WealthSelect Sustainable Active 7 Responsible investment report

WealthSelect Sustainable Active 7 Responsible investment report Quarter 1 2022 This report is designed to help you review the ESG and responsible investing credentials of the portfolio and measure how the portfolio is achieving its objectives. The WealthSelect Sustainable Active 7 portfolio aims to achieve capital growth over a period of five years or more, whilst seeking to support sustainable solutions to environmental and social challenges that help to achieve the objectives of the UN Sustainable Development Goals. The Environmental, Social, and Governance (“ESG”) risks of the portfolio will be managed and exposure to unsustainable activities minimised while maintaining a smaller carbon footprint than the reference index. The portfolio will have exposure to a diversified range of investments in the UK and globally and will invest a substantial portion of its assets in funds that target a broad range of sustainable outcomes, and which are leaders in the integration and management of ESG factors, with exceptions where necessary to achieve an appropriately diversified portfolio. Please see the portfolio factsheet for the full objective. What is responsible investment and ESG? Responsible investment is defined by the UN - backed Principles for Responsible Investment (PRI) as “ a strategy or practice th at incorporates environmental, social and governance (ESG) factors into investment decisions and owners hip activity.” Environmental factors include issues such as climate change and resource scarcity, social facto rs look at people and relati onship aspects such as human rights and labour standards, and governance factors look at a firm’s posit ion on issues such as bri bery and corruption, and lobbying or political contributions. How do we measure the portfolio's responsible investment attributes? When managing and analysing the portfolios we need to have a suitable reference point for the portf olio’s carbon footprint. We use the MSCI All Country World Index as our reference index. The MSCI All Countries World Index is simil ar to the FTSE 100 Index in the UK, but it represents an average portfolio of global equities. More information on our investment ap proach and how different ESG factors are measured and calculated can be found in our ‘Guide to our responsible investment calcula tions’ at platform.quilter.com/wealthselect/guidetoRI . What is sustainable investment and is it different? Sustainable investment is more than just taking ESG factors into account in investment decisions, i t’s about looking for inv estments that are proactively doing good. For this we have used the UN Sustainable Development Goals to help guide us. The UN Sustainable Development Goals are a blueprint to achieve a better and more sustainable futur e for all. They address t he global challenges we face, including poverty, inequality, climate change, environmental degradation, peace and justice. You’l l see them referenced in places in this document. At the same time, we also try to avoid investing in things that are unsustainable. We want to activ ely avoid companies invol ved in areas such as the manufacture of controversial weapons, and tobacco production.

2 of 7 Responsible investment update A key environmental theme in the portfolio is energy transition. Within this theme we have exposure to renewable energy and its supply chain, and solutions supporting energy efficiency, storage, and sustainable decarbonisation. The energy transition themes support several of the UN’s Sustainable Development Goals, particularly goal number 13 – Climate Action. To avoid facing the catastrophic impacts of climate change, the global temperature rise needs to be limited to an increase of 1.5 degrees above pre - industrial levels by 2050. To achieve this, we must reduce the amount of carbon emissions released into the atmosphere by 45% from 2010 levels by 2030 and reach net zero by 2050, through significantly shifting the energy mix from brown to green sources and reducing the reliance on fossil fuels in industrial processes and transport. This will require significant investment in renewable energy generation and electrification and provides a significant growth opportunity for companies providing the solutions to enable this transition and underpins our long - term conviction in the energy transition theme. The recent tragic events that have unfolded with Russia’s invasion of Ukraine and the resulting energy crisis has shone the spotlight on energy security and particularly Europe’s reliance on Russia for the supply of oil and gas. Renewable energy is a not only a solution to decarbonise the energy system, but it is also a solution for countries to regain control of their energy supply and adds additional focus on the urgency to transition. WealthSelect responsible investment attributes Where indicated, each portfolio will adhere to the following attributes: Managed Portfolios Responsible Portfolios Sustainable Portfolios Attribute 1: Follow the Quilter Investors responsible investment principles Attribute 2: Maintain a lower carbon footprint than the reference index Attribute 3: Focus on investing in funds that Quilter regards as leaders in ESG integration Attribute 4: Invest in funds that pursue explicit environmental and/or social targets or characteristics Attribute 5: Invest substantially in funds that target positive sustainable outcomes Attribute 6: Seek to support sustainable solutions to environmental and social challenges Attribute 7: Exclude or normally avoid exposure to unsustainable activities *At least 50% of the assets in the Responsible portfolios will be in funds that pursue explicit env ironmental and/or social targets or characteristics. The WealthSelect Managed portfolios are able to select from the widest investment u niverse, compared to the WealthSelect Responsible and WealthSelect Sustainable portfolios. This is because as portfolios adhe re to more ESG attributes , the choice of investments becomes smaller.

