The Shareholder Association for Research and Education (SHARE) coordinates and implements responsible investment practices on behalf of institutional

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2 The Shareholder Association for Research and Education (SHARE) coordinates and implements responsible investment practices on behalf of institutional investors. Since its creation in 2000, SHARE has carried out this mandate by providing responsible investment services, including proxy voting and engagement services, as well as education, policy advocacy, and practical research on emerging responsible investment issues.

3 Table of Contents 4 FOREWORD 5 RESPONSIBLE INVESTMENT FOR A SUSTAINABLE ECONOMY 6 THE POWER OF COOPERATION SHAREHOLDER ENGAGEMENT 7 Policy Engagements at a Glance 8 VOTING RESPONSIBLY PROXY VOTING SERVICE 10 RESPONSIBLE INVESTMENT LEADERSHIP INVESTOR EDUCATION 10 Conferences, Courses and Topical Webinars 12 RESPONSIBLE INVESTMENT RESEARCH 14 IN FOCUS 14 Addressing Climate Risk 16 Improving Executive Compensation 17 Building Board Diversity 18 COMPANY SUMMARY

4 4 Active Ownership Activity Report 2015 FOREWARD I have always been intrigued by the art of juggling, so in the past year I renewed my efforts to learn. Although success has been elusive, the experience has not been without insights. In juggling, success requires all balls to be in constant motion. SHARE s efforts towards building a sustainable economy by helping investors to be responsible capital stewards is no different it requires efforts to change regulatory frameworks, to encourage better corporate performance, to educate decision makers and to demonstrate impact through sound research. In 2015, SHARE s team was busy juggling all of these balls. Our work over the past 12 months with investors on climate change is an excellent case in point. In 2015, recognizing the important role that trustee boards play in meeting the challenge of climate change, SHARE commissioned Koskie Minsky LLP to prepare a report on climate change and trustee legal duties. The report offers important guidance in this regard. Putting a price on carbon is also essential, which led SHARE to help organize investor letters on carbon pricing to then-federal minister of Finance Joe Oliver (signed by 53 religious institutional investors with combined assets of $2 billion) and the new Government of Alberta (signed by investors with assets of more than $4.6 trillion). Investors must also exercise their rights and responsibilities as share owners to forcefully urge companies to develop business plans consistent with maintaining climate change below 2. Working alongside investors in the United Kingdom, Canada and elsewhere, SHARE helped file ground-breaking climate change strategy and transparency proposals at Shell and BP that received near unanimous support. We also participated in discussions aimed at directing capital toward climate change solutions through reallocation of capital both within investee companies and to new enterprises. Climate change is not the only systemic risk facing financial markets. We welcomed the continuing work of the UNEP Inquiry into the Design of a Sustainable Financial System and the opportunity to work with the Ivey Foundation to illuminate changes necessary for capital markets to facilitate the shift to a more resilient and sustainable Canadian economy. The recommendations of the Truth and Reconciliation Commission are being considered across Canadian society. This led SHARE to launch a new initiative in 2015 directly addressing the Commission s recommendations to business and investors. SHARE s research program released an unprecedented number of insightful investor briefs on key issues, beginning in January of 2015 with Dollars, Democracy and Disclosure and following with papers on climate change and Canada s banks, psychological health and safety and the financial sector, and sustainable financial markets. Finally, at yearend Ontario s new pension fund ESG regulation came into force. This requirement is a healthy part of plan governance and we expect other provinces and the federal government to follow suit. Peter Chapman, Executive Director

