Macquarie Group Ltd

###### Political engagement and public policy

Macquarie believes we need to be engaged and understand the evolving policy, political and regulatory environments in Australia and other jurisdictions in which we operate, as these factors impact our business as well as our clients' businesses.

As a listed financial institution operating in highly regulated sectors, we have a responsibility to our shareholders, clients, counterparties and employees to understand and contribute to public policy and to ensure that our organisation and operating environments are well understood by parliamentarians and policy makers. Additionally, our clients, many of whom also operate in regulated sectors, expect us to have detailed current knowledge of public policy issues and drivers when we provide advice and services to them.

Macquarie contributes to public policy in the markets in which we operate in the following ways:

###### • [making submissions to industry consultation processes ]
and inquiries, where appropriate. These may be processes
established by parliaments, government departments
or government agencies such as regulators. Submissions
may be made by Macquarie directly or as part of a broader
industry group

###### • [participating in government and other policy advisory panels ]
when invited to do so, and where we can make a differentiated
contribution based on our expertise

###### • [engaging with parliamentarians and policy‑makers through ]
avenues such as formal meetings, attending events, speaking
in public forums and appearing before parliamentary inquiries
where appropriate

###### • [contributing to the advocacy work done by industry groups in ]
key markets around the world. Given the diversity of Macquarie's
business activities, we are members of industry groups
representing sectors such as financial services and markets,
infrastructure, energy as well as general business peak bodies.

In Australia, political parties are funded by a mix of public and
private monies. As part of its engagement with the Australian
political process, Macquarie provides financial support to the major
political parties, primarily through paid attendance at events.

Macquarie has a full disclosure policy and declares all monies paid
to political parties to the Australian Electoral Commission (AEC)
regardless of any thresholds or other provisions that may otherwise
limit the need to disclose. This disclosure is made by way of an
annual AEC return on a 1 July to 30 June basis and is published by
the AEC in the February following the end of the disclosure year.

In the year ended 30 June 2021, Macquarie's political contributions
in Australia totalled $A230,400 comprising: $A108,064 to the
Liberal Party of Australia; $A110,961 to the Australian Labor
Party; and $A11,375 to the National Party. Contributions were
to meet the costs of memberships of political party business
forums, attendance at events and party conference corporate
days, and sponsorship of events. Macquarie did not make any
direct donations.

Macquarie does not generally make political donations in other
jurisdictions.

Macquarie's Board is responsible for approving Macquarie's risk management framework which includes the environmental, social and governance (ESG) framework and key ESG policies. [...] Board responsibility for approving ESG framework and key ESG policies. [...] BGCC oversight and monitoring of effectiveness of ESG framework, including approach to climate change risk management. [...] Internal Global Green Committee, established in 2017 and led by Senior Management, promotes and coordinates climate change mitigation and adaptation opportunities. [...] Climate Risk Steering Committee reporting to CRO, oversees approach to climate scenario analysis. [...] Evolved governance structures to support relevant regulatory guidelines on climate-related risks. [...] Enhancing and embedding climate considerations within existing risk management framework.

###### Governance

The Macquarie Group Limited (MGL) and Macquarie Bank Limited (MBL) Boards and management recognise the importance of sound Environmental, Social and Governance (ESG) practices as part of their responsibility to our clients, shareholders, communities, our people and the environment in which Macquarie operates.

Climate change is one of Macquarie's eight ESG focus areas[(1)] and is core to our business and risk management practices. We have therefore integrated oversight of climate risks and opportunities throughout our governance structure, including at the highest level:

MGL and MBL Boards

MGL and MBL Board Governance and Compliance Committees

Banking and Financial Services

Commodities and Global Markets

Macquarie Macquarie Capital Asset Management

Corporate Operations Group

Financial Management Group

Legal and Governance Group

Risk Management Group

Chief Risk Officer

MGL and MBL Senior Management Committees

Head of Net Zero Net Zero and Climate Risk Steering Group (Net Zero and Climate Risk Program)

Net zero commitments

Operationalisation of climate risk management

Internal engagement

For internal reporting and risk management purposes, Macquarie is divided into four Operating Groups, which are supported by four Central Service Groups. As part of their broader activities, which are described on pages 18-21 of Macquarie's FY2023 Annual Report, each of the Operating Groups is engaging in a range of activities aligned to our climate strategy and net zero commitments.

