Methodology Change | Solactive Cloud Technology Equal Weight Index | Effective Date 30/12/2021

Today, on the 18/10/2021, Solactive announces the following changes to the methodology of the following Indices (the ‘Affected Indices’):

Rationale for Methodology Change

Solactive has determined that since the implementation of SFDR in March 2021, European investors’ demand for products with standard ESG criteria or sustainability as part of the investment objective/strategy increased. Additionally to SFDR, local fund and derivatives associations (BVI and Deutscher Derivate Verband e.V.) published standards for ESG investments. These standards apply additional criteria above those required under SFDR. Many investors are now following these stricter standards for selection of funds and ETFs. In order to react to those market movements and maintain the competitiveness of Solactive’s indices (developed focusing on European investors) and the products of our customers, Solactive aligns the indices to BVI ESG standards.

Changes to the Index Guideline

The following Methodology changes will be implemented in the following points of the Index Guideline (ordered in accordance with the numbering of the affected sections):

The following wording in Section 2.2 of the index guideline is replaced:

Old wording:

“The companies selected after completion of the above steps will be screened for compliance with UN Global Compact principles plus any operational business involvement in the fields of fossil fuel, oil sands or controversial weapons as listed below:

1. Oil sands:
   • Oil sand extraction with a 10% revenue threshold.
   • Companies that derive >30% of their total oil equivalent production from oil sands.
   • Companies building or operating pipelines that significantly facilitate export of oil extracted from oil sands.
   • Majority-owned subsidiaries of such companies are also excluded.
2. Fossil fuels:
   • Companies deriving more than 10% revenue from the exploration, mining or refining of fossil fuels; companies that produce more than 20 million tons of thermal coal annually and are actively expanding exploration, mining or refining operations.
   • Companies that own coal-fired electricity generation capacity more than 10 gigawatts and are actively expanding coal-fired electricity production capacity.
   • Majority-owned subsidiaries of such companies are also excluded.

• Controversial weapons:
  • Company involved in development, production, maintenance, and trade of controversial weapons.
  • Company holds a stake of 20% or more in, or are currently 50% or more owned by, a company that is involved in the development, production, maintenance and trade of controversial weapons.”

New wording:

“The companies selected after completion of the above steps will be evaluated on the criteria outlined below. The evaluation is based on data provided by the Data Provider.

• UN Global Compact
  • Companies not in compliance with UN Global Compact principles
• Controversial Weapons
  • Companies involved in the production development or maintenance of Anti-personnel Mines, Biological or Chemical weapons, Cluster munitions, Depleted uranium, Nuclear Weapons, or any other weapon that violate humanitarian principles through normal use.
  • Companies that produce or develop key and dedicated components for controversial weapons.
  • Companies involved in the production and/or services tailor made for the defense industry or the military.
  • Companies that hold ≥20% stake in a company that is involved in controversial weapons.
  • Companies currently ≥ 50% owned by a company that is involved in controversial weapons.
• Conventional Weapons
  • >10% revenue from the production or distribution of arms, both public and private
• Tobacco
  • >5% revenues from tobacco manufacturing.
  • >5% revenue from tobacco distribution and/or sale of tobacco products.
• Thermal Coal
  • >10% revenues from the exploration mining or refining of thermal coal.
  • Companies that base 30% or more of their operations on thermal coal.
  • Companies that produce >20 million tons of thermal coal annually and are actively expanding.

All companies violating any of the exclusion criteria above are excluded. All companies for which an evaluation of these exclusion criteria is not possible due to insufficient and/or missing information or data are excluded.”

Defined terms used in this announcement, but not defined herein, have the meaning assigned to them in the respective index guideline of the Affected Indices. The amended version of the index guideline will be available on the effective date.