How is Climate Change Affecting Our Lives?o World Meteorological Organization: 14 of 15 Hottest Years on

Record Have Been in the 21st Centuryo We’re all affected

o What impacts of climate change have you seen in the U.S.?

o Climate Refugees and the Global Neighbor

o What is happening around the world?

Images Vicki King/ Clarion-Ledger, Eric Gay/AP, Gabriel Bouys/Getty Images

Three Impacts by 2100: Drought, Flood, and Heat

Drought: Increases in intensity and/or duration of drought Century is likely.

Flooding: Increased incidence and/or magnitude of extreme high sea level is very likely

Warmer and/or more frequent hot days and nights over most land areas is virtually certain.

Consequences for Human Suffering: Hunger and Climate Refugees

UN Food and Agriculture data going since 1980 in all major crop-growing regions show that warming temperatures are reducing yields.

Scientists predict the number of people displaced by natural disasters will rise to at least 50 million by 2050. Some say it could be as high as 200 million.

“300 Somali Children Left for Dead in Drought,” NBC News, July 14, 2011/ International Organization for Migration

Care for Creation and Love of Neighbor Today = ?

+ = ?

Energy Ethics:Vision and Value$

Catholic Sources for Energy Ethics

The Moral Call to Create a Just Economy

Energy Poverty

The Responsibility of Developed Nations

The Moral Call to Create a Renewable Economy

Climate Change and the Scale of the Crisis

Investing

6 Sources for Energy Ethics

Laudato Si’: COMPREHENSIVE

Vatican book: Energy, Justice and Peace: ANALYTICAL

Global Bishops’ Lima Document: RADICAL

“Catholic Moral Traditions and Energy Ethics”: APPLIED

Pope Francis’s Address to the UN: CONCRETE

Global Bishops October Appeal: CHALLENGING

LS 52: The Obligation of Superdeveloped Nations

“The developed countries ought to help pay [their ecological] debt by significantly limiting their consumption of non-renewable energy and by assisting poorer countries to support policies and programmes of sustainable development.

The poorest areas and countries are less capable of adopting new models for reducing environmental impact because they lack the wherewithal to develop the necessary processes and to cover their costs.”

Where are we Going? The Radical Roadmap of the Global Catholic Bishops

o Statement to the Lima Conference of the Parties:

o Keep temperature rise to 1.5 ‘ Celsius

o End the fossil fuel era

o Move to 100% renewables

o Protect communities suffering from the

impacts of climate change

Primary Energy Consumption by Source, 1949-2014

U.S. Energy Information Administration, Monthly Energy Review

Energy decisions are ethical decisions.

Avoiding the worst impacts of climate change for all requires a rapid shift to a low-carbon economy.

Catholic social teaching offers ethical direction.

There are actions everyone can take in a spirit of subsidiarity and solidarity.

https://catholicenergyethics21century.wordpress.com/

Catholic Energy Ethic: Principles from the US Bishops

o LIFE

o RESPONSIBILITY

o COMMON GOOD

o DISTRIBUTIVE JUSTICE

o ENERGY ACCESS FOR THE POOR

o PARTICIPATION AND TRANSPARENCY

o TECHNOLOGICAL PRUDENCE

Catholic Energy Ethic: . . . and Priorities

o End coal, oil, shale gas and tar sands

o Use natural gas carefully as a bridge with an endpoint

o End subsidies for fossil fuels

o Invest in R&D for renewable technologies and systems

How Much Renewable Energy is Needed by When?o The consensus from six models of potential global

energy sources and technology systems is that:

o If we are to have a 70% chance of remaining below a 2’C temperature increase by 2100,

o 50-75% renewable energy by 2100

o To have a reasonable chance of not exceeding 1.5’C warming, we need decarbonization by 2050

o 42% renewable energy by 2030

o McCollum et al; CAFOD, “Energy in the Post 2015 Development Framework

A Cross-Model Comparison of Global Long-Term Technology Diffusion under a 2˚C Climate Change Control Target

B.C.C. van der Zwaan, H. Rösler, T. Kober, T. Aboumahboub, K.V. Calvin, D.E.H.J. Gernaat, G. Marangoni and D.McCollum

Patz et al, “Climate Change and Global Health: Quantifying a Growing Ethical Crisis”. The top map is distorted to show the cumulative carbon dioxide emissions from 1950 to 2000. The second is distorted to show the health effects of malaria, malnutrition, diarrhea, and inland flood-related fatalities.

