Methodology Change | EQM Global Solar Energy Index | Effective Date 14/01/2022

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 wording in Section 2.2.2 of the index guideline is replaced by the following wording:

“2. 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.