BNPP IP CLIMATE CHANGE STRATEGY

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1 BNPP IP CLIMATE CHANGE STRATEGY TOWARDS A BELOW 2 C WORLD SUSTAINABILITY RESEARCH TEAM Paris, November 2016

2 TABLE OF CONTENT INTRODUCTION ALLOCATION OF CAPITAL RESPONSIBLE STEWARDSHIP TRANSPARENCY AND COMMITMENT APPENDICES 2

3 1 INTRODUCTION 3

Global warming Carbon dioxide at the heart of the problem Global warming is caused by greenhouse gases (GHGs)

Of these, CO 2 accounts for 76% of GHG emissions.

WARMING Global GHG emissions Breakdown of energy related GHG emissions Breakdown of energy related CO 2

4 Global warming Carbon dioxide at the heart of the problem Global warming is caused by greenhouse gases (GHGs) emitted by human activities: mainly carbon dioxide (CO 2 ), methane (CH 4 ) and nitrous oxide (N 2 O). Of these, CO 2 accounts for 76% of GHG emissions. CO 2 CH 4 N 2 O Energy, through the combustion of fossil fuels, is the largest source of GHG emissions GLOBAL WARMING Global GHG emissions Breakdown of energy related GHG emissions Breakdown of energy related CO 2 emissions Agriculture 11% Others 14% Energy 68% CH4 9% N2O 1% Other Gas CO2 90% Oil Industrial Processes 7% Coal 0% 10% 20% 30% 40% 50% Source: SG CIB Cross Asset Research/ESG, IEA

Universal Climate Agreement The Universal Climate Agreement adopted in December 2015 in Paris sets up an agreed goal of restricting global warming to below 2 C above pre-industrial

its emissions by 2030, and an 80-95% reduction by 2050 Implementation therefore starts now We expect regulation and climate-related policy to increase significantly in the coming years

5 Universal Climate Agreement The Universal Climate Agreement adopted in December 2015 in Paris sets up an agreed goal of restricting global warming to below 2 C above pre-industrial levels 195 countries have committed to contribute to quantifying overall reduction targets or to peak emissions at a specific date The European Union is committed to a 40% reduction in its emissions by 2030, and an 80-95% reduction by 2050 Implementation therefore starts now We expect regulation and climate-related policy to increase significantly in the coming years at both EU and national country level, including regulation that targets the finance sector. The finance sector is expected not only to contribute but to be a key engine of the energy transition. 5

From awareness to action Over the last 15 years BNPP IP has been looking at climate change but has seriously scaled up its work geared to tackle global warming over the last four years.

6 From awareness to action Over the last 15 years BNPP IP has been looking at climate change but has seriously scaled up its work geared to tackle global warming over the last four years. Today, evidence on the serious economic and social risks associated with global warming gathered by both scientists and economists leave no room for inaction. Source: BNP Paribas Investment Partners September

The impending challenge of Climate Change We believe that exceeding 2 C of global warming will have a significant impact on the value of our investments in the long-run Activities such as energy

7 The impending challenge of Climate Change We believe that exceeding 2 C of global warming will have a significant impact on the value of our investments in the long-run Activities such as energy production and consumption, agriculture, transport, insurance, real estate, etc. will face the threat of tighter regulation, higher costs, or physical damages As an asset manager, BNP Paribas Investment Partners must protect the value of its clients investments A three-fold climate change strategy has emerged based on years of experience in working to address climate change 7

8 Our Climate Change Strategy We have committed to establish a business action plan that will help BNPP IP to gradually align its investments with the below 2 C warming limit set by our governments Three strands of work ALLOCATION OF CAPITAL RESPONSIBLE STEWARDSHIP TRANSPARENCY & COMMITMENT Identifying and measuring the carbon risks in our investments Integrating and reducing carbon risks Developing our low-carbon offer and financing the energy transition Addressing climate change in our voting at AGMs Engaging in dialogue with issuers on their climate strategy Reporting on progress made Oversight of our climate change strategy Raising awareness and client support 8

