> AMP Capital Sustainable Share Fund

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1 AMP Capital Investors Limited ABN AFSL > AMP Capital Sustainable Share Fund Stock holdings as at 31 December JAN 2015

2 AMP Limited AMP Limited (AMP) is a major Australasian wealth manager and life insurer. The group comprises AMP Financial Services, which owns Australia's largest financial planning network and has leading market shares in a range of products and platforms, and AMP Capital Investors, a fund manager. AMP Financial Services provides financial planning advice, retirement savings, income protection, disability, general and life insurance, and selected banking products like home loans and deposits. These products and services are primarily distributed through a network of self-employed planners. AMP Capital Investors (AMPCI) is a specialist investment manager. AMPCI offers investment solutions across major asset classes including local and international shares, local and international fixed interest, property, infrastructure, diversified funds, multi-manager funds under the Future Directions Funds range, alternative investments such as absolute return funds, structured products and private equity. AMPCI has traditionally been a leader in managing environmental issues of properties and shopping centres and is a signatory / member of UNPRI, CDP and IGCC. The company has a solid set of staff policies and a good framework to manage its workforce. APA Group APA Group owns and operates over 12,000kms of natural gas pipeline infrastructure throughout Australia with a significant presence in all mainland states and territories. APA transports over 50% of Australia's natural gas through a network of pipelines comprising a mixture of mature, and established pipelines between Moomba and Sydney, and more recently constructed pipelines. APA's gas transmission and distribution portfolio comprises a mix of mature, established pipeline operations and recently completed greenfield pipelines that give access to new opportunities throughout Australia. APA's pipelines have access to higher growth sectors of the Australian natural gas market, namely power generation, industrial and commercial customers. APA has a presence in each mainland state and territory. With the need to move to lower carbon intensive fuels, APA, as a major provider of energy with an emphasis on natural gas, offers the potential to make a significant contribution to the transition to a more sustainable economy. However, in the transmission and distribution of natural gas, there are some significant environmental, safety and social issues to address. APA has in place a robust safety and environmental management system, and provides some support for community groups. Asaleo Care Asaleo Care is a manufacturer, marketer and distributor of personal care and tissue products for households and businesses. The company also has a perpetual licence agreement with Swedish-listed SCA for the global brands TENA and Tork. The business is divided into: Consumer Tissue: Sorbent toilet and facial tissue, Handee paper towel, Deeko disposable tableware, Purex toilet tissue and Treasures nappies (New Zealand only). Personal Care: personal hygiene products under the Libra feminine hygiene brand and the TENA incontinence brand. Professional Hygiene: solutions to the commercial, public, health care, food service and industrial segments; e.g. paper towels, dispensers, toilet tissues, soaps, napkins and industrial wipers (Tork). Pacific Islands: distribution of a range of Consumer Asaleo Care has 12 manufacturing and distribution facilities located in Australia, New Zealand and Fiji. The company employs 1,050 staff. The company, which stems back to 1932 when the British Australian Paper Company was established, has strong links with SCA, which is a company with a strong sustainability profile. For example, it focuses on reducing environmental impact, support of sustainable forestry and resource efficiency. Australia & New Zealand Banking Group Australia and New Zealand Banking Group (ANZ) is one of Australia s big four banks servicing all parts of the Australian economy. In Australia and New Zealand, ANZ provides a full range of banking services including residential and investment mortgage lending, deposit taking, credit cards, electronic banking including Internet Banking, overdrafts, term loans, trade finance, commercial bill acceptances and treasury services. It also provides a range of financial services in a number of Asian countries. // 1

3 ANZ's prime focus is on banking and investment; therefore it has the potential to help the financial future of its customers. As a significant investor and lender, it plays a gatekeeper role in facilitating social responsibility through its corporate governance and investment decisions. ANZ has a number of charitable funds, providing funding for community health projects. The Fund sees some of the key challenges that ANZ face (as with many banks in Australia), are the responsible management of its investments and lending practices to include environmental and social issues. ANZ needs to consider employee relations with the move towards individual work contracts, and it also faces the challenge of meeting the community s expectations of banking services to regional and rural Australia and less advantaged groups. Bank of Queensland Limited Bank of Queensland has a unique concept of Owner-Managed Branch (OMB), which is a partnership between the Bank of Queensland and experienced bank managers to provide banking services. This franchise model for branch managers has fostered a committed and efficient branch network. Principal activities include the provision of home mortgage loans, business loans, deposit facilities, credit card facilities, leasing, equipment finance, corporate and international services. Bank of Queensland's personal financial solutions offer a suite of retail banking products including home and personal loans, credit cards, savings and investing accounts, phone and internet banking, insurance and international services. The Business Solutions business facilitate businesses in carrying out day-to-day banking needs, manage short-term liquidity needs and provide long-term funding. Solutions include business transaction accounts, business finance solutions, business card and international services, commercial insurance, merchant services to businesses. In May 2013, the bank shared its brand position for the future launching its new brand with the tagline It s possible to love a bank. The strength of its brand is a reflection of the strong customer satisfaction it has enjoyed. BHP Biliton BHP Billiton Limited (BHP) is a diversified resources group with a global portfolio of assets. BHP is among the world s largest producers of commodities along with substantial interests in oil and gas. Activities involve mining, exploration, production and distribution of minerals and petroleum and uranium. Production and processing mainly relates to aluminium, coal, copper, iron ore, diamonds, silver, lead and zinc), petroleum exploration and production; and production of ferroalloys used in stainless steel and carbon steel materials. As a