Seeking better outcomes.

Transcription

1 RI summary report 2018 Seeking better outcomes. For investors, our communities and the planet. Nuveen believes that responsible investing principles can help provide enduring benefits for our clients and our communities ENGAGE to influence our portfolios and the market INTEGRATE ESG into our investment process IMPACT by generating measurable outcomes

2 RI is in our DNA Responsible investing is not a destination. It is a journey and every member of the Nuveen team travels this path together. Vijay C. Advani, CEO, Nuveen 5 decades spent championing RI and building a better world 20+ dedicated RI professionals #1 most comprehensive offering of ESG ETFs in the marketplace 1 With nearly 5 decades of responsible investing leadership, Nuveen has a history of investing by example beginning when our clients asked us to engage on product and social issues in In 1990, we became one of the first companies to launch a dedicated environmental, social and governance (ESG) investing strategy. Today, we strive to apply RI principles across more than 967B in assets under management. 2 OUR PRINCIPLES ENGAGEMENT Engage using our influence with companies and issuers to help them innovate and operate more effectively, and partnering with stakeholders to define and advance environmental, social and governance best practices INTEGRATION Integrate ESG factors into our investment process across funds and asset classes IMPACT Impact by working to drive positive environmental and social outcomes through our investing practices BY THE NUMBERS 650B+ In assets committed to UN Principles for RI 3 3.2B+ Invested for public markets impact 3 109B+ Dedicated to sustainability in real assets 3 675M+ In private market investments in our Social Impact investing portfolio 4 20B+ In ESG-focused products 2 4 Years Running: World s Most Ethical Company 5

3 Engagement Nuveen has a long-standing history of engagement across all asset classes, to set clear standards and best practices that help inform investment decisions. For public equity, proxy voting is a key part of engagement and one of our primary methods of exercising shareholder rights, influencing the behavior of portfolio companies and helping them operate more effectively. We also partner with stakeholders to define and advance ESG best practices and extend the dialogue to portfolio companies, boards, industry bodies, policy makers, tenants, farmers and other partners through policy statements and comment letters. SUMMARY OF VOTES WHAT WE ENGAGED ON Over the past 5 years, the RI team voted at or on: 6 In 2017, we made over 300 total engagements on behalf of more than 250 companies. 7 By issue: Board related 28% + 65K shareholder meetings Compensation Diversity & inclusion 25% 19% 286K ballots Sustainability strategy 15% + Corporate governance 13% 596K agenda items On environmental issues: 7 Overall, we ve supported shareholder proposals about climate risk and sustainability on a case-by-case basis more consistently than our relevant asset manager peers. In 2017, we supported 88% of key climate votes, making Nuveen one of the most supportive asset managers on these issues. 8 Voted for Proposals 91% Reports on sustainability 80% Reports on/reductions in GHG emissions, methane 95% Reports/taking action on climate-related risk 100% Reducing deforestation 100% Better water stewardship

4 Integration Nuveen is working to integrate ESG into our portfolio management process across asset classes and we carry out a range of activities using an investment-centric lens. The approach is a result of a partnership on material ESG issues between the RI team, Nuveen investment colleagues and our affiliates. In turn it has produced a ripple effect as investment professionals find new value and share information across the organization and the industry. MEASURING RI S IMPACT ACROSS ASSET CLASSES 9 48B 209B ALTERNATIVES 58B Private capital Green bond exposure MULTI-ASSET 31B Real assets 246B Taxable 392B FIXED INCOME 967B+ 120B Real estate AUM 147B Municipal 317B EQUITY TH Real Estate Set greenhouse gas reduction target of 30% by 2030 for all properties, aligned with the Paris Climate Agreement Nuveen natural resources Identified at least 3 UN SDGs most relevant to our farmland investing activities Green bonds are held in multiple portfolios within Nuveen, with 50% held outside ESG-labeled strategies.10 TIAA-CREF Social Choice Bond Fund has made an impact in public fixed income for over 6 years. To date, we have invested over 1B in publicly traded debt within Social Choice categorized as supporting renewable energy and other green initiatives to address climate change11 Labeled green bond holdings12 1.5B+ Corporate and development finance institution green bonds Real assets Developed new framework to identify SDG-aligned investments across alternatives, which includes agriculture, timberland, agribusiness and commodities 9ooM+ Muni and government-related green bonds 2.4B+ Total labeled green bonds