Climate Change’s Unequal Impact

Love the Lord your God with all your being and your neighbor as yourself: INSTITUTIONALLY

The unity of love of God and neighbor includes the institutions which are inseparable from our lives and our moral influence

Catholics have a Eucharistic, incarnational spirituality

We care about the integrity of our institutions

The Climate-Energy-Inequality Nexus

Climate Change’s Unequal Impacts

Environmental Injustice / Racism

Energy Poverty - US

Energy Poverty- International

The Top Four Billion, the Bottom Three Billion

Pope Francis: “Inequity affects not only individuals but entire countries.”

Our institutions have power.

Remember the parable of the sower . .

. . . and the widow.

The call to live out an energy ethics proceeds from the universal call to holiness (Lumen gentium).

“Environmental ethics are crucial sites of agency for lay people with multiple forms of expertise.”

- Catholic Moral Traditions and Energy Ethics

Kaiser Permanente’s Renewable Energy Programs

2 | © Kaiser Permanente 2010-2011. All Rights Reserved.November 17, 2015

Our Commitment

— Bernard. J. Tyson, Chairman and CEO

“Kaiser Permanente is committed to creating healthy communities, and it’s critical we work to reduce the impact of our operations on the environment. We all take pride in our focus on prevention at Kaiser Permanente, and that includes taking a stand to reduce greenhouse gas emissions.”

3 | © Kaiser Permanente 2010-2011. All Rights Reserved.November 17, 2015

Green Energy Overview

The Driver: 30% reduction in GHG’s by 2020 KP making major purchase of clean energy

– Two separate renewable-energy deals onsite generation of solar energy & purchase of wind

and solar energy from offsite sources

Together two clean-energy projects:– Combined output of about 590 million kWh/year of green

power for 20 years – Produce 50% of electricity KP uses in California

Roughly enough clean energy to power 82,000 U.S. homes

– Help reduce our GHG emissions by at least 30% Achieving GHG-reduction goal 3 years ahead of promised

– Make KP one of top users of renewable energy in the country We are already currently largest solar energy users among

health care providers .

4 | © Kaiser Permanente 2010-2011. All Rights Reserved.November 17, 2015

Off-Site Projects

Golden Hills Wind Project Project Size: Kaiser to receive 40.8 MW of

122.4 MW total Repowering replaces 1,600 obsolete turbines

with up to 72 new turbines Doubles energy output Mitigates avian mortality risk

Project scheduled for completion in December

Blythe Solar Project

485 MW phased project – KP phase 110MW

Energy ramp begins in October 2015 with final Commercial Operation Date in 2016

These things are big

5 | © Kaiser Permanente 2010-2011. All Rights Reserved.November 17, 2015

6 | © Kaiser Permanente 2010-2011. All Rights Reserved.November 17, 2015

On-Site Projects

A 20-year agreement with NRG to install solar systems at KP facilities across California

– KP is looking at as many as 100 hospitals, medical offices, data centers and other KP-owned properties in California as potential locations

– NRG will finance, build, own, and operate the solar systems and sell the power back to Kaiser Permanente

– Construction will begin in 2015 and continue through 2016– Mostly carport installations with some roof-mounted solar

7 | © Kaiser Permanente 2010-2011. All Rights Reserved.November 17, 2015

8 | © Kaiser Permanente 2010-2011. All Rights Reserved.November 17, 2015

9 | © Kaiser Permanente 2010-2011. All Rights Reserved.November 17, 2015

Reference DesignDetailed Rendering

10 | © Kaiser Permanente 2010-2011. All Rights Reserved.November 17, 2015

Carport Ancillary Benefits• Provides efficiencies in land use and utilizes

property to its full potential

• No need for additional roof warranties or little involvement with building logistic issues

• Provide increased shading through covered parking lots; minimizing heat island effects in urban areas and car temperature for the comfort of patients and employees alike

• High visibility of project from transit areas increase perception of Kaiser Permanente as a sustainability leader

