All Investors invest to make a profitable return and many Investors are now looking for a profitable return
from companies that incorporate environmental, social, and governance considerations (ESG) into their
investment decisions. Environmental policies affect how companies’ activities impact on nature, including
climate change. Social policies affect how companies operate in their communities, e.g., the working
conditions of employees.

Governance policies affect how companies operate their anti-corruption rules and internal culture, their
board diversity, executive pay, and relationships with regulators. Most product providers now
incorporate ethical or sustainable funds within their choice of funds, which may be managed internally or
externally. Like other funds, these funds will have factsheets and key information that will be provided by
HD Financial Services Ltd. to Investors at point of request and/or recommendation with a statement of
suitability of the investment, and funds therein. Investing in companies or funds that follow good ESG
policies, rather than those that do not, may mean a difference in the return afforded.

HD Financial Services Ltd. agrees with the European Commission Action plan for Sustainable Finance
statement that “the consideration of sustainability factors in the Investment decision-making and advisory
processes can realise benefits beyond financial markets. It can increase the resilience of the real
economy and the stability of the financial system. In so doing, it can ultimately impact on the risk-return
of financial products”.