Action on climate change : UNITED CHURCH OF CANADA SHARE Conference November 17, 2016

Measuring carbon footprint Montreal Carbon Pledge signatory Institutional Investor initiative begun in Sept 2014 Underlying carbon emission intensity of portfolio compared to the overall market (TSX300, S&P500, etc.) Symbolic

PORTFOLIO CONSTRUCTION Exclude largest 200 fossil fuel exploration & production companies Dedicated portfolio allocation to clean energy mandate and a water infrastructure mandate since 2009 Specialist portfolio manager for these mandates Portfolios include global companies seeking to address climate issues

ENGAGEMENT Engagement with companies on climate issues with SHARE Collective engagement with companies with Church Investors Group and other institutional investors Shareholder proposals, proxy voting, letter writing, etc. Engagement with Canadian federal and provincial governments on carbon and climate change policy Regulation, carbon pricing, corporate disclosure Written correspondence and in-person meetings

INSTITUTIONAL INVESTOR ACTIVITY Very active participation with Canadian institutional investors in meetings & forums. Estimate 12 FTE days p.a. of volunteer member time. Signatories and supporters of various NGOs, such as the UN Principles for Responsible Investing, RIA of Canada, Carbon Disclosure Project, etc. Participate in Toronto RI Climate Change Working Group Enhance and broaden investor education on climate issues Encourage integration of climate issues in security analysis and valuation Encourage enhanced corporate disclosure (Financial Stability Board, OSC) Influence regulatory policy on climate matters and carbon pricing