Rize Global Sustainable Infrastructure UCITS ETF

Sustainable, Responsible &/or ESG Policy:

The Rize Global Sustainable Infrastructure UCITS ETF is a sustainable fund, as per the requirements of Article 9 of SFDR. The investment objective of the Rize Global Sustainable Infrastructure UCITS ETF (the “Fund”) is to replicate the performance of the Solactive RIZE ETF Global Sustainable Infrastructure Index (the “Index”). Accordingly, the Fund shares the same sustainable objective as the Index.

The objective of the Fund is to provide exposure to companies supporting global infrastructure development in a way that balances economic, environmental and social objectives, including companies involved in maintaining and upgrading the existing infrastructure of more industrialised economies, companies developing the new infrastructure required for the economic advancement of less industrialised economies, and companies involved in the development of the environmental and social infrastructure needed for the transition to a greener, fairer economy. Companies are identified, classified and scored and, ultimately, selected and weighted by the Index using a thematic classification for the theme of the Index (the “Thematic Classification”).

The Index is designed to provide exposure to companies involved in four core investment categories: (1) Transportation Infrastructure, (2) Environmental Infrastructure, (3) Data and Telecom Infrastructure and (4) Social Infrastructure. It includes exposure to sub-sectors such as renewable energy utilities and transmission, water utilities, waste management, data centres, telecom infrastructure, health care, elderly homes, passenger transportation, ports, airports, toll roads and freight rail transportation.

Our engagement programme specifically targets companies on ESG issues, including performance related to Principal Adverse Impact indicators, with the objective of fostering improvement and transparency. Our proxy voting policy is also aligned to encourage good governance and address sustainability concerns.

Standard Exclusion Criteria prescribed by the RIZE Future First Policy

The RIZE Future First Policy applies a core suite of exclusion criteria across the RIZE sustainable thematic ETFs, including the Rize Environmental Impact 100 UCITS ETF. These exclusions are designed to mitigate residual ESG risks and ensure that companies whose activities conflict with the Fund’s sustainable investment objective are excluded from the relevant thematic universe and Index.

For the purposes of applying these exclusions, RIZE distinguishes between direct involvement and semi-direct or indirect involvement. Direct involvement typically relates to producers and operators. Semi-direct or indirect involvement includes activities such as distribution, retailing, supplying, licensing, support services and other forms of participation in excluded business activities.

The standard exclusions applicable to the Fund include the following:

Controversial Weapons, Nuclear Weapons and Civilian Firearms
Companies with any ties to controversial weapons, nuclear weapons or civilian firearms are excluded. This includes direct, semi-direct and indirect involvement, with a 0% revenue tolerance threshold.

Thermal and Metallurgical Coal
Companies are excluded where they derive any revenue from thermal coal-based power generation, thermal coal mining, metallurgical coal mining, or thermal coal distribution or transport. The applicable revenue tolerance threshold is 0% across direct, semi-direct and indirect involvement.

Oil and Gas
Companies are excluded where they derive any revenue from oil and gas extraction and production, or from liquid fuel and natural gas-based power generation. A 0% revenue tolerance threshold applies to these direct activities.

Companies are also excluded where they exceed a 5% aggregate revenue threshold across specified semi-direct oil and gas activities, including oil and gas distribution and retailing, equipment and services for oil and gas exploration and production, petrochemical products, oil and gas pipelines and transportation, oil and gas refining, and oil and gas trading.

Nuclear Energy
Companies are excluded where they derive any revenue from nuclear energy-based power generation. A 0% revenue tolerance threshold applies to direct nuclear energy generation. Companies are also excluded where they derive more than 5% of revenue from manufacturing or supplying key products or services to the nuclear power industry, including uranium mining.

Weapons
Companies are excluded where they derive more than 5% of revenue from the production of conventional weapons, components, support systems or services, including biological, chemical or nuclear weapons, delivery platforms, dual-use components and related services.

Military Contracting
Companies are excluded where they derive more than 5% of revenue from military contracting activities, including companies identified through the U.S. Department of Defense Top 100 Contractors list.

Tobacco
Companies are excluded where they derive any revenue from tobacco production. A 0% threshold applies to direct tobacco production, including the manufacture of tobacco products and the growing or processing of raw tobacco leaves.

Companies are also excluded where they exceed a 5% aggregate revenue threshold across semi-direct tobacco activities, including tobacco distribution, retailing, licensing and supplying key products to the tobacco industry.

Gambling
Companies are excluded where they derive more than 5% of revenue from gambling operations, including online or mobile gambling, supporting activities and licensing.