major resource company, BHP Billiton has significant social and environmental issues to manage. BHP Billiton has developed a set of core health, safety, environment and community management standards. These standards are not prescriptive procedures but set out standards that are to be implemented by individual operations and/or groups. The level to which these standards have been implemented varies across the organisation, though the level of implementation has been increasing over the last couple of years. In addition, the majority of BHP Billiton operations are ISO14001 certified. BHP Billiton has been at the forefront of public reporting through company reports and other international initiatives such as the Global Reporting Initiative, the Extractive Industries Transparency Initiative, product stewardship initiatives for lead and diamonds and other mining industry standards. With many operations in developing countries, all parts of the organisation have undertaken significant social and community initiatives. There are still some ongoing challenges and issues which are of concern. For instance, BHP Billiton is the world's largest exporter of thermal coal in the world and has a significant exposure to oil and gas sector, product stewardship issues associated with the use and disposal of uranium mined from Olympic Dam, managing the environmental and social issues in developing countries will continue to provide challenges to the company, continue to respect the culture and work with the communities in which it operates, continual focus on improving occupational health and safety performance, issues with respect to freedom of association for employees, significant social issues need to be managed in the countries in which they operate, especially the management of HIV/AIDS in southern Africa. Also, the company operates in a number of countries that have dubious human rights records, and in countries where government corruption is a problem. BHP-Billiton remains below the Fund s Uranium/nuclear power exclusion criteria of 10% of revenue or profit coming from uranium (uranium represents less than 1% of BHP-Billiton s total revenue. Brambles Limited Brambles Limited (BXB) provides pallet and container pooling solutions through the CHEP and IFCO brands. // 2

4 CHEP is involved in pallet and container pooling services. CHEP issues, collects, repairs, washes and reissues pallets and plastic containers from a global network of service centres to assist manufacturers, distributors and retailers to transport their products. CHEP containers can be used to transport materials, such as paper, finished goods. It also offers containers for special purposes, such as transport and store of bulk liquid items for chemical and pharmaceutical industries. IFCO operates a pool of approximately 116 million reusable plastic containers worldwide and, in the USA, sorts repairs and reissues almost 200 million pallets a year through its national pallet management network. AMP Capital s ESG Research Team believes the company is well positioned to facilitate or offer solutions to sustainability issues, e.g. container and packaging reuse, waste management, and more. However, Brambles also has to manage some significant environmental, social and workplace risks. A number of the Brambles divisions have developed formalised and externally verified management systems for quality, environment and safety. Bluescope Steel BlueScope Steel Limited (BSL) is a flat steel producer and supplier of steel products and solutions focused on the global building and construction markets. It operates in four main geographical regions being Australia, New Zealand, Asia and North America. With its primary business focus in steel production, Bluescope Steel has to manage some significant environmental, social and workplace risks. However, BSL has improved its performance in these areas over time and has certified environmental management systems and quality systems. There has also been some significant improvement in OH&S performance. Cochlear Limited Cochlear is a manufacturer and distributor of cochlear implantable devices for the hearing impaired. It operates in over 20 countries, distributing products in the Americas, Asia Pacific and Europe, the Middle East and Africa. The company employs approximately 2,500 people. Cochlear is known for the Nucleus CP810 Sound Processor and Nucleus CR110 Remote Assistant; and Cochlear Baha, a bone conduction implant for both children and adults with single-sided deafness and certain types of conductive or mixed hearing loss. Its current products include Nucleus CI422 Implant, CP810 / CP802 Sound Processors, Baha BA400 Hydroxyapatite coating, CR120 Intraoperative Remote Assistant, Acoustic implants (Codacs) and Aqua Accessory. Nucleus 6 has five times the processing power of the market-leading Nucleus 5 sound processor. As of the end of August 2013, Nucleus 6 has been launched in Canada, Korea, Israel, India and Malaysia, and has received approval in Europe and limited approval in the US. AMP Capital s ESG Research Team believes there is a growing demand for treatment of hearing loss and Cochlear remains the market leader in the cochlear implant market. It has a good corporate governance structure, quality assurance systems, and a strong focus on innovation. Commonwealth Bank of Australia Commonwealth Bank of Australia is Australia's largest retail bank and one of the 'Big Four'. Its core business is the provision of retail, business and institutional banking services. It also is a major participant in Australia's wealth management sector with products covering superannuation and life insurance as well as retail and wholesale fund management activities. The bank provides a full range of retail banking services including home loans, credit cards, personal loans, transaction accounts and demand and term deposits. CBA also offers a full range of commercial products including business loans, equipment and trade finance, and rural and agribusiness products. The Institutional and Business Services division of the Bank serves corporations, government entities and other major institutions operating in Australasia. Corporate customers have access to financial markets services, securities underwriting, trading and distribution, corporate finance, equities, payments and transaction services, investment management and custody services. The Funds Management division is the bank's provider of investment products and superannuation. Customers either directly invest in the bank's range of investment funds offered, or have access to a wider investment choice via CBA's master trust product, FirstChoice. The asset management business manages investment portfolios for a diverse range of retail and wholesale clients. It provides a large range of active and indexed investment options including; active and indexed investment options on shares, listed property, credit, cash, fixed interest and others. // 3