3 of 7 More information on how we have measured and calculated the carbon footprint of the portfolio and the reference index can be found in our ‘Guide to our responsible investment calculations’ at platform.quilter.com/wealthselect/guidetoRI Attribute 1: The portfolio follows the Quilter Investors responsible investment principles Quilter Investors believe: Good corporate governance is central to long - term investing and a well - functioning investment marke t. ESG considerations should be embedded throughout the entire business. ESG considerations can impact the whole investment process. Climate changes is a particularly important factor to consider in investing. ESG integration involves assessment at the overall portfolio level as well as across the underlying funds. Assessing how responsible investment is integrated involves looking at a manager’s philosophy, proc ess, people, and portfoli o. Differing approaches to ESG integration may be equally appropriate and can vary depending on the ty pe of investment. Being a responsible wealth manager means transparency and collaboration is key. Attribute 2: This portfolio maintains a lower carbon footprint than the reference index The portfolio is managed to maintain a smaller carbon footprint than the reference index. The carbo n footprint is the total carbon emissions in metric tons based on an investment of £100,000 in the equity and corporate bond portion of the portfolio. WealthSelect Sustainable Active 7 has a carbon footprint 10% lower than the MSCI All Country World Index WealthSelect Sustainable Active 7 9.65 metric tons Reference index: MSCI All Country World Index 10.74 metric tons

4 of 7 Attribute 3: The portfolio focuses on investing in funds that Quilter regards as leaders in ESG integration The portfolio management team have analysed the funds in this portfolio and believe they clearly co nsider ESG factors alongs ide other areas as part of their overall investment strategy. The funds held in this portfolio have all passed a rigorous investment due diligence process and ha ve gone through a two sta ge ESG screening and selection process: 1. Each fund goes through an initial ESG screening process that enables us to flag them as poten tial leaders in ESG integ ration. 2. Funds that successfully pass through the initial screening stage are then subject to detailed ESG due diligence to det ermine whether they qualify as a leader in ESG integration. Attribute 4: The portfolio invests in funds that pursue explicit environmental and/or social targets The funds in the portfolio must satisfy one of the following criteria: – The fund has explicit ESG objectives. – The fund promotes environmental or social characteristics. – The fund has sustainable investment as its objective. The portfolio management team has assessed the funds in this portfolio and are comfortable with wha t each fund’s environment al and/or social targets or characteristics are, and how the fund managers intend to achieve them. Attribute 5: The portfolio invests substantially in funds that target positive sustainable outcomes The funds in the portfolio have gone through a sustainable outcomes assessment to help us understan d how each fund is seekin g to achieve positive sustainable outcomes, what these sustainable outcomes are, and how these align with the manager’s intentions . We have focused on two of these funds below: Pictet Clean Energy We invest in this fund because it: 1. provides exposure to companies supporting the low carbon economy with a focus on renewable energy and the enabling infrastructure and technology. 2. offers strong alignment between thematic purity and portfolio position sizing. 3. is supported by an independent advisory board providing deeper insight into the regulatory environment and trends supporting the theme. Ninety One Global Environment We invest in this fund because it: 1. invests in companies providing solutions for sustainable decarbonisation, supported by their proprietary ‘carbon avoided’ analysis. 2. provides exposure to companies involved in renewable energy, electrification, and resource efficiency. 3. provides exposure to the energy transition story in China – its success is critical in meeting the goals of the Paris Agreement to limit the global temperature increase. Did you know? This fund invests in NextEra Energy , the world’s largest producer of wind and solar energy and key to supporting the energy transition in the US . Did you know? This fund invests in Novozymes , a biotech company using enzyme technology to improve energy and resource efficiency in agriculture and food production.