Adult Entertainment
Companies are excluded where they derive more than 5% of revenue from the production, distribution or retail of adult entertainment products or services.

Alcohol
Companies are excluded where they derive more than 5% of revenue from manufacturing, distributing, retailing, licensing or supplying alcoholic products.

Genetic Engineering
Companies are excluded where they derive more than 5% of revenue from genetic engineering activities.

Embryonic Stem Cell Research
Companies are excluded where they are involved in embryonic stem cell research.

International Norms and Standards Violations
Companies flagged as having violated one or more of the major global norms frameworks are excluded. These frameworks include the UN Global Compact, the OECD Guidelines for Multinational Enterprises, the International Labour Organization’s broad principles, the International Labour Organization’s core principles, and the United Nations Guiding Principles for Business and Human Rights. Companies flagged on the watch list for three or more of these frameworks may also be excluded. Depending on the relevant circumstances, further research and direct engagement with the company may be undertaken before a final determination is made.

Controversies
Companies determined to be engaged in controversial behaviour, including environmental controversies that may significantly harm one or more environmental objectives, may be placed on the RIZE Future First Exclusion List. Where appropriate, further research and engagement may be undertaken before a final determination is made.

Poor Governance Practices
Companies determined to be engaged in poor governance practices may be placed on the applicable Exclusion List. This includes concerns relating to sound management structures, employee relations, staff remuneration and tax compliance. RIZE typically seeks to exclude the worst offenders directly and engage with companies with apparent governance deficiencies where further assessment is warranted.

Armed Conflict / Other Significant Controversies
A company may also be placed on the Exclusion List if it is based in, or otherwise significantly exposed to, a country engaged in significant domestic or international armed conflict, human rights abuses, corruption or other significant controversies, even where the company itself is not directly linked to the activities of the relevant government. Any such determination is made by the Sustainability Committee.

Impact Report 2025

Process:

For our RIZE by ARK Invest sustainable thematic funds, we build all our indices and ETFS from scratch allowing for the possibility to apply a consistent approach to ESG and sustainability to the Fund. In the case of the Rize Global Sustainable Infrastructure UCITS ETF (NFRA), the index is purpose-built in collaboration with our Thematic Industry Expert Sustainable Market Strategies (SMS).

NFRA invests in companies within the 4 categories and 12 sub-sectors of our Sustainable Infrastructure thematic classification. The Thematic Classification is an enabling taxonomy designed for the investment and research communities with the aim of identifying companies that are supporting global sustainable infrastructure development in a way that balances economic, environmental and social objectives. To achieve this, infrastructure projects are classified into four categories and 12 corresponding sub-sectors based on the functionalities and benefits they provide to society. Each company’s sub-sector is determined by reference to the sub-sector that it derives its revenue from. Where a company derives revenue from more than one sub-sector, it will be classified within the sub-sector from which it derives the largest proportion of its revenue.

Transportation Infrastructure

Transportation infrastructure is vital for economic growth, accessibility, mobility, and environmental sustainability, representing a significant portion of public investment. It enhances connectivity, reduces transport costs, and supports economic development, with public transit being key for urban areas.

Its sub-sectors include:

• Passenger Transportation: Promotes sustainability by shifting users from personal vehicles to public transit (rail, bus, bike-share) and pedestrian/bike infrastructure, thereby reducing emissions and congestion while improving accessibility.
• Ports: Crucial for international trade, they enhance sustainability through efficient supply chains, eco-friendly infrastructure (renewable energy, waste management), and smart technologies to lessen environmental impact.
• Airports: Provide economic, social, and environmental benefits by facilitating trade, tourism, and connectivity, with emerging markets having an opportunity to build sustainable airport infrastructure from the outset.
• Toll Roads: Offer congestion relief and can operate sustainably through investments in renewable energy, congestion pricing, EV charging, recycled materials, and green infrastructure.
• Freight Rail Transportation: Provides an efficient, environmentally friendly mode for transporting goods, significantly reducing emissions and costs compared to trucking/shipping, especially when incorporating energy-efficient and smart technologies.

Environmental Infrastructure

Environmental infrastructure focuses on the green transition, aiming to provide essential services like energy and water in a way that improves environmental outcomes. This includes reducing CO2 emissions through renewable energy, ensuring water supply for various uses, and managing waste for circularity and pollution reduction.