5 Commonwealth's prime focus is on banking and investment and therefore has the potential to play a positive role in assisting in the financial future of its customers. As a significant investor and lender it plays a gatekeeper role in facilitating social responsibility through its corporate governance and investment decisions. The Commonwealth Bank has been a major contributor/sponsor of numerous community initiatives and more recently in making commitments to reduce greenhouse gas emissions as a member of the AGO's Greenhouse Challenge Program and SEDA's Energy Smart buildings. CBA s property group has been proactive in assessing and managing sustainability issues, in particularly energy. CSL Limited CSL Limited (CSL) is a biopharmaceutical company that researches, develops, manufactures and markets products to treat and prevent serious human medical conditions. The operational businesses include CSL Behring (incorporating CSL Plasma) and biocsl. The company has manufacturing operations in the US, Germany, Switzerland and Australia. As a developer and supplier of blood products and vaccines, CSL is operating in a field of essential medical services for saving lives and improving human health. Achievements at CSL include the HPV vaccine GARDASIL and the regular provision of flu vaccines. CSL recognises the importance of ensuring a standard of company ethics, with its own ethics code and abides by the various industry codes, such as, Code of Conduct of the Australian Pharmaceuticals Manufacturers Association, the Code of Good Manufacturing and Code of Good Laboratory. DUET Group Duet Group consists of a registered managed investment scheme, Duet Finance Trust, and three Australian public companies, Duet Finance Limited, Duet Company Limited, and Duet Investment Holdings Limited. The four entities are stapled together and trade as Duet Group. The group operates the Dampier Bunbury Natural Gas Pipeline which is Western Australia s principal gas transmission pipeline. It is the only pipeline connecting the natural gas reserves of the Carnarvon and Browse basins on Western Australia s North West Shelf with industrial, commercial and residential customers in Perth and the surrounding regions. Natural gas supplies approximately 50% of total primary consumption in Western Australia. In 2011, Duet created DBP Development Group to leverage strong pipeline engineering and operating skills to provide opportunities to deploy capital in accretive opportunities that would see DDG build, own and operate new pipelines and laterals. In September 2013, DDG reached an agreement with Chevron Australia to operate the Wheatstone Ashburton West Pipeline. United Energy is another part of Duet s asset portfolio. Its electricity distribution network covers 1472 square kilometres of south-east Melbourne and the Mornington Peninsula. It covers about 1% of Victoria s land area which is home to around 25% of the state s population. Approximately 90% of United Energy s end customers are residential. Duet also owns Multinet Gas which is a Victorian gas distribution company with a network covering 1860 square kilometres of the eastern and south-eastern suburbs of Melbourne, the Yarra Ranges and South Gippsland. With the need to move to lower carbon intensive fuels, Duet, as a major provider of energy with an emphasis on natural gas, offers the potential to make a significant contribution to the transition to a more sustainable economy. Dulux Group Limited Dulux Group Limited was formed following its demerger from Orica (ORI) in July Dulux Group is a manufacturer and marketer of premium branded products, mainly in coatings, home improvement, and garden care markets in Australia and New Zealand, with focus on these domestic markets. Product offerings include protective coatings, powder coatings, the high build performance coating AcraTex, automotive refinish, and inter-grain timber finishes. With its primary business focus in chemical manufacturing and distribution, Dulux Group has to manage some significant environmental, social and workplace risks. Dulux has some historic liability issues such as groundwater contamination and hazardous waste. Product stewardship is also a key issue. The company has a strong environmental protection/ safety culture, it is a member of Chemical Industry Responsible Care initiative, and it places an emphasis on product stewardship and innovation. Estia Health Estia is currently one of the largest private providers of residential aged care facilities in Australia with 3,203 places at 39 aged care facilities in VIC, SA, NSW and QLD, with contracts to buy another 410 places at 5 other facilities (all acquisitions are expected to finalise by February 2015). Estia provides clinical care services, daily living services, // 4

6 accommodation services and extra services to its residents at its portfolio of residential aged care facilities. 32 of the existing facilities are located in metropolitan areas. The company was formed through a merger of 3 residential aged care providers in 2014, combining aged care provides Lasting Changes, Padman Healthcare and Cook Care. Residential aged care providers receive both operating revenue and capital funding. Operating revenue is generated from a combination of Australian Government and resident contributions on a per resident, per day basis. The government funding level is determined by the level of care required by a particular resident and their financial circumstances. The industry is heavily regulated in terms of clinical care standards and providers need to have an effective system of clinical governance to promote the health, safety and quality of care of their residents, and to ensure compliance with applicable legislation and departmental policy requirements. Flight Centre Travel Group Flight Centre Travel Group Limited (FLT, formerly Flight Centre Limited) is engaged in travel agency business. The Company provides a complete travel service for leisure and business travellers in Australia, New Zealand, the United States, Canada, the United Kingdom, Africa, Middle East, Asia, New Zealand, and Europe. FLT consists of more than 30 brands with four categories of brands which are Leisure, Corporate, Wholesale and other. The flagship brand is Flight Centre leisure brand. Flight Centre operates a number of leisure travel brands. Its flagship Flight Centre brand is also present in 10 other countries around the world. The Flight Centre and Escape Travel brands are aimed at the mass market, Student Flights and Intrepid My Adventure Store at the youth market, Travel Associates at the premium market and Cruiseabout at the cruise market. The company has a strong culture and driven staff, with good gender balance across the organisation and low staff turnover. It has been awarded Australia s top employer twice. Goodman Group The Goodman Group is one of Australia s largest Real Estate Investment Trusts. It has three inter-linked businesses, based on industrial, warehouse and business park property. Goodman Group owns, develops and manages assets in Australia, New Zealand, Europe and Asia. It is a stapled security comprising a unit in the trust and a share in the management company. The AMP Capital ESG Research Team believes Goodman Group is increasing its commitment to the Sustainable property space, through dedicated resources, participation in the CDP and the development of the GreenStar Industrial tool. In addition, it has