The Trust is an actively managed portfolio of mainly smaller and midcap listed (and unlisted) companies that are considered to be “Better Future Investments”. For the purpose of this document, “Better Future Investments” are “Better Future Enabler Investments” or “Better Future Leader Investments.” “Better Future Enabler Investments” are defined as companies that at the time of acquisition, conduct businesses that are deriving more than 50% of their gross revenue from business operations that: • are generating renewable energy, improving energy efficiency or seeking to reduce greenhouse gas emissions; or • are involved in water treatment or remediation; or • are focused on providing environmental services or otherwise focused on environmental outcomes; or • involve technology or processes that enable businesses and/or individuals to reduce their resource use or improve the efficiency of their resource use (including by processing materials for recycling); or • are providing nature-based technologies or solutions, providing products or services that improve biodiversity outcomes in existing business models or prevent the loss of biodiversity (including reducing pollution, improved farming practices, protecting: marine life, plant life & natural ecosystems, improving forestry); or • contribute to social welfare outcomes, including improving the safety, health or well-being of workers; or • relate to health outcomes, including health products and health services; or • relate to education services or outcomes (including without limitation childcare); or • involves the leasing of properties to organisations that provide healthcare, education or childcare or for social housing purposes. “Better Future Leader Investments” are companies that, at the time of acquisition, have a Perennial-derived Environmental, Social, Governance and Engagement Score (ESG&E Score) which exceeds the ESG&E score of the benchmark index and does not satisfy the Better Future Enabler Investments definition. The ESG&E Score is a proprietary scoring system that has been developed by Perennial. Perennial uses the ESG&E Score to evaluate a company’s Environmental, Social and Governance (ESG) performance. As part of the ESG&E Score, Perennial undertakes an assessment on each individual ESG component and considers relevant factors as part of its assessment. These factors include, but are not limited to: • Environmental – greenhouse gas emission disclosures, alignment with the Paris Agreement and environmental impact of operations. • Social – executive diversity, occupational health and safety and modern slavery risks in supply chains. • Governance – Board independence, board expertise and skill mix, and remuneration policies. The ESG&E Score also assesses the company’s ‘Engagement’ on ESG related issues and subjectively assesses to what extent the company is engaged with improving ESG and sustainability outcomes within the business. The ESG&E methodology applies a 20% weighting to each ‘Environmental’, ‘Social’ and ‘Governance’ component and applies a 40% weighting to ‘Engagement’. This provides a total weighted score out of 10, which is then compared with the benchmark’s weighted average ESG&E Score. Factors such as the outcome of Perennial’s engagement with company management and directors will also be considered as part of the company’s assessment. Perennial may also take into account external information such as publicly available data, financial disclosures, annual reports, sustainability reports, the company’s website, stockbroker research and external data sources. The Trust does not invest in companies that, to the best of our knowledge, receive any revenue from: • the manufacture, distribution or sale of tobacco or alcohol products; including Electronic nicotine delivery systems (ENDS) as defined by the US Food and Drug Administration (e.g. ‘vaping’ devices, e-cigarettes) alternatively described as nicotine vaping products (NVP) • the manufacture, distribution or sale of weapons or armaments including biological and chemical weapons, depleted uranium ammunition/armour, anti-personnel mines or munitions/submunitions and their key components; cluster • extraction or sale of thermal coal, metallurgical coal, uranium, oil or gas (other than recycled oil); • gambling or betting operations; • the production, sale or distribution of pornography; • the manufacture or distribution of toxic pesticides; • old growth forest logging; or • operations or transportation associated with the live exportation of animals offshore. Typically, no less than 35% of the portfolio will be held in Better Future Enabler Investments. In addition to the above, we also consider a ‘Do No Significant Harm’ (DNSH) criteria. The DNSH assessment allows us to undertake an additional analysis to detect negative environmental, societal or governance impacts. It is a lens focused specifically on negative harm. As part of this assessment, we consider adverse impacts to society and the environment for companies that may be considered for inclusion in the Trust. This assessment also forms part of the due Perennial Better Future Trust| Product Disclosure Statement 3 diligence and engagement for our portfolio companies. As part of our DNSH criteria, We: • Seek to understand a company’s practices to prevent, address and remedy human rights or modern slavery abuses in their supply chain. As part of this assessment, we score companies on our “risk” human rights and modern slavery framework. We consider a company’s adherence to the International Labour Organisation (ILO) standards, International Bill of Human Rights, OECD Guidelines for Multinational Enterprises, and the UN Guiding Principles (UNGPs) on Business & Human Rights. Companies that do not meet a minimum score are then flagged as “higher risk” companies. These companies are further assessed on three (3) additional modules related to commitment, assessment and remedy. We seek to engage with companies on any gaps or areas of concern highlighted from this assessment. We also use external sources to highlight historical breaches of modern slavery and/or human rights. • Assess the direct and indirect impact a company has on achieving its environmental or social objective at the expense of other environmental or social objectives. This is qualitative and/or quantitative view on the impact that a company’s operations has on society and the environment. • Assess the robustness of governance practices including,employee relations, remuneration of staff and tax compliance. This is a qualitative and/or quantitative assessment of policies, procedures, company history and engagement. If a company does not meet our expectations for the above DNSH criteria, we may engage to understand the concern, work with the company to improve the outcome or choose to divest (or not invest).