It includes:

• Renewable Energy Utilities and Transmission: These contribute to sustainability by providing clean energy sources and the infrastructure to deliver this electricity, reducing reliance on fossil fuels, pollution, and the need for new power plants.
• Water Utilities: Essential for sustainability, they provide clean drinking water and treat wastewater, crucial for public health, conserving water by reducing loss, and minimizing environmental contamination.
• Waste Management: Proper waste management is key to reducing landfill use, which in turn lessens air, soil, and water pollution, protects natural resources, cuts greenhouse gas emissions, and conserves energy and resources used in disposal.

Data and Telecom Infrastructure

Data and telecom infrastructure is crucial for a sustainable economy by enabling the efficient flow of information necessary for business decisions, optimizing economic processes, and monitoring performance. It supports better communication and collaboration, leading to more informed and sustainable economic outcomes.

It includes:

• Data Centers: These provide the physical resources for data storage and processing, including cloud computing. Sustainable data centers aim for energy efficiency, minimize local environmental impact, and can be socially responsible by providing jobs and using renewable energy.
• Telecom Infrastructure: Enables faster communication, increasing efficiency and productivity, and connecting remote areas to the global economy. Environmentally, it can reduce the need for physical travel infrastructure, and socially, it helps bridge the digital divide, reducing poverty and inequality.

Social Infrastructure

Social infrastructure is fundamental for a sustainable and fair economy, providing resources and services that enable people to lead healthy, safe, and productive lives. It promotes economic growth and reduces inequality by ensuring access to essential services, especially for those most in need.

It includes:

• Health Care: Health care infrastructure (hospitals, clinics, labs) is vital for providing accessible medical services, including preventative care, diagnosis, treatment, and mental health support, ensuring the population's needs are met efficiently and cost-effectively, especially for underserved areas.
• Elderly Homes: Increasingly important with an aging population, elderly homes provide collective care, dignity, independence, social engagement, and recreational activities for seniors, promoting their physical and mental well-being and overall quality of life.

Scoring Methodology

Our scoring methodology for identifying top investable sustainable infrastructure companies involves a three-pronged approach, which includes two sustainability measures and a financial strength assessment. To assess sustainability, we evaluate a company’s revenue sources related to social and environmental objectives, as well as the relationship between its operations and material ESG risks. We use a “double materiality” assessment to examine the effects of a business’s operational performance on its bottom line, as well as the impact of its products and services on the wider world. This approach provides a more comprehensive assessment of a company’s sustainability profile, compared to traditional ESG-only screening. When combined with the financial strength score – all three components being equally weighted – the result is a Sustainable Infrastructure Score.

The Sustainable Infrastructure Score consists of the following elements:

1. Sustainability Adjusted Revenue Score: the relative contribution of a company’s products and services to environmental and/or social objectives. This Revenue Score is then adjusted to reflect how much each sub-sector, within specific geographical regions (developed, emerging, or frontier markets), contributes to environmental and social objectives like the EU Taxonomy and UN SDGs. This regional focus is key because the impact of infrastructure (e.g., a water utility) can be much greater in emerging or frontier markets than in developed ones, though some sectors like renewable energy are highly impactful everywhere. This accounts for ⅓ of the Sustainable Infrastructure Score.
2. ESG Materiality Score: the relative ESG performance of each company. This accounts for ⅓ of the Sustainable Infrastructure Score.
3. Financial Strength Score: the relative financial strength of each company. This accounts for ⅓ of the Sustainable Infrastructure Score.

 Index Selection Process

The Index's constituent selection process is a multi-step procedure. Initially, companies are screened for eligibility, ensuring they are listed on an Eligible Exchange and are not on the Rize Future First Exclusion List, which is designed to filter out companies with certain undesirable exposures, such as significant involvement in fossil fuel infrastructure (like fossil fuel utilities, natural gas, and pipelines). Following these exclusions, a size and liquidity screen is applied. Companies that pass these initial filters are then ranked by their Sustainability Adjusted Revenue Score, and the top 100 are selected. This pool of 100 securities is further refined through an inverse ranking based on their 12-month annualized volatility, with the top 75% (those exhibiting the lowest volatility) being chosen to form the Index.

Once selected, these constituents are weighted within the Index primarily based on their Sustainable Infrastructure Score; generally, a company with a higher Sustainable Infrastructure Score will receive a higher initial weight, before any adjustments for liquidity caps are made.

The Index is rebalanced on a semi-annual basis in March and September each year pursuant to the published Index Methodology using the latest Stock Universe delivered by the Thematic Research Partner and screening criteria of the Rize Future First Policy.