To support oversight of net zero and climate risk, climate-related agenda items are tabled throughout the year at our Boards and management meetings. This includes for our regional entity Macquarie Bank Europe (MBE). Examples are shown below:

**Agenda item** **Jan** **Feb** **Mar** **Apr** **May** **Jun** **Jul** **Aug** **Sep** **Oct** **Nov** **Dec**

**MGL/MBL Boards** Net Zero & Climate Risk

ESG Report

**MGL/MBL Board** **Governance** **and Compliance** **Committees**

ESR Material Risk Report

ESG Report

**MGL/MBL Executive** ESR Material **Risk Committees** Risk Report

ESG Report

**MGL/MBL Executive** Net Zero & **Committees** Climate Risk

**MBE Board** Climate Risk

[(1) Refer to page 50 of Macquarie's FY2023 ESG Report (PDF)](https://www.macquarie.com/assets/macq/impact/esg/policies/2023/macquarie-group-fy23-esg.pdf)

--NEW-PAGE--

###### Governance
Continued

The MGL and MBL Boards, in accordance with their respective charters, approve MGL's and MBL's Risk Appetite Statement and Risk Management Strategy, monitor material risks faced by MGL and MBL, and review how these are managed. The Boards are responsible for annually approving Macquarie's Risk Management Framework (RMF), which includes our ESG framework and major ESG policies. The Boards also approve key decisions, targets and disclosures such as those included in Macquarie's Net Zero and Climate Risk Report, and provide oversight of progress towards meeting targets.

The MGL and MBL Board Governance and Compliance **Committees (BGCCs), in accordance with their respective charters,** assist the MGL and MBL Boards by reviewing and monitoring the Group's and Bank's environmental and social risk management policies, practices and performance. The BGCCs receive climate-related reporting from management at least twice a year.

The MGL and MBL Senior Management Committees (the MGL and MBL Executive Committees and the MGL and MBL Executive Risk Committees) act as escalation and executive bodies for net zero and climate risk efforts across Macquarie, receiving periodic updates on progress and providing guidance on next steps.

The Risk Management Group (RMG) is an independent group that provides objective review and challenge, oversight, monitoring and reporting in relation to Macquarie's material risks. When new or evolving risks are identified, the impacted areas of the RMF are assessed and adjusted where required to ensure the risks are managed effectively. In addition to the oversight activities performed by RMG, the Internal Audit Division (IAD) provides independent and objective risk-based assurance to the Boards or Board Audit Committees, other relevant Board Committees and senior management on the compliance with, and effectiveness of, Macquarie's financial and risk management framework, including its governance, systems, structures, policies, processes and people for managing material risks. IAD regularly reassesses emerging risks, regulations and trends to ensure that these are adequately captured within the internal audit plan, including climate-related risks.

The Financial Management Group (FMG) is responsible for capital, funding, liquidity, tax and strategic analysis and advice to support the growth of the Macquarie business. It ensures Macquarie meets its financial, regulatory and tax reporting compliance obligations, as well as maintaining relationships with a range of significant external stakeholders. In line with the growing importance of sustainability-related disclosures, FMG has recently established a sustainability reporting function, which aims to consolidate sustainability reporting across Macquarie as reporting requirements grow and evolve.

To support senior management with their responsibilities and drive progress, in 2021 Macquarie formed a dedicated centralised cross-Group Net Zero and Climate Risk Program **(the Program). Reporting to the Chief Risk Officer (CRO) and led** by the Head of Net Zero, the central Program team provides a coordinated approach to net zero and to climate risk across

Macquarie, aligning to existing approval forums and bodies. The Program builds on established capabilities within each Operating Group. The CRO is responsible for the successful achievement of the Program's objectives, while the Head of Net Zero is responsible for the day-to-day Program operations. Both work closely with the Executive Committees, Boards and Macquarie's RMG Environmental and Social Risk (ESR) function.

Supporting the Program is the Net Zero and Climate Risk **Steering Group. This body has senior representatives from each** Operating and Central Service Group, who are responsible for driving outcomes and steering decisions relevant to the Program. They provide support to the various working groups and to senior management in decision-making.

