aodp global climate risk survey 2017 for asset...

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AODP Global Climate Risk Survey 2017 for Asset Owners

AODP Climate Risk Survey 2017 for Asset Owners

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WHO IS AODP? The Asset Owners Disclosure Project (AODP) is an independent global not-for-profit organisation that recognises the specific financial risk attributes of climate change. AODP has developed the world’s leading reporting framework for institutional investors encompassing the disclosure and management of climate risk. AODP indices are unique in evaluating the long-term climate risk and management actions of asset owners – the world’s largest pension funds, sovereign wealth funds, insurance companies, foundations and endowments. AODP’s free best practice implementation methodology can be found on our website: www.aodproject.net.


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BACKGROUND TO THE SURVEY

Climate change has become a central issue for financial markets. The global task force on climate risk set up by the G20’s Financial Stability Board (FSB) recently announced that it will make recommendations on how institutional investors, asset managers and other financial intermediaries should report the potential impact of climate change on their bottom line.1 Climate risk is of course only one risk that investors have to analyse. We acknowledge this. However, as a multi-sector, multi-asset class and non-diversifiable risk, its scale and profile require special attention.

The Asset Owners Disclosure Project is the world’s only independent examination of asset owners’ management of climate risks and opportunities. In addition, this year AODP is extending its research to include the world’s most influential asset managers, investment consultants, proxy advisers and ratings agencies on how they are incorporating climate risk management and low-carbon investment into the service they provide to their clients. Modelled on AODP’s annual Global Climate 500 Index, these new indices will be based on direct disclosure and/or publicly available information and will analyse how institutions within the investment chain are managing climate risk, investing in the low-carbon economy and engaging with investee companies on these issues.

AODP provides valuable research and tools to support asset owners in the transition to an investment world in which the impacts of climate change will become ever more integrated into their core decision-making processes. The data collected provides asset owners (and their stakeholders) with valuable insight into the strategies deployed by some of the largest asset owners in the world to mitigate the risk of climate change. The survey encourages funds to engage in climate change-related issues, often for the first time.

AODP seeks to better understand industry practices and highlight the actions being taken by key industry participants on this critical topic. Click on the links below for more information.

The 2016 disclosure window is open until November 30th, 2016. Please get in touch if you’d like to take part.

1 Reuters: Global regulators eye climate risk disclosure for listed companies, 1-4-16


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HOW IS THE SURVEY STRUCTURED?

The survey assesses a participant’s capability across the following key areas:

Governance: organisation structure and the interactions it uses to oversee its climate risk objectives

Strategy: degree of integration of climate risk principles in the organisation’s policies and processes

Portfolio Risk Management: variety and effectiveness of tools and approaches used to evaluate and manage portfolio climate change risks.

Metrics and Targets: key metrics to measure, monitor and compare portfolio climate risk management performance

The survey has been remapped this year to align to the FSB TCFD’s proposed framework for disclosure, to assist asset owners in assessing their readiness for any forthcoming reporting requirements.

HOW DOES THE RATINGS PROCESS WORK?

The AODP Global Climate Index provides stakeholders with a ranking and rating to indicate how each organisation performs in managing their exposure to climate risk. The objective of the research is to encourage integration of climate change capability in portfolio management across the investment sector.

Organisations are researched by our team of analysts using publicly available information or information provided to us by your members or stakeholders. This is supplemented by survey responses. The data collected is used to rank and rate the participants to create the AODP Global Climate Indices. Organisations are rated from AAA through to D grade, with an additional X rating for those lacking any evidence of managing climate risk.

Asset Owners: The world’s largest long-term investors (pension funds, insurers, sovereign wealth funds, foundations and endowments) with at least USD 2 billion assets under management.

Asset Managers: Asset managers play a key role in investing the capital critical to transitioning to a low carbon economy. The top 50 largest asset managers globally have been invited to participate in the first AODP Asset Managers Index

Investment Consultants: As primary advisers to asset owners for asset allocation and/or manager selection, asset consultants play a key role in deciding where funds will be invested.

Proxy Advisors: As the route through which many asset owners engage with the market, proxy advisers play a critical role in determining whether companies shift to low-carbon business models.

Ratings Agencies: Ratings agencies have a vital role to play in assessing the long-term prospects of fossil fuel companies and the sovereign debt of countries that export fossil fuels.


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BENEFITS OF PARTICIPATING…

The AODP is of great benefit to asset owners, the broader investment industry and governments to help clarify capability in managing climate risk. The ratings present the only opportunity for organisations to compare and differentiate themselves from their peers in terms of climate change risk management. By participating, you send a strong signal to your stakeholders that you are taking climate change seriously. Members, clients and other stakeholders increasingly demand transparency on ESG issues, and completing the Global Climate Index Survey can be one means of meeting these expectations.

• Gain valuable insights into your performance relative to others in your industry

• Learn how to apply best practice in managing climate change risks and opportunities.