• Easy access for operation & maintenance activities

• Possibility of system pairing with Electric Vehicle charging infrastructure

11 | © Kaiser Permanente 2010-2011. All Rights Reserved.November 17, 2015

Impact of Solar (MOB)

Parameter Pre - Solar Post – Solar Delta

Max Demand (A) 80.16 kW 52.35 kW 35% reduction

Max Demand Time 2:45 pm 6:15 pm On-peak to mid-peak

Electricity from Utility (B) 4,412 kWh 739 kWh 83% reduction

Electricity charges for each facility depend on its usage profile

Solar decreases both demand and consumption portions of the bill

(B)

Off-peak$0.0372/kWh

Peak$0.112/kWh

Mid$0.0615/kWh

Net-metered back to SCE

Net metering: Utility credits you with electricity produced in excess local demand

Mid$0.0615/kWh

Off-peak$0.0372/kWh

Off-peak$0.0372/kWh

Peak$0.112/kWh

Mid$0.0615/kWh

Mid$0.0615/kWh

Off-peak$0.0372/kWh

(B)

(A)

(A)

12 | © Kaiser Permanente 2010-2011. All Rights Reserved.November 17, 2015

Sample Analysis

FIXED ($) TRANS. & DIST. ($) CONSUMPTION ($) DEMAND ($) SOLAR PPA ($) ANNUAL BILL ($)

Without Solar

With Solar

45% of electricity will now come from

solar

Buying fewer

kilowatt-hours

Peak demand loweredProportionate with

kWh

Meter + infrastructure

maintenance remains equal

13 | © Kaiser Permanente 2010-2011. All Rights Reserved.November 17, 2015

Another Reason Why We’re Doing ThisRespective escalation rates below are applied for the IOU portion of energy costsSites under Direct Access utilize a 2% escalator for the Consumption part of energy bill

California Energy Almanac (http://energyalmanac.ca.gov/electricity/index.html#table)Energy Information Agency (http://www.eia.gov/dnav/ng/ng_pri_sum_dcu_SCA_a.htm)

Learning from Activist CampaignsMs. Tessa Clarizio-Notre Dame

Link to Prezi:

http://prezi.com/gbp14t7abmf6/?utm_campaign=share&utm_medium=copy &rc=ex0share

The Mechanics of Divestment

The mission of the Franciscan Sisters of Mary is to be the presence of the loving, serving, compassionate, healing Jesus.

Flowing from our Mission, we focus the power of our intention on compassionate care of Creation in collaboration with others.

Mission StatementThe University of Dayton is a top-tier Catholic research university with academic offerings from the undergraduate to the doctoral levels. We are a diverse community committed, in the Marianist tradition, to educating the whole person and linking learning and scholarship with leadership and service.

Core BeliefsThe University of Dayton is a comprehensive university. We are committed to being an educational community that:• offers a broad range of undergraduate programs and selected graduate

and continuing education programs;• views learning and scholarship as a shared task of discovering,

integrating, applying and communicating knowledge; and• emphasizes learning and scholarship at the intersections of liberal and

professional education, of the disciplines, and of theory and practice.

Investing for Impact Trends and Opportunities in the Clean Energy Sector Mr. Tom Van Dyck, RBC Wealth Management

A division of RBC Capital Markets, LLC Member NYSE/FINRA/SIPC.

SRI WEALTH MANAGEMENT GROUP THOMAS.VANDYCK@rbc.com 866-408-2667

THOMAS VAN DYCK, CIMA®

Managing Director – Financial Advisor

SRI WEALTH MANAGEMENT GROUP 345 California Street, Suite 2900

San Francisco, CA 94104

www.sriwealthmanagement.com

2 2

“Shifts in our climate bring

potentially profound implications for insurers, financial stability and the economy.”

Mark Carney Bank of England governor in an address to

leading insurers at London

Content source: http://www.bankofengland.co.uk/publications/Pages/speeches/2015/844.aspx Image source: DAVOS/SWITZERLAND, 26JAN13 - Mark J. Carney, Governor of the Bank of Canada is seen during the Session 'The Global Economic Outlook' at the Annual Meeting 2013 of the World Economic Forum in Davos, Switzerland, January 26, 2013. Copyright by World Economic Forum. swiss-image.ch/Photo Moritz Hager This file is licensed under the Creative Commons Attribution-Share Alike 2.0 Generic license.

