As a responsible institutional investor, Resona Asset Management Co., Ltd. has defined a Basic Policy on Responsible Investment and clarified its stance to pursue the client's best interest from a medium- to long-term perspective in its management of trust assets, etc. Following the Basic Policy on Responsible Investment, we have set our policies on some material ESG issues that we have been paying particular attention to, namely "Climate", "Nature" and "Human rights". In align with these policies, we actively contribute the global efforts to address these ESG issues through our investment activities.

Preamble

The effects of climate change are getting severe year by year around the world. The IPCC (Intergovernmental Panel on Climate Change) concluded that "It is unequivocal that human influence has warmed the atmosphere, oceans and land" in its “Summary for Policymakers, Sixth Assessment Report of Working Group I”.

In this context, progress has been made in responding to climate change around the world. For example, international climate-related goals such as the Paris Agreement and the SDGs have been adopted, and to achieve them, many countries, including Japan, have set the goals of achieving carbon neutrality by 2050. In the financial markets, international frameworks to address climate change, including the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), have been developed, and many banks, institutional investors and other financial institutions have been making efforts to reduce their financed emissions.

We, Resona Asset Management Co.,Ltd. (RAM), believe that structural changes in the economy and the society occurred in connection with this dramatic change of the world bring opportunities and risks to companies and financial institutions that invest in them.

As a result of our materiality analysis we have carried out in response to these circumstances, we have reaffirmed that climate change is, now and in the future, one of the key material issues (“Materiality”).

Based on the above, we have set "Our Policy on Climate" below.

Preamble

The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) pointed out that "Nature and its vital contributions to people, which together embody biodiversity and ecosystem functions and services, are deteriorating worldwide” in its "Summary for Policymakers, Global Assessment Report on Biodiversity and Ecosystem Services”. Also, they concluded that "Nature can be conserved, restored and used sustainably while other global societal goals are simultaneously met through urgent and concerted efforts fostering transformative change” in the report.

We are now seeing strong momentum for building international frameworks to address the loss of natural capital, including the Kunming-Montreal Global Biodiversity Framework, adopted at the 15th meeting of the Conference of the Parties to the UN Convention on Biological Diversity (COP15), and the recommendations of the Task Force on Nature-related Financial Disclosure (TNFD) Based on such momentum, companies and financial institutions have been making efforts to tackle this issue.

We, Resona Asset Management Co.,Ltd. (RAM), believe that structural changes in the economy and the society occurred in connection with this dramatic change of the external environment related to nature will bring huge opportunities and risks to companies and financial institutions that invest in them. As a result of our materiality analysis we have carried out in these circumstances, we have reaffirmed that addressing the loss of natural capital and biodiversity is one of the key material issues (“Materiality”).

Based on the above, we have set "Our policy on nature " below.

Preamble

Freedom from forced labour, child labour and all forms of discrimination is established as human rights in the “International Bill of Human Rights” (the “Universal Declaration of Human Rights” adopted by the UN General Assembly in 1948, the “International Covenant on Economic Social and Cultural Rights, and the International Covenant on Civil and Political Rights” adopted by the UN General Assembly in 1966) and the “ILO Declaration on Fundamental Principles and Rights at Work” (adopted by the International Labour Conference in 1998). Also, the “UN Guiding Principles on Business and Human Rights” (adopted by the UN Human Rights Council in 2011) requires companies to respect these human rights. Resona Holdings, the parent company of Resona Asset Management Co.,Ltd. (RAM), has established the "Resona Group Policy on Human Rights" in accordance with international human rights standards, including the above-mentioned bill, declaration and principles, to indicate its commitment to respecting human rights and efforts to fulfil its responsibility to respect human rights. On the basis of this policy, RAM also makes efforts to respect human rights. On the other hand, as an asset management company, it is particularly necessary for us to manage adverse human rights impacts related to our investee companies’ business activities, and reduce the risk (including systemic risk) that assets in trust suffer a loss due to these impacts. Based on this, we have established the following "Our policy on human rights issues related to investment management" in accordance with the "Resona Group Policy on Human Rights".