ANÁLISIS TERMOGRAVIMÉTRICO DEL COMBUSTIBLE

This fund combines negative and positive ethical screening criteria, along with active engagement to invest in European equities. The fund aims to avoid investing in companies which could seriously harm the environment, the planet or its inhabitants. The fund has a range of negative and positive criteria used in the selection of stocks. The funds' investments are guided by its ethical policy which exclude investments that fail negative criteria and favour those that meet positive criteria. Investments are selected by the fund manager on performance grounds, but are all subject to the strict criteria of the fund's ethical policy. An Ethical Committee is in place to oversee the ethical funds. The Committee is responsible for ensuring that the funds remain within the spirit of the Ethical Policy and provide reassurance to investors that the funds are being managed according to the Ethical Policy. The Committee is comprised of senior managers from within Standard Life and individual investors who invest into the ethical funds.

Ethical Policy

Positive investment criteria Negative investment criteria

In identifying companies which are regarded as having a positive effect on society and the environment, Standard Life's Ethical Funds look at whether companies:

Make a positive contribution to the environment

For example:

Publish an environmental policy or statements or produce an environmental report. Produce environmental technologies, for example, technologies associated with pollution control and conservation of natural resources. Develop or use renewable energy, for example, solar, wind and wave energy.

Promote sound employment practices

For example:

Good policies and practices on equal opportunities and diversity. Training and education - have an active approach to employees' training and development needs. Health and safety - provide clear evidence of health and safety systems or a good record on health and safety.

Promote products and services which benefit the environment or human life.

Companies that provide environmental products and services which are of benefit to the community or life-saving and life-enhancing products such as medicines and safety equipment.

Donate to charities or are strongly involved in the community

Companies which demonstrate clear evidence of commitment to community or charitable work, including employee secondment schemes or make gifts in kind to the community.

Have clear policies and procedures on bribery and corruption

In trying to identify companies which have a harmful effect on the environment and its inhabitants, Standard Life's Ethical Funds look at company policies and practices in the following areas:

Environmental damage and pollution,

Including:

Environmental pollution (UK only).

Companies which have been convicted of a pollution offence in the last three years. Ozone-depleting chemicals.

Companies which manufacture or supply ozone- depleting chemicals.

Pesticide production.

Companies which manufacture pesticide products. Tropical forests and sustainable timber.

Companies that clear tropical forests.

Tropical forests and sustainable timber

Companies that clear tropical forests without environmental mitigation measures in place will be excluded from the funds. The funds will also exclude companies that are involved in the production / use of high volumes of timber unless the company follows internationally recognised timber sourcing standards.

Test products on animals The funds will avoid investment in companies which manufacture products or ingredients that have been tested on animals by themselves or their suppliers.

Genetic engineering The funds will avoid investment in companies that carry out genetic engineering of crops, genetic engineering of animals or gene patenting.

Intensive farming The funds will avoid investment in companies that use intensive

unless they have policies on human rights.

Pornography Companies that derive more than 3% of turnover from publishing or distributing pornographic magazines or newspapers (UK only) or adult entertainment services are avoided.

Produce or sell weapons Companies that produce or sell weapons, including nuclear weapons, will be avoided.

Process nuclear power Under this criterion companies that own or operate nuclear power stations will be avoided.

Produce alcohol The funds will avoid investment in companies which derive 10% or more of turnover from alcohol production.

Produce tobacco The funds will avoid investment in companies that manufacture tobacco products.

Are involved in gambling Companies which derive 10% or more in turnover from involvement in gambling will be avoided by the funds.

Voting & Engagement

Engagement

Policy overview

This fund has the same engagement policy that applies to all Standard Life funds. The aim of the policy is to encourage best practice standards of environmental and social management. Standard Life:

ƒ seek to increase shareholder value through constructive consultation with companies about their strategy, performance, management and other issues

ƒ vote all shares under our control at all shareholder meeting in the UK and Ireland and we always vote our shares in a manner consistent with the best interests of our customers.

ƒ explain our reasons for voting against a resolution and inform a company of our intentions ƒ aim to be open and accountable to our customers about corporate governance activities ƒ seek to contribute to the development of the corporate governance environment Methods of engagement

Standard Life have frequent one-to-one meetings focused on corporate governance and social and environmental issues with company directors, senior managers and secretaries. Concerns are raised with the companies which it invests in. Concerns are also publicised, where appropriate.

Examples of recent engagement

Standard Life recently engaged with food retailers on animal testing, and on environmental and supply chain management.

What further steps taken when engagement is considered unsuccessful?

If a company does not conform to Standard Life’s ethical enagement policy the holding is sold.

Voting

Policy overview:

All shares are voted in accordance with Standard life’s UK Corporate Governance guidelines, a copy of which is available on its website: www.standardlifeinvestments.co.uk/mutualfunds

Are voting practices disclosed?

Standard Life publishes its voting record on its website and list those instances in which it decided to vote against or abstain on a particular resolution. It also provides a brief explanation where it does not support management recommendations. Disclosures are made monthly in arrears.

Examples of recent voting activity

Standard Life voted against resolutions at ITV, BG Group, HHG and Man Group because there were features of the companies’ proposed remuneration policies and their application that are not consistent with our Corporate

Governance guidelines. Standard Life abstained on resolutions at ARM Holdings, Countrywide Assured, Spirax-Sarco Engineering, Cox Insurance, BG Group, Intermediate Capital, WPP Group and Incepta for the same reasons. Standard Life against the re-election of directors aged above 70 at Laird Group and Topps Tiles because their re-election was proposed without exceptional justification. It abstained on resolutions at WPP Group and BG Group for similar reasons. At Tesco it abstained on a resolution to amend the articles of association regarding the directors’ retirement age. At ITV Standard Life abstained on resolutions to re-elect directors in order to underscore concerns about the payments to Michael Green at the time of the merger. It also abstained on a resolution at WPP Group to re-elect the auditors as they also act as remuneration advisors to the board.

Transparency

*(These are voluntary guidelines for ethical funds which aim to increase accountability to consumers. The guidelines cover 6 key areas including investment criteria, research process and the fund’s approach to engagement & voting - see www.eurosif.org)

Signatory to the Eurosif Transparency Guidelines?* Yes

Research

Research resources used In-house research team, EIRIS

Contact Details and Further Information

Manager name Standard Life Investments

Fund company Standard Life Investments

Website www.focusonethical.co.uk

Socially Responsible Investment (SRI) contact. For further

Standard Life Pension Ethical Fund