• Demonstrate to your stakeholders your commitment to managing one of the largest long-term risks to their portfolio

• Use our risk-based approach as an alternative to a pure divestment strategy.

• Improve your rating by directly disclosing the information we need to effectively assess your organisation.

Perhaps more importantly, an increasing number of investors are realizing that following the process of responding to AODP’s survey is closely tied to best practice methodology and this can help your organisation progress towards better policies, strategies and processes.

WHAT IF OUR ORGANISATION CANNOT EASILY OBTAIN THE DATA?

All organisations have the same issue when it comes to climate change risks and especially those risks associated with the impacts of a low carbon economy driven by the threat of carbon pricing or intrinsic equivalents. Being unable to report the data at this time helps an organisation identify gaps and drive its best practice plan by creating strategies to acquire the data for future reporting.

NEXT STEPS

The survey is available online and will be open to complete until November 30th 2016.

All data is to be provided to the most recent financial reporting period and submitted in your local reporting currency. It is intended that the survey is to cover the operations of an entire organisation and all of its investment portfolios and services, not just “niche” investment portfolios/services.

The ratings and rankings will be published in the new AODP Global Climate Index in April 2017. A copy of the report will be sent to you.

If you have any questions please send us by email at [email protected] and one of our team will contact you.


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Survey Respondent's Details

Please provide your details as the survey respondent

First Name: _________________________________________________

Last Name: _________________________________________________

Role Title: _________________________________________________

Email: _________________________________________________

Phone: _________________________________________________

Asset Owner Details

Please complete the below information for the organisation you are disclosing

Full Asset Owner Name: ______________________________________________

Common Abbreviation: _____________________________________

Parent Organisation: _________________________________________________

Name of Trustee Company: ___________________________________________

Country: _________________________________________________

State/Region: _________________________________________________

City/Town: _________________________________________________

Website: _________________________________________________

Twitter handle: _________________________________________________

Facebook page: _________________________________________________


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0.1 - Which of the following best describes your organisation? Please select from below options

( ) Pension fund ( ) Sovereign wealth fund

( ) Insurance company ( ) Foundation

( ) Mutual fund ( ) Endowment

( ) Financial conglomerate ( ) Asset manager

( ) Other

Please specify:

If you have selected “Pension Fund”:

Please select your pension fund type from below options ( ) Public sector/government fund ( ) Corporate/company fund ( ) Industry/sector/multi-employer fund ( ) Retail fund Please select appropriate industry category ( ) Agriculture / Forestry / Fishing ( ) Aerospace / Aviation / Automotive

( ) Arts / Entertainment / Recreation ( ) Biotechnology

( ) Business / Professional Services ( ) Construction and Engineering

( ) Education ( ) Energy

( ) Financial Services ( ) Government / Military

( ) Health and Social Services ( ) Hospitality

( ) Household Services ( ) Manufacturing

( ) Media and Publishing ( ) Mining

( ) Non-Profit ( ) Pharmaceutical / Chemical

( ) Research / Science ( ) Real Estate

( ) Technology ( ) Telecommunications

( ) Transportation / Distribution ( ) Water Supply / Sewerage / Waste Management

( ) Wholesale and Retail Trade

What types of pension plans does your fund offer? ( ) Defined Benefit ( ) Defined Contribution ( ) Hybrid


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Personnel

0.2 - Please provide details of the following key persons in your organisation Role titles may vary across organisations – please provide names in the equivalent position. Chairman refers to a corporate Chairman of the Board, whereas Trustee Chairman refers to the Chair of the Board of Trustees for pension funds, endowments, and charitable organisations.

Full Name

Chairman

Chief Executive Officer

Chief Investment Officer

Chief Financial Officer

Chief Risk Officer

ESG/Sustainability Officer

Responsible Investment Officer

Trustee Chairman

What is your total number of staff? _________________________________________________

Comments


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0.3 - What was your total Assets Under Management at the end of your last financial reporting period? Please provide total AUM for your organization. Please provide it in a full number (e.g. 3,000,000,000, not 3bn). If your disclosure relates to only part of the organization, or you disclose funds separately, please provide the AUM related to this particular survey response. Please be consistent with using same reporting currency throughout the survey.