9 2 ALLOCATION OF CAPITAL 9

10 Identifying and measuring carbon risks Allocation of capital Responsible stewardship Transparency and commitment Identify, measure and evaluate carbon risks, and the extent to which our funds are exposed to them Our exposure as an asset manager is through the companies we invest in. It is therefore key for us to understand how they manage their carbon risks Measure Identify Evaluate Carbon risks comprise all risks related to climate change that can impact the companies we invest in due for example to: physical damages caused by global warming tighter regulation set by governments to drastically limit GHG emissions increase in commodity prices inappropriate business model of a company threatened by the impacts of climate change decrease in the value of assets, products or services becoming unusable or unsellable 10

11 Carbon risks Allocation of capital Responsible stewardship Transparency and commitment There are three broad channels through which climate change can affect financial stability Mark Carney, Governor of the Bank of England and Chairman of the Financial Stability Board 1 2 Transition risks Physical risks The risks which could result from the process of adjustment towards a lower-carbon economy. Changes in policy, technology and physical risks could prompt a reassessment of the value of a large range of assets as costs and opportunities become apparent The impacts arising from climate- and weather related events, such as floods and storms, that damage property or disrupt trade All sectors will be exposed to climate change risks. 3 Liability risks The impacts that could arise if parties who have suffered losses or damage from the effects of climate change seek compensation from those they hold responsible. Such claims could hit for example carbon extractors and emitters and, if they have liability cover, their insurers Source: Mark Carney, Breaking The Tragedy of the Horizon - climate change and financial stability speech, Lloyd s of London, 29 September

12 Measuring the carbon footprint Allocation of capital Responsible stewardship Transparency and commitment The Montréal Carbon Pledge In May 2015, BNPP IP became one of the first asset managers to sign the Montréal Carbon Pledge The Pledge aims at improving investors awareness of carbon risks by inviting them to measure and publicly disclose the carbon footprint of their equity investments A fund s carbon footprint seeks to determine the amount of greenhouse gas emissions associated with the investments selected through the fund To date, we have published the carbon footprint of 94 of our open-ended equity funds representing 70% of our assets in equity open-ended funds. We aim to progressively publish the carbon footprint of all our equity funds or of all those for which we have sufficiently available carbon data from the companies. 12

Measuring the carbon footprint Allocation of capital Responsible stewardship Transparency and commitment BNPP IP

totalling companies carbon emissions, weighted by their market capitalisation and their weight in the fund This

carbon footprint to common features of daily life and provides a breakdown by business sector Note: a fund s carbon

13 Measuring the carbon footprint Allocation of capital Responsible stewardship Transparency and commitment BNPP IP has developed a methodology to measure the carbon footprint of its funds The carbon footprint is calculated by totalling companies carbon emissions, weighted by their market capitalisation and their weight in the fund This results in the measure of the carbon intensity per 100 euros invested To aid understanding, we compare the fund s carbon footprint to common features of daily life and provides a breakdown by business sector Note: a fund s carbon footprint will depend more on the sector allocation of investments than the carbon performance of the companies themselves 13

Integrating and reducing carbon risks Allocation of capital Responsible stewardship Transparency and commitment The Portfolio Decarbonization Coalition (PDC) In November 2015, BNPP IP joined the

14 Integrating and reducing carbon risks Allocation of capital Responsible stewardship Transparency and commitment The Portfolio Decarbonization Coalition (PDC) In November 2015, BNPP IP joined the Portfolio Decarbonization Coalition The PDC is a multistakeholder initiative intended to mobilize a critical mass of institutional investors committed to gradually decarbonizing their portfolios By joining the coalition, BNPP IP committed to taking action to reduce the carbon risks in its investments by developing: 1) carbon footprinting, 2) coal policy and green financing, 3) engagement and voting Portfolio decarbonization can be achieved by withdrawing capital from particularly carbonintensive companies, projects and technologies in each sector and by re-investing that capital into particularly carbon-efficient companies, projects, and technologies of the same sector. It can also be achieved through targeted engagement by investors with portfolio companies. UNEP-led Portfolio Decarbonization Coalition 14

funds in addition to BNPP IP s established sector policies The policy affects two sectors:

generated from thermal coal Exclusion of all utilities whose carbon intensity when producing

the following thresholds are exceeded: a company s coal installed capacity is above 30% and

