LAZARD SMALL CAPS EURO Carbon Footprint & Energy Transition Report 31-mars-2021

Carbon Footprint (Source : Trucost, scope 1&2) Emissions per M€ of Revenue (tons CO2 éq.*/M€ of REV CA) Comments :

Emix Smaller Euroland reweighted ** 242 Portfolio Coverage : 97,51% Benchmark Coverage : 93,61%

Emix Smaller Euroland 196

Lazard Small Caps Euro 67

- 50 100 150 200 250 300 350

Main securities contributing to the portfolio's carbon footprint

40% 35% 35% 30% 25% 20% 13% 15% 10% 7% 5% 4% 5% 2% 0% Altri, SGPS, S.A. Mayr-Melnhof Karton STO SE & Co. KGaA F.I.L.A. - Fabbrica Corticeira Amorim, Surteco Group SE AG Italiana Lapis ed Affini S.G.P.S., S.A. S.p.A.

Main sectors contributing to the portfolio's carbon footprint*

Sectors contributing the most Sectors contributing the least Lazard Small Caps Euro Lazard Small Caps Euro Emix Smaller Euroland Emix Smaller Euroland Emix Smaller Euroland reweighted ** Emix Smaller Euroland reweighted ** 193 27

87 12 35 28 24 13 17 12 11 00 0 0 0 0 0

BASIC MATERIALS INDUSTRIALS CONSUMER GOODS TELECOMMUNICATIONS UTILITIES OIL & GAS

* eq. : All Greenhouse Gas (GHG) converted to CO2 emissions ** Emix Smaller Euroland benchmark "reweighted" based on the portfolio's sectors allocation

Energy Transition (Source : Vigeo Eiris) Energy Transition Score LAZARD SMALL CAPS EURO Weak 13 Emix Smaller Euroland Weak 25

Portfolio breakdown by score (in %) Portfolio highest scores (/100) Group SA Avancé 83 5% 10% Alten S.A. Probant 59 SA Amorcé 47 2% Weak SA Amorcé 45 SPIE SA Amorcé 43 Improving Portfolio lowest scores (/100) Convincing Interpump Group S.p.A. Faible 15 Advanced De'Longhi S.p.A. Faible 22 14% Van de Velde NV Faible 22 NORMA Group SE Faible 26 Cargotec Corporation Amorcé 34

LAZARD FRERES GESTION SAS au capital de 14 487 500 € - 352 213 599 RCS - 25 rue de Courcelles 75008 Paris www.lazardfreresgestion.fr LAZARD SMALL CAPS EURO Carbon Footprint & Energy Transition Report 31-mars-2021

Carbon Footprint methodology  In 2016, we partnered with TRUCOST to obtain information to measure the carbon footprint of our holdings Comments :  Lazard Frères Gestion chose carbon intensity as its reference indicator, expressed in tons of carbon dioxide equivalent (tCO2e) per million euros of revenue.  In order to assess the carbon footprint we use scope 1 and 2 emissions of Greenhouse Gas (GHG) : - Scope 1 : Emissions include all direct emissions linked to the combustion of fossil fuel used during production - Scope 2 : Emissions include indirect emissions linked to the production of energy (electricity,…) consumed by the company  We measure the carbon footprint for directly held securities only  Listed companies for which we cannot retrieve carbon data are removed from the scope of our analysis, their weights are rebased to firms in the same sector in order to maintain the original sector weight  The weight of all securities are rebased to obtain a total portfolio weight of 100%  The method used to measure the portfolio’s carbon intensity is the weighted average of GHG scope 1 & 2 emissions divided by companies’ revenue:

퐸푚푖푠푠푖표푛푠 (푠푐표푝푒 1+2) 푃표푟푡푓표푙푖표 푐푎푟푏표푛 푖푛푡푒푛푠푖푡푦 = 표푓 푒푎푐ℎ 푠푒푐푢푟푖푡푦 × 푠푒푐푢푟푖푡푦 푤푒푖푔ℎ푡 푅푒푣푒푛푢푒

 Companies GHG emissions are highly dependent to their sectors. Some sectors are “structurally” bigger emitters of GHG then other.  Lazard Frères Gestion fundamental security selection approach generates sectors exposure gaps between the portfolios and their benchmark.  In order to cancel out the gap, we developed a method to adjust the sectors weights of the benchmark so that it is similar to the portfolios. Within each sector of the benchmark, the weight of each securities is maintained.

Energy Transition methodology  Every issuer in the portfolio is subject to a rating assessing the quality of its energy transition strategy  This rating is currently delegated to our partner Vigeo Eiris  It is based on the analysis of specific climate change criteria, which result from companies and sectors’ key issues related to energy transition. It measures the companies’ engagement to reduce their carbon footprint and assesses whether they contribute to the international goal of limiting global warning to 2°C by 2050  The portfolio’s contribution toward energy transition is measured as follows:

퐸푛푒푟푔푦 푇푟푎푛푠푖푡푖표푛 푆푐표푟푒 표푓 푡ℎ푒 푃표푟푡푓표푙푖표 = [퐸푛푒푟푔푦 푇푟푎푛푠푖푡푖표푛 푆푐표푟푒 표푓 푒푎푐ℎ 푠푒푐푢푟푖푡푦 × 푠푒푐푢푟푖푡푦 푤푒푖푔ℎ푡]

 Defined according to the following rating scale:

Energy Transition Strategy scale :

Catégories Weak Improving Convincing Advanced Score 0-29 30-49 50-59 60-100

LAZARD FRERES GESTION SAS au capital de 14 487 500 € - 352 213 599 RCS Paris - 25 rue de Courcelles 75008 Paris www.lazardfreresgestion.fr