AUM (full number):

Reporting currency:

Financial Reporting Period End: YYYY/MM/DD

0.4 - At the end of your last financial reporting period, what was your total Assets Under Management held in long term retirement savings funds or similar long term capital funds? AUM in reporting currency (please provide the full number, not in millions or billions)

AUM

0.5 - Please indicate the value of your investments held in each of the following asset classes at the end of your last reporting period. The sum of these amounts should be the same as the total funds under management figure provided in response to question 0.3. Please provide the full number, not in millions or billions. 0.6 - Please indicate, for each asset class, the percentage of your investments that were managed internally or by an associated internal group at the end of your last financial reporting period. If you have only a total portfolio figure please enter this in the 'Total Portfolio' box

Asset Class AUM % managed internally

Equities

Property

Infrastructure

Hedge funds

Fixed income

Private equity

Cash

Other

Total Portfolio 0.7 - Please indicate the percentage of your portfolio held in passive investments. Includes passive equity holdings and any other "passive" investment

AUM


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0.8 - Who is your primary investment consultant? Please select from the below. Please note below if you use multiple service providers ( ) Not applicable - we don't use external investment consultants

( ) Cambridge Associates ( ) Mercer

( ) Russell Investments ( ) AON Hewitt

( ) Callan Associates ( ) Willis Towers Watson Investment Services

( ) Pension Consulting Alliance ( ) Nomura Securities

( ) Wilshire Associates ( ) RVK

( ) Meketa Investment Group ( ) NEPC LLC.

( ) Rocaton Investment Advisors ( ) Pavilion Advisory Group

( ) Segal Rogerscasey ( ) PPCmetrics AG

( ) Hamilton Lane ( ) Morgan Stanley/Graystone Consulting

( ) CAPTRUST ( ) Summit Strategies Group

( ) Other (please give details below)

0.9 - Who is your primary proxy adviser? Please note below if you use multiple service providers ( ) Not applicable - no proxy advisers

( ) Institutional Shareholder Services, Inc. ( ) Glass, Lewis & Co.

( ) Hermes Equity Ownership Services ( ) Australian Council of Superannuation Investors

( ) Regnan – Governance Research & Engagement

( ) Manifest

( ) Ownership Matters ( ) InGovern

( ) Egan-Jones Proxy Services ( ) Pensions & Investment Research Consultants Ltd

( ) Other (please give details below)

Comments

Comments


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0.10 - Who are your primary external asset managers? As you may utilize the services of multiple suppliers, please provide details for those asset managers responsible for the largest proportion of your AUM. If your asset managers aren't listed, please select 'other' and provide details in the comments box. Please specify in the comments the largest asset manager for each of the following asset classes: passive equities, actively managed equities, fixed income and alternatives.

[ ] Not applicable - we don't use external asset managers

[ ] Aberdeen Asset Management

[ ] Aegon Asset Management [ ] Affiliated Managers Group

[ ] AllianceBernstein [ ] AllianzGI [ ] Amundi

[ ] APG [ ] Aviva Investors [ ] AXA Investment Managers

[ ] BlackRock [ ] BNP Paribas Investment Partners

[ ] BNY Mellon Invest Management, EMEA

[ ] Capital Group [ ] Columbia Threadneedle Investments

[ ] Credit Suisse

[ ] Deutsche Asset & Wealth Management

[ ] Dimensional Fund Advisors [ ] Federated Investors

[ ] Fidelity Investments [ ] Franklin Templeton Investments

[ ] Generali Investments Europe

[ ] Goldman Sachs Asset management

[ ] HSBC Global Asset Management

[ ] Insight Investment

[ ] Invesco [ ] J.P. Morgan Asset Management

[ ] Legal & General Investment Management (LGIM)

[ ] Legg Mason [ ] M&G Investments [ ] Macquarie

[ ] Mellon Capital [ ] MFS Investment Management

[ ] Morgan Stanley

[ ] Natixis Global Asset Management

[ ] New York Life Investments [ ] Northern Trust Asset Management

[ ] Pramerica Invest. Management (PGIM)

[ ] Principal Global Investors [ ] RBC Global Asset Management

[ ] Schroders Investment Management

[ ] Standard Life Investments [ ] State Street Global Advisors

[ ] Sumitomo Mitsui Trust Bank [ ] T. Rowe Price [ ] UBS Global Asset Management

[ ] Vanguard [ ] Wellington Management [ ] Wells Capital Management

[ ] Other (please specify)

Comments


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Section 1: Governance & Strategy Key Question 1.01 - Do you have a role/team with specific climate change capability within your organisation, dedicated to integrating climate risk management into the investment process?

(15 points) This question asks whether you have dedicated climate change capability embedded within your organisation. If this role resides outside your ESG/Sustainability area, please answer yes, and provide the appropriate responsibility area. If you don’t have a dedicated role, but this capability is provided, please answer No and provide further information in the comments. Please select ( ) Yes ( ) No ( ) No information available Please indicate which part of the organisation this role sits in [ ] Specific team/role within Investment strategy (CIO) [ ] Specific team/role within Risk (CRO) [ ] Specific team/role under ESG/Responsible Investing/Sustainability [ ] Part of remit of general ESG/Responsible Investment/Sustainability team [ ] Part of remit of general CSR [ ] Other (please give details below) Please indicate the total number of staff with climate expertise: _________________________________________________ Comments

Please provide details where requested and any further comments or insights you feel are important to this question or have not been covered by the above answer options


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1.02 - How are climate change issues integrated into your organisation's policy framework? Please provide link to policy

(10 points) Select all applicable answers from below options [ ] Standalone Climate Change Policy covering investment strategy, risk management and ESG and responsible investment principles [ ] Dedicated section within ESG policy and/or responsible investment principles/statements [ ] Specific details included in Investment Policy/Strategy [ ] Specific details included in Risk Management Policy/Strategy [ ] Included in other policy (please give details below) [ ] Covered broadly by ESG policy [ ] No policy on climate change issues [ ] No information available Comments

1.03 - Have you disclosed to your members and/or stakeholders how climate change risk management solutions are integrated into your investment processes?