15 Integrating and reducing carbon risks Allocation of capital Responsible stewardship Transparency and commitment A strict coal-free policy has been implemented in all our SRI funds in addition to BNPP IP s established sector policies The policy affects two sectors: COAL MINING UTILITIES Exclusion of all mining companies with 10% or more of their revenues generated from thermal coal Exclusion of all utilities whose carbon intensity when producing electricity is higher than 600 kgco 2 /MWh* * If they emit below this level, we will divest if the following thresholds are exceeded: a company s coal installed capacity is above 30% and coal production is higher than 30%, and carbon intensity when producing electricity is higher than 400 kgco 2 /MWh 15

16 Developing our low-carbon offer and financing the energy transition Allocation of capital Responsible stewardship Transparency and commitment The BNPP IP s climate change strategy encompasses the development and promotion of a low-carbon product offer to provide our clients with a complete range of solutions. The objective is to mitigate climate risks and to capture new investment opportunities such as renewables, energy efficiency, sustainable transport, etc. BNPP IP s low-carbon assets Evolution of our low-carbon assets under management in bn Category AUM in million SRI open-ended funds 16,474 Environmentally-focused funds 954 SRI Bespoke mandates 4,468 Green bonds 376 Total 22, billion +42% 22 billion Source: BNP Paribas Investment Partners - Data as of 30/09/

Parvest Climate Impact Ex Parvest Environmental Opportunities BNP Paribas Easy Low Carbon 100 Europe UCITS ETF

pollution control, waste management, environmental services Investing in small cap companies worldwide with

environmental services Investing in the 100 most cutting-edge European companies within each sector in terms

Real Estate Investing in Asian companies which provide solutions on energy efficiency, renewable energy,

real estate companies that reduce their carbon footprint and energy consumption or contribute to greener

17 Developing our low-carbon offer and financing the energy transition Allocation of capital Responsible stewardship Transparency and commitment Some examples of BNPP IP s green funds Parvest Global Environment Parvest Climate Impact Ex Parvest Environmental Opportunities BNP Paribas Easy Low Carbon 100 Europe UCITS ETF Investing in companies worldwide with activities in renewable energy, energy efficiency, water treatment, pollution control, waste management, environmental services Investing in small cap companies worldwide with activities in renewable energy, energy efficiency, water treatment, pollution control, waste management, environmental services Investing in the 100 most cutting-edge European companies within each sector in terms climate change strategy Energy efficiency Parvest Green Tigers BNP Paribas Immobilier Responsable Sustainable Real Estate Investing in Asian companies which provide solutions on energy efficiency, renewable energy, environmental support services, sustainable agriculture, sustainable transport and water Investing in European real estate companies that reduce their carbon footprint and energy consumption or contribute to greener building Renewable and Transitional Energy Environmental Support Services Sustainable Agriculture Sustainable transport Water Green Building 17