**Work to meet our net zero commitments:**

**Aligning our financing activities with the global goal of net** **zero emissions by 2050: To achieve our net zero ambition,** Macquarie has a Financed Emissions Working Group. This includes representatives from across Operating and Central Service Groups to enable the development of approaches, methodologies, frameworks and governance required to deliver on our commitment. Each Operating Group has dedicated resources responsible for analysing industry sectors applicable to their group, quantifying emissions, assessing targets, and developing strategies and actions to meet those targets. Senior management and the Boards approve targets and receive updates of progress towards meeting them.

**Net zero emissions in our own business operations by FY2025** **(Scope 1 and 2):[(2)] Macquarie's Corporate Operations Group (COG)** leads our efforts to reach net zero emissions in our own business operations. COG has a dedicated governance model to support these efforts, reporting into Macquarie Group's Chief Operating Officer. COG's Business Services Division leads the execution of [Macquarie's 2025 Sustainability Plan](https://www.macquarie.com/assets/macq/impact/esg/2025-sustainability-plan.pdf) and net zero efforts in collaboration with Macquarie's other functions. Progress updates are provided to the Boards, Executive Committees, and Net Zero and Climate Risk Steering Group to ensure coordination of approaches across Macquarie and enable visibility and support where needed.

**Work to operationalise climate risk management:**

There are clear roles and responsibilities across Macquarie with respect to climate risk management and a well-established ESR function in RMG. The RMG ESR team comprises subject matter experts who coordinate a diverse range of ESG activities across Operating and Central Service Groups and regions, including developing and implementing Macquarie-wide and Operating Group-specific policies, reviewing transactions, providing advice on climate risks and opportunities, and facilitating training. Additionally, we have grown our teams within our Operating Groups to support, assess and manage environmental and social risks, including climate-related risks. This further embeds the responsibility and capability of our business teams ('first line of defence') to operationalise climate risk management.

(2) Throughout this Report when we refer to 'net zero' in relation to our own business operations Scope 1 and 2 emissions ambition, we are informed by recommendations from the Science Based Targets initiatives (SBTi) Corporate Net Zero Standard, Net-Zero Banking Alliance Supporting note: The Use of Carbon Credits in Climate Target Setting, and The Oxford Principles for Net Zero Aligned Carbon Offsetting. See Section 4 — Strategy for further detail.

--NEW-PAGE--

###### Governance
Continued

The Climate Risk Working Group, reporting to the Head of Net Zero and comprising representatives from all RMG Divisions, provides an additional level of oversight of climate risk management. This provides appropriate senior leadership oversight and management of climate risk and the program of activities to mature our operationalisation of climate risk across our risk management frameworks, policies and procedures. The Climate Risk Working Group is supported by dedicated resourcing across our Compliance and Prudential Risk teams, which engage in well-established processes to conduct regulatory horizon scanning and triage, as referenced in Section 6 — Risk Management.

**Internal engagement:**

The Macquarie Climate Solutions Taskforce (CST) is a committee formed with representatives from all Operating Groups and Central Service Groups. The CST works to support Macquarie's expansion into new climate-aligned technologies such as hydrogen and carbon capture, utilisation and storage, given Macquarie's ambition is to strengthen the support it provides to carbon-intensive industries and clients, like the oil/gas sector, to enable decarbonisation.

The CST is supported by a Climate Intelligence Unit (CIU) which supports and informs Macquarie's engagement and growth in issues related to climate change and the energy transition, providing weekly briefings on climate matters that are accessible to all of our people. The CIU provides expert support across Macquarie on clean technologies, market developments and cross-Group client opportunities.

In addition to the above, our Operating and Central Service Groups continue to enhance our climate and energy transition related capabilities and to support our people to understand and respond to the changes. Examples include the Banking and Financial Services (BFS) Net Zero Forum, Commodities and Global Markets (CGM) Energy Transition Steering Committee, CGM Global Carbon Business, CGM ESG and Climate Team, Macquarie Capital ESG Committee, Macquarie Capital Energy Transition Business, Macquarie Capital Net Zero and Climate Risk Team and the Macquarie Asset Management Sustainability Team.

###### Political engagement and public policy

Macquarie believes we need to be engaged and understand
the evolving policy, political and regulatory environments in
Australia and other jurisdictions in which we operate, as these
factors impact our business as well as our clients' businesses.