developed a sustainability policy, strategy and framework, and conducts employee engagement surveys annually. Henderson Group Plc Henderson Group is an international UK based fund manager. It provides access to a broad range of asset classes including equities, fixed income, property, hedge funds and private equity for its institutional, retail and high net worth clients. As an independent global asset management firm, the company provides its institutional, retail and high networth clients with access to equities, fixed income, and property and private equity. As a significant investor, Henderson Group plays a gatekeeper role in terms of sustainability and plays a positive role in assisting in the financial future of its customers. The company has a good corporate governance structure and strong risk management system. The company is a signatory to the UN Principles for Responsible Investment. Insurance Australia Group Insurance Australia Group Ltd is the largest general insurer in Australia and New Zealand, providing personal and commercial insurance policies under the brands NRMA Insurance, CGU, SGIO, SGIC and Swann Insurance. IAG also underwrites motor, home and some other lines of insurance for RACV in Victoria and has operations in Thailand, the UK, Malaysia and China. IAG also has a strategic alliance with RACV, whereby IAG underwrites motor vehicle, home and other general insurance products for distribution by RACV under the RACV brand in Victoria. // 5

7 The group's prime focus is on insurance and superannuation and therefore plays a positive role in assisting in the financial future of its customers. As a significant investor it plays a gatekeeper role in facilitating social and environmental responsibility through its corporate governance and investment decisions. The AMP Capital ESG Research Team believes it has strong governance and comprehensive sustainability reporting. JB Hi-Fi JB Hi-Fi Limited is a specialty discount retailer of branded home entertainment products. The Group's products are classified into consumer electronics, car sound systems, and music and DVDs and white goods business lines. JBH does not operate a warehouse; instead all stock is delivered directly to each store and largely stored on the shop floor. The company has made strategic advancements in its use of technology that will contribute to overall sustainability. It has increased its focus on staff retention in recent years and boasts a staff turnover rate that is below the industry average. The company performs well in independent customer satisfaction surveys. Lend Lease Group Lend Lease Group (LLC) provides a wide range of real estate-related services (ranging from investment management through to commercial credit services, development, financing, construction and project management). Sustainability is a key area of the company s strategy. It is committed to reducing its environmental impact in each location of operation. The company has an integrated environmental, health and safety management system, with increased staff training focussed on sustainability. It has made improvements in its safety management approach and health and safety management system, resulting in better performance over recent years. The company is prepared to reject projects that do not meet its safety criteria. It also has a strong focus on staff engagement and retention. Macquarie Group Macquarie Group Limited is a financial services provider of banking, financial, advisory, investment and funds management services. Macquarie Bank's primary focus is on banking and investment and therefore has the potential to play a positive role in assisting in the financial future of its customers. As a significant investor and lender it plays a gatekeeper role in facilitating social responsibility through its corporate governance and investment decisions. Macquarie has been recognised as a good employer and has also formed the Macquarie Bank Foundation. Each year the foundation takes a portion of the Bank s annual profit and allocates it into fund programmes benefiting the communities of which Macquarie is a part. These programmes are in the areas of education, the arts, health research and health care, welfare and the environment. Mirvac Group Mirvac Group is involved in real estate investment, development and investment management. It has a stapled security structure, comprising Mirvac Property Trust (MPT) and Mirvac Limited. It owns a diversified property portfolio of retail, commercial, and residential properties across Australia. Mirvac has two core divisions: Investment (MPT) and Development (comprising residential and commercial development).. It is a Sensitive/Gatekeeper company in alignment with sustainability, with a majority of the business based in construction, and the remainder in property and investment management and hotel ownership. However, the AMP Capital ESG Research Team believes Mirvac is a sector leader in managing its ESG risks, including extensive environmental targets and measures, carbon monitoring, influence in its supply chain, and good people management. National Australia Bank National Australia Bank is a large financial services group providing a comprehensive and integrated range of financial products and services throughout Australia, New Zealand and parts of the United Kingdom. NAB is the largest financial services institution listed on the ASX by market capitalisation. Australian banking operations dominate and represent 60% of group assets. NAB's prime focus is on banking and investment and therefore it can help the financial situation of its customers. As a significant investor and lender, it plays a gatekeeper role in facilitating social responsibility through its corporate // 6

8 governance and investment decisions. NAB has responded to the need for providing banking services to low income and older members of the community through the National Concession Card Account, effectively offering fee-free banking for NAB customers who are pensioners or healthcare cardholders. NAB is a significant corporate sponsor with sponsorship programs, community partnerships and staff community support programs, supporting community, health and volunteer groups. As with many banks in Australia, the Fund sees the key challenge that NAB faces as the responsible management of its investments and lending practices to include environmental and social issues. It needs to meet the community s expectations of banking services to regional and rural Australia and less advantaged groups. Nine Entertainment Co Holdings Limited The Nine Entertainment Company business consists of Nine Network, Ticketek, Allphones Arena, Mi9, as well as interests in Sky News Australia and Yellow Brick Road. Nine Network s content includes a combination of locally produced programs and international content arrangements, including news, current affairs, sporting events, entertainment and lifestyle programs. Nine Network broadcasts shows, including The Voice, The Block, Big Brother and sports broadcasting content from the National Rugby League and Cricket Australia. Mi9 is an online media company reaching approximately 10.5 million active Australian online users each