18 Greening the bond market Allocation of capital Responsible stewardship Transparency and commitment We believe that green bonds are a key tool for driving changes in the allocation of capital BNPP IP has developed a proprietary methodology to determine the greenness of a bond. Indeed, the lack of clarity and harmonized standards today do not allow us to ensure that green bonds are effective in combating climate change. BNPP IP aims to promote transparency and integrity in the green bond market. To this end: o o We have signed the Investor statement re: Green Bonds & Climate Bonds and the Paris Green Bonds Statement We are members of the Green Bond Principles of the International Capital Market Association We participate via the European Commission and the EEFIG in working groups to overcome obstacles to the mass development of green bonds on energy efficiency projects in the European property and manufacturing sectors. The 217 billion* BNPP IP has invested in fixed income enables us to leverage support for the sector and give our clients access to diversified green bond exposure: corporate bonds, project bonds, local and regional authority bonds, asset-backed securities, covered bonds, supranational and sovereign bonds. Source: BNP Paribas Investment Partners - Data as of 30/09/

19 3 RESPONSIBLE STEWARDSHIP 19

20 Responsible stewardship Allocation of capital Responsible stewardship Transparency and commitment Encouraging action on climate change We strive to engage in dialogue with companies we consider at risk because their practices or strategy might undermine their ability to financially perform in the medium or long term due to their exposure to climate change risks ENGAGEMENT We may Engage through our dialogue with companies we invest in on behalf of our clients through the responsible exercise of our voting rights as a shareholder We expect companies carbon disclosure to be in line with our commitment to report publicly the carbon footprint of our portfolios a sound environmental overall performance clear and structured actions planned by companies to align themselves with the below 2 C scenario 20

21 Responsible stewardship Allocation of capital Responsible stewardship Transparency and commitment Integrating climate change in our proxy voting policy In 2015, we adapted our proxy voting policy to reflect in our voting our climate change strategy WE WILL OPPOSE WE WILL SUPPORT On financial accounts or statement during AGM s if a company does not report properly on its carbon footprint or when it does not want to engage with us in relation to its business strategy to mitigate and adapt to climate change Resolutions asking companies to reduce GHG emissions in line with a < 2 C scenario We will inform publicly and before the general meetings our willingness to vote in favour of resolutions We supported and even co-filed, alongside and led by the Aiming for A coalition, shareholders resolutions requesting oil & gas and mining companies to report their strategic business plans to adjust to the agreed goal of <2 C 21

Responsible stewardship Allocation of capital Responsible stewardship Transparency and commitment Influencing public policy BNPP IP collaborates closely with

The aim is to build a clear, robust and ambitious policy framework that would prompt companies and investors to progressively move towards a low-carbon

It aims at developing and communicating investors positions on policy and regulatory frameworks at international, regional and national level to support a

22 Responsible stewardship Allocation of capital Responsible stewardship Transparency and commitment Influencing public policy BNPP IP collaborates closely with other investors to enhance its leverage muscle. The aim is to build a clear, robust and ambitious policy framework that would prompt companies and investors to progressively move towards a low-carbon economy The IIGCC policy group is the group in which we are the most active. It aims at developing and communicating investors positions on policy and regulatory frameworks at international, regional and national level to support a shift towards less carbon-intensive investment IIGCC is a network of more than 120 members, including some of the largest pension funds and asset managers in Europe, who take a pro-active approach to managing risks and opportunities related to climate change. BNPP IP is also an active member of the EEFIG on energy efficiency and the UNEP Finance Initiative 22

Responsible stewardship Allocation of capital Responsible stewardship Transparency and commitment Influencing corporate A significant part of our engagement

Main subjects are carbon data disclosure from companies, 2 stress-testing, stranded assets and energy transition Through the IIGCC corporate working group,

their value due to carbon risks); and to encourage them to develop a below 2 strategy The IIGCC work done since 2014 has been published in three sector

23 Responsible stewardship Allocation of capital Responsible stewardship Transparency and commitment Influencing corporate A significant part of our engagement with companies is conducted with other investors and through our memberships of the IIGCC, the PRI and the UNEP Finance Initiative. Main subjects are carbon data disclosure from companies, 2 stress-testing, stranded assets and energy transition Through the IIGCC corporate working group, we have been engaging with Oil & Gas, Mining and Utilities companies to better assess their exposure to potential stranded assets (assets that might lose their value due to carbon risks); and to encourage them to develop a below 2 strategy The IIGCC work done since 2014 has been published in three sector papers the Investor Expectations. These papers, to which BNPP IP has contributed, summarise what we expect from companies in relation to different aspects of climate change management 23