As a listed financial institution operating in highly regulated
sectors, we have a responsibility to our shareholders, clients,
counterparties and employees to understand and contribute
to public policy and to ensure that our organisation and
operating environments are well understood by
parliamentarians and policy makers. Additionally, our clients,
many of whom also operate in regulated sectors, expect us
to have detailed current knowledge of public policy issues and
drivers when we provide advice and services to them.

Macquarie contributes to public policy in the markets in
which we operate in the following ways:

##### • [making submissions to industry consultation processes ]
and inquiries, where appropriate. These may be processes
established by parliaments, government departments or
government agencies such as regulators. Submissions may
be made by Macquarie directly or as part of a broader
industry group

##### • [participating in government and other policy advisory ]
panels when invited to do so, and where we can make a
differentiated contribution based on our expertise

##### • [engaging with parliamentarians and policy-makers ]
through avenues such as formal meetings, attending
events, speaking in public forums and appearing before
parliamentary inquiries where appropriate

##### • [contributing to the advocacy work done by industry ]
groups in key markets around the world. Given the
diversity of Macquarie's business activities, we are
members of industry groups representing sectors such as
financial services and markets, infrastructure, energy as
well as general business peak bodies.

In Australia, political parties are funded by a mix of public and
private monies. As part of its engagement with the Australian
political process, Macquarie provides financial support to the
major political parties, primarily through paid attendance
at events.

Macquarie has a full disclosure policy and declares all
monies paid to political parties to the Australian Electoral
Commission (AEC) regardless of any thresholds or other
provisions that may otherwise limit the need to disclose.
This disclosure is made by way of an annual AEC return on
a 1 July to 30 June basis and is published by the AEC in the
February following the end of the disclosure year.

--NEW-PAGE--

In the year ended 30 June 2020, Macquarie's political
contributions in Australia totalled $A251,230 comprising:
$A127,680 to the Liberal Party of Australia; $A112,550 to the
Australian Labor Party; and $A11,000 to the National Party.
Contributions were to meet the costs of memberships of
political party business forums, attendance at events and
party conference corporate days, and sponsorship of events.
Macquarie did not make any direct donations.

It is not Macquarie's practice to contribute monies to political
parties in other jurisdictions.

###### Macquarie's Boards (as defined below) and management recognise the importance of sound Environmental, Social and Governance (ESG) practices as part of their responsibility to our clients, shareholders, communities, staff, and the environment in which Macquarie operates.

Climate change is one of Macquarie's eight ESG focus areas and is core to our business and risk management practices. We have therefore integrated oversight of climate risks and opportunities throughout our governance structure, including at the highest level.

MGL and MBL Boards

MGL and MBL Board Governance and Compliance Committees

Banking and
Financial
Services

Commodities
and Global
Markets

Macquarie Macquarie
Capital Asset
Management

Corporate Financial Legal and Risk Management Group
Operations Management Governance
Group Group Group

MGL and MBL Executive Committees

Climate Solutions Taskforce

Net Zero and Climate Risk Steering Group

Chief Risk Officer

Head of Net Zero
(Net Zero and Climate
Risk Program)

Internal engagement

Net zero commitments

Operationalisation of climate risk

The Macquarie Group Limited (MGL) and Macquarie
**Bank Limited (MBL) Boards, in accordance with their**
respective charters, approve MGL's and MBL's risk
appetite statement and risk management strategy,
monitor material risks faced by MGL and MBL, and
review how these are managed. The Boards are
responsible for annually approving Macquarie's Risk
Management Framework (RMF), which includes our
ESG framework and major ESG policies. The Boards
also approve key decisions and documentation such
as Macquarie's Net Zero and Climate Risk Report
and targets.

The MGL and MBL Board Governance and Compliance
**Committees (BGCCs), in accordance with their**
respective charters, assist the MGL and MBL Boards
by reviewing and monitoring the Group's and Bank's
environmental and social risk management policies,
practices and performance. The BGCCs monitor
Macquarie's management of climate risk based on
reporting from management provided at least twice
a year.

The MGL and MBL Executive Committees act as
escalation and executive bodies for net zero and climate
risk efforts across Macquarie, receiving periodic updates
on progress and providing guidance on next steps.