(4 points) Select all applicable answers from below options [ ] Yes, through annual/half/quarterly reports or responsible investment report [ ] Yes, through website [ ] Yes, through social media (Facebook, twitter, etc.) [ ] Yes, through newsletter/email [ ] Other (please describe) [ ] No [ ] No information available Please add supporting material and give page reference – provide link(s) in the comments or attach file(s) Comments




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1.04 - Do you correspond with your stakeholders or members regarding any climate change related campaigns? (Insurance companies please move to next question)

(5 points) Select from below options [ ] Yes, we provide this information voluntarily to our members/stakeholders [ ] Yes, we provide this information to members/stakeholders who contact us via campaigns [ ] We have not been directly contacted by any members/stakeholders requesting information [ ] No, we do not provide this information [ ] No information available What climate change related campaigns have you responded to? [ ] Vote Your Pension [ ] Greenlight Campaign [ ] 350/Fossil Free [ ] Other campaign (please give details below) Comments

For insurance companies only: 1.04 - Do you provide information to stakeholders regarding the impact of climate change on future liabilities / claims? Select from below options ( ) Yes ( ) No

(5 points) Comments




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1.05 - Have you engaged with policymakers or regulators on climate change related issues over the last year?

(20 points) Please select the total number of engagements ( ) Yes, with 5 or more ( ) Yes, with 4 ( ) Yes, with 3 ( ) Yes, with 2 ( ) Yes, with 1 ( ) No, we haven't engaged ( ) No information available On what issues have you engaged with policymakers or regulators over the last year? Please ensure if you have selected 'other' that you provide complete details: Please select issue, then provide policymaker/regulator name

Issue

Carbon and

energy pricing

Low Carbon Investment Incentives

Adaptation

Corporate disclosure

and accounting

Investment regulation

and disclosure

Ending subsidies to fossil fuel companies

Other Policymaker/ Regulator name

1 ☐ ☐ ☐ ☐ ☐ ☐ ☐

2 ☐ ☐ ☐ ☐ ☐ ☐ ☐

3 ☐ ☐ ☐ ☐ ☐ ☐ ☐

4 ☐ ☐ ☐ ☐ ☐ ☐ ☐

5 ☐ ☐ ☐ ☐ ☐ ☐ ☐

Comments

Please ensure if you have selected "other" that you provide complete details. Please provide details where requested and any further comments or insights you feel are important to this question or have not been covered by the above answer options


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1.06 - Have you engaged with any sector regarding its share of the carbon budget and the need to support policy in order to survive a carbon tightening period?

(5 points) Select from below options ( ) Yes (please give details below) ( ) No ( ) No information available Comments

1.07 - Please select all of the collaborative engagement initiatives and/or industry associations you participate in.

(10 points) Select all applicable answers from below options [ ] Carbon Disclosure Project (CDP) [ ] Principles for Responsible Investment (PRI) [ ] Institutional Investors Group on Climate Change (IIGCC) [ ] International Corporate Governance Network (ICGN) [ ] Investor Group on Climate Change, Australia/New Zealand (IGCC) [ ] Asia Investor Group on Climate Change (AIGCC) [ ] Interfaith Center on Corporate Responsibility (ICCR) [ ] Investor Network on Climate Risk (INCR) [ ] United Nations Environmental Program Finance Initiative (UNEPFI) [ ] Montreal Pledge [ ] Portfolio Decarbonisation Coalition [ ] ClimateWise [ ] Other (please specify) [ ] None [ ] No information available Comments




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Key Question 1.08 - Do you incentivise or penalise any of the following for managing long term climate risk performance of your investment portfolio?

(25 points) Select all applicable answers from below options [ ] Internal Portfolio Executives / Portfolio Managers [ ] External asset managers [ ] Proxy voting advisors [ ] Investment consultant [ ] Other (please give details below) [ ] None [ ] No information available Comments

1.09 - How is climate change risk management embedded into your investment consultant agreement?

