Thoughts on ESG Dave Crawford CFP® RETIREWISE

CHALLENGES DISCLOSURE LANGUAGE CULTURAL KNOWLEDGE OF LOCAL CONTEXT

WHOSE RESPONSIBILITY? DIRECTORS OF COMPANIES TRUSTEES PORTFOLIO MANAGERS MEMBERS

ESG FACTORS OFFER MANAGERS ADDED INSIGHT INTO FINDING COMPANIES THAT ARE: LEADERS IN THEIR INDUSTRIES BETTER MANAGED AND MORE FORWARD THINKING BETTER AT RISK MANAGEMENT MEETING POSITIVE STANDARDS OF CORPORATE RESPONSIBILITY FOCUSSED ON THE LONG TERM

AREA OF FOCUSACTIVITYPOTENTIAL IMPACT ENVIRONMENTRESOURCE MANAGEMENT AND POLLUTION PREVENTION AVOID OR MINIMISE ENVIRONMENTAL LIABILITIES INDICATOR OF WELL- MANAGED COMPANY SOCIALWORKPLACE DIVERSITY HEALTH AND SAFETY LABOUR – MANAGEMENT RELATIONS CORPORATE PHILANTHROPY IMPROVED PRODUCTIVITY AND MORALE OPENNESS TO NEW IDEAS AND INNOVATION COMMUNITY IMPACT – IMPROVE BRAND LOYALTY GOVERNANCEEXECUTIVE COMPENSATION BOARD ACCOUNTABILITY SHAREHOLDER RIGHTS REPORTING & DISCLOSURE ALIGN INTERESTS OF SHAREOWNERS AND MANAGEMENT AVOID UNPLEASANT SURPRISES (“BLOW UPS”)

QUESTIONS HOW DO TRUSTEES COPE? HOW CAN YOU E.G. DETECT CORRUPTION BEFORE IT IS UNCOVERED? WHAT HAPPENS IF A “GOOD” COMPANY GOES BAD BUT STILL DELIVERS GOOD RESULTS? DO EXISTING INVESTMENT MANAGERS IGNORE THESE ISSUES? WOULDN’T ANY LONG TERM INVESTOR CONSIDER ALL THESE ISSUES ANYWAY? HOW DO TRUSTEES WANT REPORTS ON ESG STRUCTURED? ENTIRELY FACTUAL; DEDUCTIONS OR PROJECTIONS OR INSINUATIONS? NEGATIVE SCREENING

THANK YOU