EXPLANATION OF HOW KEY ELEMENTS OF
THE BENCHMARK METHODOLOGY REFLECTENVIRONMENTAL, SOCIAL, AND
GOVERNANCE (ESG) FACTORS
Solactive Developed Real Estate ESG Climate Index PR

This document provides an explanation of how the key elements of the benchmark methodology reﬂect ESG factors. It is compiledin accordance with the requirements of point (d) of Article 13 (1) of Regulation (EU) 2016/1011 of the European Parliament and ofthe Council of 8 June 2016 (the “Benchmarks Regulation”) and of the Commission Delegated Regulation (EU) 2020/1817.

General Information
Name of the benchmark administrator

Solactive AG

Type of benchmark or family ofbenchmarks

EquityName of the benchmark or family ofbenchmarks

Solactive Developed Real Estate ESG Climate Index PR

Does the benchmark methodology forthe benchmark or family of benchmarks
take into account ESG factors?

Yes

ESG Factors Applied in the Benchmark Methodology
List of environmental factors considered> UN Global Compact Screening: Negative impact of the company operation, according to international norms and principles; in particular on Environment.
> Exclusion of companies generating revenues (in proportion to their totalrevenues) >5% from thermal coal mining, >30% from coal-ﬁred generators, >5% from coal-ﬁred generators with weak management of carbon
within their own operations, >5% from oil sands and shale, >5% from artic
oil with weak management of carbon within their products and services.
> Exclusion of companies with a GRESB Assessment of 1 or 0.
> Exclusion of companies with a NTAM ESG Vector Score of 0.5 or score in
the bottom decile of the index universe, in case they have missing or <2GRESB Assessment.
> Reduction of the carbon intensity (total scope 1, 2 emissions divided byEVIC) of the index by at least 30% compared to the index universe.
> Improvement of the carbon risk rating by at least 10% compared to theindex universe.

List of social factors considered> UN Global Compact Screening: Negative impact of the company operation, according to international norms and principles; in particular on Human Rights & Community, Labor Rights & Supply Chain.
> Exclusion of companies generating revenues (in proportion to their totalrevenues) >5% from distribution, supply and retail or >0% from productionin the sector of tobacco.
> Exclusion of companies generating revenues (in proportion to their totalrevenues) >0% from manufacturing small arms (assault and non-assault)
weapons, >5% from distribution or retail sale of small arms weapons, >5%
from military contracting, >5% from conventional weapons, >5% from civilian ﬁrearms, >0% from cluster bombs & landmines, nuclear weapons, biochemical/chemical weapons and depleted uranium weapons.
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> Exclusion of companies generating revenues (in proportion to their totalrevenues) >5% from private prison operations.
List of governance factors considered> UN Global Compact Screening: Negative impact of the company operation, according to international norms and principles; in particular on Governance and Customers.
> Business Controversy: Classiﬁed as “very severe” with regards to customer
controversy issues.

Data and Standards used
Data Input

The data used to construct the index is sourced externally from Northern
Trust Asset Management, Institutional Shareholder Services Inc., GRESB

Veriﬁcation and quality of data

The provider of ESG-related data input is selected by the Administrator basedon an assessment of its existing processes in order to ensure the reliability
and representativeness of the ESG-related data. The data provider has
established processes in accordance with accepted and established market
standards that ensure the permanent quality and reliability of the ESG-dataprovided.

Reference standards

International standards referenced by the index methodology are listed in therespective section above.

Information updated on

23/02/2024

Reason for update:

Initial document creation.

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