Fossil Fuel Divestment

Summary Results for 1988-2013 Period Fossil Fuel Divestment Summary Results for 1988-2013 Period   R3000 xOil, Gas & Cons. Fuels R3000 Annualized Returns 10.63% Annual Standard Deviation 14.9% 14.8% Sharpe Ratio 0.71 0.72 Over the 26-year period from 1988 through 2013, an investor could have invested in the broad U.S. stock market (as measured by the Russell 3000 Index) with or without investment in the oil, gas, and consumable fuels industry and achieved the same 10.63% return with slightly higher volatility. Over shorter-term periods within that time span, an investor would have experienced deviations of up to 80 bps between the three-year trailing period performance of the broad U.S. stock market and the U.S. stock market less the consumable fuels industry.

Investment Policy Statement Questions to Consider  What is your entity’s mission? Who are all of the stakeholders and how should they be included in the process? Does the entity have mission related guidelines already in place as part of its Investment Policy Statement? Does it adequately reflect the institution’s mission? What resources (time and people) can you devote to implementation and what networks can you access for support? Where will efforts be focused in promotion of this mission?     GRANTS DISCOUNTED LOANS PORTFOLIO & GRANTS SHAREHOLDER ACTIVISM

Climate Change Risks Have Many Layers and Create Many Opportunities Economics of Sustainability Physical Impacts – Risks: property, access to resources, built environment Opportunities: infrastructure, new markets, tech innovation Supply Chain Disruption – Risks: food and water systems Opportunities: sustainable ag, water markets Policy and Regulation Response Risks: (un)anticipated change, regional dispersion Opportunities: carbon markets and conservation finance Longer Term Indirect Risks – Risks: human health, productivity, geopolitics, fiscal stability Opportunities: essential services, product innovation Climate Change Risks Have Many Layers and Create Many Opportunities

Example Exposure Summary Alcohol, Gaming, Tobacco Know Your Exposure Example Exposure Summary Manager Exposure? % of Total Fund Fossil Fuels Coal Alcohol, Gaming, Tobacco Reviewed By As of DOMESTIC EQUITY Domestic Equity Fund Y 8.52% 6.88% 0.30% 1.34% PBA 9/30/2014 S&P 500 Index Fund 0.75% 0.64% 0.11% 0.00% Mid Cap Value Fund N SMID Cap Growth Fund INTERNATIONAL EQUITY International Value Fund 8.49% 4.31% 4.18% International Equity Fund 8.14% 3.97% 4.17% International Small Cap Fund 0.60% International SMID Cap Fund 1.83% EMERGING MARKETS EQUITY Emerging Markets Value Fund 4.87% Tax-Managed Emerging Markets Fund FIXED INCOME Bond Yield Fund 3.12% 2.68% 0.01% 0.44% Bond Market Index Fund 3.44% 1.97% 0.21% 1.27% Treasury Index Fund Global Fixed Income Fund PUBLIC REAL ASSETS/INFLATION-HEDGING TIPS Index Fund Commodities Fund Securities Fund 1.22% 6/30/2014 TOTAL

Building the Portfolio Where to Start   Holdings are 100% Transparent Holdings are not 100% Transparent Can replace with mission aligned option U.S. Equity Index Mutual Fund (D) Non-U.S. Index Mutual Fund (D) Active Equity Mutual Fund (D) Real Asset Commingled Fund (M) Limited opportunities to replace with mission aligned option, but does not contradict values Treasury Mutual Fund (D) Sovereign Debt Mutual Fund (D) Real Estate Mutual Fund (D) Limited opportunities to replace with mission aligned option, may have exposure to unwanted investments Emerging Markets Mutual Fund (D) Abs. Ret Hedge Fd (Q) Long Short Hedge Fund(D) Hedge FOF (Q) (D) - Daily transparency (M) - Monthly transparency (Q) - Quarterly transparency