(10 points) Select from below options [ ] Climate change risk be integrated into strategic asset allocation (SAA) and manager selection by our asset consultant [ ] We don't use an external consultant but we integrate climate change risk into our SAA and manager selection ourselves [ ] Our investment consultant has offered climate expertise [ ] We have requested our investment consultant build capability in climate risk [ ] We don't use an external consultant and don't consider climate change risk in our SAA or manager selection [ ] No information available Comments




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1.10 - How are climate change issues factored into asset manager selection process by your investment consultant or internal investment executive?

(10 points) Select all applicable answers from below options [ ] They review each investment manager's climate change policies [ ] They look for investment managers with a strong offering of low-carbon products [ ] They assess investment manager's carbon performance (e.g active ownership, underweighting in carbon) [ ] They use external 3rd party data on investment managers with regard to climate change risk management [ ] Other (please give details below) [ ] They don't factor climate change issues into their short listing process [ ] No information available Comments

Key Question 1.11 - How is climate change risk management embedded into your asset manager agreements?

(20 points) Select all applicable answers from below options [ ] Through retained bonuses/clawbacks/options for long term loss/return related to climate change [ ] They have specific guidance on risk premiums, intrinsic carbon prices or stranded asset issues [ ] They refer to our climate change policy [ ] We operate an overlay on their investments [ ] They refer to our ESG policy [ ] By incorporating greater mandate length [ ] By incorporating longer investment horizons [ ] Through mandatory signatory status of initiatives such as CDP, PRI, etc. (please give details below) [ ] Other (please give details below) [ ] We don't incorporate climate change issues into our investment manager agreements [ ] No information available Comments




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1.12 - Do you engage with credit ratings agencies regarding their climate risk strategies? (15 points)

Select from below options ( ) Yes ( ) No ( ) No information available Please indicate what engagement actions you take. Select all applicable answers from below options [ ] We believe the credit rating system doesn't fully account for climate risk and we make adjustments for this in the portfolio [ ] We believe credit ratings on high carbon debt are inaccurate and are engaging with credit rating agencies about this [ ] We believe credit ratings on high carbon debt are inaccurate and are engaging with regulators about this [ ] We believe credit ratings on high carbon debt are reasonably accurate Comments

1.13 - Do you have an engagement policy that includes how you engage with investee companies around climate change issues?

(10 points) Select from below options ( ) Yes ( ) No ( ) No information available Please add supporting material and give page reference – provide link in the comments or attach a file Comments




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1.14 - Have your policies, principles, statements or board directives suggested / acknowledged the limitations of any of the following in managing climate risk? Please provide link(s)

(6 points) Select all applicable answers from below options [ ] Traditional Strategic Asset Allocation models [ ] VaR measurements [ ] Indexation [ ] Short term manager incentives [ ] Use of fund managers to trade out the risk in the event of rapid carbon repricing [ ] Other (please give details below) [ ] No [ ] No information available Comments



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Section 2: Portfolio Carbon Risk Management 2.01 - Does your proxy voting policy (or your proxy voting advisor's policy) include direction on climate change issues?

(10 points) Select from below options [ ] Yes - our own policy includes direction to vote in support of positive climate change resolutions [ ] Yes - our proxy voting advisors policy includes direction to vote in support of positive climate change resolutions [ ] Yes - our asset managers' policies include direction to vote in support of positive climate change resolutions [ ] We instruct our asset manager and/or proxy advisor to vote in support of positive climate change initatives [ ] We assess and make recommendations on our position on climate change related resolutions on a case by case basis [ ] No - our policy/our proxy voting advisor's/asset manager's policy doesn't include specific direction on climate change [ ] We delegate all voting decision-making to our asset manager [ ] We delegate all voting decision-making to our proxy advisor [ ] We don't have a proxy voting policy [ ] No information available Comments

2.02 - Have you reviewed proxy advisors / managers / company management recommendations on any climate change related resolutions?

(6 points) Select all applicable answers from below options [ ] Asset manager recommendations [ ] Proxy advisor recommendations [ ] Company management recommendations [ ] Other (please give details below) [ ] No [ ] No information available Comments




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Key Question 2.03 - Is your proxy voting record publicly available? Please provide link

(10 points) Select from below options [ ] Yes, within one week [ ] Yes, within one month [ ] Yes, within 3 months [ ] Yes, within the next half year [ ] Yes, within the next year [ ] No, we don't make our proxy voting record public [ ] No information available Comments

2.04 - Does your published proxy voting record include examples of your voting position on recent climate change related issues?

(5 points) Select from below options [ ] Yes, it includes examples of our climate change related voting (please give brief details) [ ] We publish it, but it doesn't have any examples of climate change related voting [ ] Other (please give details below) Comments




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2.05 - In the 2016-17 AGM seasons, do you intend to disclose your voting intentions to your members or stakeholders in advance of the AGM's?

(5 points) Select from below options [ ] Yes - we provide this information to members/stakeholders [ ] No - but we are considering how we reflect members/stakeholders views ahead of key votes [ ] No - we don't believe it's helpful to release this information even if members/stekeholders request this [ ] No information available Comments



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Key Question 2.06 - How did you vote on the following key climate resolutions in the past 12 months?

