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Dealer use only IA Clarington Investments. Dealer use only Canada, China and ESG What are the prospects for a Canada-China relationship grounded in a.

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Presentation on theme: "Dealer use only IA Clarington Investments. Dealer use only Canada, China and ESG What are the prospects for a Canada-China relationship grounded in a."— Presentation transcript:

1 Dealer use only IA Clarington Investments

2 Dealer use only Canada, China and ESG What are the prospects for a Canada-China relationship grounded in a strong ESG foundation? 2

3 Dealer use only Dermot Foley CFA Vancity Investment Management Ltd. Strategic Analyst IA Clarington Inhance Monthly Income SRI Fund IA Clarington Inhance Conservative SRI Portfolio IA Clarington Inhance Balanced SRI Portfolio IA Clarington Inhance Growth SRI Portfolio IA Clarington Inhance Canadian Equity SRI Class IA Clarington Inhance Global Equity SRI Class 3

4 Dealer use only 4 With his depth of knowledge in labour relations, energy stocks and climate change impacts and solutions, Dermot Foley takes a lead role in analyzing the environmental performance, social responsibility and corporate governance (ESG) of companies for the Inhance portfolios. Dermot brings over 20 years of experience in social and environmental advocacy, research and policy analysis. Dermot Foley CFA Vancity Investment Management Ltd. Strategic Analyst

5 Dealer use only 5 As a key member of the Vancity Investment Management investment team, his role is to assess business practices, management systems and treatment of ESG risk. Dermot is also responsible for determining and executing shareholder engagement strategies on behalf of the Inhance funds. Dermot holds the Canadian Investment Manager designation from the Canadian Securities Institute and has completed all three levels of the CFA program to achieve the CFA designation. Dermot Foley CFA Vancity Investment Management Ltd. Strategic Analyst

6 msci.com ©2012. All rights reserved. msci.com Investing in China - a Canadian perspective on ESG risk & opportunity Vancouver, 17 June 2013 Dana Sasarean Senior Oil & Gas Analyst, MSCI ESG Research

7 msci.com ©2012. All rights reserved. ESG issues and event risk in China 7 Source: Thomson Financial China Mengniu Dairy (CCC) Food Safety Scandal China Railway Construction (CCC) Corruption Scandal Product Safety Concern Severe Toxic Discharge Zijin Mining Group (CCC) ESG Controversies Source: MSCI ESG Research

8 msci.com ©2012. All rights reserved. China vs. Canada: Ratings Distribution Source: MSCI ESG Research, as of 12 June 2013 8

9 msci.com ©2012. All rights reserved. China vs. Canada: Selected ESG Key Issues Source: MSCI ESG Research, as of June 2013

10 msci.com ©2012. All rights reserved. Industry-level: Anti-corruption Performance 10 Source: MSCI ESG Research

11 msci.com ©2012. All rights reserved. Company-level: Carbon Emissions, Health & Safety Source: MSCI ESG Research, Corporate Reporting

12 msci.com ©2012. All rights reserved. Drivers for change - Growing ESG awareness in China Proportion of survey respondents identifying issues as very big problem 12 Source: Pew Research Center’s Global Attitudes Project

13 msci.com ©2012. All rights reserved. Number of Internet Users (millions)  40% of users under age 35  46 min. per day on social media  ~66% use social media to ‘get news‘ and ‘share news’ Source: McKinsey, Nielsen Media Drivers for change - Growing ESG awareness in China 13 Workers Involved in Labor Strikes May 2010 – May 2013 Source: chinastrikes.crowdmap.com

14 msci.com ©2012. All rights reserved. Regulatory requirements are on the rise

15 msci.com ©2012. All rights reserved. Key Takeaways  The relevance of Chinese companies’ ESG performance is bound to increase  Overcoming ESG challenges and managing risk is crucial for improving performance in key areas such as corruption and health & safety  Regulatory shifts reflect increased liability but also opportunity for organic & sustainable growth 15

16 msci.com ©2012. All rights reserved. 16 msci.com 16 msci.com MSCI ESG Global Client Service Americas + 1.212.804.5299 Asia Pacific + 612.9033.9339 Europe, Middle East and Africa + 44.207.618.2510 esgclientservice@msci.com www.msci.com/esg

