Engagement in Action: AGL Energy When Australia's top power producer, AGL Energy, announced plans to separate the company into a retail electricity provider and a generation business, Calvert released an investor letter expressing our concerns about the proposed demerger. The company is one of the most carbon-intensive utilities in the world, by some measures, because of its dependence on coal. The demerger was promoted as a means of accelerating the company’s decarbonization. While some active investors expressed skepticism about the likely financial benefits of the proposed restructure, our letter detailed concerns about the proposed demerger proposal as it related to a robust climate change mitigation strategy. AGL Energy claimed that separating the company into independent retail and generation businesses would accelerate a low-carbon energy transition at both companies. We anticipated that it would instead greatly slow the company’s energy transition by leaving the retail company in a financially weaker position and a cash-rich generation business without incentives to invest in renewables. In Calvert’s view, the result would have been the creation of two entities that were poorly positioned to support Paris-aligned decarbonization goals. AGL Energy subsequently announced that it had abandoned its plans for a demerger. 2023 Engagement: Key Themes Calvert’s team and processes continue to evolve. We intend to build on our existing engagement strategies and continue to innovate our systems and processes to support our objectives to influence positive change. We have identified the thematic focus areas for 2023 engagement: „ Climate change (such as improved disclosure, strategy, governance and execution) „ Diversity, equity and inclusion (EEO-1 reporting, diversity performance, workplace inequality) „ Human capital management (integration into our existing diversity and climate engagements) „ Data and artificial intelligence „ Environment, health and safety „ Product impact „ Access to medicine Company Names/GICS Subindustries Calvert portfolios hold the following companies within the GICS subindustry noted, as of 12/31/22: AUTOMOBILE MANUFACTURERS Bayerische Motoren Werke AG NIO Inc. Class A BYD Company Limited Class H Renault SA Ford Motor Company Rivian Automotive, Inc. Class A Geely Automobile Holdings Limited Stellantis N.V. General Motors Company SUBARU CORP Great Wall Motor Co., Ltd. Class H Tata Motors Limited Guangzhou Automobile Group Co., Ltd. Class H Tesla, Inc. Hyundai Motor Company Thor Industries, Inc. Isuzu Motors Limited Toyota Motor Corp. Kia Corp. Volkswagen AG Mahindra & Mahindra Ltd. Volvo Car AB Class B Maruti Suzuki India Limited XPeng, Inc. Class A Mercedes-Benz Group AG 11