(20 points) Drag and drop into appropriate categories. If you selected 'split vote', please provide details in the comments. If you voted on other key climate resolutions, please provide details in the comments box below. This question uses Javascript and therefore it can cause issues if your browser has Javascript disabled. Please email [email protected] if you're experiencing issues.

For Against Abstain Split

vote No

shareholding

Chevron item 7: Report on Climate Change Impact Assessment

Chevron item 8: Report on Reserve Replacements

Chevron item 11: Independent Director with Environmental Expertise

Exxon item 5: Climate Expert on Board

Exxon item 12: Report on Impacts of Climate Change Policies

Exxon item 13: Report Reserve Replacements in BTUs

Suncor: Regularly disclose preparations for low-carbon future

Glencore: Strategic Resilience for 2035 and Beyond

Anglo American: Strategic Resilience for 2035 and Beyond

Rio Tinto: Strategic Resilience for 2035 and Beyond

Comments:



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Key Question 2.07 - Have you successfully engaged with companies on climate change related issues over the last year, resulting in demonstrable achievements?

(30 points) ( ) Successfully engaged with 10 or more companies/issues

( ) Successfully engaged with 9 companies/issues

( ) Successfully engaged with 8 companies/issues ( ) Successfully engaged with 7 companies/issues



( ) Successfully engaged with 2 companies/issues ( ) Successfully engaged with 1 company/issue

( ) No climate change related engagement activities undertaken during the last year

( ) No information available

What were the most notable and demonstrable key achievements of your climate change related engagement activities in this period? Defined as the company you are engaging with agrees to. This question asks you to provide details of up to 10 examples where you have engaged with companies on climate-related issues in the last year. You will be asked about which issue this engagement related to. Note that if you have engaged with one company on multiple issues, you should complete details for that company multiple times, selecting each issue as a separate entry. Please leave this blank if no climate change related engagement activites undertaken.

Company Achievement

Emissions reductions

Capital redeployment

into low carbon

investments

Capital restriction

and dividend

return

Capacity building

Board support without need of

shareholder resolution

Disclosure

Further risk analysis

(incorporating climate change)

Not to lobby

against policy

Not supply capital (e.g.

bank or goods for

carbon production/

supply)

#1 ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ #2 ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ #3 ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ #4 ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ #5 ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ #6 ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ #7 ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ #8 ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ #9 ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ #10 ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐


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Comments:



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Key Question 2.08 - How many climate change related resolutions do you intend to file, co-file, lead or support in 2016/2017 AGM season?

(20 points) This question asks whether you intend to file, co-file, lead or support climate change resolutions in the coming year. Filing refers to the requisitioning of a shareholder resolution by yourself. Co-filing refers to the requisitioning of a shareholder resolution in cooperation with other shareholders. Leading refers to collaborating with other shareholders to petition for a resolution to be filed. Supporting refers to taking an active, advocacy role relating to the resolution. This might occur, for example, by speaking publicly in favour of it beforehand. Simply announcing an intention to vote in favour of a climate change related resolution will often not be sufficient. ( ) 10 or more ( ) 9 ( ) 8 ( ) 7 ( ) 6 ( ) 5 ( ) 4 ( ) 3 ( ) 2 ( ) 1 ( ) Not known at this stage ( ) None ( ) No information available Please provide details of the resolutions you intend to file, co-file, lead or support. Please provide company name and details of the proposed resolution (up to 10 allowed).

Role Company Resolution type

File Co-file Lead

Support Emissions reductions

Capital redeployment

into low carbon investments

Capital restriction

and dividend

return

Capacity building

Board support without need of

shareholder resolution

Disclosure

Further risk analysis

incorporating climate change

Not to lobby

against policy

Not supply capital

(e.g. bank or goods for

carbon production/sup

ply)

Other (please provide details

below)

#1 ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ #2 ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ #3 ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ #4 ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ #5 ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ #6 ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ #7 ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ #8 ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ #9 ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ #10 ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐


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Comments:

Comments:



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2.09 - Have you assessed the current gains and/or losses associated with climate change exposed and/or carbon related investments in your portfolio to date?

(6 points) Select all applicable answers from below options [ ] Yes, we have assessed physical damage / insurance related losses [ ] Yes, we have assessed the climate change related asset valuation gains/losses [ ] Yes, we have assessed the impact of commodity price fluctuations [ ] No [ ] No information available Comments

Key Question 2.10 - Do you measure portfolio-level risk associated with physical impacts relating to climate change?