The Risk Management Group (RMG) is an independent
group responsible for objective review and challenge,
oversight, monitoring and reporting in relation to
Macquarie's material risks. When new or evolving risks
such as climate risk are identified, the impacted areas
of the RMF are assessed and adjusted where required
to ensure the risks are managed effectively. In addition
to the oversight activities performed by RMG, the
Internal Audit Division (IAD) provides independent
and objective risk‑based assurance to the Board Audit
Committee, other relevant Board Committees and senior
management on the compliance with, and effectiveness
of, Macquarie's RMF. IAD regularly reassesses emerging
risks, regulations and trends to ensure that these are
adequately captured within the internal audit plan. In
addition, it is intended that the internal audit plan will
provide ongoing, periodic assurance over the governance
and progress of Macquarie's Net Zero and Climate
Risk Program.

Last year, to support senior management with these
responsibilities and drive progress, Macquarie
established a dedicated centralised cross‑Group
**Net Zero and Climate Risk Program (the Program).**
Reporting to the Chief Risk Officer (CRO) and led by
the Head of Net Zero, the central Program team
provides a consistent and coordinated approach to
net zero and to climate risk across Macquarie, aligning
to existing approval forums and bodies. The Program
builds on established capabilities within each operating
group, all of which have dedicated teams involved in
driving solutions with and for their clients. The CRO
is responsible for the successful achievement of the
Program's objectives, while the Head of Net Zero is
responsible for the day‑to‑day Program operations. Both
work closely with the Executive Committees, Boards,
and Macquarie's RMG Environmental and Social Risk
(ESR) team.

Supporting the Program is the Net Zero and
**Climate Risk Steering Group. This body has senior**
representatives from each operating and support
group, who are responsible for driving outcomes and
steering decisions relevant to the Program. They provide
support to the various working groups and to senior
management in decision‑making.

###### Work to meet our net zero commitments

**Aligning our financing activities with the global goal**
**of net zero emissions by 2050: To achieve our net**
zero ambition, Macquarie has established the Financed
Emissions Working Group. This includes representatives
from across operating and support groups to enable
the development of approaches, methodologies,
frameworks, and governance required to deliver on
our commitment. Each operating group has dedicated
resources responsible for analysing industry sectors
applicable to their group, quantifying emissions,
assessing targets, and developing strategies and actions
to meet those targets.

**Net zero emissions in our own business operations**
**by 2025 (Scope 1 and 2): Macquarie's Corporate**
Operations Group (COG) leads our efforts to reach
net zero emissions in our own business operations.
COG has a dedicated governance model to support
these efforts, reporting into Macquarie Group's Chief
Operating Officer. COG's Business Services Division leads
[the execution of Macquarie's 2025 Sustainability Plan](https://www.macquarie.com/assets/macq/impact/esg/2025-sustainability-plan.pdf)
and net zero efforts in collaboration with Macquarie's
other functions. Regular progress updates are provided
to the Boards, Executive Committees, and Net Zero and
Climate Risk Steering Group to ensure coordination of
approaches across Macquarie and enable visibility and
support where needed.

**Investing and managing MAM's portfolio in line with**
**global net zero emissions by 2040: Macquarie's Asset**
Management Group (MAM) is working to manage
its portfolio in line with global net zero emissions by
2040. MAM has a dedicated governance structure,
which supports these efforts as part of MAM's broader
sustainability strategy. MAM's Chief Sustainability
Officer reports to the MAM Group Head and is a
member of MAM's Executive Committee. MAM's
Sustainability Team is responsible for setting MAM's
overall sustainability strategy and ESG framework,
provides specialist expertise and supports portfolio and
asset management teams in implementing MAM's net
zero program and provides regular progress reports to
MAM's Executive Committee. The MAM Sustainability
Team works together with other MAM specialist teams,
RMG's ESR and the Program teams. More information
[on MAM's ESG governance is provided in the MAM 2021](https://www.mirafunds.com/au/en/our-approach/sustainability/mam-sustainability-report-2021.html)
**[Sustainability Report.](https://www.mirafunds.com/au/en/our-approach/sustainability/mam-sustainability-report-2021.html)**

###### Work to operationalise climate risk management

There are clear roles and responsibilities across
Macquarie with respect to climate risk management
and a well‑established Environmental and Social Risk
**(ESR) function. The ESR team comprises subject matter**
experts who coordinate a diverse range of ESG activities
across operating and support groups and regions,
including developing and implementing Macquarie‑wide
and group‑specific policies, reviewing transactions,
providing advice on climate risks and opportunities, and
facilitating training.

