We believe an internal Sustainability Scoring system is a necessary step to synthesize all material sustainability related information to further assess the funds we use in your portfolio. It is also the starting point to assess the ESG quality portfolios. Our sustainable model portfolios are assigned a Sustainability Score based upon our proprietary scoring system. This approach involves an in depth analysis of each fund within the model against seven key ESG considerations, and the assignment of a fund sustainability score between 1 and 4 The portfolio Sustainability Score is a simple weighted average of the scores of the underlying funds. Full details of our process are contained in the Appendix. Our investment approach aims to gain exposure to businesses that contribute to creating a more sustainable future. By investing in a variety of sustainable funds we benefit from exposure to multiple sustainable themes at a portfolio level. According to the International Renewable Energy Agency (IRENA), to remain below the Paris Climate Agreement target of 2°C, the global power sector will need to be transformed to embrace renewable sources of energy. The Foresight Global Real Infrastructure fund invests in Encavis AG, a Denmark based producer of electricity from renewable energy sources. The company acquires and operates solar and wind parks and is one of the leading power producers in Europe. Denmark is an attractive area as it boasts legally secure and attractive framework conditions for investment. The proportion of green energy in Denmark is already 53% – mainly thanks to wind energy which alone contributes 43%. In February 2019, Encavis announced the acquisition of a portfolio of eight fully operational Danish wind parks with a total capacity of 81 MW. The strength of this portfolio lies in the diversification of the local wind risk across eight different locations. The annual electricity production of around 214,000 MW-hours is enough to provide more than 50,000 households with power. Revenues of 13.4 million euros per year are expected from the power marketing. A circular economy requires companies to consider the product life cycle and the ways in which products can be reused and repurposed to reduce waste that is harmful to our environment and society. Industries that rely heavily on virgin materials are instrumental in the support for a circular economy and have the potential to shift the world economy to a 1.5-2°C pathway. By adopting a circular economy approach, companies can save on production costs and reduce dependence on external commodities, therefore improving margin stability and minimising energy consumption. Companies leading in circular economy activities are also more likely to be protected from impending regulation and increasing virgin material costs. Technology serves as a key driver of solutions to achieve sustainable development of at-risk industries that focus on recycling and reuse. Our funds’ engagement efforts so far have sought to encourage companies to design out the need for virgin components or material and introduce the management of harmful by-products of business operations.