(25 points) Select from below options [ ] Yes, we measure physical impact risks within the following asset classes, representing approximately [x]% of total portfolio AUM [ ] No, we expect our managers to measure and manage these risks at the asset levels [ ] No information available Please select % range ( ) 100% ( ) 75%-99% ( ) 25% - 49% ( ) 50%-74% ( ) 1% - 24% Please select all asset classes that apply [ ] All asset classes [ ] Equities [ ] Property [ ] Hedge funds [ ] Infrastructure [ ] Private equity [ ] Fixed income Comments




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Key Question 2.11 - Do you measure portfolio-level risks associated with potential climate change related 'stranded assets'?

(25 points) Select from below options [ ] Yes, we measure stranded asset risks within the following asset classes, representing approximately [x]% of total portfolio AUM [ ] No, we expect our managers to measure and manage these risks at the asset levels [ ] No information available Please select % range ( ) 100% ( ) 75%-99% ( ) 25% - 49% ( ) 50%-74% ( ) 1% - 24% Please select all asset classes that apply [ ] All asset classes [ ] Equities [ ] Property [ ] Hedge funds [ ] Infrastructure [ ] Private equity [ ] Fixed income Comments

Key Question 2.12 - Does your organisation calculate portfolio-level carbon liabilities or estimate stranded asset levels under a variety of direct or intrinsic carbon price scenarios?

(20 points) Select from below options [ ] Yes, we use extensive scenario testing and research [ ] Yes, we use research [ ] Yes, we ensure our managers and advisors do this [ ] We don't calculate this [ ] No information available Comments




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2.13 - Do you use a forward looking base case for climate change risk mitigation?

(10 points) Select from below options [ ] Yes, we use a trajectory (please provide details of trajectory used) [ ] We are planning a base case now [ ] No, we trust our managers to sell out of any risks at the right time [ ] No, we rely on SAA [ ] No information available Comments

2.14 - What percentage of your total portfolio is invested in high carbon and/or emissions-intensive sector assets?

(20 points) Please select % range ( ) 100% ( ) 75%-99% ( ) 25% - 49% ( ) 50%-74% ( ) 1% - 24% ( ) Unknown Please provide AUM held in high emitting assets for each sector if known Non-renewable resources and energy: Utilities (ex. renewables): Infrastructure (ex. renewables): Materials: Transportation: Other: Comments




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2.15 - Do you assign a risk premium or use a shadow carbon price to allow better mitigation of climate risk within your investment portfolio?

(14 points) Select from below options [ ] Yes, we allocate a risk premium [ ] Yes, we use a shadow carbon price [ ] We use another method to account for climate risk (please give details below) [ ] No, we expect our managers to measure and manage these risks at the asset levels [ ] No, we don't consider this risk [ ] No information available Comments

2.16 - Have you considered the probabilities and uncertainties associated with any of the following pathways to a low carbon economy?

(14 points) Select all applicable answers from below options [ ] Pro-active policy by governments (e.g. US Congress) towards stringent carbon pricing [ ] Pro-active policy by the People’s Republic of China’s next five year plan [ ] Momentum through regional regulatory measures (e.g. EPA’s) and regulatory convergence (e.g. emission trading scheme connections) [ ] Disruptive Economics (e.g. German solar supply impacting both local Utility Asset Valuations and Chinese oversupply to the USA) and Innovation [ ] Thematic divestment / re-investment by leading asset owners [ ] Re-active policy in response to extreme physical events (e.g. Hurricane Sandy, wheatbelt droughts, etc.) [ ] The development of a globally harmonised emissions price driven by an exposed industry, e.g. aviation [ ] No, but we have used other broad scenarios to help us assess the risks [ ] No, we let our fund managers assess these risks. [ ] No information available Comments




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Key Question 2.17 - What range of climate change-related portfolio risk mitigation action do you undertake?

(50 points) Select all applicable answers from below options [ ] Hedging allocation of low carbon assets to hedge against high carbon stranded assets [ ] Underweighting/divesting of specific stocks exposed to carbon risk [ ] Allocate a risk premium to account for portfolio climate risk [ ] Apply shadow carbon price [ ] Low carbon investments, e.g. carbon bonds [ ] Underweighting/divesting of specific sectors exposed to carbon risk [ ] Use of carbon optimised equity indexes [ ] Negative screens (or positive inclusion criteria) on all investments [ ] Investment in adaptation assets (flood barriers, sea walls, etc.) [ ] Investment in certified "green" real estate [ ] Negative screens (or positive inclusion criteria) on selected investment options [ ] Fund manager mandate guidance [ ] An overlay on our core portfolio [ ] Other (please give details below) [ ] None [ ] No information available Comments

Key Question 2.18 - Do you identify, disclose and quantify your investments in low carbon assets?

(25 points) Select from below options [ ] Yes, we identify, disclose and quantify low carbon investments [ ] Yes, we identify and disclose the nature of these investments but do not quantify [ ] We make a broad statement on our low carbon investments but provide no detail [ ] No, we do not disclose this information [ ] No, we don't invest in low carbon assets [ ] No information available Comments




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2.19 - Have you made a commitment to invest in Low Carbon assets as part of a strategy to manage/mitigate climate risk in your portfolio?

