1. ESG AND INVESTMENT ANALYSIS WORKSHOP PRESENTED BY: ROBERT SCHWOB STYLE RESEARCH March 2015 PRINCIPLES FOR RESPONSIBLE INVESTMENT ESG and Investment Analysis

2. Why Invest According to ESG? for the good of humankind for performance for some other reason ESG AND INVESTMENT ANALYSIS

3. Performance and ESG ESG AND INVESTMENT ANALYSIS

4. Performance and ESG ESG AND INVESTMENT ANALYSIS

5. Performance and ESG ESG AND INVESTMENT ANALYSIS

6. Performance and ESG ESG AND INVESTMENT ANALYSIS

7. ESG Priorities ESG AND INVESTMENT ANALYSIS For Humanity Environment Social Responsibility Corporate Governance

8. ESG Priorities ESG AND INVESTMENT ANALYSIS For HumanityMarket Valuation EnvironmentCorporate Governance Social Responsibility Corporate Governance Environment

9. ESG Priorities ESG AND INVESTMENT ANALYSIS For HumanityMarket ValuationPerformance EnvironmentCorporate Governance Environment Social Responsibility Corporate Governance EnvironmentCorporate Governance

10. Performance and ESG Current Analysis ESG AND INVESTMENT ANALYSIS

15. Investing in the “best” ESG AND INVESTMENT ANALYSIS Analysis of 5 year historic performance of portfolios with the “best” scores with respect to: Carbon Footprint; Social Responsibility; Corporate Governance. It looks like investing with regard to the environment is beneficial while consideration of Social Responsibility and Governance may not result in systematic outperformance. ESG in the Developed Markets

16. ESG AND INVESTMENT ANALYSIS ESG in Europe ex UK ESG in Asia Pacific ex Japan

17. ESG AND INVESTMENT ANALYSIS ESG in the US ESG in the UK

18. ESG AND INVESTMENT ANALYSIS ESG in Japan ESG in the Emerging Markets

19. ESG AND INVESTMENT ANALYSIS ESG in Australia A very curious turn. It is not due to sector differences since all analysis was done “Sector Adjusted”.

20. ESG Extended Portfolio Analysis Measuring E, S, and G Exposures – Overall assessment – Sources of exposures – Trends of exposures Appraising the Impact on Performance – Systematic sources of return – Stock specific sources of return – Measuring skill ESG AND INVESTMENT ANALYSIS

21. ESG EXTENDED PORTFOLIO ANALYSIS What it looks like live. ESG AND INVESTMENT ANALYSIS

76. Appendix

77. ESG EXTENDED PORTFOLIO ANALYSIS ESG AND INVESTMENT ANALYSIS Trucost – Carbon Footprint and Environmental Impact Ratio GMI Ratings – ESG factor scores as well as Accounting & Governance Risk and Forensic Alpha MSCI IVA – Comprehensive range of aggregated and detailed ESG factor scores Oekom – Environmental and Social & Governance factor scores FTSE ESG Ratings – ESG theme scores and theme exposures

78. ESG EXTENDED PORTFOLIO ANALYSIS ESG AND INVESTMENT ANALYSIS Trucost PLC Carbon impacts of companies Quantitative data-based, environmental profiling model incorporating 464 sectors Carbon Footprint – Greenhouse gas emissions of over 4,500 companies globally Impact Ratio – Total environmental external costs of direct operations and indirect supply chain activities

79. ESG EXTENDED PORTFOLIO ANALYSIS ESG AND INVESTMENT ANALYSIS MSCI ESG Intangible Value Assessment Research, ratings and analysis of company risks and opportunities from environmental, social and governance factors Company analysis across 34 ESG issues Aggregated and disaggregated E, S, and G scores on more than 5,000 companies

80. ESG EXTENDED PORTFOLIO ANALYSIS ESG AND INVESTMENT ANALYSIS GMI Ratings – an MSCI company E, S, and G ratings together with accounting- related company risks and opportunities Analysis based E, S, and G ratings based on 150 risk factors for 6,400 companies globally Modelled Accounting & Governance Risk based on 50 risk factors for 29,000 companies Forensic Alpha Model ®

81. ESG EXTENDED PORTFOLIO ANALYSIS ESG AND INVESTMENT ANALYSIS oekom research ESG and sustainability ratings across asset classes and sectors Corporate and Country ESG research Analysis of 3,500 companies and 57 countries Corporate ratings: Social/Governance and Environmental Country ratings: Politics, Governance, Human Rights, Freedoms, Environment

82. ESG EXTENDED PORTFOLIO ANALYSIS ESG AND INVESTMENT ANALYSIS FTSE ESG Ratings E, S, and G Ratings based on theme scores (practice) and theme exposures (risks) Over 300 factors for 14 themes for 3 pillars Analysis of over 2400 companies, coverage of FTSE All World and FTSE All Share indices Overall and sector-relative scores