Thomas Van Dyck, CIMASenior Vice President – Financial Consultant

TBLI & High Net Worth Wealth Management

TBLI 2009

*The name Sustainable Investment Group refers to a group of financial consultants working in the San Francisco, CA office as employees of RBC Wealth Management.

The Sustainable Investment Group draws on the wealth management resources offered and memberships held through RBC Wealth Management.

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Portfolio Strategies for Change

Investment Strategies• Sustainability Investing &

ESG Screening

• Shareholder Engagement

• Mission Related Investments (MRI) & Program Related Investments (PRI)

Portfolio

NGOs

Grantmaking

Corporate Accountability

& Shareholder

Value

Sustainability &

Social Change

3

Qualitative ScreeningThe Value of Qualitative Screens in a Portfolio

Qualitative Management Screens

Environmental Factors- Liabilities, lawsuits, fines- Externalizing costs onto the public- Climate Policy

Social Factors- Employee & Community Relations- Product integrity

Revenues Cost of sales Margins Cash flow Earnings or net income Debt to equity ratio Price to earnings ratio Growth rates Market share

Traditional Financial Screens

TRIPLE BOTTOM LINE

“I never made a good investment with bad management”

- Warren Buffet

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A Good Investment in Bad Management?

Global warming "is a total crock of sh*t." Bob Lutz, Vice Chairman -General Motors

January 30, 2008 - private lunch with reporters in Virginia

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Toyota vs. GM & Ford

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Cleantech

[Cleantech] could be the largest economic opportunity of the 21st century 

John DoerrKleiner Perkins Caufield & ByersUSA Today 4/10/06

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Cleantech Trends | Projected Growth

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Falling costsExpected cumulative reduction (%) in costs of renewable technologies by 2020

-30

-60

-20

-30 -30 -30

-15

-25

-10

-20

-10

-15

-10 -10

-65

-55

-45

-35

-25

-15

-5

Low Expectation

High Expectation

Source: United Nations Economic and Social Council

%

Solar PV

Wind offshore

Solar Thermal

Wind onshore

Geo-thermal

Bio-energy

Hydro

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PACE Financing | Property Assessed Clean Energy

• Municipality creates a “PACE” district and issues a “PACE” master bond

• Property owners borrow from newly established “municipal financing district”

• Eliminates the upfront cost barrier forproperty owners

• Repayment period: treated as senior “property tax lien” and repaid by real estate owner over 20 years as annual property tax surcharge

www.PACEnow.org

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Industry Peers

•Recycling Standards

•Toxic Reductions•Human Rights

Retailers

As You Sow

Shareholder Engagement Case Study: Computer Recycling Campaign

RBC does not endorse As You Sow

NGO CampaignsSilicon Valley Toxics

Coalition

Grantmaking

EFA Portfolio

Shareholder CampaignAs You Sow, EFA, Calvert

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Pledged $500,000 to complete Tides Canada Great Bear Rainforest campaign

Commit $50 million over 10 years to global water scarcity and access issues

RBC | Commitment to Sustainability

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Sustainability & ResponsibilityGlobal Partnerships and Recognitions