The Climate Risk Working Group provides an additional
level of oversight of climate risk management. Each
RMG division is represented on the Climate Risk Working
Group, which reports to the Head of Net Zero. This
ensures appropriate senior leadership oversight and
management of climate risk and the program of
activities to mature our operationalisation of climate
risk across our risk management frameworks, policies,
and procedures. The Climate Risk Working Group
is supported by dedicated resourcing across our
compliance and regulatory affairs teams, which engage
in well‑established processes to conduct regulatory
horizon scanning and triage, as referenced in
**Section 7 — Risk management.**

In MAM, our investment teams and portfolio company
management team have access to a range of tools and
frameworks to enable ESG risks to be identified and
monitored, including in relation to both the physical
and transition risks from climate change. As disclosed
in the Net Zero Asset Managers initiative (NZAM) Initial
Target Disclosure Report dated May 2022, MAM has
committed to manage 43 per cent of its assets under
management (including 100 per cent of its infrastructure
and agriculture portfolios and more than 80 per cent
of its real estate portfolio) in line with applicable Paris
Aligned Investment Initiative Net Zero Investment
Framework methodologies.

###### Work to pursue climate opportunities

Since 2017, Macquarie's Global Green Committee has
promoted and advanced cross‑Group collaboration on
practical climate solutions. In 2022, the Global Green
Committee was renamed as the Macquarie Climate
**Solutions Taskforce (CST). CST has representatives**
from all operating and support groups and is working to
support Macquarie's expansion into new climate‑aligned
technologies such as hydrogen and CCUS as well as
Macquarie's ambition to strengthen the support it
provides to carbon‑intensive industries and clients,
like the oil/gas sector. The CST is supported by a
**Climate Intelligence Unit (CIU) formed in 2021. The**
CIU provides expert support across Macquarie on clean
technologies, market developments and cross‑Group
client opportunities.

**Finally, the following climate capabilities are well**
**established across Macquarie. This allows the Program**
**to leverage internal expertise:**

###### • [CGM Energy Transition Steering Committee]
• [CGM Global Carbon business]
• [GIG Green Analytics Team]
• [MAM Sustainability Team ]
• [Green Law Community (internal employee network on ]
green law and regulation)

###### • [Green@Macquarie (internal employee network on ]
sustainability issues with over 2,600 members)

###### • [BFS Environmental Sustainability Employee ]
Network Group

###### ESG governance The Board is responsible for approving Macquarie's ESG framework including major ESG policies. In accordance with its Charter, the Board Governance and Compliance Committee (BGCC) assists the Board in adopting appropriate governance standards and reviewing the operation of environmental and social risk management policies. Responsibility for implementation of the ESG framework and related Board approved policies resides with Management. [...] The ESR team coordinates a diverse range of ESG activities across our Operating Groups and regions, including developing and implementing Macquarie‑wide and business‑specific policies, reviewing transactions, providing advice on environmental and social risks and opportunities and facilitating training. The ESR team reports to the Chief Risk Officer (CRO) and to the BGCC on ESG‑related matters. [...] Transactions with material environmental and social risks are referred to the CRO and may be escalated to the Macquarie Board. [...] Macquarie's Conduct Risk team is responsible for managing Conduct Risk globally through establishing and maintaining the Conduct Risk Management Framework and associated policies, processes, guidelines, controls and reporting mechanisms. The team also provides Conduct Risk training and awareness activities for Macquarie employees, and provides regular reports to the BGCC. [...] Macquarie's Integrity Office provides an internally independent and confidential point of contact for Macquarie employees and external parties to safely raise concerns about improper conduct. It is responsible for implementing the Whistleblower Policy and for managing the investigation of concerns raised under this policy, including any raised through the Hotline, an externally managed anonymous channel. The Integrity Office reports to the CEO and provides regular reports to the BGCC. [...] Macquarie has a full disclosure policy and declares all monies paid to political parties to the Australian Electoral Commission (AEC) regardless of any thresholds or other provisions that may otherwise limit the need to disclose. This disclosure is made by way of an annual AEC return on a 1 July to 30 June basis and is published by the AEC in the February following the end of the disclosure year.

