Perpetual : FY22 Sustainability Report

Enduring Prosperity

Sustainability Report 2022

Trust is earned.

Introduction

Perpetual's Prosperity Plan

Contents

Introduction

Perpetual's	3	About Perpetual
4	A message from the CEO
Prosperity Plan
6	6	Perpetual's Prosperity Plan
	10	The journey so far
	12	Our memberships, certifications
		and partnerships

Planet

People

Communities

Governance

KPIs

Our sustainability pillars

Planet	13		People	21

Reporting suite

Welcome to our FY22 Sustainability Report, which provides an update on the sustainability performance of Perpetual Limited and its related bodies corporate (Perpetual) for the financial year from 1 July 2021 to 30 June 2022 (FY22).

This forms part of our annual reporting suite, which also includes our Annual Report, Corporate Governance Statement, Operating and Financial Review and Full Year Financial Statements.

Enduring Prosperity

Corporate Governance Statement 2022

		Enduring Prosperity
	Corporate
Annual	Sustainability
Report	Governance	Report
	Statement

More information about our FY22 performance can be found online: perpetual.com.au/reporting-suite

Perpetual Sustainability Report 2022

Acknowledgement of Country

Perpetual 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 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.

Our Stretch Reconciliation Action Plan is available online: perpetual.com.au/about/sustainability/reconciliation-action-plan

Communities	28		Governance	35

Key performance indicators

40 Key performance indicators

2

Introduction

Perpetual's Prosperity Plan

Planet

People

Communities

Governance

KPIs

About Perpetual

Our purpose

To create enduring prosperity

Our vision

To be the most trusted in financial services

Our values

Excellence, integrity, partnership

Our strategic imperatives

Client First

Future Fit

New Horizons

Exceptional products	Empowering our	New capabilities
Outstanding service	people to deliver high	Global footprint
	performance

Perpetual Limited (ASX:PPT) is an ASX-listed, diversified financial services company that operates globally, providing asset management, financial advisory and trustee services.

Perpetual services its client base from offices in Australia as well as its international offices in the United States, United Kingdom, the Netherlands, Singapore and Hong Kong.

Our clients include institutions, not-for-profit organisations, small businesses, financial advisers, individuals and families.

Across our four operating segments - Perpetual Asset Management International (PAMI), Perpetual Asset Management Australia (PAMA), Perpetual Private (PP) and Perpetual Corporate Trust (PCT) - we protect and grow our clients' wealth, knowing that by doing so we can make a difference in their lives.

For more information on our business divisions see our Annual Report at perpetual.com.au/FY22AnnualReport

Our sustainability focus

At Perpetual, creating enduring prosperity has been at the heart of what we do for more than 135 years. This means helping our clients navigate the low carbon transition, building an inclusive, high-performance culture, strengthening local communities and upholding good governance, accountability and integrity in all we do.

Perpetual Sustainability Report 2022

3

Introduction

Perpetual's Prosperity Plan

Planet

People

Communities

Governance

KPIs

A message from our CEO

For more than 135 years, we have supported our clients and our communities through periods of great change, volatility and prosperity.

Throughout our history, built from strong foundations as a trustee company, we have supported our clients through generations, always striving to earn trust through every action, every day.

We are proud of our past and our longstanding commitment to creating enduring prosperity for our clients, our people and the communities we support. As we look to the future, and continue to grow globally, this philosophy has never been more important in shaping the role we play in helping to create a sustainable world.

A sustainable world is a bedrock of enduring wealth and prosperity. Stable growth will be difficult to achieve on an unstable planet, and the stability of our world is being increasingly challenged by interconnected environmental and social challenges. These are issues that the business and investment community can and should play a role in driving positive change and we must also have a role in managing both the risks and opportunities from the transformation to a sustainable future.

Perpetual has a deep and proud heritage of responsible investing and environmental, social and governance (ESG) principles. As sustainability continues to evolve around the world, so too should our approach. That is why I am pleased to launch, as part of this year's report, a comprehensive new sustainability strategy for our business: Perpetual's Prosperity Plan.