Managing Sustainability risks

As detailed in the fund Supplement, “Each Fund that tracks or replicates an Index with a sustainability objective is built following a two step process for achieving that sustainability objective. The first step is to identify an investment theme/objective (which could be a particular industry/sector or combination of industries/sectors) that is inherently-positive and sustainable and use the expertise of thematic/industry experts to develop that theme into a defined classification system/taxonomy that represents the various sectors and sub- sectors within the broader theme/objective and enables publicly-traded companies to be identified, researched and classified in accordance with that classification system/taxonomy. However, even investment themes that are intuitively and inherently positive can expose investors to individual companies that, whilst on the face of it are broadly aligned to that theme, may also be involved in activities that contradict the positive objective of the Fund. For example, a company producing strictly plant-based foods, and which would be principally aligned to a sustainable food system where one of the aims is to reduce the impact of human-made greenhouse gas emissions in the food system from the consumption of meat, may also be a big user of palm oil or soybean with inadequate controls in its supply chain to ensure the sustainability of the palm or soybean it procures. Accordingly, the second step is to identify any screening criteria relevant to the particular investment theme/objective to ensure that no significant harm is caused by any constituent companies that are, in the first instance, aligned to the theme/objective. Finally, an index is purpose-built in conjunction with a benchmark administrator to represent the theme and implement a transparent and rules-based investment strategy that the relevant Fund will track or replicate. Further details of the approach are available at https://arkeurope.com/.”

Resources, Affiliations & Corporate Strategies:

ARK Invest Europe’s sustainability function is led by a dedicated in-house Sustainability Lead, who oversees ESG integration across portfolio construction, semi-annual rebalances, SFDR compliance, stewardship activity and impact reporting as a full-time equivalent role. ESG integration is overseen by the Sustainability Committee, which meets at least quarterly and comprises senior management of ARK Invest Europe (the “Promoter”) and IQ EQ Fund Management (the “Manager”), an external ESG professional and two independent directors. This Committee approves ESG-related policies and disclosures, reviews exclusion lists, stewardship priorities and escalation outcomes, monitors engagement activity, and helps ensure alignment with evolving regulatory standards and fiduciary responsibilities.

We also partner with specialist research firms, including Sustainable Market Strategies and Tematica Research, to develop bespoke thematic classifications and impact-scoring methodologies for our index funds, helping to ensure they focus on companies delivering measurable environmental and social benefits. On the external research side, we subscribe to MSCI ESG Manager for ESG business involvement screening, norms-based screens and EU Taxonomy alignment metrics, and we use ISS ProxyExchange for proxy voting execution, while retaining full authority and accountability for voting decisions.

Our RIZE Future First Policy underpins our sustainable-investment approach by combining rigorous exclusion screens, thematic classifications and proactive stewardship to ensure consistency and integrity across our sustainable thematic ETFs. This framework has now been complemented by the dedicated RIZE Future First Stewardship Policy, which sets out how stewardship is exercised across the RIZE suite through direct engagement, collaborative initiatives, proxy voting and escalation where material ESG risks remain insufficiently addressed. The policy also formalises record-keeping, annual review, and an escalation pathway that can ultimately lead to inclusion on the RIZE Future First Exclusion List and divestment at the next scheduled index rebalance where concerns remain material.

In addition, ARK Invest Europe has expanded its sustainability reporting capabilities through the launch of the RIZE Impact Calculator and a new suite of fund-level Impact Reports. The RIZE Impact Calculator is designed to translate an investment allocation into quantified environmental and social outputs, with underlying definitions, sources and calculation steps visible to investors. This framework underpins the annual Impact Reports, which provide fund-level reporting on tangible outcomes such as renewable energy enabled, emissions avoided, water saved, waste diverted and other theme-relevant indicators, using a consistent in-house impact methodology.

Throughout the organisation, ESG factors are incorporated into research, stewardship and risk-management processes, supported by internal training, shared reporting tools and cross-functional implementation by the sustainability, investment and compliance teams. ARK Invest Europe is also a signatory to the UN Principles for Responsible Investment (PRI), participates in collaborative initiatives such as CDP’s Non-Disclosure Campaign, and is a member of organisations including ShareAction, and FAIRR. These affiliations support our commitment to continuous improvement in stewardship, engagement and the delivery of measurable environmental and social outcomes.

Dialshifter

This fund is helping to ‘shift the dial from brown to green’ by…

…Investing in companies supporting global infrastructure development in a way that balances economic, environmental and social objectives. The ETF seeks to provide exposure to companies involved in maintaining and upgrading the existing infrastructure of more industrialised economies, as well as companies developing the new infrastructure required for the economic advancement of less industrialised economies. This includes companies involved in the development of the environmental and social infrastructure needed for our transition to a greener, fairer economy.

SDR Labelling:

Not eligible to use label (out of scope)