5 Impact Beyond seeking to deliver competitive financial returns, we believe investment portfolios have the potential to yield positive environmental and social benefits. We believe a growing number of opportunities exist to drive positive ESG outcomes, including alignment with United Nations Sustainable Development Goals (SDGs). And we believe our approach emphasizes delivering measurable outcomes, setting best practices for impact measurement and helping clients understand and communicate the ESG impact of their portfolios. IMPACT EXAMPLES IN 2017 Environmental Climate change Boosted energy efficiency of our real estate portfolio, , by 21%, cut greenhouse gas emissions by ~468,000 metric tons, reduced energy consumption by 895m kilowatt hours (equivalent to removing 98,000 cars)13 Reforested 1m trees across 2,100 acres of Brazil farmland14 Social Human capital management Human rights Governance Human rights Human rights Human rights Human rights Made over 182m Promoted robust in new commitments director independence, in 2017, aligned board diversity with our view that & education, cybereconomic rights such security risk ventures as access to capital, Worked to help are part of human companies set rules for rights, including annual elections, comp U.S. affordable Addressed gender committee standards housing (70m); pay, executive comp, Encouraged inclusive finance workforce diversity, (22m); community nominating committees sexual harassment, to develop diversity & economic LGBT, corporate criteria to ensure development culture activities candidate searches (90m)15 are drawn from broadest talent pools Advocated for employee development, workforce diversity & inclusion, other HR policies that drive firm performance Human rights Shareholder rights Supported oneshare, one-vote balloting structures Advocated for shareholder rights Adopted Say on Pay early, voluntarily Encouraged elimination of obstacles to proxy voting

6 Playing an active role in shaping ESG research, analysis, standards and impact measurement Collaborating with peers, interdisciplinary experts and industry stakeholders to create best practices and drive more effective outcomes for clients Forum for Sustainable and Responsible Investment (USSIF) Member Global Investing Impact Network Founding member, Investors Council Global Real Estate Sustainability Benchmark Member and recipient of 10 Green Stars 16 Green Bond Principles Signatory and executive committee member Sustainable Accounting Standards Board Founding member, SASB Investor Advisory Group PRI Farmland Guidelines Signatory One of a group of PRI signatories that developed the Principles for Responsible Investment in Farmland, precursor to today s PRI s Farmland Guidelines United Nations Principles for Responsible Investment Signatory Global Initiative for Sustainability Ratings Founding partner University of Cambridge Institute for Sustainability Leadership Investment Leaders Group, Founding member For more information about RI, visit us at nuveen.com/responsible-investing. 1 Morningstar, Inc. as of 31 Oct As of 31 Mar As of 31 Dec As of 31 Sep Ethisphere Institute, TIAA Publics Summary of Votes Global Proxies for the N-PX filing period, 11 Jan Jun TIAA and CREF registered Funds and Accounts Voting Record, /50 Climate Project Report on Asset Manager Votes, March As of 31 Mar As of 30 Sept Sustainable, Responsible and Impact (SRI) report, As of 02 Feb Nuveen TIAA 2018 Farmland Sustainability Report 14 TH Real Estate 2017 Sustainability Achievements Review 15 Impact Investing portfolio, as of 31 Dec TH Real Estate, as of 31 Sept Risks and other important considerations This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy or sell securities, and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on an investor s objectives and circumstances and in consultation with his or her advisors. Mutual fund investing involves risk; principal loss is possible. There is no guarantee the Fund s investment objectives will be achieved. The Fund will include only holdings deemed consistent with the applicable Environmental Social Governance (ESG) guidelines. As a result, the universe of investments available to the Fund will be more limited than other funds that do not apply such guidelines. ESG criteria risk is the risk that because the Fund s ESG criteria exclude securities of certain issuers for nonfinancial reasons, the Fund may forgo some market opportunities available to funds that don t use these criteria. Credit risk arises from an issuer s ability to make interest and principal payments when due, as well as the prices of bonds declining when an issuer s credit quality is expected to deteriorate. Interest rate risk occurs when interest rates rise causing bond prices to fall. The issuer of a debt security may be able to repay principal prior to the security s maturity, known as prepayment (call) risk, because of an improvement in its credit quality or falling interest rates. In this event, this principal may have to be reinvested in securities with lower interest rates than the original securities, reducing the potential for income. Non-U.S. investments involve risks such as currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. Investments in below investment grade or high yield securities are subject to liquidity risk and heightened credit risk. These and other risk considerations, such as active management, extension, issuer, illiquid investments, income volatility, and derivatives risk, are described in detail in the Fund s prospectus. Before investing, carefully consider fund investment objectives, risks, charges and expenses. For this and other information that should be read carefully, please request a prospectus or summary prospectus from Nuveen at or visit nuveen.com. TH Real Estate is a real estate investment management holding company owned by Teachers Insurance and Annuity Association of America (TIAA). TH Real Estate securities products distributed in North America are advised by UK regulated subsidiaries or Nuveen Alternatives Advisors LLC a registered investment advisor and wholly owned subsidiary of TIAA. The investment advisory services, strategies and expertise of TIAA Investments, a division of Nuveen, are provided by Teachers Advisors,LLC and TIAA-CREF Investment Management, LLC. Securities offered through Nuveen Securities, LCC, member FINRA and SIPC. Nuveen 730 Third Avenue New York, NY nuveen.com GBR-RISUM-0718D INV-AN-08/ _ 0418