
future investment result as the value of investments may go down as well as up. Values may also be affected by exchange rate movements and investors may not get back thefull amount originally invested. Further, this report is not intended as a solicitation or recommendation with respect to the purchase or sale of any investment fund or product.
Before purchasing any investment fund or product, you should read the related prospectus and documentation in order to form your own assessment and judgement and, tomake an investment decision.
This report may not be reproduced, distributed or published by any recipient without the express written permission of Nomura Asset Management U.K. Ltd.
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