Perpetual Sustainability Report 2022

This sets out a clear vision and set of commitments to achieve our goals, demonstrating our role in advancing a sustainable and equitable world, and upholding the high standards

of governance we hold ourselves to every day. Perpetual's Prosperity Plan applies to all parts of Perpetual, with teams working collectively across our global businesses to achieve our goals.

We are investing in our capabilities, our products and services and our operations so that we can better contribute to a more sustainable world.

Of course, a plan means little without action, which is why we have now set a clear roadmap and are working to track our progress with rigorous accountability. You can find a list of our sustainability key performance indicators at the back of this report.

Our most valuable asset in making these commitments is the expertise and support of our people. That's why a core part of this strategy is ensuring that every team member at Perpetual is supported to grow, both as a professional and as a person. As we build a more globally diverse business, that in turn will offer further opportunities for development and collaboration.

This report sets out both our new sustainability strategy in Perpetual's Prosperity Plan, along with our FY22 Sustainability Report, which provides an update on our sustainability activities over the last 12 months.

Perpetual's Prosperity Plan is focused on four key pillars - Planet, People, Communities and Governance - and in FY22, we have made progress in each of these areas.

4

Introduction

Perpetual's Prosperity Plan

Planet

People

Communities

Governance

KPIs

A message from our CEO continued

"A plan means little without action, which is why we've set a clear roadmap, and are working to track our progress with rigorous accountability."

This year we received our highest ever Net Promoter Score (NPS)

+49

FY22

FY21	+45
FY20	+44

We set high standards for ourselves, none more so than how we support our clients. In recognition of the strength and trust in our client relationships across our organisation, I am extremely proud that this year we received our highest ever NPS of +49.

We are growing our suite of investment products, which include ESG criteria and considerations. This included the launch of our first active Exchange Traded Fund (ETF) that invests in Australian ethical and socially responsible companies and excludes companies or issuers based on certain ethical screens, including those that derive five per cent or more of their total revenue from fossil fuel exploration and production. It trades under the ASX code: GIVE.

We also launched three ESG funds in Europe - Trillium ESG Global Conviction Fund, Barrow Hanley Global ESG Value Equity Fund and Barrow Hanley Concentrated Emerging Markets ESG Fund and we had the Trillium ESG Global Equity Fund authorised. Each of these funds are classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).1

Our people are our most important asset. I am proud that since 2018, we continue to be recognised by the Workplace Gender Equality Agency (WGEA) as an Employer of Choice for Gender Equality. This is a significant achievement, and we will continue to do more to strive for gender equality and increase the representation of women in our sector. We remain committed to creating a more inclusive workplace across our business, further demonstrated through our new partnership with Out Leadership to help remove the barriers facing LGBTQ+ people in the workplace.

In FY22, we announced five new employee benefits

(see page 27) that provided much needed additional wellbeing support for our people, especially through the ongoing restrictions relating to COVID-19.

These included our new gender-neutral 20 weeks paid parental leave policy, which is market leading and will be instrumental in providing support for families, as well as our annual community and wellbeing leave which we have now doubled to 10 days per year. These new benefits will support our people in a new hybrid working environment and demonstrate the value we place in them following what has been a challenging couple of years.

As trustee of many Native Title agreements, our Native Title team works with Aboriginal and Torres Strait Islander communities to help create intergenerational wealth.

One such project working with a Pilbara-based Native Title group, has helped to increase home ownership in one Pilbara community from 2% in 2019 to 30% in June 2022. We have long been a strong supporter of the Uluru Statement from the Heart, calling for a First Nations Voice to be enshrined in the Constitution, and we continue to make progress towards our 2021-2023 Stretch Reconciliation Action Plan (RAP).

We have accomplished a great deal this year and our new sustainability strategy will ensure that we continue to help create a more equitable and sustainable world and advocate for positive change in the areas that are most important to our people, our clients and the communities we support.

Rob Adams

CEO and Managing Director

Perpetual Sustainability Report 2022

1. An Article 8 fund under SFDR is defined as "where a financial product promotes, among other characteristics, environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices." Official Journal of the European Union, Regulation (Eu) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector, page 11.

5