month through an offering that spans publishing, online services, data strategies, consumer insights and advertising technologies. Oil Search Oil Search is principally involved in oil and gas exploration, development and production in PNG, although Oil Search also has interests in Australia and South East Asia. Oil Search's principal oil and gas production projects in PNG are at Kutubu Hides, Gobe/SE Gobe and Moran. The most important development in the near term is the Papua New Guinea (PNG) Liquefied Natural Gas (LNG) development. Exxon is the developer and will be operator of the LNG facility. The combustion of fossil fuels is the major source of greenhouse gas emissions. Oil Search s main business is in oil production, though with the PNG LNG project will result in a significant change indirection. Oil Search has operations with high environmental, social, and occupational health and safety risks as it operates in environmentally and culturally sensitive areas of PNG. However, Oil Search appears to have comprehensive environmental and occupational health and safety management systems in place, with particular emphasis on complex social and political issues in PNG. In 2010, the company issued its first sustainability report. One of the challenges for OSH is the management of ESG issues around the development and operation of the PNG LNG plant, which it does not operate. Origin Energy Limited Origin Energy Limited was listed in February 2000 following the demerger of Boral Group's energy businesses. Origin is a vertically integrated energy company and its operations include: exploration and production; power generation; energy retailing and trading. With the need to move to lower carbon intensive fuels, Origin, as a major provider of energy with an emphasis on natural gas, offers the potential to make a significant contribution to the transition to a more sustainable economy. Origin has integrated safety and environmental management systems in place. Origin has also undertaken a number of initiatives to minimise greenhouse gas emissions, such as the AGO GGAP Program, funding solar photovoltaic research, energy efficiency programs and commercial arrangements, such as cogeneration and landfill projects. Origin Energy is a leader in the provision of Green Power to retail electricity consumers and is considered by environmental NGO groups as a market leader. QBE Insurance Group Limited QBE Insurance Group is a global provider of general insurance and reinsurance services in Australia, Asia Pacific, the Americas and Europe. QBE is an Australian listed company with a Group Head office based in Sydney, conducting operations in 52 countries. // 7

9 QBE's prime focus is on insurance and therefore plays a positive role in assisting in the financial future of its customers. As a significant investor, it plays a gatekeeper role in facilitating social responsibility through its corporate governance and investment decisions. QBE Insurance was the first Australian Insurance company to be a signatory to the United Nations Environment Program Statement of Environmental Commitment by the insurance industry. As part of encouraging improved occupational health and safety performance of its customers, QBE have occupational health and safety staff that provide advice to clients in the development of occupational health and safety systems and injury management. It also provides regular newsletters on Worker Compensation issues to clients. Ramsay Health Care Limited Ramsay Health Care Limited (RHC) is a global hospital group operating 151 hospitals and day surgery facilities across Australia, United Kingdom, France, Indonesia and Malaysia. Ramsay Health Care facilities cater for a range of health care needs from day surgery procedures to complex surgery, as well as psychiatric care and rehabilitation. In Australia, the company is an operator of private hospitals in the country with 66 hospitals, approximately 7,500 licensed beds, and day surgery units. The hospitals provide medical, obstetric and surgical services for admitted patients. Services offered include intensive care, day surgery, maternity, cardiac surgery, neurosurgery, ophthalmology, orthopedic surgery, general surgery, ear, nose & throat surgery, gynaecology, plastic surgery, dermatology & paediatric surgery. In the UK, the company has 38 acute hospitals and day procedure centres. In France, Ramsay Health Care owns 100% of Ramsay Sante, which operates private hospitals in the greater Paris region. In Asia, the company operates three hospitals in Jakarta, Tangerang and Surabaya. ResMed Inc ResMed Inc. is a developer, manufacturer and distributor of medical equipment for diagnosing and managing Sleep Disordered Breathing (SDB). ResMed operates in over 60 countries and has offices in Asia, Europe, North America, Australia and New Zealand. The company produces Autoitratation Flow generators (AutoSet Spirit), CPAP flow generators and Bilevel flow generators (Comfort and VPAP series) for diagnosis and treatment of sleep disordered breathing. Continuous positive airway pressure (CPAP) is fixed throughout the night to prevent obstructive apnoeas. Resmed is a company with a focus on improving sleeping patterns and potentially reducing the incidence of diabetes. The business has a quality and customer focus. It is committed to public and physician education of sleep medicine. The AMP Capital ESG Research Team believes Resmed has strong R&D and quality focus. Rio Tinto Limited Rio Tinto Limited (RIO) is one of the world's largest international mining groups, involved in every stage of metal and mineral production. Rio Tinto comprises five principal product groups - Aluminium, Copper, Diamonds & Minerals, Energy and Iron Ore - plus two support groups: Technology & Innovation and Exploration. RIO is a supplier to the global seaborne iron ore trade and produces saleable lump and fines ore, pellets, and concentrates as well as operating integrated mines, rail and port infrastructure. Operations are in Australia and Canada. In Aluminium, Rio Tinto Alcan operations include Bauxite and Alumina, Primary Metal (Europe, Middle East and Africa, North America and Pacific). Bauxite mines are located in Aus, Brazil, and Guinea. Smelting assets is located in Canada (eight smelters), along with smelters in Aus, NZ, France, the UK, the US, Cameroon, Iceland, Oman and Norway. Rio owns 13 power stations with an annual capacity of over 6,10MW. RIO is a global producer of copper and its by-products such as gold and molybdenum, with operations in the US, Indonesia, South Africa, Aus and Chile. It has a portfolio of projects in copper and nickel deposits - Oyu Tolgoi in Mongolia, Resolution in the US, La Granja in Peru and Sulawesi in Indonesia. The Minerals group is divided into Rio Tinto Minerals (RTM), producing borates and talc and manages development projects for lithium and borates; and Rio Tinto Iron & Titanium (RTIT), producing titanium dioxide, zircon and rutile. Minerals operations are located in Europe, Africa, North and South America, Asia and Aus. RIO has interests in three operating diamond mines: Argyle in Aus, Diavik in Canada, and Murowa in Africa. RIO's energy group produces two types of coals - thermal coal and coking coal and is primary producer of uranium and uranium oxide to electric power utilities. RIO produces coal in Australia and the US and uranium in Namibia and Australia. // 8