Oil price has been weak in 2015 due to lower demand and resilient supplies.

Peak Oil Price/Peak Oil Demand

Sources: QUANDL Website: https://www.quandl.com/#/collections/futures/cme-wti-crude-oil-futures

…and remember, IRAN is coming online as well…

NYMEX WTI CRUDE OIL OPEN INTEREST ROLL

3

Alternative Solutions are Increasingly Cost Competitive

4

Solar PV Module Prices ($/GW) and Global PV Installations

Sources: Generation Investment Management (Goldman Sachs, Bernstein, DBCCA, Citi, Credit Suisse, Canaccord, DOE, Energy Wind Energy Association, McKinsey, Ricardo)

$3.8$3.5

$2.1

$1.8

$1.3

$0.8$0.7 $0.6 $0.6

$0.4

0 GW

50 GW

100 GW

150 GW

200 GW

250 GW

$0

$1

$2

$3

$4

2007 2008 2009 2010 2011 2012 2013 2014 2015E 2016E

PV Module Prices Accumulated Global Installed Capacity (GW)

Expected Grid Parity in ALL 50 States by 2018 ($0.06 per kWh)

Amory Lovins: 1-2

5 5

US Onshore Wind Power ($/kWh) and Installed Capacity (GW)

Alternative Solutions are Increasingly Cost Competitive

Sources: Generation Investment Management (Goldman Sachs, Bernstein, DBCCA, Citi, Credit Suisse, Canaccord, DOE, Energy Wind Energy Association, McKinsey, Ricardo)

$0.56

$0.37

$0.22

$0.13

$0.08 $0.05 $0.06

$0.08 $0.06

$0.03

0 GW

10 GW

20 GW

30 GW

40 GW

50 GW

60 GW

70 GW

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

1980 1984 1988 1992 1996 2000 2004 2008 2012 2016E

Onshore Wind Power Installed Capacity

6 6

LED Chip Prices ($/klm) and % LED Penetration

$60

$32

$25

$13$9 $7

$4

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

$0

$10

$20

$30

$40

$50

$60

$70

2007 2008 2009 2010 2011 2012 2013LED Prices LED Penetration

Alternative Solutions are Increasingly Cost Competitive

Sources: Generation Investment Management (Goldman Sachs, Bernstein, DBCCA, Citi, Credit Suisse, Canaccord, DOE, Energy Wind Energy Association, McKinsey, Ricardo)

7 7

Battery Costs ($/kWh) and EV + Hybrid Penetration

Alternative Solutions are Increasingly Cost Competitive

Sources: Generation Investment Management (Goldman Sachs, Bernstein, DBCCA, Citi, Credit Suisse, Canaccord, DOE, Energy Wind Energy Association, McKinsey, Ricardo)

The Price of Energy: Commodities vs. Technology

8 8

Source: RBC Wealth Management, Bloomberg; data through 7/16/15. Data represent exchange traded funds TAN, FAN, FCG, KOL, XLE.

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

120%

Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15

Solar Wind

Natural Gas Coal

Oil

Presentation by Amberjae Freeman, Social Investment Analyst, SRI WMG amberjae.freeman@rbc.com

Sources: The RE100 there100.org/companies; Google website: https://www.google.com/green/energy/; Walmart website: http://corporate.walmart.com/global-responsibility/sustainability/; Wall Street Journal: http://www.bloomberg.com/news/articles/2015-07-07/facebook-doubles-renewable-energy-target-to-50-by-end-of-2018#PIX&p=73587&s=87478&a=256539&it=0&kdntuid=1

Businesses Commit to 100% Renewable Energy

SAP by 2014

Infosys by 2018

IKEA by 2020

Google Facebook Walmart

And many more…

9

10 10

WATER

• $500 Billion Market

• Wastewater Treatment

• Infrastructure maintenance

• Pump Technology

ENERGY

• $750 Billion Market

• Energy Storage

• Grid Optimization

• Geothermal, Solar, Wind

TRANSPORTATION

• $500 Billion Market

• Vehicle Electrification

• Fleet Management

• Batteries

Investment Sectors with Tremendous Opportunities

Source: North Sky Capital; All images are Commercial Creative Commons Licensed; RBC SRI WMG; Market Projections data from Generation Investment Management