The Trust is an actively managed portfolio of mainly smaller and midcap listed (and unlisted) companies that are considered to be “Better Future Investments”.

For the purpose of this document, “Better Future Investments” are “Better Future Enabler Investments” or “Better Future Leader Investments.”

“Better Future Enabler Investments” are defined as companies that at the time of acquisition, conduct businesses that are making a positive contribution to creating a better future, defined as deriving more than 50% of their gross revenue from business operations that:

• are generating renewable energy, improving energy efficiency or seeking to reduce greenhouse gas emissions; or

• are involved in water treatment or remediation; or

• are focused on providing environmental services or otherwise focused on environmental outcomes; or

• involve technology or processes that enable businesses and/or individuals to reduce their resource use or improve the efficiency of their resource use (including by processing materials for recycling); or

• are providing nature-based technologies or solutions, providing products or services that improve biodiversity outcomes in existing business models or prevent the loss of biodiversity (including reducing pollution, improved farming practices, protecting: marine life, plant life & natural ecosystems, improving forestry); or

• contribute to social welfare outcomes, including improving the safety, health or well-being of workers; or

• relate to health outcomes, including health products and health services; or

• relate to education services or outcomes (including without limitation childcare); or

• involves the leasing of properties to organisations that provide healthcare, education or childcare or for social housing purposes.

“Better Future Leader Investments” are companies that, at the time of acquisition, have a Perennial-derived Environmental, Social, Governance and Engagement Score (ESG&E Score) which exceeds the ESG&E score of the benchmark index and does not satisfy the Better Future Enabler Investments definition.

The ESG&E Score is a proprietary scoring system that has been developed by Perennial. Perennial uses the ESG&E Score to evaluate a company’s Environmental, Social and Governance (ESG) performance. As part of the ESG&E Score, Perennial undertakes an assessment on each individual ESG component and considers relevant factors as part of its assessment. These factors include, but are not limited to:

• Environmental – greenhouse gas emission disclosures, alignment with the Paris Agreement and environmental impact of operations.

• Social – executive diversity, occupational health and safety and modern slavery risks in supply chains.

• Governance – Board independence, board expertise and skill mix, and remuneration policies. The ESG&E Score also assesses the company’s ‘Engagement’ on ESG related issues and subjectively assesses to what extent the company is engaged with improving ESG and sustainability outcomes within the business.

The ESG&E methodology applies a 20% weighting to each ‘Environmental’, ‘Social’ and ‘Governance’ component and applies a 40% weighting to ‘Engagement’. This provides a total weighted score out of 10, which is then compared with the benchmark’s weighted average ESG&E Score. Factors such as the outcome of Perennial’s engagement with company management and directors will also be considered as part of the company’s assessment.

Perennial may also take into account external information such as publicly available data, financial disclosures, annual reports, sustainability reports, the company’s website, stockbroker research and external data sources.

The Trust does not invest in companies that, to the best of our knowledge, receive any revenue from:

• the manufacture, distribution or sale of tobacco or alcohol products  including Electronic nicotine delivery systems (ENDS) as defined by the US Food and Drug Administration (e.g. ‘vaping’ devices, e-cigarettes) alternatively described as nicotine vaping products (NVP);

• the manufacture, distribution or sale of weapons or armaments including biological and chemical weapons, depleted uranium ammunition/armour, anti-personnel mines or cluster munitions/submunitions and their key components;

• extraction or sale of thermal coal, metallurgical coal, uranium, oil or gas (other than recycled oil);

• gambling or betting operations;

• the production, sale or distribution of pornography;

• the manufacture or distribution of toxic pesticides;

• old growth forest logging; or

• operations or transportation associated with the live exportation of animals offshore.

Typically, no less than 35% of the portfolio will be held in Better Future Enabler Investments.