10 With its primary business focus in mining, RIO is considered to have to manage some significant environmental, social and workplace risks. RIO is a leader with respect to safety performance and community/indigenous relations. RIO is also a member of the Australian Minerals Industry Code of Environmental Management, have produced a number of well received Public Sustainability Reports. It has also been one of the prime players in the Global Mining initiative. In addition, RIO was one of the first mining companies to take positive and proactive view on Aboriginal land rights and employment and has taken a more positive position on climate change in recent years. The acquisition of Alcan resulted in a significant change in profile for RIO, in terms of ESG issues. Alcan has 91% of operations ISO14011 and AS4801 certified; demonstrated improvement in safety performance; demonstrated decreases in greenhouse gas emissions and is a leader with respect to sustainability reporting. The majority of Alcan's smelter energy comes from renewable energy, making Alcan the lowest greenhouse gas emission/tonne of Aluminium produced of any aluminium company. However, the company owns and operates a number of uranium mines - one in Namibia and the other in Australia. RIO's equity share of production represents approximately 12% of world uranium production. However, these operations are not material from a revenue or EBITDA perspective, representing between %. One of the key challenges for RIO is the management of the relationship with joint venture partners and the environmental and social impacts of these operations. For example, RIO is a principal investor in the Freeport Copper mine in West Papua, which has significant negative environmental impacts as a result of riverine tailings disposal and has JV with Norlisk Nickel, which has poor safety and environmental record. Given the environmental, social and governance performance of the combined RIO/Alcan entity and the disposal of the US Energy Assets, an investment in RIO is considered to be consistent with the fund's ESG mandate. Santos Limited Santos Limited is an oil & gas exploration & production company. The company produces natural gas, liquefied natural gas, crude oil, ethane and liquefied petroleum gas both for domestic and export markets. As part of managing its environmental responsibilities, Santos has developed an environmental management system, which includes a number of field handbooks, procedures and guides. The management system covers potential; aboriginal cultural and natural environment impacts. Santos has an extensive auditing and non-conformance reporting system and provides a detailed report to the SA government on all exploration and production activities. With the need to move to lower carbon intensive fuels, Santos, as the major natural gas provider to SA and NSW and with the proposed LNG project at Gladstone, offers the potential to make a significant contribution to the transition to a more sustainable economy. Scentre Group Scentre Group is an owner and operator of Westfield branded shopping centres in Australia and New Zealand focusing on fashion, food, leisure and entertainment. It has 12,544 retail outlets and 47 centres located in prime trade areas. It develops its retail destinations by integrating food, fashion, leisure and entertainment and by using technology to better connect retailers with consumers. It aims to continually improve its portfolio by developing existing centres and acquiring new centres. Many shopping centres in the portfolio are owned in partnership with property investment institutions. Westfield makes efforts to ensure access for all to its centres by providing special use facilities such as parents rooms, child and parent with pram toilets and car spaces, senior citizen car spaces, travelators and passenger lifts for people with disabilities, parents with prams and senior citizens. Westfield sets water and energy savings targets for all shopping centres and has achieved significant improvements year on year. Sonic Healthcare Limited Sonic Healthcare is a medical diagnostics company, offering laboratory medicine/pathology and radiology services to the medical community. The core business is to supply diagnostic medical services (pathology and radiology) to medical practitioners. Pathology/clinical laboratory services are provided in Australia, New Zealand, the UK, the US, Germany, Switzerland, Belgium and Ireland. Radiology and diagnostic imaging services are provided in Australia and New Zealand. The company is structured as a decentralised federation of medically-led diagnostic practices, with the head office in Sydney. Global demand for medical diagnostic services continues to increase as a result of growing and ageing populations, the development of new, less invasive and more efficacious tests. Sonic s culture is focused on social // 9

11 responsibility with key stakeholders. The company has a strong focus on quality with all necessary quality assurance accreditations in place and quality audits. Stockland Stockland is a global property development and investment management group with a diversified portfolio of retail, commercial (office, industrial and retail), residential and industrial investment properties in Australia plus retirement communities (Australia s third largest retirement operator in Australia) and residential land bank and development pipeline. The company has proven high level support for sustainability and systems and structures in place. It has strength in human capital management, safety performance, and minimising environmental and carbon risks. Stockland is extending workplace and environmental requirements into the supply chain where is can influence change. It leads the industry in corporate governance with its commitment to no political donations. Suncorp Group Suncorp Group Limited is a Queensland-based financial services conglomerate offering retail and business banking, general insurance, life insurance, superannuation and investment products in Australia and New Zealand. Suncorp has five core businesses including Personal Insurance, Commercial Insurance, Vero New Zealand, Suncorp Bank, and Suncorp Life. Within Personal Insurance, the group provides home and contents insurance, motor insurance and travel insurance in Australia. Within Commercial Insurance, it provides commercial motor insurance, commercial property insurance, marine insurance, compulsory third party insurance alongside other products in Australia. General Insurance includes home and contents insurance, marine insurance, business insurance, professional indemnity insurance and more. The Banking division provides personal and commercial banking, agribusiness, property and equipment finance, home and small business loans, savings / transaction accounts, foreign exchange, treasury products and more in Australia. The Life business includes life insurance products, superannuation administration services, financial planning