Dalhousie University
PA-14: Sustainable Investment

Businesses selected for exemplary sustainability performance At Dalhousie, eight managers representing 34% of our funds have formal ESG policies and are signatories to the UNPRI and another two managers accounting for 6% of our funds have formal ESG policies. Of the eight managers signed onto the UNPRI: three managers are using their own rating system and research plus using services such as Sustainalytics; two managers are noted for analyzing proxy voting and aligning with proxy policies; and three private equity firms with ESG policies sit on advisory boards for invested companies. Two fixed income managers that have formal ESG policies and use Sustainalytics to supplement their ratings. To determine a dollar figure number that meets the STARS criteria; 34% of investment decisions by eight managers use outside sustainability analytical services and/or plus their own services and are signed onto the UNPRI. This represents 34% x $478 million in investments = $162,520,000 The 8 investment management firms that have signed the UNPRI and have formal ESG processes are: 1. Fiera Capital 2. Montrusco Bolton 3. SSgA 4. Addenda Capital 5. BlackRock Asset management 6. Commonfund 7. Pantheon Ventures 8. JP Morgan Asset Management Information on investment types is available in the annual investment report: http://www.dal.ca/content/dam/dalhousie/pdf/dept/pension/Jun14%20BoG%20-%20IC%20Annual%20Report.pdf See additional reports: http://www.dal.ca/dept/university_secretariat/board_of_governors/reports.html Community development financial institutions (CDFI) or the equivalent Currently no CDFI holdings. Socially responsible mutual funds with positive screens or the equivalent Not applicable - Do not invest in mutual funds. Green revolving loan funds $0 from the endowment; however, money is invested annually from operations related funding for on-campus sustainability projects. In the last five year over $45 million has been invested in sustainability related projects.

In the Dalhousie Statement of Investment Policies and Guidelines the following sections of the policy reference sustainable investments:  section 5.7 – “The Endowment Funds shall be invested in a manner to maximize risk adjusted returns. Dalhousie University believes that over the long term, companies that exhibit responsible corporate behavior with respect to environmental, social and governance (ESG) factors will have a positive impact on long-term financial performance. The assessment of ESG factors along with the assessment of the business, management and financial metrics will enhance the identification of good investment opportunities and to help mitigate risk to the Endowment Funds.”  section 5.8 – “The Endowment Funds will encourage its external investment managers to develop and enhance their ESG assessment capabilities. The Administration will include ESG assessment progress and capabilities in each investment manager’s annual review.”  Section 5.9 - The Endowment Funds will include ESG assessment capabilities when evaluating investment managers for new mandates.  Section 15.2. B. 1V. Quarterly. In addition to the monthly report and within 30 days: Report on any environmental, social and governance (ESG) risks they have discovered in their portfolio. The report shall also include information on any ESG issues that have been identified and discussed with the management of any of the companies that are in the portfolio or information on ESG issues that are made available through industry publications or events. http://www.dal.ca/content/dam/dalhousie/pdf/financial-services/Policies/Treasury%20and%20Investments/Endowment%20SIP%26G%20Nov%202013.pdf

The last annual report of the Investment Committee indicates some follow-up with managers on ESG criteria including quarterly reports. Since the incorporation of the ESG principles, managers are developing and expanding their internal ESG capabilities in the areas of assessment, proxy execution and engagement. Also, in the Dalhousie Statement of Investment Policies and Guidelines section 5.8 – “The Endowment Funds will encourage its external investment managers to develop and enhance their ESG assessment capabilities. The Administration will include ESG assessment progress and capabilities in each investment manager’s annual review.”

Dalhousie encourages external investment managers to include ESG factors in their evaluations. Managers do not utilize negative screening

The Investment Policy provides direction for investment managers to report on ESG proxy voting. Section - 13.6 The Investment Committee or Administration will require the Investment Managers to provide a summary of how proxies have been voted. This report shall also disclose any ESG issues that may have arisen and how this ESG issue has impacted positively or negatively the exercise of any proxy vote.”

Dalhousie participates in CAUBO sessions on sustainable investment and other conferences as on-going learning process but is not an active member on a particular sustainable investors network.