Capital Allocation

We see a compelling opportunity to direct capital toward the net zero transition. The GCC
Strategy targets companies driving or enabling this shift, using a high-conviction, research-
led approach.

Bond selection is the strategy’s core performance driver, powered by integrated ESG and credit
research. We focus on:

Operation leaders – companies actively transforming their operations and value chains to thrive
in a low-carbon, warmer world, identified using our proprietary Transition Risk (T-Risk) Framework.
Climate solutions providers – companies generating at least 20% of revenue from products and services that mitigate or adapt to climate change.
Green, Social and Sustainability bonds (GSS) – where the use of proceeds is allocated to projects that have positive environmental, social, or sustainability benefits.
Sustainability Linked Bonds (SLB) – where these bonds are tied to the achievement of key performance indicators that promote environmental, social or sustainability outcomes.

This focus positions the strategy to capture both resilience and innovation in the climate transition.

Portfolio Holdings Overview

The graph presents the market value classification of strategy holdings as at 31/12/2025, illustrating whether holdings are categorised as operational leaders, climate solutions providers, GSS bonds or SLBs.

The following table outlines the climate rationales underpinning our top 10 holdings by DxS⁵ drawn from the GCC Strategy. Each company has been deliberately selected for its distinct contribution to the climate transition, reflecting our high-conviction, research-led strategy. Our investment approach prioritises companies where we see the greatest potential to drive positive environmental outcomes, this ensures that our portfolio is not only well-positioned for the low-carbon future but also actively supports progress towards global climate goals.

Security Description	Climate Rationale
Name: AT&T Holding Classification: Operations	AT&T reports a commitment to achieve carbon neutrality across its Scope 1 and Scope 2 emissions by 2035, supported by a science‑based interim target to reduce absolute Scope 1 and 2 emissions by 63% by 2030 relative to a 2015 baseline, aligned with a 1.5°C pathway. The company discloses that its operational decarbonisation strategy is focused on energy efficiency, renewable energy procurement, network optimisation and fleet transition, including the ongoing shift from legacy copper networks to more energy‑efficient fibre infrastructure.
Name: AXA Holding Classification: Operations	AXA discloses a commitment to reduce greenhouse gas emissions from its own operations as part of its broader climate strategy, with interim Scope 1 and 2 emissions reduction targets to 2030, referenced against a 2019 baseline. The company reports ongoing measures to reduce operational emissions across offices and IT infrastructure through energy efficiency, renewable energy use and business travel reduction, and confirms that it calculates and monitors its operational carbon footprint annually.
Name: Bell Telephone Company (BCE) Holding Classification: Operations	BCE discloses a commitment to reduce absolute Scope 1 and Scope 2 greenhouse gas emissions by 57% by 2030, relative to a 2020 baseline, and to achieve carbon neutrality for Scope 1 and 2 emissions in the longer term. The company reports ongoing network modernisation and energy efficiency initiatives, including deployment of fibre infrastructure to improve energy intensity across operations.
Name: BNP Paribas Holding Classification: Operations	BNP Paribas is progressing the decarbonisation of its own operations by embedding emissions reduction targets and climate risk management across its business. The bank has committed to achieving net‑zero emissions across its operations by 2050, supported by interim targets to reduce Scope 1 and Scope 2 emissions, through increased use of renewable electricity, improvements in energy efficiency across offices and data centres, and reductions in business travel emissions. BNP Paribas also integrates climate‑related physical and transition risk assessments into its operational risk management and business continuity planning, helping to strengthen resilience to extreme weather and climate‑related disruptions.
Name: British Telecom Holding Classification: Operations	BT's initiatives include improving energy efficiency across their operations, investing in low-carbon technologies, and encouraging their suppliers to set their own carbon reduction targets. They have also implemented a circular economy approach, focusing on reducing waste and increasing recycling rates. Additionally, BT is involved in various climate action projects, such as reforestation and conservation efforts, to offset their carbon footprint.
Name: Charter Communications Holding Classification: Solutions	Charter Communications provides connectivity and broadband infrastructure that enables customers to reduce emissions by supporting digitalisation, remote working, cloud services and data‑driven efficiency improvements. Reliable, high‑speed connectivity underpins solutions such as virtual collaboration, smart building management and digital service delivery, which can reduce travel demand and energy intensity across client operations.
Name: Digital Realty (Digital Euro Finco) Holding Classification: Green Bond	Digital Realty have specific targets which aim to improve the energy efficiency of their buildings as well as having targets to achieve specific certifications to increase the number of sustainable buildings in their portfolio. A portion of the revenue is derived from IT optimisation services and infrastructure solutions, like virtualization, data centre optimization, cloud platform enablement and other similar technology.
Name: Oracle Holding Classification: Operations	Oracle reports that it has set a long‑term target to achieve net‑zero greenhouse gas emissions by 2050, with an interim commitment to halve combined Scope 1, Scope 2 and Scope 3 emissions by 2030, relative to a 2020 baseline. The company discloses that it is pursuing this through increased renewable electricity procurement, reporting 91% renewable electricity coverage across its operations in FY2025, alongside continued investment in energy‑efficient cloud and data‑centre operations.
Name: Smurfit Westrock Holding Classification: Solutions & Green Bond	Smurfit Westrock is a climate solutions provider through its core focus on paper‑based, corrugated packaging, which supports the substitution of higher‑emissions, single‑use plastic packaging across a wide range of end markets. Corrugated packaging is renewable, recyclable and biodegradable, enabling customers to reduce reliance on fossil‑fuel‑based materials while improving circularity outcomes.
Name: T-Mobile Holding Classification: Operations	T-Mobile have committed to achieving net-zero emissions by 2040 and source 100% of their electricity from renewable sources. They have set ambitious targets to reduce Scope 1 and 2 GHG emissions by 95% and Scope 3 emissions by 15% per customer by 2025. They also engage in climate risk assessments and adaptation planning to mitigate potential impacts on their operations and supply chain.
As of: 31/12/2025 The information provided is for illustrative purposes only and should not be construed as an investment recommendation. ⁵Active DxS (Duration time Spread) is a performance attribution metric used to quantify the active contribution of spread duration to a benchmark. It reflects how much excess return is generated from the portfolio's exposure to credit spread risk compared to the benchmark.

