ECP Asset Management Pty Ltd (ECP) believes that environmental, social, and corporate governance(ESG) factors can have a material impact on long-term investment outcomes. Considering ESGfactors is part of our investment decision-making process and is fully integrated throughout ourprocess.We aspire to act in the interests of beneficiaries rather than serving our own interests. We will striveto act honestly and in good faith in the interests of our clients and to understand and incorporateESG and sustainability assessments into our decision making.When assessing the long-term potential of an investment, we follow our proprietary ‘Pillars of aQuality Franchise’ framework, whereby sustainability is a core foundational pillar. Understandinginvestment sustainability requires a forward-looking approach that considers externalities that mayimpact the predictability and competitiveness of business operations.Refer to our Responsible Investment Policy, ESG & Sustainability Policy, and Active Ownership &Stewardship Policy available on our website for more comprehensive details.

At ECP, we believe sustainable business is good business. High-Quality Franchises have solid and sustainable foundations that provide superior long-term investment returns. For us, ESG, and sustainability more broadly, has always been central to our process and thinking. Sustainability is a foundational component of any investment analysis for any long-term investor identifying high-quality companies.We believe an organisation’s environmental impact, social impact and corporate governance (ESG) affect its performance. We insist, then, on understanding ESG holistically to gauge the long-term potential of an investment and the predictability of its returns over time. To protect our clients’ capital, we only invest in organisations that exhibit high ESG standards and hold ourselves to this requirement too.

Typically, our portfolio companies (Quality Franchises) have strong organic growth with predictable earnings driven by a sustainable competitive advantage. These businesses have sustainable business operations with strong ESG credentials, which usually result in a low carbon footprint.Here at ECP, we think the only way to grow resilient and sustainable wealth is to invest money in a careful, considered and committed way. Our Investment Philosophy is based on the belief the economics of a business drives long-term investment returns. This is expressed through our investment process, which aims to ensure that we invest responsibly through identifying sustainable companies that are resilient over time. At ECP, we are committed to ensuring we act with due care, skill, and diligence, investing as an ‘ordinary prudent person’ would. This includes:

• Incorporating financially material ESG factors into their investment decision making, consistent with the timeframe of the obligation.
• Being an active owner encourages high standards of ESG performance in the companies or other entities in which they are invested.
• Supporting the stability and resilience of the financial system.