Investment Sectors with Tremendous Opportunities

11 Source: North Sky Capital; All images are Commercial Creative Commons Licensed; RBC SRI WMG; Market Projections data from Generation Investment Management

BUILDINGS

• $500 Billion Market

• Lighting

• Insulation

• HVAC (Heating & Cooling)

WASTE REDUCTION

• $50 Billion Market

• Recycling/ Re-use

• Waste to Energy (WtE)

• Sustainable Packaging

AGRICULTURE

• $1.3 Trillion Market

• Smart Irrigation

• Organic

• Food waste reduction

Renewable Energy is a Job Creator

12 12

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

2010 2011 2012 2013 2014

Solar Wind Coal (miners) 2 per. Mov. Avg. (Solar ) 2 per. Mov. Avg. (Wind)

Solar Jobs = 86% increase (2010-2014)

Sources: U.S. Department of Labor; AWEA; U.S. Solar Foundation

U.S. Wind job losses in 2013 from PTC* uncertainty

In 2014: U.S. Solar Jobs 173,800 (+18% ) U.S. Wind Jobs 73,000 (+31%) U.S. Coal Mining Jobs (-15%)

U.S. Solar, Wind, and Coal Jobs 2010 – 2014 with trend lines for solar and wind

*PTC = Production Tax Credit

13 13

Clean Technology Jobs 2014

Note: includes small hydropower, biomass, biogas, geothermal and liquid biofuels

$60

$88

$128

$175

$205 $206

$272

$317

$294

$268

$310

$0

$50

$100

$150

$200

$250

$300

$350

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Sources: BNEF; theguardian.com

Global Clean Energy Investment (in Billions $USD)

Clean Energy: +16% to $310B

14 Presentation by Amberjae Freeman, Social Investment Analyst, SRI WMG amberjae.freeman@rbc.com

15 15

Global Clean Energy Technology Investments 2014

Sources: Bloomberg

Clean Energy: +16% to $310B

*Rooftop solar capacity was +34% to $74B **refers to transportation, energy efficiency, grid and storage

Bio-fuels: -7% , $5

Geothermal: +23% , $3

Small Hydro: -17% , $4

Smart Technologies** +10% , $37

Solar*: +25% , $150

Waste to Energy: -10% , $8

Wind: +11%, $100

Presentation by Amberjae Freeman, Social Investment Analyst, SRI WMG amberjae.freeman@rbc.com

16 16

Global Clean Energy Country Investments 2014

Sources: Bloomberg

Brazil: +88% to $8B

Clean Energy: +16% to $310B

China: +32% to $90B

USA: +8% to $52B

Canada: +26% to $9B Europe: +1% to $66B

Japan: +12% to $41B

India: +14% to $8B

Presentation by Amberjae Freeman, Social Investment Analyst, SRI WMG amberjae.freeman@rbc.com

17 17

**Global Clean Energy Investments 2014 by Financing Vehicle

Sources: Bloomberg

Green Bonds: o Record year: +250% to $38B o Doubling of World Bank and five-fold increase in issuance from corporations o Toyota and Unilever

*Roof top solar accounts for half of all solar energy installed.

Finance of renewable energy projects (+10%);

$171B *Small distributed capacity projects

(+34%); $74B

R&D Government and Corporations

(+2%); $29B

Public offerings (+52%); $19B

Finance of smart energy technologies

(+8%); $17B

Venture Capital and Private Equity (+16%); $5B

**In Billions ($USD)

11%

51%

3%

8%

21% 6% 1%

New Generation In-Service 2013 (New Build and Expansion)

Coal Natural Gas Hydro Wind Solar Other Renewable Other

28%

42%

9%

5%

1%

2% 13%

Total Installed Operating Generating Capacity July 2014

Renewables are Larger Percentage of New Generation

Renewables becoming a larger part of the U.S. energy mix

Source: Data derived from Ventyx Global LLC, Velocity Suite

46%

<1%

25%

26% 3%

New Generation In-Service Jan-July 2014 (New Build and Expansion)

18

MSCI KLD 400 Social Index* has outperformed the S&P 500 (*formerly the Domini Index)

MSCI Social 400 Index is a float-adjusted market capitalization weighted common stock index modeled on the S&P 500® Index. * Beta and R-squared are based on an ordinary least squares regression of monthly total returns against those of the S&P 500. Used with permission of MSCI, Inc.. Past performance does not guarantee future results. An investment cannot be made into an index. The S&P 500 is a market-weighted index of 500 companies chosen for market size, liquidity and industry group representation.

