1. ESG ISSUES Environmental, Social and Governance February 23, 2015 1

2. ENVIRONMENTAL ISSUES Biodiversity/land use Carbon emissions Climate change risks Energy usage Raw material sourcing Regulatory/legal risks Supply chain management Waste and recycling Water management Weather events 2

3. SOCIAL ISSUES Community relations Controversial business Customer relations/products Diversity issues Employee relations Health and safety Human capital management Human rights Responsible marketing and R&D Union relationship 3

4. GOVERNANCE ISSUES Accountability Anti-takeover measures Board structure/size Bribery and corruption CEO duality Executive compensation schemes Ownership structure Shareholder rights Transparency Voting procedures 4

5. CORPORATE VIEW ON ESG 93% of CEOs agreed with the statement - “demonstrating a visible and authentic commitment to ESG is especially important...to regain and build trust from the public and other key stakeholders, such as consumers and governments—trust that was shaken by the recent global financial crisis.” Goldman Sachs found “research at both the corporate and university levels suggests that this next generation of employees and consumers have specific needs at work that are dramatically different from previous generations. High among these is a desire to align personal and corporate values. To attract and retain this group, we believe that companies need to provide rewards beyond financial gain.” McDonalds is serving Fair Trade Coffee Coca Cola is using plant-based bottles 5

6. USING ESG FOR COMPETITIVE ADVANTAGE Reducing Risks Improving Performance  Process innovation  Product innovation Reputation  Attracting employees  Attracting customers 6

7. ESG PRACTICES AND STOCK PRICE More sustainable firms generally outperform less sustainable firms Stocks of well-governed firms out perform better than stocks of poorly-governed firms Good employee relations and employee satisfaction contribute to better stock market performance Using positive screens substantially outperforms negative screens 7