The Index is comprised of companies that are actively engaged in the value-chain of the global clean energy industry. “Value-chain” refers to all of the value-creating activities within the global clean energy industry, beginning with the extraction of raw materials and ending with the production of completed products.

The Index excludes companies which:

• are non-compliant with the UN Global Compact,
• are associated with a controversy (i.e. companies that have been involved in events that have a severe impact on the environment and society, posing serious business risks to the company),
• are involved in the production or retail of tobacco, or are a related product/service,
• are involved in military contracting weapons or related products,
• are directly involved or indirectly involved through corporate ownership, in controversial weapons,
• are involved in the retail or distribution of small arms to civilians (assault and non-assault weapons) and military/law enforcement customers, as well as key components of small arms,
• are involved in thermal coal extraction, power generation or supporting products/services,
• are involved in the generation, production of conventional oil and gas, or supporting products/services,
• are involved in oil sands extraction, arctic oil & gas exploration/extraction or shale energy extraction,
• are involved in the production, retail or related services/products of alcohol,
• are involved in the operations, specialized equipment or supporting products/services of gambling, and
• are involved in the production or distribution of adult entertainment.

Such exclusions and the definition of “involvement” are determined by the Index provider by reference to the “ESG Exclusions Index" which is found at: https://solactive.com/downloads/Guideline-Solactive-ESG-Exclusions-Index.pdf

The Fund does not invest a minimum amount in economic activities that qualify as environmentally sustainable under the Taxonomy Regulation.

The Fund will invest at least 90% of its portfolio in investments that qualify as sustainable, all of which provide direct exposure to investee companies. The Fund will invest at least 90% of its portfolio in environmentally sustainable investments and at least 0% of its portfolio in socially sustainable investments. The actual level of environmentally and socially sustainable investments held by the Fund will always equate to at least the minimum proportion of sustainable investments of the portfolio outlined above. Some of the sustainable investments may be considered to contribute to both environmental and social objectives. The remaining portion of investments are not used to meet the sustainable investment objective.

The Fund considers principal adverse impacts on sustainability factors and LGIM has identified a subset of the adverse sustainability indicators that are relevant to the Fund’s investments. The Fund considers principal adverse impacts, identified using the below listed sustainability indicators, through the implementation of the Fund’s ESG investment strategy.

• PAI 4: Exposure to fossil fuel companies
• PAI 5: Share of non-renewable energy
• PAI 10: Companies violating UNGC/OECD
• PAI 14: Controversial weapons