Rothschild & Co is supportive of the transition towards a low-carbon economy including activities which aim to reduce global carbon emissions and increase the use of renewable energy. As engaged investors we want to play an active role in influencing business practices and drive investment flows towards the most sustain- able players. As part of the group’s ESG investment integration framework, we are implementing investment 1 principles for the thermal coal sector in line with the international coal phase-out schedule, which sets clear deadlines for 2030 for Europe and the OECD, and for 2040 for the rest of the world. These principles are part of a comprehensive Responsible Investment framework for Wealth & Asset Manage- ment and Merchant Banking activities and are: ■ Aligned with our approach to ESG criteria integration among our investment strategies; ■ Part of a response to the risks induced by climate change for our investors; ■ Representative of our desire to contribute to the transition to a sustainable economy. The thermal coal investment principles apply to our various discretionary listed and unlisted investment activities in: ■ Private equity ■ Private banking ■ Asset management These investment principles do not cover assets under advice or execution only accounts nor do they apply to dedicated discretionary funds or managed accounts, for which the management company is required to comply with the constraints expressed by the client which may conflict with these principles. They also do not apply to structured products. Defining thermal coal exposure, absolute and relative thresholds The investment principles deal with investments that we make on our own behalf or on behalf of clients in companies directly engaged in thermal coal production, exploration, mining & processing and power genera- tion using thermal coal. The investment principles impose the following broad restrictions on investments (subject to the detailed rules below): ■ We will not invest in or lend to companies involved in new thermal coal mining or thermal coal fired power plants. ■ We will not invest in or lend to companies with: ° more than 20% of revenue generated through activities related to thermal coal; ° more than 20% of the energy mix (per MWh produced) derived from coal; ■ We will not invest in or lend to companies whose: ° annual thermal coal production exceeds 10 MT per year; ° installed coal capacities are greater than 5 GW. These investment principles were designed to respect the specific characteristics of our different investment businesses, and to protect the interests of our investors. These thresholds are applied until the end of 2022 and will be reconsidered in 2023. 1 According to European Taxonomy, metallurgical coal should be considered separately from thermal coal. There is currently no economically viable substitute for metallurgical coal.