17 msci.com ©2012. All rights reserved. 17 msci.com 17 msci.com Notice and Disclaimer  This document and all of the information contained in it, including without limitation all text, data, graphs, charts (collectively, the “Information”) is the property of MSCl Inc. or its subsidiaries (collectively, “MSCI”), or MSCI’s licensors, direct or indirect suppliers or any third party involved in making or compiling any Information (collectively, with MSCI, the “Information Providers”) and is provided for informational purposes only. The Information may not be reproduced or redisseminated in whole or in part without prior written permission from MSCI.  The Information may not be used to create derivative works or to verify or correct other data or information. For example (but without limitation), the Information may not be used to create indices, databases, risk models, analytics, software, or in connection with the issuing, offering, sponsoring, managing or marketing of any securities, portfolios, financial products or other investment vehicles utilizing or based on, linked to, tracking or otherwise derived from the Information or any other MSCI data, information, products or services.  The user of the Information assumes the entire risk of any use it may make or permit to be made of the Information. NONE OF THE INFORMATION PROVIDERS MAKES ANY EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS WITH RESPECT TO THE INFORMATION (OR THE RESULTS TO BE OBTAINED BY THE USE THEREOF), AND TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH INFORMATION PROVIDER EXPRESSLY DISCLAIMS ALL IMPLIED WARRANTIES (INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF ORIGINALITY, ACCURACY, TIMELINESS, NON-INFRINGEMENT, COMPLETENESS, MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE) WITH RESPECT TO ANY OF THE INFORMATION.  Without limiting any of the foregoing and to the maximum extent permitted by applicable law, in no event shall any Information Provider have any liability regarding any of the Information for any direct, indirect, special, punitive, consequential (including lost profits) or any other damages even if notified of the possibility of such damages. The foregoing shall not exclude or limit any liability that may not by applicable law be excluded or limited, including without limitation (as applicable), any liability for death or personal injury to the extent that such injury results from the negligence or wilful default of itself, its servants, agents or sub-contractors.  Information containing any historical information, data or analysis should not be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. Past performance does not guarantee future results.  None of the Information constitutes an offer to sell (or a solicitation of an offer to buy), any security, financial product or other investment vehicle or any trading strategy.  MSCI’s indirect wholly-owned subsidiary Institutional Shareholder Services, Inc. (“ISS”) is a Registered Investment Adviser under the Investment Advisers Act of 1940. Except with respect to any applicable products or services from ISS (including applicable products or services from MSCI ESG Research, which are provided by ISS), none of MSCI’s products or services recommends, endorses, approves or otherwise expresses any opinion regarding any issuer, securities, financial products or instruments or trading strategies and none of MSCI’s products or services is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.  The MSCI ESG Indices use ratings and other data, analysis and information from MSCI ESG Research. MSCI ESG Research is produced by ISS or its subsidiaries. Issuers mentioned or included in any MSCI ESG Research materials may be a client of MSCI, ISS, or another MSCI subsidiary, or the parent of, or affiliated with, a client of MSCI, ISS, or another MSCI subsidiary, including ISS Corporate Services, Inc., which provides tools and services to issuers. MSCI ESG Research materials, including materials utilized in any MSCI ESG Indices or other products, have not been submitted to, nor received approval from, the United States Securities and Exchange Commission or any other regulatory body.  Any use of or access to products, services or information of MSCI requires a license from MSCI. MSCI, Barra, RiskMetrics, ISS, CFRA, FEA, and other MSCI brands and product names are the trademarks, service marks, or registered trademarks or service marks of MSCI or its subsidiaries in the United States and other jurisdictions. The Global Industry Classification Standard (GICS) was developed by and is the exclusive property of MSCI and Standard & Poor’s. “Global Industry Classification Standard (GICS)” is a service mark of MSCI and Standard & Poor’s. © 2012 MSCI Inc. All rights reserved.RV Jan 2012

18 The global leader in natural gas engines. Powering transportation. Driving change. The global leader in natural gas engines. Marla Brock Director, Strategic Relationships June 17, 2013

19 Forward Looking Statements This presentation contains forward-looking statements that are based on the beliefs of Westport’s management and reflect Westport’s current expectations. Investors are cautioned that all forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in these forward-looking statements, including, without limitation, Westport’s ability to develop viable fuel systems; Westport’s ability to provide the capital required for research, product development, operations, and marketing; product development, production and commercial launch delays; changing environmental regulations; Westport’s ability to attract and retain key personal and business partners; competition from conventional diesel fuelled engines; and Westport’s ability to protect its intellectual property. These factors should be considered carefully and investors should not rely on any forward- looking statements. Investors are encouraged to review Management’s Discussion and Analysis and the Risk Factors section in Westport’s most recently filed Annual Information Form and filings with securities regulators for a more complete discussion of factors that could affect Westport’s future performance. We undertake no obligation to update or revise any forward- looking statements, whether as a result of new information, future events or otherwise, except as required by law. All figures are in U.S. dollars unless otherwise stated. 19