24 BNPP IP s main engagement initiatives Allocation of capital Responsible stewardship Transparency and commitment Our contributions to major climate change initiatives since 2013 Organisation or initiative Targeted area Purpose IIGCC Corporate - Carbon Asset Risk Initiative Energy Engaging with oil & gas, mining, utilities companies exposed to potential stranded assets and assessing risks PRI - Engagement on hydraulic fracturing Energy Engaging with oil & gas companies to understand their ability to manage risks related to fracking operations PRI - Oil exploration in offshore Arctic Energy Engaging with oil & gas companies involved in Arctic offshore oil exploration Aiming for A Coalition Energy Co-filed shareholder resolutions asking mining companies to disclose their strategy on climate change risks IIGCC Policy Programme Governments Encouraging strong domestic and international climate policies and regulatory frameworks ICMA - Green Bond Principles Finance Encouraging transparency and promoting integrity in the development of the green bond market CBI - Investor Statement re: Green Bonds Investments Supporting the growth of green and climate bonds market PRI Fixed Income Outreach Sub-Committee Investments Working on ESG risks and opportunities in Fixed Income investments CBI - Paris Green Bonds Statement Investments Supporting a long-term, sustainable green bonds market Global Investor Statements on Climate Change Governments Urging governments to act at global scale on tackling climate change IIGCC Property programme Real Estate Engaging with policymakers to ensure that climate change issues are integrated in property finance UNEP FI - Property Real Estate Engaging with market players to scale up investment in sustainable buildings GRESB - Global Real Estate Sustainability Benchmark Real Estate Encouraging European real estate companies to improve disclosure and environmental performance European Commission/EEFIG Real Estate Working on the financing of energy efficiency in the building sector in Europe EFFIG - g20 on Energy Efficiency in France Real Estate Working on the financing of energy efficiency in the building sector in France Paris Pledge for Action All Supporting the objectives of the Paris agreement on global warming PRI - Corporate carbon footprint disclosure All Encouraging listed companies to disclose their carbon emissions to investors PRI Principles for Responsible Investment IIGCC Investor Group on Climate Change UNEP FI United Nations Environment Programme Finance Initiative CBI Climate Bonds Initiative ICMA International Capital Market Association EEFIG Energy Efficiency Financial Institutions Group Source: BNP Paribas Investment Partners As of 30 September

25 4 TRANSPARENCY AND COMMITMENT 25

Transparency and commitment Allocation of capital Responsible stewardship Transparency and commitment Public reporting on our progress every year We are committed to monitoring and reporting

Coalition and our commitment to report annually to UNEP FI on our progress in decarbonising our portfolios Source: NAZCA platform - http://climateaction.unfccc.

26 Transparency and commitment Allocation of capital Responsible stewardship Transparency and commitment Public reporting on our progress every year We are committed to monitoring and reporting annually on our activities and progress Through the Montréal Carbon Pledge and our commitment to report the carbon footprint of our open-end funds every year Through the Portfolio Decarbonization Coalition and our commitment to report annually to UNEP FI on our progress in decarbonising our portfolios Source: NAZCA platform - As signatory to the PRI, we publish the yearly PRI Transparency Report. In 2015 and 2016, the PRI granted BNPP IP an A+ overall score for its ESG performance. 26

27 5 APPENDICES 27

28 BNPP IP s Responsible Investment Policy Integration of ESG standards in all our investment decisions Our policy includes: Sector policies the monitoring of our investments in sensitive sectors via strict sector policies the adoption of the 10 UN Global Compact principles, leading to a list of excluded companies that are in breach of the principles a watchlist of companies that are facing difficulties in respecting the principles A universal benchmark for assessing companies Based on 10 principles covering: Human rights Labour Environment Anti-corruption Implementation of policies for sensitive sectors Palm oil and Wood Pulp Nuclear Coal-fired power stations Controversial weapons Asbestos Mining Oil sands Agriculture Leading to 234 companies excluded from our open-end funds 45 companies under surveillance Source: BNP Paribas Investment Partners - Data as of 30 September 2016 The exclusion list and the watchlist are regularly updated 28

