Responsible Investing Webinar

1. Responsible Investing Webinar Presented by Betsy Martin CFC Senior Advisor February 23, 2010

2. Background • Calgary Community Leadership meeting October 2006 • 2008 CFs made $130 million in grants & had $2,5 billion • Used 5% of assets to meet our mission • LA Times investigation of Gates Foundation - some investments directly contradict mission • Growing discomfort with disconnect between mission and investments • CFC launch of RIPP

3. RI incorporates activeconsideration of environmental, social and governance (ESG) factors in investment decisions. Tools: Screening – either screening in companies or industries you want to support (alternative energy) or screening out things you want to discourage (tobacco is common) Shareholder engagement – using your position as an investor to engage companies on issues that are important to your foundation Proxy voting – actively voting your proxies or working with your fund managers to do so Community/mission investing – investing assets directly in the community through vehicles like community loan funds, micro finance, sustainable venture capital, etc. What is RI?

4. Performance

5. RI gaining momentum • In aftermath of global financial crisis, investors are reconsidering their approach to risk management, asset allocation, and short-term strategies • Growing climate change evidence, regulation and stimulus-driven interest in energy efficiency and renewable energy • Issues of resource scarcity are leading to new investment themes (water, food, microfinance, etc.) • Corporations are competing globally for “green” brand recognition • Generational change: data suggest younger employees, customers & investors tend to be more interested in RI Source: Mercer

6. UN PRIsource: Mercer • Framework for investors that believe that ESG issues can impact financial performance and want to take steps to ensure these issues are integrated into investment processes (structured within fiduciary responsibility)

7. Summary of SRI assets in Canadasource: Mercer Broad” SRI has grown significantly since 2006 (PRI launch)

8. RIPP Update Progress in participating foundations: • Edmonton’s $5 million Social Enterprise Fund • Vancouver’s $12 million SRI fund for donors and launching $10 million “Resilient Fund” with Van City • Osprey - 15% of its capital in VF’s SRI fund • Ottawa developed model RI policy and beginning implementation • Whistler has 5% of its assets in RI account & beginning CI • Hamilton rethinking overall investment model • Victoria reviewing investment strategy & policy

9. RIPP Update • Continuing to support participating CFs • Legal/Regulatory primer on community /mission investing with PFC • Profiles of community/mission investing by nine foundations in Canada • Questions for fund managers • Sample RI policy for community foundations based on Ottawa’s work

10. RI going forward • Board road show with PFC, including how-to- get-started resource • National responsible investing training program • How-to guide on community investing • Community investing training workshop for finance and program staff • Lake Winnipeg Watershed investor forum • Work with Causeway and others to build the social finance “movement”

11. RI Going Forward • Determine priority policy issues & CFC’s role. Work with others on federal & provincial solutions. • Determine CFC’s role in addressing lack of intermediaries & limited deal flow for community investing. • Enhance & continually update web resources.