1. Fossil Fuel Divestment

2. Summary Results for 1988-2013 Period
Fossil Fuel Divestment
Summary Results for 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.

3. 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

4. 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

5. 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

6. 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