CLIMATE, A CENTRAL PILLAR OF OUR RELATIONS WITH ISSUERS Besides incorporating ESG criteria, Ostrum AM also takes a specific approach to addressing climate issues. It stepped up its engagement on the climate and energy transition in 2021 by applying sector-based and exclusion policies as well as a strategy geared towards financing a low-carbon economy. Coal policy stepped up in 2021 Ostrum AM stepped up its coal policy by incorporating stricter exclusion criteria and aims to pull out of all issuers operating in the coal industry by 2030 (for OECD countries) or 2040 (for non-OECD countries). On 1st January 2021, Ostrum AM stopped investing in companies that are adding new coal capacity. We also exclude companies whose core business consists in producing, transporting and/or selling coal that is mined using one of the industry’s most aggressive techniques and found in Appalachia in the USA. Last of all, we have set new exclusion thresholds which are defined in Pillar 2. Divestments from the companies concerned will be completed within a period of 6 months (in transactions conducted at arm’s length). Moreover, in 2022 Ostrum stopped investing in companies that by 2021 had failed to establish a coal exit plan in line with the Paris Agreement. Such investments ceased on 1st January 2022 and divestments are to be completed within a period of 6 months in transactions conducted at arm’s length. This is therefore a major component of Ostrum AM’s engagement and dialogue with companies. Principles of a new oil & gas policy Ostrum AM set up an oil & gas working group in 2021 tasked with preparing a policy to take effect in 2022. The principles underlying this policy were published in December 2021 and commended by the Reclaim Finance NGO.1 Speedier funding of a low-carbon economy Ostrum AM greatly increased its exposure to and expertise in sustainable bonds (i.e. green, social, sustainability & sustainability-linked bonds) in 2021. Assets held in such instruments totalled €19.6 billion at end-2021. BREAKDOWN OF SUSTAINABLE BONDS BY THEME 2.4 % Sustainability-linked bonds 74 % Green bonds 11,3 % Social bonds 12.1 % Sustainability bonds See the entire ISSUERS pillar See the entire ISSUERS pillar