and funds administration services in Australia and New Zealand. The group sells products through Independent Financial Advisers and direct to customers through Suncorp Group brands (e.g. Suncorp, AAMI, Apia and GIO). Suncorp Metway's prime focus is on banking, investment and insurance, having the potential to play a positive role in assisting in the financial future of its customers. As a significant investor and lender it plays a gatekeeper role in facilitating social responsibility through its corporate governance and investment decisions. Suncorp-Metway has a strong regional focus with the provision of financial services and community support, through sponsorship and charities, throughout Queensland. Telstra Corp Limited Telstra is Australia's largest telecommunications and information services company, providing products and services that cover all aspects of the telecommunications industry in Australia. Telstra is the national universal service provider, so it must ensure that telephone services are reasonably accessible to all people in Australia. It is Australia's largest provider of internet services with more than one million customers. With its primary business focus in telecommunications, Telstra provides an important avenue for the communication of information therefore it facilitates education, entertainment and improved business practices. As the largest provider of these services in Australia, there is a significant social/community obligation to provide affordable access to its services. This has been one of the key focuses of Telstra over the past couple of years with the development of Customer Service Charter and Performance review report. In recent years, Telstra has succeeded in improving occupational health and safety and environment performance. It has also been recognised with an industry human resource management award. It has produced six public environmental reports outlining both the development of its environmental-management systems and its environmental performance, and three Corporate Social Responsibility reports. An example of its environmental initiatives is the industry initiative to recycle over 10 million disused mobile phones in Australia. In addition, Telstra is a major sponsor of community and cultural events and groups. The AMP Capital ESG Research Team s main areas of concern for Telstra is its ongoing commitment to provision of affordable services to the public and its fair competitive behaviour in terms of allowing other communication providers access to Telstra s physical infrastructure. // 10

12 Transurban Group Transurban Group owns and operates toll roads in Australia and the US. Its asset portfolio includes TCL s 100% interest in CityLink which connects three major urban freeways (the West Gate, Tullamarine and Monash) and links Melbourne's manufacturing hubs and the city centre, port and airport. In Sydney, TCL has an interest in Hills M2 (100%), Lane Cove Tunnel (100%), Eastern Distributor (75.1%), M5 South West (50%), and Westlink M7 (50%). In the US, TCL partners with governments to meet the long-term transportation infrastructure needs of communities. In Virginia, TCL has an interest in roads including Pocahontas 895 (75%) and 495 Express Lanes (67.5%). TCL also holds 67.5% interest in 95 Express Lanes which is currently under construction. As a transport infrastructure manager, Transurban manages safety through road quality, support of road safety stakeholders, and road user education. The group has an internationally certified quality management system (ISO 9001). All majority-owned assets (apart from Eastern Distributor and Lane Cove Tunnel) have certified safety management systems (AS/NZS 4801). US operations are working towards certification against OHSAS (safety management). It has developed disaster recovery plans including consultation with emergency services and back-up systems. In recent years, ESG risk management has improved and there has been a decrease in road accidents. Wesfarmers Wesfarmers Limited is an owner of diversified businesses, covering supermarkets, department stores, home improvement and office supplies; coal mining; chemicals, energy and fertilisers; and industrial and safety products. Wesfarmers employs more than 200,000 people across Australia and New Zealand. Within supermarkets, its brands include Coles and BI-LO supermarkets, 1st Choice Liquor Superstores, Liquorland, Vintage Cellars and Coles Express. Within Home Improvement & Offices Supplies, Bunnings is a retailer of home improvement and outdoor living products in Australia and New Zealand and a supplier of building materials to commercial tradespeople and the housing industry. Officeworks is a retailer and direct supplier of quality office and technology products. In the Retail segment, Target and Kmart are mainly involved in clothing and homewares retailing nationwide. In Resources, Wesfarmers Resources is an Australian open-cut miner and is a metallurgical coal producer with interests in three coal mines. The division's operations comprise the Curragh mine in Queensland's Bowen Basin, the Premier Coal mine at Collie in Western Australia's south west and a 40% interest in the Bengalla mine in the Hunter Valley of New South Wales. In the Insurance segment, Wesfarmers Insurance operates in the general insurance and financial services sector. The Wesfarmers Chemicals, Energy & Fertilisers division operates chemical, gas and fertiliser businesses that service a range of sectors in both domestic and international markets. Wesfarmers Industrial and Safety division is a supplier of industrial and safety products and services in Australia and New Zealand. Finally, Wesfarmers have a 50% stake in Gresham Partners, 50% in Wespine Industries and 23% in BWP Trust. Wesfarmers operate in a diverse range of industries, ranging from business divisions with high sustainability risk (e.g. thermal coal mining and chemicals) to divisions closely aligned with sustainability (e.g. the safety division). Overall, Wesfarmers is considered to be "sensitive" in terms of sustainability, with a number of divisions having significant environmental and occupational health and safety risks. The AMP Capital ESG Research Team is concerned about some of the supply chain risks for Wesfarmers. However, the fund notes that numerous Wesfarmers operations are certified to or developing ISO14001 environmental management systems and have been improving overall environmental performance. Similarly, most business divisions have detailed occupational health and safety management systems. The environmental and occupational health and safety performance of Wesfarmers is reported in public annual EH&S reports. In addition, many of the divisions are quality certified. Finally, Wesfarmers alcohol exposure is below that of the Fund s threshold for financial materiality. Westfield Corp Westfield Group is an internally managed, vertically integrated, shopping centre group undertaking ownership, development, design, construction, funds/asset management, property management, leasing and marketing activities. WDC has interests in and operates shopping centre portfolios with investment interests in 105 shopping centres across // 11

