BNY MELLON ENTERPRISE ESG 113 APPENDIX ESG Materiality: When used in relation to ESG, this term is used to describe the quality of being relevant or significant. In the context of this report, material ESG factors are factors that are relevant or significant to the key internal and external stakeholders of a company. FTSE4Good: The FTSE4Good Index Series is a collection of socially responsible, or ESG, stock indices administered by the Financial Times Stock Exchange- Russell Group (FTSE). The purpose of these indices is to identify companies that score highly in ESG measures. Global Reporting Initiative (GRI): The GRI is an international, independent standards organization that helps businesses, governments and other organizations understand, measure and communicate their social and environmental impacts to all stakeholders. The GRI Standards are some of the oldest and most widely used ESG standards in the world. The Network for Greening the Financial System (NGFS): This is a group of central banks and supervisors committed to sharing best practices, contributing to the development of climate- and environment-related risk management in the financial sector, and mobilizing mainstream finance to support the transition toward a sustainable economy. Net zero: This describes the state when a corporation reduces its relevant Scope 1, 2 and 3 category GHG emissions following science-based, below-1.5-degree pathways as much as possible, with any remaining GHG emissions being fully neutralized by like-for-like removals (e.g., permanent removals for fossil carbon emissions). Principles for Responsible Investment (PRI): PRI is an international network of investors working together to implement its six aspirational principles, often referenced as “the Principles.” Its goal is to understand the implications of sustainability for investors and support signatories to facilitate incorporating these issues into their investment decision-making and ownership practices. In implementing these principles, signatories contribute to the development of a more sustainable global financial system. Proxy voting: This refers to ballot casting by a person or firm on behalf of a shareholder of a corporation. Responsible Investment (RI): We define RI as enabling positive change through investment, regardless of the approach taken. RI covers a spectrum of investing styles, including ESG integration; exclusionary screening; best-in-class screening; sustainable investing; impact investing; and philanthropy. Stewardship of clients’ assets is a key component of RI, as is the assessment of the ESG profile of client portfolios (RI reporting). Best-in-class/positive screening: This is a rules- based approach to preferentially tilt a portfolio toward investment in sectors, companies or projects selected for positive or best-in-class ESG characteristics relative to industry peers. Exclusionary/negative screening: This is a rules- based approach to remove investments from the investable universe based on a particular set of values. It could involve the exclusion of certain sectors, companies, countries or other issuers based on activities considered not investable. Exclusion criteria (based on norms and values) can refer, for example, to product categories (e.g., weapons, tobacco), company practices (e.g., animal testing, violation of human rights, corruption) or controversies. Impact investing: This is the practice of investing with the dual objectives of generating a positive, measurable and intended social and/or environmental impact alongside generating a financial return. Philanthropy/Charitable giving: Philanthropy involves charitable giving to a worthy cause on a large scale. Philanthropy can include donating money to a worthy cause or volunteering time, effort, or other forms of altruism. Philanthropic investing is the practice of investing based not on profit but on an altruistic desire to help others or society as a whole. RI Reporting: This describes the assessment of the ESG profile of client portfolios. Stewardship: This is the practice of the responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries, which also provides sustainable benefits for the economy, the environment and society. Stewardship activities include, but are not limited to, engagement with issuers; voting at shareholder meetings; filing of shareholder resolutions/proposals; direct roles on investee boards and board committees; negotiation with and monitoring of the stewardship actions of suppliers in the investment chain; engagement with policymakers; engagement with standard setters; contributions to public goods (such as research); and public discourse (such as media) that support stewardship.