20 In China & Throughout the Developing World, Cleaner Technologies are Critical to Sustainability 20  China is the leading GHG emitter in the world, with pollution levels increasing.  Traditional technologies have failed to balance China’s economic trajectory with environmental sustainability.  Developments in fuel efficiency technology will only partially offset projected pollution.  China’s need for energy security underscores the demand for alternative fuels and clean technology.

21 21  Vehicle exhaust is the major cause of air pollution in China today.  A long-term sustainability strategy means better, cleaner technology.  Perceived cost and infrastructure barriers are under attack.  Upfront capital expenditure and payback periods are reconciled over the long term.  Technologies that enable alternative fuels address pollution abatement and fuel efficiency. A Critical First Step: Greening China’s Transportation Sector Refuse and vocational trucks, shuttle buses, transit buses, motor coaches, and delivery vans powered by reliable, high-performance natural gas engines are working on roads in China and carrying people every day. With the global medium- and heavy-duty vehicle market projected to grow nearly 8% between 2009 and 2014, a rapidly-urbanizing China is a significant commercial opportunity.

22 22 Balance Risks & Opportunities with the Right Partnerships  Continuous advances in technologies are prompting commitments by industry leaders.  For China and developing markets, solutions must be technically feasible and commercially available.  It is critical to anticipate and defeat barriers to full scale adoption of these technologies.  Strategic partnering accelerates adoption and deployment.  Weichai Westport Inc. (“WWI”), a joint venture between Westport (35% interest), Weichai Holding Group Co. Ltd.,("Weichai Holding") (40% interest) and Hong Kong Peterson (CNG) Equipment Ltd. ("Hong Kong Peterson") (25% interest) to focus on the Chinese market. WWI develops, manufactures and sells advanced, alternative fuel engines and parts that are widely used in city bus, coach and heavy-duty truck applications in China or exported to other regions globally. WWI's facility in China currently has an annual production capacity of 40,000 engines.  Westport’s Clinton Global Initiative Commitment in Rural India

23 Vancouver, June 2013 ESG perspectives: Asia, China Jaideep Singh Panwar Manager, Research Products, Singapore

24 Covering Asia Businesses in Asia | Asian businesses June 2013 October 2012 What does China’s ESG Leadership Transition Mean for ESG?

25 Asian companies in perspective Peer performance of Asian companies with those of other regions* Percentile scores Percentage of companies in a market within a percentile range * Data from Sustainalytics platform; June 2013

26 Chinese companies in perspective Percentile scores Percentage of companies in a market within a percentile range Peer performance of Chinese companies with those of other markets in Asia * Data from Sustainalytics platform; June 2013

27 Connecting with Asian companies Demonstration of an appreciation of relevant rules and regulations Tying in conversations with national (and the Party’s) goals and priorities Best practice conversations often welcomed, but there’s resistance to ‘copy-pasting’ Western models Issues such as ‘human rights, as it is holistically interpreted, may stall conversations A lack of response may not mean that your message has had no effect ‘ESG’ is a novel term; regional differences ‘Soft’ and relationship approach; sustainability leaders frustrated by lack of investor action Questionnaire fatigue Appreciation of operational contexts – flexibility in your ESG approach

28 Thank You! For more information please contact: Jaideep Singh Panwar Manager, Research Products Phone: +65 3158 3797 Email: jaideep.panwar@sustainalytics.com Website: www.sustainalytics.com Amsterdam | Bogota | Boston | Brussels | Bucharest | Copenhagen Frankfurt | London | Paris | San Francisco | Singapore | Timisoara | Toronto

29 Disclaimer Copyright © 2013 Sustainalytics. All rights reserved. No portion of this material may be reproduced in any form without the expressed, written permission of Sustainalytics. For further information contact: Sustainalytics 49 Club Street #02-01 Singapore 069426 Tel: (+65) 62 24 07 66 Email: enquiries@sustainalytics.com www.sustainalytics.com


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