The MIRAEL and MIMEL boards (hereafter the "Boards"), in accordance with their respective charters, are responsible for overseeing the material risks within each entity's activities. The Boards typically meet four times per year with additional ad-hoc meetings as required and receive regular reporting on sustainability-related matters from the MAM Sustainability team. Updates from the MAM Sustainability team provide the Boards with an overview of applicable sustainable finance regulatory developments, relevant market developments, updates on relevant internal sustainability initiatives and reporting, and progress against MAM's Net Zero Commitment and targets. Please refer to Section 4 for more information on the responsibilities of the MAM Sustainability team. [...] The MAM Executive Committee sets the overall strategic direction of MAM's approach to climate change and has accountability for MAM's management of climate-related risks and opportunities and MAM's Net Zero Commitment across its whole portfolio. MAM's Chief Sustainability Officer reports to the MAM Group Head and is a member of the MAM Executive Committee. [...] The MAM Risk Committees primary objective is to provide a dedicated forum for the oversight of the identification, measurement, evaluation, monitoring and control or mitigation of material risks that arise in or because of the operations of MAM. The MAM Risk Committee comprises the MAM Executive Committee members, with MAM-aligned leads from Risk Management Group (RMG) Compliance and RMG Operational Risk, and leads within the MAM Sustainability team as standing invitees to the committee. The committee provides strategic guidance and acts as an escalation forum for members to raise key issues to ensure that MAM appropriately and proportionately manages its material risks and complies with obligations under the relevant laws, regulations and Macquarie policies. [...] Material risks identified by the investment and asset management teams throughout the investment life cycle are escalated as appropriate and discussed with the relevant teams, including MAM Sustainability, MAM Risk, and in some instances the RMG Credit Environmental and Social Risk team who assist staff in identifying and managing environmental and social risks, including climate-related risks. Further escalation may follow to specific committees, as described in Section 3.2, and governing bodies. Recommendations and actions are decided by the relevant investment committees and/or investment approval bodies.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]In 2021, Macquarie made a commitment to align its business operations and financing activities with the objective of enabling and accelerating the world's pathway to net zero by 2050.

Last year, we established a dedicated cross-group Net Zero Program team to coordinate Macquarie-wide climate risk and net zero activity. The team is reporting to the Macquarie Group CRO and Executive Committee. Granular analysis of our exposures within the oil, gas and coal sectors is well progressed and we are on track to release our first net zero plan by the end of 2022.

Macquarie's Environmental and Social Risk (ESR) team, reporting to the Chief Risk Officer, acts as a central point to coordinate ESG activities, including climate change related initiatives and activities. Initiatives and progress are monitored internally and reported externally through Macquarie's Annual Report, TCFD implementation progress report, ESG page on Macquarie.com and annual CDP Climate Change response.

There are also policies that guide Macquarie's climate change strategy including Macquarie's Greenhouse and Energy Reporting Policy and the Environmental and Social Risk (ESR) Policy.

This year, we have enhanced and embedded climate considerations within the existing risk management framework by including net zero and climate change as causes within Macquarie's Risk Appetite Statement supporting consideration as a systemic risk issue.

To accelerate our efforts, effective 1 April 2022, GIG has moved to operate as part of MAM. The need for investment in the energy transition continues to grow substantially. The combined teams will significantly enhance Macquarie's capacity to mobilise institutional capital for the transition and provide greater scale of decarbonisation solutions for clients, portfolio companies, communities, and the environment.

Macquarie's internal Global Green Committee has been reconfigured this year to become an action-oriented Climate Solutions Taskforce, led by Senior Management to promote and coordinate climate change mitigation and adaptation opportunities across Macquarie.

We have established a Climate Intelligence Unit to support and inform Macquarie's engagement and growth in issues related to climate change and the energy transition.

We have improved Board, executive and staff knowledge of net zero and climate-related risks through training, and Macquarie senior leaders attended COP26, engaging with government, business and industry leaders.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes