Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 (the 'Disclosure Regulation' or 'SFDR') requires financial market participants managing investments of financial instruments that are marketed in the EU to on their websites:

• information about their policies on the integration of sustainability risks in their investment decision-making process,
• information on how remuneration policies are consistent with the integration of sustainability risks,
  and
• information on whether and how they consider adverse sustainability impacts at entity level.

The Mitsubishi UFJ Trust and Banking Corporation (hereinafter referred to as "we") approach to managing sustainability risks falls into the framework of the Mitsubishi UFJ Financial Group, Inc. (hereinafter referred to as "MUFG") policies and guidelines for sustainability and corporate social responsibility, in particular the Responsible Investment Policy of the Asset Management arm of MUFG ('MUFG AM'), established in accordance with the PRI.

As part of their Responsible Investment approach, we consider sustainability risks, as defined by SFDR, by identifying material environmental, social and governance (ESG) issues. Two criteria are used to identify Material ESG issues: one is to consider the ESG factors that risk harm to the long-term value for the investee companies - including sustainability risks; the second is to consider the opportunities that create long-term value or growth for the investee companies.

We monitor the ESG risks of investments for all actual investments by using specific measures such as a proprietary ESG score, an ESG hearing sheet and so on. The measures allow to evaluate the overall risks and opportunities that investments face in terms of ESG and sustainability. Analysts and managers can therefore take informed investment decisions by looking at a unified metric.

Additionally, we apply a negative screening to systematically exclude companies active in certain sector from the investment universe of the portfolios they manage. Such sectors include the manufacturing and distribution of anti-personnel landmines, cluster munitions and biological and chemical weapons.

More information is available by following the links below:

SFDR requires financial market participants to integrate information on the consistency of their remuneration policy with the integration of sustainability risks, in accordance with Art. 5 of the SFDR.

The integration of sustainability risks in governance structures and executive remuneration has been identified as a material ESG issue by us. The Group Remuneration Policy does not create incentives for taking excessive sustainability risks. Our compliance team ensures that such incentives are not provided to fund managers.

Sustainability risk management is considered as part of each relevant individual's performance, including the adherence of our personnel to our Responsible Investment Policy and Stewardship. Any unethical behavior infringing internal policies is investigated and actioned for possible disciplinary measures.

• We do not consider the adverse impacts of its investment decisions on sustainability factors.
• In order to measure the accurate and meaningful adverse sustainability impacts, we believe it is essential to have access to a standardised measurement of sustainability factors. Presently, we do not have access to such measurements, therefore does not consider principal adverse sustainability impacts.
• We intend to consider adverse impacts in its investment process when standardized measurement of these factors will be available.