5 Active Ownership Activity Report RESPONSIBLE INVESTMENT FOR A SUSTAINABLE ECONOMY SHARE s approach to responsible investment is rooted in our belief that environmental, social and corporate governance (ESG) factors can have an impact on the financial performance of investments. Because of the potential financial implications of ESG factors, investors, as part of their fiduciary duty, must understand these factors and address them in the way that they select and manage assets. At the same time, SHARE recognizes that sustainable capital markets depend on healthy societies, ecosystems and economies and that it is in the best interests of long-term investors to consider financial performance alongside environmental, social and corporate governance performance. To help funds exercise their ownership rights in a way that meets their fiduciary obligations and contributes to a more sustainable economy, SHARE has developed an integrated set of active ownership services. These services are: SHAREHOLDER ENGAGEMENT SHARE coordinates and facilitates shareholder dialogues with companies on key ESG issues and with regulators to devise laws that are conducive to healthy capital markets. PROXY VOTING SHARE helps institutional investors exercise their voting rights responsibly. INVESTOR EDUCATION SHARE provides responsible investment education to institutional investor boards and to individual investment decision makers

6 6 Active Ownership Activity Report 2015 THE POWER OF COOPERATION SHAREHOLDER ENGAGEMENT SHARE s shareholder engagement service helps institutional investors to use the rights associated with being a shareholder as a tool to promote improved ESG performance by Canadian companies. SHARE also provides its clients with opportunities to engage with regulatory bodies to encourage legal reforms in support of resilient capital markets and greater transparency on investor and company ESG practices. Our approach is particularly unique because it gives small- and medium-sized investors a bigger voice through our cooperative platform. By pooling their resources, our clients benefit from an extensive shareholder engagement program delivered at an affordable price. SHARE s clients include pension funds, foundations, religious investors, asset managers and responsible investment mutual funds with assets under management of approximately $14 billion. Engagement Themes 80 Companies Engaged Sectors Engaged

7 Active Ownership Activity Report Policy Engagements at a Glance WHERE WE INTERVENED TOPIC DESCRIPTION The Supreme Court Corporate Law SHARE intervened in a major securities class action case before the Supreme Court of Canada. CIBC v Green, concerned the ability of investors to sue companies that provide incomplete or inaccurate disclosure about the state of their business. SHARE argued that the ability of investors to seek a remedy for public company misrepresentations is critical to healthy and transparent capital markets. Government of Alberta Climate Policy Jointly organized by SHARE and NEI, a group of 120 institutional investors that invest in Alberta, representing over C$4.6 trillion in assets under management from Canada, US and Europe delivered a joint letter to Premier Notley. The letter stated support for the government of Alberta s commitment to update and strengthen its climate policy and phase in effective carbon pricing. Government of Canada, Ministry of Finance Carbon Pricing On behalf of 53 religious institutional investors with combined assets of more than $2 billion, SHARE submitted a letter to then-federal Finance Minister Joe Oliver and copied to all opposition party leaders. The letter demonstrated Canadian investor support for a clear, reliable and effective price for carbon emissions with the goal of reducing greenhouse gas emissions and limiting catastrophic climate change. Ontario Securities Commission (OSC) Board Diversity, Say on Pay, ESG education and disclosure SHARE submitted comments on the Ontario Securities Commission (OSC) Draft Statement of Priorities. This was an important opportunity for SHARE to comment on board diversity, Say on Pay provisions, ESG disclosure, investor education and market-level climate change risks. Canadian Securities Administrators Say on Pay SHARE wrote to four Canadian securities regulators asking them to take steps to develop new regulations requiring issuers to institute an annual shareholder advisory vote on executive compensation Financial Services Commission of Ontario ESG Factor Guidance In August of 2015, SHARE submitted comments regarding draft ESG factors guidance under the Pension Benefits Act (PBA). SHARE took the opportunity to suggest ways in which the draft Guidance could be strengthened, including clearly defining the ESG approach, investor stewardship through proxy voting and engagement, and consideration of ESG factors beyond individual securities.

