Perpetual : FY23 Sustainability Report

Sustainability Report 2023

Enduring Prosperity

Perpetual Group Sustainability Report 2023

Acknowledgement of Country

Perpetual Group1 acknowledges Aboriginal and Torres Strait Islander peoples of this nation. We acknowledge the Traditional Custodians of the lands on which our company is located

and where we conduct our business. We pay our respects to ancestors, Elders, past and present. Perpetual Group is committed to honouring Aboriginal and Torres Strait Islander peoples' unique cultural and spiritual relationships to the land, waters and seas and their rich contribution to society.

2

Contents

Introduction		3
About Perpetual Group	3
A message from our Chief Executive Officer and
Chief Risk and Sustainability Officer	5

Perpetual's Prosperity Plan			7
Background to our priority focus areas	7
Progress on our Prosperity Plan	9
Governance				10
Planet						23
People							37
Communities						46
Key Performance Indicators					57

Our reporting suite

Welcome to our FY23 Sustainability Report, which provides an update on the sustainability performance of Perpetual Group for the financial year from 1 July 2022 to 30 June 2023 (FY23). This forms part of Perpetual Limited's annual reporting suite, which also includes our Annual Report, Corporate Governance Statement, Operating and Financial Review and Full Year Financial Statements.

1. Perpetual Limited and its subsidiaries.

Annual Report

Enduring Prosperity

Corporate

Governance

Statement

Corporate

Governance

Statement

Sustainability Report

Enduring Prosperity

More information about our FY23 financial and operational performance can be found online: perpetual.com.au/ shareholders/reports-and-presentations

Perpetual Group Sustainability Report 2023

Introduction

Perpetual's Prosperity Plan

Governance

Planet

People

Communities

KPIs

3

About Perpetual Group

Perpetual Limited (Perpetual) is an ASX-listed company (ASX: PPT) headquartered in Sydney, Australia, providing asset management, wealth management and trustee services to local and international clients.

Our purpose	Our sustainability focus
To create enduring	At Perpetual Group, creating enduring
prosperity	prosperity has been at the heart of what
	we do for over 135 years. This means
Our values	seeking to help our clients navigate
the low carbon transition, building an
	inclusive, high-performance culture,
Excellence,	strengthening local communities, and
Integrity,	working to uphold good governance,
Partnership	accountability and integrity in all we do.

Perpetual Group Sustainability Report 2023

Introduction

Perpetual's Prosperity Plan

Governance

Planet

People

Communities

KPIs

4

Perpetual Group has a strong heritage in Australia, operating since 1886 where it began as a trustee company for individuals.

Asset Management

1. global multi-boutique asset management business offering an extensive range of specialist investment capabilities through seven boutique brands in key regions globally.

Our purpose is, and has always been, to create enduring prosperity.

A trusted, dynamic, active manager, offering an extensive range of specialist investment capabilities designed to meet the needs of our clients across the globe.

A responsible investment brand, which provides advice and insights on important Environmental, social, and governance (ESG) issues, and also manages thematic and impact-driven global investment strategies.

A highly respected investment manager with leading Australian equities, global equities, cash, fixed income and sustainable investing capabilities.

US-headquartered Trillium has been at the forefront of ESG investing for over 40 years. One of the first investment firms to align values with investment objectives.

1. US-baseddiversified investment management firm offering value-focused investment strategies spanning global equities and fixed income.

1. US-basedvalue-oriented investment firm, with a 50-year history of delivering to clients across US equities, international equities, fixed income and multi-asset strategies.

An equities specialist asset manager with investment capabilities across US, UK, European, Asian, emerging markets and global equities, as well as multi-asset capabilities.

For more information on our business divisions see our Annual Report at perpetual.com.au/shareholders/reports-and-presentations

Wealth Management

The Wealth Management business consists of Perpetual Private and three other distinct specialist businesses (Fordham, Priority Life and Jacaranda), offering a unique mix of wealth management, advice and trustee services.

Corporate Trust

Our Corporate Trust business is a leading provider of fiduciary and digital solutions to the banking and financial services industry in Australia and Singapore.

Perpetual Group Sustainability Report 2023

Introduction

Perpetual's Prosperity Plan

Governance

Planet

People

Communities

KPIs

5

A message from our Chief Executive Officer and our Chief Risk and Sustainability Officer

Accelerating the low carbon transition

We continue to invest in our capabilities, products and services and, in FY23, funds that we define as supporting a low carbon future had over $1 billion in net flows in our Asset Management business, in line with our commitment to grow this part of our business.1

The acquisition of Pendal has also meant that we can now offer a broader suite of sustainable and responsible investment capabilities to our clients, including through Regnan-branded thematic and impact focused funds. Furthermore, our greater scale and depth of responsible investment expertise will enable more opportunities to share best practice, systems and expertise.

Solid progress has also been made on our commitments relating to the environmental impact of own operations.

We have purchased renewable power for our Australian offices and are on track to be carbon neutral in our global operations.

From our origins as a trustee company in 1886, Perpetual Group has supported our clients and communities over generations. Our commitment to create enduring prosperity for our clients, our people and the communities we support is longstanding and embedded in our approach to sustainability.

The role we play in helping to create a sustainable world has never been more important as we look to the future and continue to grow globally. Since the launch of our sustainability strategy, Perpetual's Prosperity Plan, in September 2022, we have taken considerable steps throughout the year in progressing many of our commitments. Through our Prosperity Plan, we seek to help our clients navigate the low carbon transition; build an inclusive, high-performance culture; strengthen local communities; and work to uphold good governance, accountability and integrity.

This year has been a significant year following the acquisition of Pendal Group (Pendal), which completed in January 2023 and has been followed by a period

of integration as we bring our businesses together. Pleasingly, while this has impacted the delivery of some of our targets, we have made progress on a number of fronts, which we will share in this report. Following a review of the goals we outlined in our Prosperity Plan, we remain committed to them as a newly combined Group.

Championing inclusion and high performance

Our most valuable asset is the expertise of our people. We want every team member at Perpetual Group to feel supported to grow, both as a professional and as an individual. Investing in their wellbeing is critical to our growth and as we build a more globally diverse business, this will offer further opportunities for development and collaboration.

This year, we have once again been recognised by the Workplace Gender Equality Agency (WGEA) as an Employer of Choice for Gender Equality, a position we have held since 2018. Perpetual Group will continue to do more to strive for gender equality and increase the representation of women in our sector. In FY23, 34% of our global senior leader cohort were women, in line with FY22.

34%

of our global senior leader cohort in FY23 were women

1. Our definition of funds that support a low carbon future includes Trillium's larger cap-equity strategies, which are subject to an interim target for 75% of the holdings to commit to set science-based targets for reducing their GHG emissions, as approved by the Science Based Targets Initiative, by the end of 2030.