Sustainable, Responsible &/or ESG Policy:

Investment Objective

The fund aims to provide capital growth by investing in equity and equity related securities of companies worldwide which the investment manager believes will benefit from efforts to accommodate or limit the impact of global climate change and which meet the investment manager’s sustainability criteria.

Investment Policy

The fund is actively managed and invests at least two-thirds of its assets in equity and equity related securities of companies worldwide which the investment manager believes will benefit from efforts to accommodate or limit the impact of global climate change.

The fund maintains a higher overall level of avoided emissions than MSCI All Country World (Net TR) index, based on the investment manager’s rating system. More details on the investment process used to achieve this can be found in the "Climate Change Strategy" section below.

The fund is not subject to any limitation on the portion of its net asset value that may be invested in any country (including emerging market countries), region or sector. The fund is not subject to any limitation on the market capitalisation of the companies that it may invest in.

The fund does not directly invest in certain activities, industries or groups of issuers which generate revenue above the respective limits as prescribed by the investment manager from time to time, including but not limited to revenues from tobacco and controversial weapons. The respective limits and exclusion list may be updated from time to time. For further information, please refer to the fund’s webpage (1.)

The fund invests in companies that have good governance practices, as determined by the investment manager’s rating criteria (please see the "Climate Change Strategy" section below for more details).

The investment manager may also engage with companies held by the fund to challenge identified areas of weakness on sustainability issues. More details on the investment manager’s approach to sustainability and its engagement with companies are available on the webpage (2.)

The fund may invest directly in China H-Shares and may invest up to 10% of its assets (on a net basis) directly or indirectly (for example via participatory notes) in China A-Shares through Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect (collectively "Stock Connect") (as further described in the section headed "Stock Connect" in the Hong Kong Covering Document) and on the Science and Technology Innovation Board of the Shanghai Stock Exchange ("STAR Board") and the ChiNext market of the Shenzhen Stock Exchange ("ChiNext market"). The fund will not hold more than 5% of its assets in China B-Shares.

The fund may also invest up to one-third of its assets directly or indirectly in other securities (including other asset classes), countries, regions, industries or currencies, investment funds, warrants and money market investments, and hold cash (subject to the restrictions provided in Appendix I of the Prospectus).

Under exceptional circumstances (e.g. market crash or major crisis), the fund may be invested temporarily up to 100% of its net asset value in liquid assets such as bank deposits, certificates of deposit, commercial paper and treasury bills for cash flow management.

The fund may use derivatives with the aim of reducing risk or managing the fund more efficiently.

Derivatives can be used for instance to create market exposures through equity, currency, volatility or index related financial derivative instruments and include over-the-counter and/or exchange traded options, futures, contracts for difference, warrants, swaps, forward contracts and/or a combination of the above.

Climate Change Strategy

The strategy looks for opportunities across a global and diverse opportunity set, providing a well diversified portfolio of different companies across sectors linked to climate change. The strategy invests across five key climate change themes: energy efficiency, environmental resources, sustainable transport, clean energy and low-carbon leader.
The investment manager applies sustainability criteria when selecting investments for the fund.

The investment manager’s first task in the process of stock selection is to determine a universe of companies from the global investment universe whose long-term business outlook, in its opinion, is impacted by efforts to mitigate or adapt to climate change. The investment manager has built a team process and supporting systems that draw on a range of inputs to identify companies where climate change is a significant positive to the business outlook.

Given rapidly changing business impacts, it is not possible to have simple percentage rules for the amount that a company is positively or negatively impacted by climate change. The overarching principle is that climate change must have a significant impact on the long-term business outlook for a stock to be included.

When assessing the significance of climate change on the long-term business outlook for a company, the investment manager may consider the relevant impact on expected revenue growth, operating margin and capital intensity of the company and a company is assessed on a number of factors which include but are not limited to: – If the company has significant direct industry exposure to climate change trends (mitigation - reducing greenhouse gas emissions through energy efficiency, renewable power, and cleaner vehicles; or adaptation those that are preparing for the impacts of climate change, for example water stress, coastal flooding, community health issues, or supply chain disruptions, among other issues). – The proportion of business segments that are potentially exposed to climate change trends. – If the company has significant investment and research and development spending related to the transition to a lower carbon economy. – A product portfolio that takes into account the physical and transition risks posed by climate change. – The impact on the company of rising carbon costs in the context of its industry and competitive environment.

The investment manager will then decide on a case by case basis whether a company is eligible for inclusion in the fund’s investment universe, based on this assessment. In addition, the investment manager’s environmental, social and governance ("ESG") analysis seeks to evaluate the materiality and impact of a range of ESG factors on the sustainability of future earnings growth and as potential risk factors that may affect a company’s valuation. The investment manager’s decision will focus on ratings in the areas that are most relevant to the particular business of that company.

The investment manager performs its own analysis of information provided by the companies, including information provided in company sustainability reports and other relevant company material. The research draws information from a wide variety of publicly available corporate information and company meetings, broker reports and outputs from industry bodies, research organisations, think tanks, legislators, Schroder International Selection Fund - Global Climate Change Equity consultants, NGOs and academics. Third party research is used as a secondary consideration, and generally provides a source of challenge or endorsement for the investment manager’s proprietary view.

The investment manager ensures that at least 90% of the portion of the fund’s net asset value composed of investments in companies is rated against the sustainability criteria. As a result of the application of sustainability criteria, at least 30% of the fund’s potential investment universe is excluded from the selection of investments.

For the purposes of this test (i.e. determination of the percentage of the fund’s potential investment universe that has been excluded from the selection of investments), the potential investment universe is the core universe of issuers that the investment manager may select for the fund prior to the application of sustainability criteria, in accordance with the other limitations of the investment objective and policy. This universe is comprised of equity and equity related securities of companies worldwide.

Benchmark

The fund does not have a target benchmark. The fund’s performance should be compared against the MSCI All Country World (Net TR) index. The comparator benchmark is only included for performance comparison purposes and does not determine how the investment manager invests the fund’s assets. The fund’s investment universe is expected to overlap materially with the components of the comparator benchmark. The MSCI All Country World (Net TR) index is also used for sustainability score comparison. The benchmark(s) does/do not take into account the environmental and social characteristics or sustainable objective (as relevant) of the fund.

1 Accessed via https://www.schroders.com/en-lu/lu/individual/fund-centre (this website has not been reviewed by the SFC).
2 Accessed via https://www.schroders.com/en/hk/retail-investors/sustainability/making-an-impact-through sustainability (this website has not been reviewed by the SFC).

(Source: Product Key Facts document, as at April 2026)

SDR Labelling:

Not eligible to use label (out of scope)