(25 points) Select from below options [ ] Yes, at the overall portfolio level (please specify total value): _______________________________* [ ] Yes, within specific asset classes [ ] No [ ] No information available Please specify the value allocated within these asset classes (please provide the full number, not in millions or billions) Equities: Fixed income: Property: Infrastructure: Hedge funds: Private Equity: Other: TOTAL: Please provide the approximate % of total portfolio AUM represented by the total amount identified above ( ) 25%-100% ( ) 15%-25% ( ) 5%-15% ( ) 4% - 5% ( ) 3% - 4% ( ) 2%-3% ( ) >0%-2% ( ) 0% or not known Comments



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Section 3: Metrics Key Question 3.01 - Have you calculated your portfolio emissions intensity?

(25 points) Select from below options [ ] Yes, in all asset classes [ ] Yes, in certain asset classes [ ] No [ ] No information available Please provide tCO2e/US$bn in AUM (or alternative). Please specify below if alternative methodology used

Domestic equities:

International equities:

Property:

Infrastructure:

Hedge funds:

Fixed income:

Private equity:

Other:

Total - all asset classes: Please provide the approximate [x]% of total portfolio AUM represented by the selected asset classes ( ) 100% ( ) 75%-99% ( ) 50%-74% ( ) 25% - 49% ( ) 1% - 24% Comments



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Key Question 3.02 - Have you benchmarked your portfolio carbon emissions intensity performance?

(50 points) Select from below options ( ) Yes ( ) No ( ) No information available What did you use as a benchmark? (e.g. for Equities, we use a default benchmark MSCI ACWI): _________________________________________________ What was your portfolio emissions intensity performance against benchmark? ( ) 80-89% (10-20% below benchmark) ( ) 90-99% (0-10% below benchmark) ( ) 100% ( ) >100% (more intensive than benchmark) Comments



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Key Question 3.03 - Does your organisation currently have an emissions intensity reduction target for the investment portfolio over the next year?

(20 points) Select from below options ( ) Yes ( ) No ( ) No information available Please specify the type of reduction and give details below [ ] It is a targeted percentage reduction of [x] ________________ % [ ] It is a targeted absolute reduction of [x] __________ tonnes carbon dioxide equivalent (CO2-e) [ ] Other (please describe) Comments



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Key Question 3.04 - What is the total value of investments in low carbon assets in your portfolio in the following areas (across all asset classes)?

(50 points) Please provide the total amount invested in low-carbon assets (please provide the full number, not in millions or billions): _________________________________________________ Please indicate which of the following low-carbon asset categories you invest in and, where possible, please provide the amount you have invested (please provide the full number, not in millions or billions)

[ ] Renewable energy infrastructure:

[ ] Renewable energy companies:

[ ] Energy efficiency companies/investments:

[ ] Other clean technology investments:

[ ] Adaptation assets (e.g. flood barriers, seawalls):

[ ] Carbon offset assets (e.g. forestation, sinks):

[ ] Low-carbon financial products (e.g. carbon bonds):

[ ] Other (please give details below):

[ ] None or Unknown Please provide the approximate [x]% of total portfolio AUM represented by the selected asset classes Please provide the approximate % of total portfolio AUM represented by the total amount identified above ( ) 25%-100% ( ) 15%-25% ( ) 5%-15% ( ) 4% - 5% ( ) 3% - 4% ( ) 2%-3% ( ) >0%-2% ( ) 0% or not known Comments



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Transparency and Assurance 4.01 - Please indicate if you are happy for your response to be made publicly available. Select from below options. ( ) Yes, make my response publicly available ( ) Yes, make my response publicly available except for response to specific question(s) ( ) No, do not make my response publicly available

4.02 - Please indicate whether your response has been externally assured or verified? Select from below options. ( ) Yes ( ) No External assurance/verification is an activity undertaken by an independent third party to review your disclosures to comment on the validity and quality of information disclosed and/or the policies, systems and processes underpinning the information used in those disclosures. This may apply to either the entire response, or partially to elements within your disclosure. In either case, it would be helpful to outline the approach taken and the organisation undertaking the assurance work. Please refer to Global Reporting Initiative’s guidelines on assurance of sustainability reporting for further information: https://www.globalreporting.org/resourcelibrary/GRI-Assurance.pdf Select from below options. ( ) Yes ( ) No

Please specify questions you wish to withhold from public disclosure

If you have elected to withhold from public disclosure, please provide a reason

If so, by whom?


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Feedback Page In our efforts to continually improve the AODP research and ratings process, we would appreciate your feedback. Please provide your comments below.

Thank You! Thank you for participating in the 2017 AODP Global Climate Risk Survey. Your input is very important to us. If we require any further information regarding your responses we will contact you directly. If you have any further feedback or questions please contact us at [email protected].

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