Sector policies focus on climate change 4 targeted sectors Mining Coal-fired power generation The objective is to ensure that we do not invest in companies that have the worst environmental track

We forbid the use of Mountain top Removal (MTR) technics and we exclude companies with significant exposure (>50%) to thermal coal and/or without any diversification strategy.

generation. Palm oil and Wood Pulp Agriculture The aim is to encourage the production of sustainable palm oil and wood pulp by investing only in companies with sound environmental standards.

29 Sector policies focus on climate change 4 targeted sectors Mining Coal-fired power generation The objective is to ensure that we do not invest in companies that have the worst environmental track record for their activities. We forbid the use of Mountain top Removal (MTR) technics and we exclude companies with significant exposure (>50%) to thermal coal and/or without any diversification strategy. The aim is to ensure that we invest in power generators that are reducing their CO 2 intensity by operating more efficient coal-fired power stations and diversifying to cleaner sources of electricity generation. Palm oil and Wood Pulp Agriculture The aim is to encourage the production of sustainable palm oil and wood pulp by investing only in companies with sound environmental standards. We also oppose deforestation and seek to invest in companies with a no-burn policy. The objective is to ensure that we invest in companies developing sustainable practices and that are committed to feed people with healthy and safe products without threatening the food supply of future generations. We also oppose deforestation and seek to invest in companies with a no drained-peatlands policy. Source: BNP Paribas Investment Partners - Excerpt of BNPP IP sector policies. These policies apply to all our investments. 29

BNPP IP s capabilities in ESG/SRI 21 14 Years of 50 SRI

professional worldwide bespoke mandates 200 bn Of assets

by our teams SRI at BNP Paribas Investment Partners

Energy Efficiency Power Energy Efficiency LED Technology

Generation) Conventional Gas Geothermal Energy Hydropower

Environmental Services, Auditing and Consulting Waste

Sustainable transport Water Source: BNP Paribas

Agricultural Production Agricultural productivity Clean

30 BNPP IP s capabilities in ESG/SRI Years of 50 SRI investment bn In SRI funds and experience in SRI professional worldwide bespoke mandates 200 bn Of assets integrating ESG analysis Sustainable strategies followed by our teams SRI at BNP Paribas Investment Partners Energy Efficiency Building Energy Efficiency Industrial Energy Efficiency Power Energy Efficiency LED Technology Renewable and Transitional Energy Biofuels (2 nd Generation) Conventional Gas Geothermal Energy Hydropower Solar and Wind energies Environmental Support Services Environmental Services, Auditing and Consulting Waste Management Recycling & Reuse Sustainable Agriculture Sustainable transport Water Source: BNP Paribas Investment Partners - Data as of 30/09/2016 Sustainable Agricultural Production Agricultural productivity Clean Transport Clean Transportation technologies Water infrastructure Water treatment Water-related technologies 30

Sustainability Research Team Head of the Sustainability Research Team Helena VINES-FIESTAS Sector

ARNOUX Support & Promotion of ESG matters French, 15 years of asset management experience ESG / SRI

experience Felipe GORDILLO Sector Specialist for Consumer Discretionary, ICT, Real Estate, Sovereign and

French, 8 years of SRI experience Robert-Alexandre POUJADE Sector Specialist for Consumer Staples,

