Approved the Socially Responsible Investment Beliefs of Pensions Caixa 30

SOCIALLY RESPONSIBLE INVESTMENT BELIEFS OF PENSIONS CAIXA 30, F.P.

The incorporation of Socially Responsible Investment (SRI) in the Fund’s investment process has as its main objective the sustainability of the Fund, as well as contributing to the investment analysis and decision-making processes, which may increase the risk/return ratio in the long term.

SRI combines financial criteria with extra-financial, environmental, social and governance (ESG) criteria:

• Environmental: This refers to environmental policies, external and internal management systems, as well as other environmental indicators (climate change, emissions, solid waste, water, etc.).
• Social: Labour and human rights throughout the supply chain, as well as in behaviour towards customers and employees. It also includes issues such as diversity, animal rights and others.
• Good Governance: This covers the principles and rules that regulate the design, integration and functioning of corporate governance bodies. Principles of good governance, diversity in the management team, having codes of ethics, etc. Principles of good governance, diversity in the management team, having codes of ethics, etc.

In this regard, Pensions Caixa 30 F.P. approved in February 2018 the following eight SRI investment beliefs that will serve as the basis for the SRI decision-making process.

In addition, this document includes the sub-beliefs that served as the basis for the definition of each of the beliefs and that allow for a more concrete vision of the objective pursued with each of them.

• The inclusion of SRI in the Fund’s investment process is primarily aimed at the sustainability of the Fund.
  • Sustainability should be integrated into all stages of the Pension Fund investment process.
  • Sustainability in investment goes beyond the consideration of ESG factors and includes the sustainability of the global economy or financial systems and markets.
  • It is essential to reflect the sustainability of the Pension Fund within the mission, vision and objectives of the Pension Fund.

• A high level of good governance enhances the effective achievement of SRI.
  • A culture of continuous and constant learning is important for effective SRI implementation.
  • It is important that the SRI policy, analysis and implementation capabilities of the Management Company are actively aligned with our SRI investment policy and beliefs.
• It is important that there are measurable and quantifiable objectives for the Pension Fund in terms of SRI.
  • The synergy of financial and non-financial factors in the analysis enables the Pension Fund to aim for better financial results and improves decision-making.
  • The inclusion of assets with good valuations increases the long-term risk/return ratio.

• Monitoring ESG ratings should be as important as monitoring purely financial metrics.
  • The use of ESG monitoring indices complements the monitoring work.
  • SRI monitoring should include both the ESG assessment of the portfolio and the achievement of the various objectives of the Fund.

• We will maintain our commitment as a signatory to the UN Principles for Responsible Investment (PRI) over the long term.

• SRI makes sense beyond the possible good financial results that can be expected from its inclusion in the Pension Fund.
  • The benefits of incorporating ESG factors into the Fund’s investment policy outweigh the costs of implementing and monitoring them.
  • The inclusion of non-financial factors in the investment process improves control and reduces the overall risk of the Fund.

• The implementation of SRI in the Pension Fund will deepen wherever possible all available strategies.
  • The Pension Fund shall periodically review the sectors for which it exercises exclusions.
  • Thematic investing allows the Pension Fund to take advantage of its time horizon to benefit from long-term economic growth trends in economies.
  • Consideration in the fund selection process of standards-based analysis and consideration of ESG factors are important to the performance of the Pension Fund.

• The Pension Fund will participate in collaborative engagement initiatives with other Large Investors through different international platforms in coordination with the Management Company.
  • We will define the objectives we aim to achieve by collaborating in engagement initiatives and monitor them in coordination with the Managing Entity.
  • The Pension Fund will engage in actions with other Major Investors for the betterment of the industry.