"The three companies mentioned in your cover mail that make up the $35 million investment – Ayala Corp., Marubeni Corp., and Toyota Tsusho Corp. – are part of the passively managed global equity index portfolio. These, as you mention, are conglomerates with some coal activities in the Philippines. However, they are also active in renewable energy, which, as far as we understand, is a growing line of business for these companies. We believe the companies have a role to play in the energy transition from coal and other fossil fuels to renewable energy. Through our engagement with carbon-intensive companies, we strive to move them towards this goal more quickly. However, because of limited resources, we have to prioritize our engagement . For this, we use data and research from external engagement providers. According to these providers, the ESG ratings of the three companies are at an average level, and as a result, the companies do not come up as targets for engagement. This is also true for our external engagement provider GES that focuses on engagement with companies that have violated the OECD Guidelines for Multinational Enterprises or UN Guiding Principles on Business and Human Rights.

"At present, we have no intentions to exclude the companies from our portfolio. Selling our investments merely changes ownership of the companies, but doesn't bring the necessary change. Still, we appreciate the in-depth research detailed in the report and will take it into consideration, as it adds to further shaping our position on the energy sector and the energy transition."