Environmental, Social and Governance (ESG)

Responsible Investment

RCL has a long history of taking a responsible approach to investing our clients' funds placing paramount importance on protecting our clients' interests.

RCL has an ESG policy covering aspects of Environmental, Social and Governance issues relevant to the ongoing conduct of our investment and business management process.

RCL continues to incorporate ESG considerations into its investment process as it believes that strong ESG practices are more likely to add to an entity's outperformance and that investors will ultimately be rewarded. In addition, there are positive impacts for the broader community.

RCL supports and is a signatory to the United Nations Organisation initiated Principles for Responsible Investment (www.unpri.org), demonstrating and maintaining active membership of industry bodies and organisations which promote assistance or enhances its ability to adhere to the principle of inclusion of ESG factors in its investment process.

The UN PRI provides guidance on the following aspirational ideals:

1. Incorporating ESG issues into investment analysis and decision-making processes.
2. Being active owners and incorporate ESG issues into ownership policies and practices.
3. Seeking appropriate disclosure on ESG issues by the entities in which RCL invests.
4. Promoting acceptance and implementation of the Principles within the investment industry.
5. Working collaboratively to enhance the effectiveness in implementing the Principles.
6. Reporting on RCL's activities and progress towards implementing the Principles.

To further our adherence to these principles, we have joined ESG Research Australia, an organisation whose members include superannuation funds, asset and investment managers as well as a number of consultants to the investment funds industry. The purpose of this body is to encourage greater awareness and analysis within the Investment research community of ESG issues impacting the investment process.

Proxy Voting

It is the policy of RCL to vote on those resolutions it believes may have a material effect on security holders. In the event that RCL receives a direction from the client in relation to the appointment of a proxy and the way the proxy should be voted, RCL will use its best endeavours to implement the direction. In the absence of any direction, RCL will exercise the right to vote as it sees fit, having regard to any direction in the investment mandate.

The table below shows the extent to which we have exercised our vote in recent times:

The table excludes those resolutions where we have been conflicted (usually those resolutions where our clients have benefited from capital raising activities).

Community

As part of Resolution Capital's ESG policy, we are a strong supporter of our local community, along with any other community that is in need i.e. after a natural disaster. We also encourage and support all employees in their individual involvement.

Resolution Capital supports various charities such as Wayside Chapel and amateur sporting teams such as Bondi Icebergs Waterpolo team.