Manager Performance from May 1990 through March 2015 (single computation)

Manager PerformanceApril 1990 - March 2015 (Single Computation)

0

200

400

600

800

1000

1200

1400

MSCI KLD Social 400S&P 500

0%

100%

200%

Mar 1990 Dec 1994 Dec 1999 Dec 2004 Dec 2009 Mar 2015

Cumulative Excess Returnvs. Market Benchmark

KLD S&P

Avg Annual Return 10.43 9.79

Std Deviation 15.09 14.62

Beta vs. S&P 500* 1.01 1.00

Alpha (%) 0.49 0.00

Sharpe 0.50 0.46

R-squared* (%) 96.67 100.00

20

Global Carbon Free versus MSCI ACWI - Growth of $1

Any performance results from back tests of particular strategies exclude any trading or management fees that would reduce the return as shown. Furthermore, future returns for any such strategies could be worse than the results shown or the identified benchmark. The information contained within this presentation was carefully compiled from sources Aperio believes to be reliable, but we cannot guarantee accuracy. With respect to the description of any investment strategies, simulations, or investment recommendations, we cannot provide any assurances that they will perform as expected and as described in our materials. Any losses forecast are presumed to offset gains outside this portfolio. We provide this information with the understanding that we are not engaged in rendering legal, accounting, or tax services. We recommend that all investors seek out the services of competent professionals in any of the aforementioned areas. Past performance is not indicative of future results. Every investment program has the potential for loss as well as gain. Source: Aperio Group ACWI = All Country World Index

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.01

99

7

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

Cu

mm

ula

tive

Gro

wth

($

)

Global Carbon Free

MSCI ACWI

Global Carbon Free

MSCI ACWI

Annualized Returns (Geometric) 6.07% 5.77% Annualized Returns (Arithmetic) 7.48% 7.16% Annual Standard Deviation 16.17% 16.08% Beta 1.00 1.00 Tracking Error 0.72% 0.00% Max Down Year -42.36% -41.89% Max Down Month -20.57% -19.81% Sharpe Ratio 0.32 0.31 Alpha 0.27% 0.00%

Sources

Aperio Group, “Do the Investment Math: Building a Carbon-Free Portfolio,” 2012.

Buhayar, N., “Typhoon Worse for Philippines Economy Than Sandy for U.S.,” November 2013. Bloomberg Businessweek: http://www.businessweek.com/news/2013-11-11/typhoon-seen-worse-for-philippines-economy-than-sandy-for-u-dot-s

Campanale, Mark. Unburnable Carbon 2013: Wasted Capital and Stranded Assets, Carbon Tracker Initiative, 2014

Carbon Tracker, “Are the World’s Financial Markets Carrying a Carbon Bubble?” 2011.

CERES “Investing in the Clean Trillion: Closing the Clean Energy Investment Gap,” January 2014

CNN Library, “Hurricane Sandy Fast Facts,” July 2013. CNN: http://www.cnn.com/2013/07/13/world/americas/hurricane-sandy-fast-facts/index.html

Generation Investment Management, Climate Solutions Fund II, October 2013

Gillis, J., “A Jolt to Complacency on Food Supply,” November 2013. The New York Times: http://www.nytimes.com/2013/11/12/science/earth/warning-on-global-food-supply.html?pagewanted=all

Hartocollis, A., “A Flooded Mess That Was A Medical Gem,” November 2012. The New York Times: http://www.nytimes.com/2012/11/10/nyregion/damage-from-hurricane-sandy-could-cost-nyu-langone-millions.html

Humphreys, J. “Institutional Pathways to a Fossil Free Portfolio,” Tellus Institute, 2013.

Intergovernmental Panel on Climate Change (IPCC), “Working Group Contribution to the IPCC Fifth Assessment Report Climate Change 2013: The Physical Science Basis, Summary for Policymakers,” September 2013.

