• Perpetual Limited's 2024 Sustainability Report details progress on its 'Prosperity Plan' sustainability strategy.
• 26 out of 35 commitments within the strategy are on track or achieved.
• The report covers four key areas: governance, planet, people, and communities.
• A strategic review led to the planned separation of Wealth Management and Corporate Trust businesses, impacting some sustainability initiatives.
• As of June 30, 2024, $16.9 billion in assets under management (AUM) were in ESG, sustainability, or impact-labeled funds.
• Funds supporting a low-carbon future saw $1.7 billion in outflows due to a challenging investment environment.
• The company is on track to be carbon neutral for global operations in FY24 and aims for 100% renewable energy by FY25.
• In FY24, 37% of senior leaders globally were women (below the 40% target), and 19% of investment professional roles in Australia were held by women (below the 25% target).
• The company's Net Promoter Score (NPS) was +53 in FY24, exceeding its target of +40.
• Community giving totaled $2.51 million (0.88% of underlying profit before tax), below the 1% target.
• A materiality assessment will be conducted for the remaining asset management business post-separation.

Score: 6

Explanation: The report demonstrates a commitment to sustainability but also acknowledges shortcomings in meeting certain targets and the challenges posed by the business restructuring. Overall, the tone is positive but realistic.

• 26 of 35 commitments in Perpetual's sustainability strategy are on track or achieved.
• $16.9 billion of AUM were in ESG, sustainability, or impact-labeled funds as of June 30, 2024.
• $1.7 billion in outflows from funds supporting a low-carbon future.
• On track for carbon-neutral global operations in FY24.
• Aiming for 100% renewable energy by FY25.
• 37% of senior leaders globally were women in FY24 (target 40%).
• 19% of investment professional roles in Australia were held by women in FY24 (target 25%).
• Net Promoter Score (NPS) of +53 in FY24 (target +40).
• Community giving of $2.51 million in FY24 (target 1% of underlying profit before tax).

• Significant progress made on the 'Prosperity Plan' sustainability strategy, with 26 out of 35 commitments on track or achieved.
• Substantial AUM invested in ESG and sustainability-focused funds ($16.9 billion).
• Positive Net Promoter Score (NPS) of +53, exceeding the target of +40.
• Progress towards carbon neutrality and renewable energy targets.
• Increased female representation in leadership roles in Australia (40%).
• Continued commitment to community giving and support for First Nations communities.

• Outflows of $1.7 billion from low-carbon funds.
• Failure to meet targets for female representation in senior leadership globally (37% vs. 40%) and investment professional roles in Australia (19% vs. 25%).
• Community giving fell short of the 1% of underlying profit before tax target (0.88% achieved).
• Negative impact on employee morale due to business restructuring and uncertainty.

• Challenging investment environment for sustainability-oriented funds.
• Difficulty in meeting diversity and inclusion targets.
• Potential for delays in achieving carbon neutrality and renewable energy goals.
• Uncertainty and potential negative impact on employee morale due to business separation.
• Potential for increased median gender pay gap post-separation.

Maintaining a responsible and sustainable approach will be critical for Perpetual Group in FY25 and beyond. A materiality assessment will be undertaken to understand sustainability-related issues for the remaining multi-boutique, global asset management business, subject to shareholder approval of the business separation. Work is also underway to prepare the Wealth Management and Corporate Trust businesses for future regulatory and disclosure requirements.

• 'Throughout FY24, we have continued to make good progress across our four key areas of governance, planet, people and communities, with 26 out of the 35 commitments in our sustainability strategy on track or achieved.'
• 'As we look ahead to FY25 and as we chart a path for future success for Perpetual Group, maintaining a responsible and sustainable approach will continue to be critical for our business.'

The report reflects the increasing importance of ESG factors and sustainability reporting within the financial services industry. The planned separation of Perpetual's business units highlights the evolving landscape and the need for tailored sustainability strategies for different business models. The report also touches upon the challenges faced by sustainable investment funds in a more challenging market environment.

• Conduct a materiality assessment for the remaining asset management business post-separation.
• Support Wealth Management and Corporate Trust teams on key sustainability projects.
• Continue to improve the approach to addressing modern slavery risks.
• Launch a global human rights framework.
• Develop the next Reconciliation Action Plan (RAP).

• September 2022: Launch of Perpetual's Prosperity Plan sustainability strategy.
• January 2023: Acquisition of Pendal Group completed.
• June 2023: Extended IT security incident impacting third-party service provider.
• May 2024: Announcement of Strategic Review completion and Scheme Implementation Deed with KKR.
• June 2024: Completion of 2021-2023 Stretch Reconciliation Action Plan (RAP).
• July 2024: Receipt of WGEA Employer of Choice for Gender Equality citation.
• June 30, 2024: Reporting date for assets under management (AUM) and other financial metrics.
• Early 2025: Anticipated date for shareholder vote on the Scheme of Arrangement.