31 Sustainability Research Team Head of the Sustainability Research Team Helena VINES-FIESTAS Sector Specialist for Healthcare Spanish, 14 years of Sustainability experience ESG Support & Promotion Valerie ARNOUX Support & Promotion of ESG matters French, 15 years of asset management experience ESG / SRI Analysts Thibaud CLISSON Sector Specialist for Energy, Utilities & Industrials French, 7 years of SRI experience Felipe GORDILLO Sector Specialist for Consumer Discretionary, ICT, Real Estate, Sovereign and Green bonds Franco-Colombian, 10 years of SRI experience Michael HERSKOVICH Head of Corporate Governance French, 8 years of SRI experience Robert-Alexandre POUJADE Sector Specialist for Consumer Staples, Financials & Materials French, 1 year of SRI experience Recruitments in progress Source: BNP Paribas Investment Partners - 30/09/

Contact @ Should you need any further information please contact the

32 Should you need any further information please contact the Sustainability Research team sustainabilityresearch@bnpparibas.com 32

33 Disclaimer This material is issued and has been prepared by BNP Paribas Asset Management S.A.S. (BNPP AM)*, a member of BNP Paribas Investment Partners (BNPP IP)**. This material is produced for information purposes only and does not constitute: 1 an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or 2 any investment advice This material makes reference to certain financial instruments (the Financial Instrument(s) ) authorised and regulated in its/their jurisdiction(s) of incorporation. No action has been taken which would permit the public offering of the Financial Instrument(s) in any other jurisdiction, except as indicated in the most recent prospectus, offering document or any other information material, as applicable, of the relevant Financial Instrument(s) where such action would be required, in particular, in the United States, to US persons (as such term is defined in Regulation S of the United States Securities Act of 1933). Prior to any subscription in a country in which such Financial Instrument(s) is/are registered, investors should verify any legal constraints or restrictions there may be in connection with the subscription, purchase, possession or sale of the Financial Instrument(s). Investors considering subscribing for the Financial Instrument(s) should read carefully the most recent prospectus, offering document or other information material and consult the Financial Instrument(s) most recent financial reports. The prospectus, offering document or other information of the Financial Instrument(s) are available from your local BNPP IP correspondents, if any, or from the entities marketing the Financial Instrument(s). Opinions included in this material constitute the judgment of BNPP AM at the time specified and may be subject to change without notice. BNPP AM is not obliged to update or alter the information or opinions contained within this material. Investors should consult their own legal and tax advisors in respect of legal, accounting, domicile and tax advice prior to investing in the Financial Instrument(s) in order to make an independent determination of the suitability and consequences of an investment therein, if permitted. Please note that different types of investments, if contained within this material, involve varying degrees of risk and there can be no assurance that any specific investment may either be suitable, appropriate or profitable for a client or prospective client s investment portfolio. Given the economic and market risks, there can be no assurance that the Financial Instrument(s) will achieve its/their investment objectives. Returns may be affected by, amongst other things, investment strategies or objectives of the Financial Instrument(s) and material market and economic conditions, including interest rates, market terms and general market conditions. The different strategies applied to the Financial Instruments may have a significant effect on the results portrayed in this material. Past performance is not a guide to future performance and the value of the investments in Financial Instrument(s) may go down as well as up. Investors may not get back the amount they originally invested. The performance data, as applicable, reflected in this material, do not take into account the commissions, costs incurred on the issue and redemption and taxes. * BNPP AM is an investment manager registered with the Autorité des marchés financiers in France under number 96002, a simplified joint stock company with a capital of euros with its registered office at 1, boulevard Haussmann Paris, France, RCS Paris ** BNP Paribas Investment Partners is the global brand name of the BNP Paribas group s asset management services. The individual asset management entities within BNP Paribas Investment Partners if specified herein, are specified for information only and do not necessarily carry on business in your jurisdiction. For further information, please contact your locally licensed Investment Partner 33

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INVESTING FOR A SUSTAINABLE WORLD For professional and institutional investors only 2017 The asset manager for a changing world INVESTING for a sustainable world I 2017 I 2 OUR INVESTMENT PHILOSOPHY The