Ashmore Group PLC

Governance: The Ashmore ESG Policy is reviewed and updated annually and signed off by the Ashmore Group ESG Committee and was last approved 1 June 2023. The responsibility for the implementation of the policy within strategies and procedures is allocated by the Ashmore Group plc Board of Directors to the Ashmore Group ESG Committee, which is responsible for setting out the Investment Manager's responsible investing framework and ensuring the appropriate implementation of all elements of this framework across Ashmore's corporate strategy and investment management, and the Investment Committees and the relevant theme Sub-Investment Committees responsible for the investment decisions and all ESG investment-related activities. In particular, oversight of the ESG scoring process and its application in investment management decisions is undertaken by the Investment Committee and the relevant theme Sub-Investment Committees.

Ashmore recognises the role it plays in the deployment of its clients' capital and the impact this can have on sustainability of the environment and broader society. As such, the Group aims to integrate responsible investing across its operations, coordinated by the Head of Responsible Investment and ESG Policy. Board accountability is ensured through the Group's specialised ESG Committee (ESGC), which has overall responsibility for Ashmore's sustainability and responsible investing framework across its operational and investment activities. [...] The responsibility for Ashmore's responsible investment activities lies with the Board, which delegates to the ESG Committee (ESGC) chaired by the Chief Executive Officer (CEO) and managed by the Head of Responsible Investment and ESG Policy. The Committee meets formally at least quarterly and has representation from across the organisation, in particular the investment teams, risk management, operations, investor relations, distribution, and legal. Ashmore's integrated approach to ESG assessment means that reviews of ESG investment related activities are undertaken by the investment committees and the relevant theme sub-investment committees. The ESGC reviews and ensures the maintenance and integrity of all responsible investment/ESG processes and procedures.

**The Board's oversight of climate-related risks and opportunities**

Ashmore Group plc has a premium listing on the London Stock Exchange with a unitary Board of Directors (the Board). The Board has ultimate responsibility for the Group's strategy and maintains full and effective control over appropriate strategic, financial, operational, and compliance matters, including material climate-related issues through its corporate governance framework. This framework provides for regular reporting and other updates to the Board, through which it is able to oversee progress against the Group's targets, including those relating to climate issues.

Hence, overall responsibility for climate-related risks and opportunities lies with the Board, however on a day-to-day basis the authority is delegated to the Executive Directors and the Group's specialised committees, which includes the ESG Committee (ESG).

The consideration of climate-related issues as they relate to guiding strategy, business plans, operating model, annual budgets, and risk management policies, is guided by the Responsible Investment Strategy presented to the CEO, extracts of which are also included and discussed in the annual update to the ESG Committee and the Board.

**Management's role in assessing and managing climate-related risks and opportunities**

AIML relies on the governance structure of Ashmore Group. The Board has delegated certain authorities to the Executive Directors who in turn have formed several specialist committees with terms of reference to carry out the functions delegated to them. One such specialised committee is the ESG Committee, which is chaired by the Group CEO and with members drawn from across Ashmore's investment, distribution, risk, legal, operations, and other support functions. This ensures that responsible investment topics are appropriately understood, assigned to, and discussed by all relevant areas of the Group.

The ESGC has oversight of relevant climate-related issues and the Group's Head of Responsible Investment and ESG Policy, or a delegate, provides regular updates to the Board. The Board is informed about goals and targets designed to address climate-related issues and these are consequently reported on the following year. Additionally, ESGC members provide the Board, its Audit and Risk Committee, and the Group's Risk and Compliance Committee with multiple formal points of contact throughout the year. Furthermore, Ashmore's Local Office Responsible Investment Forum (LORIF) ensures the sharing of knowledge and expertise, process, and initiatives between the ESGC and the Group's local offices.

From an investment management perspective, Ashmore's investment committees are ultimately responsible for the management of client portfolios. Through the oversight by these committees, the Firm has integrated the assessment and management of ESG risks and opportunities, including those related to climate, into all its investment processes, including both global and local investment platforms and all investment themes. Reports presented both at the ESGC and the relevant investment committees ensure the effective monitoring of ESG-related risks and opportunities.

The consideration of climate-related issues is a core part of the investment framework applied by AIML's investment teams and consequently it is a component of their performance objectives. The oversight, monitoring, and implementation of a range of responsible investment activities also form part of the performance objectives of senior management, with ESG matters being one of the areas of non-financial performance considered by the Ashmore Group plc Remuneration Committee when determining variable remuneration on an annual basis for the Executive Directors.

The processes described in the risk management section of the Ashmore 2023 Annual Report & Accounts incorporate how senior management is informed about climate-related issues and their assessment and management of such risks faced by the Group.

Ultimate accountability for the integration and management of climate-related issues into Ashmore's business and operations lies with the Board, which delegates day to day responsibility to the ESG Committee ("ESGC"). This Committee meets formally at least quarterly and has representation from across all relevant parts of the organisation. The ESGC reviews and ensures the maintenance and integrity of all responsible investment / ESG processes and procedures, including those relating to climate-related issues. [...] The ESGC will continue to review trends and developments in climate-related issues and update its approach as required.