8 8 Active Ownership Activity Report 2015 VOTING RESPONSIBLY PROXY VOTING SERVICE SHARE s proxy voting service allows institutional investors to exercise their voting rights responsibly. We vote our clients proxy ballots in a manner that: 1) supports their best interests in the long-term; 2) is consistent with the duties of loyalty and care; and 3) reflects current best practices in corporate governance and social responsibility. 794 Company Meetings

9 Active Ownership Activity Report Countries of incorporation where SHARE voted proxy ballots Australia Belgium Bermuda Brazil Canada Cayman Islands China Curacao Denmark Finland France Germany Hong Kong India Indonesia Ireland Israel Italy Japan Jersey South Korea Mexico Netherlands Norway Philippines Puerto Rico Russia Singapore South Africa Spain Sweden Switzerland Taiwan Thailand Turkey United Kingdom United State

10 10 Active Ownership Activity Report 2015 RESPONSIBLE INVESTMENT LEADERSHIP INVESTOR EDUCATION Building the capacity of investment decision makers and broadening their understanding of the risks and opportunities associated with ESG issues is key to building sustainable capital markets. SHARE delivers formal education to institutional investor boards of trustees and investment committees, and to individual investment decision makers. SHARE produces investor-focused research and facilitates workshops and webinars on emerging responsible investment issues. SHARE s responsible investment leadership is also recognized internationally through our role coordinating the Secretariat of the Global Unions Committee on Workers Capital (See Box 1 below). Conferences, Courses and Topical Webinars Responsible Investment Workshop for Foundations January, BC Pension Forum, Boot Camp and Trustee Master Class February 26 27, 2015 Building a Low Carbon Economy: The Role of Investors February 26, 2015 Pension Fund Investment and ESG Factors April 8, 2015 Climate Change & Fiduciary Duties: What should pension fund trustees know? SHARE hosted a full day workshop to give participants the opportunity to interact and share their own experiences with implementing responsible investment. The workshop encouraged focused discussion on the ways Foundations are integrating responsible investment into the way their endowments are invested. The 2015 BC Pension Forum brought together investment managers, public policy makers, trade union representatives, pension activists and advisory committee members for 2 days of workshops and events. Captivating keynotes were delivered by Carol Bellringer, Auditor General of British Columbia; Sharan Burrow, International Trade Union General Secretary; and Hassan Yussuff, Canadian Labour Congress President. SHARE, Simon Fraser University's CIBC Centre for Corporate Governance and Risk Management and the City of Vancouver co-hosted a public event featuring Sharan Burrow, General Secretary of the International Trade Union, who spoke about the positive role trade unions and pension funds can play in the transition to a low carbon economy. In April SHARE hosted a free webinar aimed at Ontario pension funds as an introductory guide on implementing the Ontario Benefits Act regulations. The webinar featured Canadian experts in pension governance, investment and ESG analysis speaking about the steps that Ontario pension funds can take to incorporate ESG factors into their investment decision-making processes. SHARE, together with Koskie Minsky LLP, hosted a free webinar about the financial impact of climate change and what this could mean for Canada s pension plans. The presentation featured the latest research from a report commissioned by SHARE to help trustees better understand their legal obligations. September 15, 2015

11 Active Ownership Activity Report Investor Roundtable on corporate political spending disclosure SHARE hosted an investor roundtable in Toronto to examine the management and disclosure of political spending and lobbying by Canadian corporations, and to identify best practices and investor expectations. The meeting featured presentations from RBC, Microsoft, Walden Asset Management and PRI. Qatar: Investor Responsibilities & Human Rights Risks in Construction October 29, 2015 This free webinar featured presentations by Jin Sook Lee, Migration, Gender and Campaign Director, Buildings and Woodworkers International; Annabel Short, Program Director, Business and Human Rights Resource Centre; and SHARE s Hugues Létourneau. Presentations focused on the roles and responsibilities of Canadian investors as they relate to social risk mitigation with Canadian and other multinational construction companies operating in Qatar. Responsible Investment Workshop for Religious Investors November 20, 2015 SHARE hosted a full day workshop in Toronto for religious investors. The event featured a presentation from Dick Peltier, Director of the Department of Global Change Science at the University of Toronto as well as panel discussions featuring representatives from the ICCR (US), Church Investor Group (UK), Regroupement pour la responsabilité sociale des entreprises, Koskie Minsky, United Church of Canada and National Aboriginal Trust Officers Association. International Responsible Investment Leadership The Committee on Workers Capital (CWC) is an international labour union network for dialogue and action on the responsible investment of workers capital - trade union pension funds and retirement savings invested in global capital markets. The CWC organizes international events and coordinates shareholder activism efforts to support and promote responsible investment practices globally.

12 12 Active Ownership Activity Report 2015 RESPONSIBLE INVESTMENT RESEARCH SHARE recognizes that in order to address climate change, we need to accelerate the transition to a low carbon economy. This brief outlines SHARE s 4-R approach to achieving that: 1) Reduce; 2) Remedy; 3) Reallocate; and 4) Regulate. The brief also outlines steps that institutional investors can take to better understand the climate risks in their portfolios. SHARE s Banking on 2 report outlines the impacts that climate change-related risks could have for the banking sector and provides a set of recommendations for how Canada s banks can more effectively manage these risks and catalyze the transition to a low carbon economy. Are Canadian financial sector companies addressing mental health at work? Strong management of health and safety in the workplace can have short-term and long-term positive impacts on operational and therefore financial performance. For investors, that means attention to corporate mental health policies and practices can help drive long term shareholder value. This investor brief looks at which Canadian financial sector companies report about the protection and promotion of mental health in the workplace.

13 Active Ownership Activity Report In the aftermath of the Rana Plaza disaster, which took the lives of 1,100 workers and injured thousands more, 200 global signatory companies, including 2 from Canada, signed the Accord for Fire and Building Safety in Bangladesh, while others joined another related initiative. This Investor brief highlights what has been accomplished by these initiatives and what Canadian apparel companies have done to develop responsible supply chain practices in the two years since the disaster. It includes key questions for investors to ask in order to seek assurances that the company in which they invest is effectively managing its risks and ensuring the safety and well-being of employees was the first year many Canadian corporations were required to disclose their approach, if any, to increasing board gender diversity. SHARE co-hosted a roundtable with the Beedie School of Business to bring together investors and issuers to review Canadian policies and approaches to diversity on corporate boards of directors and in senior management and discuss further disclosure and action on other types of diversity. A public summary report outlines the ideas and discussion on advancing diversity in Canadian corporations.

14 14 Active Ownership Activity Report 2015 IN FOCUS Addressing Climate Risk The Issue With the recent signing of the Paris Agreement on climate change, Canada has committed to limiting the increase in global average temperatures below 2 C, and to pursue efforts to limit the temperature rise to 1.5 C. The years ahead promise physical, regulatory, financial and reputational risks for companies and investors related to climate change. Successful firms and investors will have to adjust to thinking of the long-term sustainability of their operations and how to transition to a lower carbon economy. The companies leading the way in addressing climate change have not only disclosed their approach and performance on GHG emissions management; they are also preparing for a lower-carbon economy by setting goals and targets to bring down future emissions and addressing climate change in business planning and capital expenditure decisions. SHARE s Engagement In 2015, SHARE had discussions with Canadian corporations in energy, utilities, industrials, REITs, retail, banking and grocery sectors regarding climate risk. SHARE encourages Canadian companies to respond to the annual CDP questionnaire, which provides a common framework for climate risk measurement and disclosure. Last year we spoke with companies that had low CDP disclosure scores and outlined the key indicators that are most significant for investors. Four laggard companies we engaged with improved their scores by an average of 16 points, and one began reporting for the first time. In 2015, we began a conversation with Brookfield Asset Management on climate risk and reporting. The company agreed to increase the scope of properties included in its GHG emissions assessment and reporting to include the company s entire retail portfolio. Using this example, SHARE will engage with other REITs to broaden their own GHG emissions accounting, a first step in reducing their overall climate impacts. Similarly, SHARE asked Loblaw Companies Ltd. to take a leadership role among food retailers by making its CDP response public in Now that Loblaw has done so, we will engage its competitors to disclose their submissions as well. In the transportation sector, SHARE asked Canadian Pacific Railway to meet or exceed the emissions record of its rival Canadian National. The company earned a higher disclosure score by improving its CDP reporting and achieving a 4% decrease in absolute emissions despite a 2% growth in gross ton miles. Although CN still has a more efficient locomotive fleet, CP achieved a higher year-on-year improvement in fuel efficiency.

15 Active Ownership Activity Report Companies that do not report to CDP can still take action to address climate risks. In response to a shareholder proposal filed by SHARE client the United Church of Canada, Fortis Inc. a utility company that has not responded to the CDP or produced a sustainability report in the past agreed to prepare an annual report with data on greenhouse gas emissions, GHG intensity, and water use. SHARE has provided feedback on key indicators and we expect that the report will be published early in In the energy sector, SHARE s engagements focused on addressing climate risks in business planning. Husky Energy began a company-wide carbon risk assessment in 2015 and is incorporating carbon risk into its business projection models. SHARE urged Teck Resources to shelve plans for its Frontier oil sands project in 2015, which alone would have doubled the company s carbon emissions, exacerbated conflict with nearby First Nations, and increased already-high debt levels. Citing financial concerns, the company has now postponed the project. Proxy Voting and Climate Risk Companies face growing pressure to report on their exposure to material risks related to their greenhouse gas emissions and on how they plan to reduce those emissions. SHARE has been active in voting to support these proposals. For example, SHARE voted for a shareholder proposal filed with Royal Dutch Shell by Aiming for A, a coalition of 52 institutional investors. The proposal asked Shell to expand its annual reports to include information related to climate change, including how the company manages its greenhouse gas emissions, its public policy positions on climate change, and the inclusion of climate-change-related performance goals in its executives incentive bonus plans. Shell agreed to adopt the proposal before its annual shareholders meeting. SHARE will be monitoring to see how Shell implements this proposal in 2016.

16 16 Active Ownership Activity Report 2015 IN FOCUS Improving Executive Compensation Proxy Voting and Excessive Executive Compensation SHARE votes against companies executive compensation if the executives pay is excessive compared to the company s performance. This is the reason we voted against Blackberry s executive pay in 2014 and In 2014, Blackberry s CEO was the highest-paid in Canada, receiving $89.7 million while the company s net loss was $5.9 billion. Blackberry s 2015 executive compensation was down from the stratospheric levels of 2014, but it was still too high and not aligned with the company s performance. The company had a net loss of $300 million in that fiscal year, but the top 5 executives were paid a total of $34 million. Blackberry s persistence in paying generous bonuses while it loses money is not good for the company in the long run. The Issue Executive compensation is an issue that involves SHARE s engagement team, its proxy voting team, and its policy advocates in a common drive to change the way corporate executives are paid in Canada. One of the key mechanisms we use is the Say on Pay vote. Say on Pay votes provide shareholders with a potentially powerful tool to address out-ofcontrol executive compensation. Yet the practice of an annual shareholder advisory vote on executive compensation is still relatively new, and needs to become more entrenched. When we started working on developing Say on Pay votes in Canada in 2007, not one Canadian company held a Say on Pay vote. In 2008, SHARE wrote to nine companies requesting an annual Say on Pay vote. All nine refused. In response we filed shareholder proposals at the big banks and received a significant show of support on the proxy ballots. This initiative resulted in Canada s first Say on Pay votes at Canada s largest banks in As a result of continuing efforts, over 142 Canadian companies have now adopted advisory Say on Pay votes. In 2015, SHARE continued to engage with those companies that have not yet adopted the practice. Yet the number of new companies adopting the practice is starting to plateau. Several high profile votes in 2015 have highlighted the value of Say on Pay votes and we believe the practice should be expanded further. Without a regulatory mandate, however, there is no way to ensure that all companies will conduct a vote, or that the votes will be held on an annual basis. Other jurisdictions such as the U.S. and the U.K. have made a Say on Pay vote mandatory for publicly traded corporations. Canada is still lagging behind. SHARE s Engagement In 2015, Air Canada put forward a contentious compensation plan which included an enhanced pension plan nearly doubling the CEO s retirement pay and setting a floor price for a portion of his equity pay. Unfortunately shareholders were not given an opportunity to vote on the pay plan since Air Canada holds a biennial Say on Pay vote rather than an annual vote. SHARE had asked Air Canada to adopt an annual vote, but the company was unresponsive. At the end of the year, SHARE worked with OceanRock Investments to file a shareholder proposal at Air Canada asking for an annual say-on-pay vote. SHARE has also begun to urge securities regulators to make holding an advisory vote on executive compensation mandatory in Canada. In the spring, SHARE publicly urged the Ontario Securities Commission to take a more aggressive stance on Say on Pay and to begin development of a new regulation on the issue. Since that time, SHARE has been collaborating with large Canadian institutional investors to put Say on Pay on the agenda of securities regulators across the country and we hope to see increased traction on this issue in 2016.

17 Active Ownership Activity Report The Issue Corporate boards that include diverse members are widely viewed by shareholders as enhancing decision-making capacity, lending a wider variety of perspectives and experiences to crucial decisions. Despite this conviction, Canada s corporate boardrooms have proven slow to embrace diversity. IN FOCUS Building Board Diversity In 2014, the securities regulators of Ontario, Quebec, Manitoba, New Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut and Saskatchewan passed a new rule requiring issuers to disclose their policies and approach to gender diversity on their boards and in senior management. The rules went into effect on December 31, SHARE s Engagement SHARE has a long history of engaging with company boards on increasing gender diversity in policy and practice. In 2015, SHARE focused on enhancing the case for other types of diversity, including First Nations heritage, cultural/ethnic, age, and skills/expertise, in addition to gender diversity. In June, SHARE and the Centre for Corporate Governance and Risk Management at Simon Fraser University s Beedie School of Business co-hosted an Investor-Issuer Roundtable to explore the topic of board diversity. More than 25 people representing institutional investors, issuers, and expert organizations like the Canadian Board Diversity Council and the Ontario Securities Commission attended. Participants discussed the importance of diversity at resource companies, a sector that currently has fewer diversity policies than others. Engaging with First Nations is essential for resource project development, particularly since the Tsiloqut in court decision, and resource companies will benefit by bringing First Nations representation onto their board. Other competencies beyond financial, legal and direct industry experience such as social and environmental expertise may be important qualifications for directors to effectively oversee management s performance in the sector. Building on this, SHARE has initiated a new Business and Reconciliation engagement stream in 2016, which will engage with relevant companies to include Aboriginal ancestry in their criteria for board diversity policies, and increase the recruitment, training and advancement of Aboriginal people at all levels of the business. In 2016, SHARE will also continue to support efforts to increase the representation of women and other under-represented groups on boards and in executive positions by engaging with companies without sufficient policies and no women on their Board of Directors. For example, in late 2015, SHARE began engaging with Restaurant Brands International asking the company to develop a board diversity policy and report on its timelines, process and activities for increasing gender diversity on its board, prior to its Annual General Meeting in mid Before its merger with Burger King to form Restaurant Brands, Tim Hortons had 3 women on its board. Restaurant Brands has none. Voting for Board Diversity In order to address the lack of gender diversity on corporate boards, some shareholders have filed proposals asking companies to add a certain number or percentage of women directors to their boards. These quota proposals can be controversial. SHARE votes for these proposals in some cases, if the specific request made by the proposal is feasible. A shareholder proposal filed with SNC-Lavalin in 2015 asked that company to take the necessary steps so that least 40% of its directors are of each gender by Normally, this time period would be too short for a corporate board to achieve a change of this scope. However, in the case of SNC-Lavalin the board would need to add only 2 women directors to achieve this goal. Thus the goal is both aligned with board diversity, and achievable. SHARE voted for this proposal. SHARE will also continue to engage with governments and market regulators and use its proxy analysis and voting recommendations to advance diversity.

18 18 Active Ownership Activity Report 2015 COMPANY SUMMARY COMPANY Agrium Inc. Air Canada Altagas Ltd. ARC Resources Ltd. ARC Resources Ltd. ATCO Ltd. Bank of Montreal Bank of Montreal Bank of Nova Scotia Barrick Gold BCE Inc. BCE Inc. BCE Inc. Bombardier Inc. Bombardier Inc. Brookfield Asset Management Inc. Brookfield Asset Management Inc. Brookfield Asset Management Inc. Canadian Energy Services Canadian National Railway Company TOPIC RESPONSIBLE SOURCING: Respecting self-determination in Western Sahara ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Voting on executive compensation RESPONSIBLE RESOURCE DEVELOPMENT: Mitigating the risks of hydraulic fracturing RESPONSIBLE RESOURCE DEVELOPMENT: Protecting and preserving clean water CLIMATE RISK: Reducing greenhouse gas emissions in high-emissions sectors ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Building on board diversity CLIMATE RISK: Addressing the financing of climate risk CLIMATE RISK: Addressing the financing of climate risk RESPONSIBLE RESOURCE DEVELOPMENT: Respecting human rights in mining operations RESPONSIBLE SOURCING: Eliminating the use of conflict minerals ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Building on board diversity RESPONSIBLE SOURCING: Eliminating the use of conflict minerals CLIMATE RISK: Reducing greenhouse gas emissions in high-emissions sectors

19 Active Ownership Activity Report COMPANY Canadian National Railway Company TOPIC ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Accounting for political spending Canadian National Railway Company CLIMATE RISK: Reducing greenhouse gas emissions in high-emissions sectors Canadian Natural Resources Limited Canadian Natural Resources Limited DECENT WORK: Moving from temporary to permanent workers Canadian Oil Sands Limited Canadian Pacific Railway Ltd. Canadian Pacific Railway Ltd. Canadian Pacific Railway Ltd. Canadian Tire Corporation Ltd. Canadian Western Bank Canfor Corporation Canfor Corporation Capstone Mining Corp. Celestica Inc. Cenovus Energy Inc. CGI Group Inc. CI Financial Corp Constellation Software Inc. CLIMATE RISK: Reducing greenhouse gas emissions in high-emissions sectors RESPONSIBLE SOURCING: Addressing human rights risks in the supply chain ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Sustainability reporting ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Building on board diversity RESPONSIBLE SOURCING: Eliminating the use of conflict minerals RESPONSIBLE RESOURCE DEVELOPMENT: Limiting and remediating oil sands impacts ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Voting on executive compensation

20 20 Active Ownership Activity Report 2015 COMPANY Corus Entertainment Inc. TOPIC Crescent Point Energy Corporation Crescent Point Energy Corporation Crescent Point Energy Corporation Crescent Point Energy Corporation Davis & Henderson Corporation Dollarama Inc. Eldorado Gold Corporation Element Financial Corporation Emera Incorporated Emera Incorporated Empire Company Ltd. Enbridge Inc. Enbridge Inc. Enbridge Inc. Enbridge Inc. Ensign Energy Services Inc. Extendicare Inc. First Quantum Minerals Ltd. Fortis Inc. Gibson Energy Inc. Gibson Energy Inc. ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Disclosing shareholder votes ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Building on board diversity ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Sustainability reporting RESPONSIBLE SOURCING: Addressing human rights risks in the supply chain RESPONSIBLE RESOURCE DEVELOPMENT: Respecting human rights in mining operations CLIMATE RISK: Reducing greenhouse gas emissions in high-emissions sectors ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Accounting for political spending CLIMATE RISK: Reducing greenhouse gas emissions in high-emissions sectors RESPONSIBLE RESOURCE DEVELOPMENT: Limiting and remediating oil sands impacts RESPONSIBLE RESOURCE DEVELOPMENT: Respecting human rights in mining operations ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Sustainability reporting ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Moving for temporary to permanent workers RESPONSIBLE RESOURCE DEVELOPMENT: Respecting human rights in mining operations ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Sustainability reporting

21 Active Ownership Activity Report COMPANY Gildan Activewear Inc. Goldcorp Inc. Goldcorp Inc. Goldcorp Inc. Home Capital Group Inc. Hudson's Bay Company Husky Energy Inc. Husky Energy Inc. Imax Corporation International Forest Products Limited TOPIC RESPONSIBLE SOURCING: Addressing human rights risks in the supply chain ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Building on board diversity ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Sustainability reporting RESPONSIBLE RESOURCE DEVELOPMENT: Respecting human rights in mining operations RESPONSIBLE SOURCING: Addressing human rights risks in the supply chain RESPONSIBLE RESOURCE DEVELOPMENT: Mitigating the risks of hydraulic fracturing ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Voting on executive compensation ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Disclosing shareholder votes Kinross Gold Corporation Linamar Corporation Loblaw Companies Limited Loblaw Companies Limited Loblaw Companies Limited Magna International Inc. Metro Inc. New Gold Inc. Norbord Inc. Northland Power Inc. Open Text Corporation RESPONSIBLE RESOURCE DEVELOPMENT: Respecting human rights in mining operations RESPONSIBLE SOURCING: Addressing human rights risks in the supply chain ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Sustainability reporting RESPONSIBLE SOURCING: Eliminating the use of conflict minerals RESPONSIBLE RESOURCE DEVELOPMENT: Respecting human rights in mining operations ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Voting on executive compensation

22 22 Active Ownership Activity Report 2015 COMPANY Paramount Resources Ltd. Penn West Petroleum Ltd. Potash Corporation of Saskatchewan Inc. TOPIC RESPONSIBLE SOURCING: Respecting self-determination in Western Sahara Quebecor Inc. Reitman's (Canada) Ltd. Restaurant Brands International Inc. RESPONSIBLE SOURCING: Addressing human rights risks in the supply chain ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Building on board diversity Rogers Communications Inc. Royal Bank of Canada Secure Energy Services Inc. Shaw Communications Inc. SNC-Lavalin Group Inc. Sun Life Financial Inc. Suncor Energy Inc. Superior Plus Corp Teck Resources Limited Teck Resources Limited Teck Resources Limited Teck Resources Limited RESPONSIBLE SOURCING: Eliminating the use of conflict minerals CLIMATE RISK: Addressing the financing of climate risk RESPONSIBLE RESOURCE DEVELOPMENT: Limiting and remediating oil sands impacts ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Building on board diversity RESPONSIBLE RESOURCE DEVELOPMENT: Respecting human rights in mining operations ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Building on board diversity ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Sustainability reporting RESPONSIBLE RESOURCE DEVELOPMENT: Limiting and remediating oil sands impacts

23 Active Ownership Activity Report COMPANY TELUS Corporation TELUS Corporation TELUS Corporation Toronto-Dominion Bank TransAlta Corporation TransCanada Corporation TransCanada Corporation TransCanada Corporation Trilogy Energy Corporation Vermilion Energy Inc. Vermilion Energy Inc. Vermilion Energy Inc. Vermilion Energy Inc. WestJet Airlines Ltd. WestJet Airlines Ltd. Westport Innovations Inc. Whitecap Resources Inc. Yamana Gold Inc. TOPIC RESPONSIBLE SOURCING: Eliminating the use of conflict minerals ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Sustainability reporting CLIMATE RISK: Addressing the financing of climate risk CLIMATE RISK: Reducing greenhouse gas emissions in high-emissions sectors ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Accounting for political spending CLIMATE RISK: Reducing greenhouse gas emissions in high-emissions sectors RESPONSIBLE RESOURCE DEVELOPMENT: Respecting human rights in mining operations ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Sustainability reporting RESPONSIBLE RESOURCE DEVELOPMENT: Mitigating the risks of hydraulic fracturing RESPONSIBLE RESOURCE DEVELOPMENT: Protecting and preserving clean water ACCOUNTABLE AND EFFECTIVE GOVERNANCE: Building on board diversity RESPONSIBLE RESOURCE DEVELOPMENT: Respecting human rights in mining operations

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