IRIS, Getting Started with IRIS: How to Select Metrics for Social and Environmental Performance Measurement, 2011

Madigan, N., “South Florida Faces Ominous Prospects From Rising Waters,” November 2013. The New York Times: http://www.nytimes.com/2013/11/11/us/south-florida-faces-ominous-prospects-from-rising-waters.html?pagewanted=all

Natural Resources Defense Council, “Who Pays for Climate Change?” May 2013. http://www.nrdc.org/globalwarming/files/taxpayer-climate-costs-IP.pdf

Pfund, Nancy E., Beyond Campus Conflict: How Impact Venture Capital Can Address Student Concerns While Furthering Endowment Investment Goals, DBL Investors, February 2006

Spedding, P., Mehta, K., Robins, N. “Oil & Carbon Revisited: Value at risk from “unburnable” reserves,” HSBC January 2013.

World Economic Forum, From the Margins to the Mainstream: Assessment of the Impact Investment Sector and Opportunities to Engage Mainstream Investors, September 2013

21 Presentation created by Amberjae Freeman, Social Investment Analyst, SRI Wealth Management Group amberjae.freeman@rbc.com

Report Indices

The MSCI ACWI Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI consists of 45 country indices comprising 24 developed and 21 emerging market country indices. MSCI ACWI captures large and mid cap representation. With 2,424 constituents, the index covers approximately 85% of the global investable equity opportunity set. The Carbon Free ACWI Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The Carbon Free ACWI excludes the GICS sector of Oil, Gas & Consumable Fuels. The MSCI ACWI consists of 45 country indices comprising 24 developed and 21 emerging market country indices. MSCI ACWI captures large and mid cap representation. Russell 3000 (R3000) is a market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be A benchmark of the entire U.S. stock market. More specifically, this index encompasses the 3,000 largest U.S.-traded stocks, in which the underlying companies are all incorporated in the U.S. Standard and Poor's 500 (S&P 500) Index is a capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The S&P/IFCI Carbon Efficient Index is a modified-capitalization weighted index based originally on float-adjusted common shares outstanding. The S&P/IFCI Carbon Efficient Index retains the same constituents as the S&P/IFCI Large Mid Cap, but with index weight adjustments made within the same global sectors, utilizing the Carbon Footprint metric. (as calculated by Trucost). The index constituent weight adjustments are designed to create a portfolio where the overall carbon emissions exposure is reduced versus that of the parent Index. The MSCI KLD 400 Social Index comprises companies with high Environmental, Social and Governance (ESG) ratings and excludes companies involved in Alcohol, Gambling, Tobacco, Military Weapons, Civilian Firearms, Nuclear Power, Adult Entertainment, and Genetically Modified Organisms (GMO). The Index aims to serve as a benchmark for investors whose objectives include owning companies with very high ESG ratings and avoiding companies that are incompatible with specific values-based criteria. Launched in May 1990 as the Domini 400 Social Index, it is one of the first Socially Responsible Investing (SRI) indices. Constituent selection is based on data from MSCI ESG Research.

22 Presentation created by Amberjae Freeman, Social Investment Analyst, SRI Wealth Management Group amberjae.freeman@rbc.com