Portfolio KPIs

2025 Data Summary Table		Global Climate Credit Strategy			Bloomberg Global Aggregate Corporate Index
2025 Data Summary Table		Dec 2023	Dec 2024	Dec 2025	Dec 2023	Dec 2024	Dec 2025
Fossil Fuels	Percentage of companies with fossil fuel exposure⁶	0.00	10.2	18.7	6.2	17.8	18.9
Carbon Emissions	Weighted average intensity (tCO_²e/$M sales)	70.9	64.1	96.9	195.4	193.2	201.9
Carbon Emissions	Carbon footprint (tCO2e/$M invested)	58.1	33.8	41.4	112.4	72.8	69.7
Climate Governance	Percentage of companies with a CDP score >B	66.4	50.0	39.6	34.7	21.2	18.6
Climate Governance	Percentage of companies with SBTi ambitions⁷	56.3	55.7	53.9	39.3	33.2	31.1
As of date: 31/12/2025 Source: Aladdin & MSCI

Data Consistency Note
In 2024, we updated our data aggregation methodology and introduced new input sources for all fossil fuel-related data. While the most recent data reflects these enhancements, historical figures for 2023 have been retained as previously reported. As a result, some year-on-year comparisons may be affected.
⁶ Fossil fuel exposure defined as companies with an industrial tie to fossil fuels (thermal coal, oil and gas), in particular reserve ownership, related
revenues and power generation.
⁷ SBTi ambitions includes validated SBTs or commitment to achieve validated SBTs.

The increase in fossil fuel exposure, carbon footprint and carbon intensity between 2024 and 2025 reflects increased allocation to the energy and utilities sectors, which are inherently more carbon‑intensive. This aligns with the strategy’s focus on allocating capital to hard‑to‑abate sub‑industries, where we believe companies have the greatest potential to deliver meaningful decarbonisation and drive absolute reductions in climate impact.

In 2025, fewer companies in both the portfolio and benchmark achieved a CDP score of B or above. Our engagements suggest this reflects higher investor expectations, streamlined disclosure practices and a shift towards ISSB‑aligned reporting. We continue to value CDP as a key externally validated tool for cross‑sector comparability and assessing transition credibility.