1. Climate Change and Banking: What Can You Do?
Intentional Endowments Forum - Loyola College
November 1st , 2016
Multi marketing
Lisa Hayles, Institutional Investment Services
SAN FRANCISCO
111 Pine Street, Suite 1420
San Francisco, CA
Tel: (415)
BOSTON – MAIN OFFICE
84 State Street, Suite 940
Boston, MA 02109
Tel: (617)
Web:

2. Boston Common Asset Management
Firm Overview
Environmental, social, and governance (ESG) integrated investing
U.S., International, and Global equities with long-term focus
Over $2 billion in assets under management*
Shareowner Engagement has meaningfully improved corporate practices here & abroad
Employee-owned: seasoned team, global experience, women- and minority-owned
Responsible practices: Boston Common is now a Certified B Corporation™, joining a community of over 1800 global companies seeking to use business as a force for good™
Leadership on ESG:
Winner of 2016 Envestnet Impact Award, SMA Impact Manager & Strategist of the Year
Early signatory/ambassador: Montreal Carbon Pledge to measure & report portfolio carbon footprint
Geeta Aiyer holds an elected position on the UN-supported Principles for Responsible Investment
Highlight integrated process – not an add-on or product. At inception through to shareholder engagement, which Lisa will speak to, etc.
Principals in firm have worked in ESG for 25+ years.
Among founding ESG investing firms in U.S.
PRI – large, global movement $59 trillion in assets
2nd U.S. asset manager signatory to Montreal Carbon pledge
*As of 9/30/2016, including sub-advised assets

3. Integrating ESG Factors into Investment Decision-making
Our Investment Thesis:
A long term view is necessary to generate sustainable returns.
ESG integration maximizes opportunities and minimizes risk. We seek investments in well-governed and innovative companies that are industry leaders or are creating solutions to society's challenges.
Active shareowner engagement promotes long-term thinking, improves company fundamentals.
We implement Comprehensive ESG Guidelines that aim to:
Promote sustainable energy production and use
Mitigate climate risk
Promote responsible water stewardship
Environmental
Social
Governance
client
Protect human rights
Promote gender and income equality
Advocate for global health
Support ethical, transparent, and accountable corporate culture

4. Active Ownership Strategies
Sustained Dialogue
Public Policy Participation
Proxy Voting
Promote Long-term Thinking, Transparency
& Accountability
Hand off to Lisa
Employ a range of active ownership strategies
In past 2 years, collaborated on 230 shareholder engagement campaigns
Engagement framework/process for transparency, accountability, focused on sustainable, long-term value building
Engagement improves fundamentals of companies
Outcomes result of sustained, tenacious dialogue over long-term
International Collaboration
Setting Standards
& Metrics
Resolutions & Annual Meetings

5. Engagement Case Study —Financing Climate Change
July 2014
Boston Common published Financing Climate Change: Carbon Risk in the Banking Sector
Analyzed 45 banks across 10 key metrics
Banks & Climate Change Impact Report
Research
Conducted Baseline Assessment of Bank Practices (CDP Carbon, Industry Associations, Key Climate Change Activities)
July –September 2014
Letters sent to 61 banks
September 2014
Engagement
Organized Investor Coalition of 80 investors with over $500 billion in assets under management
July- September 2014
client
Active Engagement with 22 banks by lead investors
October August 2015
Results
June 2015-September 2015

6. Key Questions
Risk Management - Integration of climate considerations into risk management procedures. Specifically, does the bank:
Conduct regular stress tests that model the effects of adverse climate events?
Rebalance portfolios in view of potential climate-related risks?
Consider the climate-related legal and reputational risks of investments?
Reassess loan pricing with an eye to climate-related changes in consumer behavior, including potential shifts in demand for high-carbon fuels?
Climate Strategy - Implementation of long-term climate change strategy. Specifically, does the bank:
Measure and disclose its total carbon footprint including that associated with its lending and underwriting portfolio?
Align banker compensation with long-term climate goals?
Incorporate climate considerations into board oversight mandates?
Opportunities - Identification of opportunities associated with climate change. Specifically, does the bank offer, or is considering introducing, products and/or services that:
Increase energy efficiency?
Produce renewable energy?
Promote climate change adaptation or mitigation?
client

7. Dedicated to the pursuit of financial return & social change
Boston Common has a long history of integrating our ESG investment process to align significantly with Catholic Bishops’ guidelines.
What Can You Do?
Support shareholder resolutions focused on climate lobbying disclosure, sustainability reporting, or other climate related metrics
Join CDP as a supporting signatory
Ask your investment managers to do a portfolio level carbon footprint analysis
Invest in low(er) carbon strategies
“commercial” why you should work with us/how we will work with you
Would be an honor to work with you
Compelling fee proposal in first page of appendix
Dedicated to the pursuit of financial return & social change
Web: