Environmental, Social and Governance Issuer Advisory Solutions SUPPORTING GLOBAL ISSUERS TO IDENTIFY AND MEET THE NEEDS OF LONG-TERM INVESTMENT

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1 Environmental, Social and Governance Issuer Advisory Solutions SUPPORTING GLOBAL ISSUERS TO IDENTIFY AND MEET THE NEEDS OF LONG-TERM INVESTMENT

2 Helping You Meet the Demands of an Evolving Landscape $21.4 trillion in ESG strategies globally 2 30% of total global assets under management now managed under an ESG strategy 3 Momentum is growing both from investors and companies to more carefully consider the implications of ESG factors. The number of institutional investor signatories participating in the United Nations-backed Principles for Responsible Investment Initiative an international network of investors dedicated to advancing responsible investment practices grew by 19% in 2014 and now includes more than 1,300 signatories representing over $45 trillion in assets under management. 4 As the leader in depositary receipts, BNY Mellon is proud to be the first in the industry to make available a wide range of ESG data and insight specifically designed to help clients understand the implications of these developments, as well as provide them with a roadmap to effectively factor these into their overall capital markets strategy. ESG Investment Growth By Region US$ billions $16,000 $14,000 $13, $12,000 $10,000 $8,758 $8,000 $7,517 $6,000 $4,000 $2, % GROWTH $4,329 73% GROWTH 33% GROWTH $174 $233 Europe North America Asia and Australia/NZ Source: Global Sustainable Investment Alliance Global Sustainable Investment Review, p [Accessed September 21, 2015]. Methodology ESG strategy figures were derived from the 2014 Global Sustainable Investment Review, which consolidates data from the sustainability associations in Europe, the United States, Asia (ex-japan), Australia and New Zealand, Japan and Canada. Data is the result of direct contact to institutional investors, surveys, and self-reporting. For more information on the report methodology, please see page 27 of the report. 2 Global Sustainable Investment Alliance Global Sustainable Investment Review, p. 3 [Accessed September 21, 2015]. 3 Global Sustainable Investment Alliance Global Sustainable Investment Review, p [Accessed September 21, 2015]. 4 PRI: Principles of Responsible Investment 2015 PRI fact sheet. [Accessed September 21, 2015].

3 Environmental, Social and Governance (ESG) Factors: Reshaping the Global Investment Landscape Natural resource constraints, global health threats, social instability and demographic changes are already presenting business leaders with challenges and are shaping decisions that will affect future business success and investment performance. These realities have been recognized and have resulted in policy shifts, for example, in some large U.S. and non-u.s. public investment funds. 1 Significant global environmental and social shifts have rapidly gained recognition as factors that present significant risks and opportunities. These shifts are part of what is addressed by the ESG risk analysis used increasingly by many professional investors. These developments provide significant challenges for both the investor and issuer for the investor identifying appropriate benchmarks for analysis, and for issuers, what additional areas of disclosure may be necessitated. While ambiguity remains regarding the ultimate degree that ESG impacts investment returns, there is acknowledgement that due to societal demands these areas are likely to remain on the public s agenda and, whether by market evolution or regulatory mandate, will grow in importance. Three major strategies used by ESG investors are: Positive/Best-in-Class Screening, Negative Screening/Exclusions and Full ESG Integration. Social Finance at Scale: Creating Value for Investors BNY Mellon July 2015 Types of ESG Investment Strategies POSITIVE SCREENING NEGATIVE SCREENING FULL ESG INTEGRATION PROACTIVELY INVESTING IN COMPANIES WITH PRACTICES CONSISTENT WITH CLIENT ESG VALUES AVOIDING OR DIVESTING FROM COMPANIES WITH PRACTICES THAT CONFLICT WITH CLIENT ESG VALUES EXPLICITLY INCLUDING ESG RISKS AND OPPORTUNITIES INTO ALL ANALYSES EXAMPLE: Only invest in companies that are actively addressing labor and human rights concerns in their supply chain. EXAMPLE: Do not invest in utilities that rely heavily on fossil fuels. EXAMPLE: Consider companies that have beneficial records in all areas of concern, such as human rights, climate change and business ethics. Source: [Accessed September 21, 2015] 1 BNY Mellon Social Finance at Scale: Creating Value for Investors [Accessed September 21, 2015].

4 Why BNY Mellon WE HAVE THE EXPERTISE BNY Mellon holds one fifth of the world s assets, which uniquely positions us to understand our clients needs throughout the investment process. Climate change, population growth and constraints on resources are impacting the dynamics of the capital markets. There are risks where there weren t before and opportunities are emerging. Our commitment to supporting clients responds to macro environmental and societal challenges with innovative products and services. WE ARE LEADERS As the leading depositary bank, we have been, and will continue to be at the forefront of proactively exploring the impact of social, environmental and regulatory change. WE ARE FOCUSED ON CLIENT NEEDS BNY Mellon s DR division is independent of the influence of investment banking and free from the influence of trading and research functions, allowing us to make it all about our DR clients, who can be assured that our focus is solely on helping them meet their objectives and implement their strategies. Global corporates are wrestling with what disclosure the market requires in the loosely defined and evolving area of ESG. Correspondingly, institutional investors and asset owners are attempting to identify what offbalance sheet and non-financial factors are core to improving portfolio performance and to mitigating future risks. Our timely research collaboration with BNY Mellon in this critical area looks to provide clarity for these constituencies and reinforces the University of Cambridge Judge Business School s ongoing engagement with practitioners, academics and organizations that take a long-term view of investment. Amir Amel-Zadeh Assistant Professor, Finance & Accounting University of Cambridge Judge Business School Actionable Insight IDENTIFYING TRENDS AND HELPING FACILITATE MARKET DIALOGUE In our latest research initiative, BNY Mellon Depositary Receipts is collaborating with the Newton Centre for Endowment Asset Management at the University of Cambridge to study the financial market s evolving view of the materiality of non-financial information to clients. A range of stakeholders issuers, investors, asset owners will be engaged to identify their concepts of materiality, the communalities and differences in the supply and demand of advanced non-financial disclosure information, ultimately in an effort to reveal what now constitutes material information for long-term investors. ASSET OWNERS ASSET MANAGERS MATERIAL NON-FINANCIAL INFORMATION ISSUERS

5 Building Blocks for Success BNY Mellon is playing an important market role by providing a wide range of ESG information to its DR clients and in helping them to understand how investors are incorporating ESG factors into their investment processes. Leveraging this ESG research and data, companies can now gain valuable insight into their sustainability performance and how it compares to industry peers. Michael Jantzi Chief Executive Officer Sustainalytics BNY Mellon has assisted our sustainability and investor relations teams to determine key ESG metrics, as well as opportunities for leadership, when looking at the global airline industry. Their proactive approach and global insight has added value throughout this process. As Qantas continues to evolve our sustainability reporting to retain best-in-class disclosure, we look forward to working with BNY Mellon to identify and meet the needs of the investment community within this space. Andrew Cleary Head of Investor Relations Qantas Airways Limited We Support DR Issuers in Four Key Areas EDUCATION AND BENCHMARKING Through our collaboration with Sustainalytics, we will help you identify material themes with your peer group and industry including: companyspecific ESG ratings, peer benchmarking reports, and sector trends. ENGAGEMENT POLICY AND STRATEGY We will help you develop a roadmap to assist you in: understanding key investor ESG concerns, examining internal ESG practices, and assist you in reviewing your communications efforts with investors and relevant stakeholders. INTERMEDIARY ENGAGEMENT We will make sure you understand the players, including: ESG ratings providers, sustainability index providers, specialized firms and associations, and proxy advisors. INVESTOR ENGAGEMENT We will help identify investors that have embedded active ESG criteria into their investment processes and facilitate engagement with them.

6 Depositary Receipts NEW YORK Guy Gresham Parichat Charoenkitnapa Head, Global Investor Relations Advisory Investor Relations Specialist Michael O Brien Gina Doogue Corporate Governance Officer Market Access Specialist michael.o brien@bnymellon.com gina.m.doogue@bnymellon.com Ludmila Lell Laura Riley Senior ESG Specialist Market Access Specialist ludmila.leliavskaia@bnymellon.com laura.riley@bnymellon.com Karen Bodner Diana Soto Senior Capital Markets Advisory Market Access Specialist Specialist diana.soto@bnymellon.com karen.bodner@bnymellon.com LONDON Anja Kharlamova Senior Investor Relations Specialist anja.kharlamova@bnymellon.com HONG KONG Lex Zhang Investor Relations Specialist lex.zhang@bnymellon.com SINGAPORE Herston Powers Senior Investor Relations Specialist herston.powers@bnymellon.com bnymellon.com This document, which may be considered advertising, is for general information and reference purposes only and is not intended to provide legal, tax, accounting, investment, financial or other professional advice on any matter, and is not to be used as such. BNY Mellon does not warrant or guarantee the accuracy or completeness of, nor undertake to update or amend the information or data contained herein. We expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon any of this information or data. We provide no advice nor recommendation or endorsement with respect to any company or securities. Nothing herein shall be deemed to constitute an offer to sell or a solicitation of an offer to buy securities. This document is not intended for distribution to, or use by, any person or entity in any jurisdiction in which such distribution or use would be contrary to local law or regulation. Similarly, this brochure may not be distributed or used for the purpose of offers or solicitations in any jurisdiction or in any circumstances in which such offers or solicitations are unlawful or not authorized, or where there would be, by virtue of such distribution, new or additional registration requirements. Persons into whose possession this document comes are required to inform themselves about and to observe any restrictions that apply to the distribution of this document in their jurisdiction. The information contained in this document is for use by wholesale clients only and is not to be relied upon by retail clients. If distributed in the UK or EMEA, this document may be a financial promotion and is for distribution only to persons to whom it may be communicated without breach of applicable law. Depositary Receipts: NOT FDIC, STATE OR FEDERAL AGENCY INSURED MAY LOSE VALUE NO BANK, STATE OR FEDERAL AGENCY GUARANTEE Trademarks and logos belong to their respective owners The Bank of New York Mellon Corporation. All rights reserved