13 Australia, the United States, the United Kingdom, New Zealand and Brazil, encompassing around 23,000 retail outlets and total assets under management of AUD63 billion. Westfield Holdings is the Group's management and funds management provider. It participates in development, design, construction, leasing, marketing and management services to the shopping centres and is the fund manager for the property trusts in the group. As a large retail property group, Westfield needs to manage the challenges of a vertically integrated shopping centre builder and owner/operator range from safety and ecological footprint issues in construction stages; to the social and community impacts of operating a large retail conglomeration, social issues in the value chain such as cleaner conditions, environmental impact of tenants, and customers travelling to the centre. The group has increased its sustainability focus and has started sustainability reporting, including targets and performance data on key metrics. It has a global safety compliance system online (GSR Global Safety Reporting) and non-compliance is reported to management through to the board risk management committee. The GSR system allows data from safety indicators to be automatically aggregated from underlying source data (including, for instance, records of audits, reviews, incidents and injuries). The AMP Capital ESG Research Team s main concerns relate to corporate governance. Westpac Banking Corporation Westpac Banking Corporation is Australia's oldest bank operating a significant banking franchise in Australia and New Zealand with balanced exposures to retail, corporate and institutional sectors. Consumer Financial Services is responsible for sales, services and product development for consumer customers across Australia and manages third party consumer product relationships and the retail branch operations in Hong Kong and Singapore. Business Financial Services is responsible for sales, service and product development for small and medium sized business customers in Australia. It also has responsibility for group-wide working capital and specialised trade solutions operations and the management of third party business product relationships. Westpac Institutional Banking provides financial services to the corporate and institutional customer base, assisting and advising in the management of cash, funding, capital and market risk for companies and institutions in Australia and New Zealand. New Zealand Retail provides a full range of retail and commercial services to customers throughout New Zealand. It is a leading provider of banking services to small to medium business and is the banker of the New Zealand government. Pacific Banking provides a full range of deposit, loan, transaction account and international trade facilities to personal and business customers. Westpac's prime focus is on banking and investment and therefore the bank can help the financial situation of its customers. As a significant investor and lender, it plays a gatekeeper role in facilitating social responsibility through its corporate governance and investment decisions. Westpac has been one of the first Australian financial institutions to commit to environmental and social initiatives including being a signatory to the UNEP financial initiative, the Australian government s Greenhouse Voluntary Reduction Scheme (Greenhouse Challenge Program), and development of a Social Accountability report. Westpac has charitable funds that fund community and healthcare projects. Westpac has developed good employee programs, covering areas such as business ethics and anti-discrimination, work safety and employee professional development. As with many banks in Australia, the Fund sees some of the key challenges Westpac faces include the responsible management of its investments and lending practices to include environmental and social issues. It must also meet the community s expectations of banking services to regional and rural Australia and disadvantaged groups. Woodside Petroleum Woodside Petroleum Limited is an independent oil and gas company with a portfolio of liquefied natural gas trains, offshore platforms, oil floating production storage and off-loading vessels. Woodside produces and sells LNG, pipeline gas, oil condensate and LPG, with a landmark Australian project the North West Shelf. It also holds interests in operating assets located in Australia and international. // 12

14 Woodside's main business is the operation of the North West Shelf JV (16.7%), which is one of Australia's largest resource development projects, which focuses on production of liquefied natural gas (LNG) for export, domestic gas, condensate and liquefied petroleum gas (LPG). With the need to move to lower carbon intensive fuels, Woodside, with its focus as a major natural gas provider to WA and the export market, offers the potential to make a significant contribution to the transition to a more sustainable economy. However, in the exploration and production of natural gas, there are some significant environmental, safety and social issues to address. As part of managing its environmental responsibilities, Woodside has developed an environmental and safety management system to a standard equivalent to ISO14001 and ISO4801. These management systems have facilitated improvement in occupational health and safety, and environmental performance, as demonstrated by improvement in occupational health and safety accident data, and decrease in nitrogen oxide and hydrocarbon air emissions at the Karratha Gas Plant. Contact us If you would like to know more about how AMP Capital can help you, please visit ampcapital.com.au, or contact one of the following: Financial Advisers Personal Investors Wholesale Investors AMP Capital s Adviser Services team on Your Financial Adviser AMP Capital s Client Service team on Important note: Investors should consider the product disclosure statement available from AMP Capital Investors Limited (ABN ) (AFSL ) for the AMP Capital Sustainable Share Fund (ARSN ) before making any decision regarding the Fund. Neither AMP Capital Investors, nor any other company in the AMP Group, guarantees the repayment of capital or the performance of any product or any particular rate of return referred to in this document. Past performance is not a reliable indicator of future performance. AMP Capital Investors prepares this document to provide investors with a broad understanding of the investments held by the Fund and endeavours to update the information contained in this document each quarter based on publicly available information. However, while every care has been taken in the preparation of this document, AMP Capital Investors makes no representation or warranty as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. This document has been prepared for the purpose of providing general information, without taking account of any particular investor s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this document, and seek professional advice, having regard to the investor s objectives, financial situation and needs. This document is solely for the use of the party to whom it is provided. // 13