Performance Disclosure

23

The inception date of S&P US Carbon Efficient Index was March 9, 2009, at the market close . All information presented prior to the index inception date is back-tested. The back-test calculations are based on the same methodology that was in effect when the index was officially launched. Complete index methodology details are available at www.spindices.com . Past performance is not an indication of future results. Prospective application of the methodology used to construct the Index may not result in performance commensurate with the back-test returns shown. The back-test period does not necessarily correspond to the entire available history of the Index. Please refer to the methodology paper for the Index, available at www.spdji.com or www.spindices.com for more details about the index, including the manner in which it is rebalanced, the timing of such rebalancing, criteria for additions and deletions, as well as all index calculations. It is not possible to invest directly in an Index. Another limitation of back-tested hypothetical information is that generally the back-tested calculation is prepared with the benefit of hindsight. Back-tested data reflect the application of the index methodology and selection of index constituents in hindsight. No hypothetical record can completely account for the impact of financial risk in actual trading. For example, there are numerous factors related to the equities (or fixed income, or commodities) markets in general which cannot be, and have not been accounted for in the preparation of the index information set forth, all of which can affect actual performance. The Index returns shown do not represent the results of actual trading of investible assets/securities. S&P Dow Jones Indices LLC maintains the Index and calculates the Index levels and performance shown or discussed, but does not manage actual assets. Index returns do not reflect payment of any sales charges or fees an investor may pay to purchase the securities underlying the Index or investment funds that are intended to track the performance of the Index. The imposition of these fees and charges would cause actual and back-tested performance of the securities/fund to be lower than the Index performance shown. As a simple example, if an index returned 10% on a US $100,000 investment for a 12-month period (or US$ 10,000) and an actual asset-based fee of 1.5% was imposed at the end of the period on the investment plus accrued interest (or US$ 1,650), the net return would be 8.35% (or US$ 8,350) for the year. Over 3 years, an annual 1.5% fee taken at year end with an assumed 10% return per year would result in a cumulative gross return of 33.10%, a total fee of US$ 5,375, and a cumulative net return of 27.2% (or US$ 27,200).

Presentation created by Amberjae Freeman, Social Investment Analyst, SRI Wealth Management Group amberjae.freeman@rbc.com

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Disclaimer

Disclaimer

The information contained in this report has been compiled by RBC Wealth Management from sources believed to be reliable, but no representation or warranty, express or implied, is made by Royal Bank of Canada, RBC Wealth Management, its affiliates or any other person as to its accuracy, completeness or correctness. All opinions and estimates contained in this report constitute RBC Wealth Management’s judgment as of the date of this report, are subject to change without notice and are provided in good faith but without legal responsibility. This report is not an offer to sell or a solicitation of an offer to buy any securities. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur.

Every province in Canada, state in the U.S. and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents, as well as the process for doing so. As a result, any securities discussed in this report may not be eligible for sale in some jurisdictions. This report is not, and under no circumstances should be construed as, a solicitation to act as a securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction. Nothing in this report constitutes legal, accounting or tax advice or individually tailored investment advice. This material is prepared for general circulation to clients, including clients who are affiliates of RBC Wealth Management, and does not have regard to the particular circumstances or needs of any specific person who may read it. The investments or services contained in this report may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services. To the full extent permitted by law neither RBC Wealth Management nor any of its affiliates, nor any other person, accepts any liability whatsoever for any direct or consequential loss arising from any use of this report or the information contained herein. No matter contained in this document may be reproduced or copied by any means without the prior consent of RBC Wealth Management.

RBC Wealth Management is a division of RBC Capital Markets, LLC, which is an indirect wholly-owned subsidiary of the Royal Bank of Canada and, as such, is a related issuer of Royal Bank of Canada. Additional information is available upon request. Copyright © 2011 by RBC Capital Markets, LLC. Member NYSE/FINRA/SIPC. All rights reserved.

Presentation created by Amberjae Freeman, Social Investment Analyst, SRI Wealth Management Group amberjae.freeman@rbc.com

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Any Questions?

Presentation created by Amberjae Freeman, Social Investment Analyst, SRI Wealth Management Group amberjae.freeman@rbc.com

How to Engage Institutional Leadership in Divest/Invest

Path to Building Leadership• Address Objections• Deploy Smart Politics• Realize Benefits Beyond Financial Returns

• We’ll have more impact by focusing on academics, operations, research…

• We would be hypocrites since we rely on fossil fuels…

• Divesting won’t make a difference• We will sacrifice return and increase risk• Fiduciary duty mandates maximum return

Common Objections

Maintaining Financial Health

Investing for Impact

**All investing has an impact

Getting Real with

Mission Integrity

“Environmental, social, and governance issues may have a direct relationship to the

economic value of the plan’s investment. In these instances, such issues are not

merely collateral considerations or tie-breakers, but rather are proper components of the

fiduciary’s primary analysis of the economic meritsof competing investment choices.”

Department of Labor’s supplemental interpretive bulletin, Federal Register, 10/26/15

Fiduciary Duty Beyond the Balance Sheet

Politics

Fringe Benefits

divestment

LOGO CHANGE

Low Negatives

We are stronger when we act together