Investor Presentaiton

The Taxonomy Regulation • • • Proposal The proposal to create a sustainability taxonomy was devised to provide market clarity on what economic activities should be considered "sustainable". The Taxonomy Regulation aims to develop a taxonomy for climate change and environmentally sustainable activities so that the classification system can be used with respect to labels, standards and benchmarks recognising compliance with environmental standards across the EU. Importantly, the Taxonomy Regulation does not establish a label for sustainable financial products. It sets out criteria for determining if an activity (not a company or asset) is environmentally sustainable, including whether the activity contributes to, or does not significantly harm, one or more specified environmental objectives. When will the Taxonomy Regulation apply? • • Scope The Taxonomy Regulation applies to a broad range of financial market participants, defined to include AIFMs, UCITS management companies, and financial products (including AIFs and UCITS). For the most part, the Taxonomy Regulation will be relevant to asset managers who make available a financial product, such as an investment fund, which either: (a) has an objective of environmentally sustainable investment; or (b) "promotes environmental characteristics". However, even managers of out-of-scope financial products will need to make the negative disclosure set out overleaf confirming that the product is out of scope of the regulation. Political agreement on the Taxonomy Regulation was reached in December 2019 and the agreed text was published on 18 December 2019. The Taxonomy Regulation will apply, with respect to activities that substantially contribute to climate change mitigation and adaptation, by 1 January 2022. The regulation will apply with respect to activities that substantially contribute to the other environmental objectives by 1 January 2023. KPMG © 2020 KPMG, an Irish partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. 24 24

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