5 of 7 More information on how we have measured and calculated the portfolio’s contribution to our sustainability outcomes can be found in our ‘Guide to our responsible investment calculations’ at platform.quilter.com/wealthselect/guidetoRI Attribute 6: The portfolio supports sustainable solutions to environmental and social challenges The portfolio invests in funds that help to achieve the objectives of the UN Sustainable Developmen t Goals. The UN Sustainable Development Goals are the reference framework used for the definition of our 15 sustai nability outcomes shown below: Top five environmental and social outcomes currently supported by the portfolio are: Not all of our 15 sustainable outcomes will be met within a portfolio at any one time due to the range of investment options available to the portfolio manager. We therefore show the top five outcomes the portfolio contributes towards. % of portfolio contributing positively: 1. Ensuring Health 23.9% 2. Mitigating Climate Change 15.2% 3. Sustainable Energy Use 13.8% 4. Providing Basic Services 11.8% 5. Achieving Sustainable Agriculture & Forestry 5.8%

6 of 7 More information on how different ESG factors are measured and calculated can be found in our ‘Guide to our responsible investment calculations’ at platform.quilter.com/wealthselect/guidetoRI Attribute 7: The portfolio excludes or normally avoids exposure to unsustainable activities The portfolio is continuously monitored using specialist, third party screening tools to ensure the Environmental, Social an d Governance (“ESG”) risks of the portfolio are managed and exposure to unsustainable activities minim ised. The portfolio excludes investments in companies involved in the following areas: The portfolio normally avoids investments in companies involved in the following areas: There may be occasions when the portfolio invests in companies involved in areas we are trying to avoid. We will only do this when those companies make a net positive contribution to the responsible investment objectives of the portfolio.

7 of 7 Source: Quilter Investors. Calculated by Factset. Based on the latest data and portfolio holdings a vailable as at 31 March 2022 . We have excluded portfolio holdings with a negative portfolio value (short derivative positions) from o ur calculations. Carbon e missions data and sustainability objectives alignment data for individual companies provided by ISS. Product involvement data for indi vidual companies provided by Sustainalytics. Portfolio holdings data provided by Morningstar. Important information Further information on the WealthSelect Managed Portfolio Service can be found at platform.quilt er.com/wealthselect Past performance is not a guide to future performance and may not be repeated. Investment involves risk. The value of invest ments and the income from them may go down as well as up and investors may not get back the amount originally invested. Because of this , an investor is not certain to make a profit on an investment and may lose money. Exchange rates may cau se the value of overseas investments to rise or fall. platform.quilter.com Please be aware that calls and electronic communications may be recorded for monitoring, regulatory and training purposes an d records are available for at least five years. Quilter Investment Platform Limited and Quilter Life & Pensions Limited are registered in England a nd Wales under numbers 16 80071 and 4163431 respectively. Registered Office at Senator House, 85 Queen Victoria Street, London, United Kingdom, EC4V 4AB. Quilter Investm ent Platform Limited is authorised and regulated by the Financial Conduct Authority. Quilter Life & Pensions Limited is auth orised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Their Financia l Services register numbe rs are 165359 and 207977 respectively. VAT number 386 1301 59. Quilter uses all reasonable skill and care in compiling the information in this communication and i n ensuring its accuracy, but no assurances or warranties are given. You should not rely upon the information in this communication in making inves tment decisions. Nothing in this communication constitutes advice or personal recommendation. Data from third parties (“Third - Party Data”) may be included in this communication and those third parties do not accept any liability for errors and omissions. Therefore, you should make sure you understand certain important information, which can b e found at platform.quilter.com/thir d - party - data . Where this communication contains Third - Party Data, Quilter cannot guarantee the accu racy, reliability or comp leteness of such Third - Party Data and accept no responsibility or liability whatsoever in respect of such Third - Party Data.