NEI Corporate Engagement Focus List · 2017. 9. 12. · NEI Corporate Engagement Focus List Q2 Update: June 2017 Compass Headquartered in the U.K., Compass is a multi-national food

NEI Corporate Engagement Focus ListQ2 Update: June 2017

Company Overview ESG Issues Dialogue Results Holdings

CONSUMER

Aramark

Aramark provides foodservice, facilities anduniform services tobusinesses around theworld.

www.aramark.com

• Farm to fork - animalwelfare

In April 2017 we were part of an investor collaborationthat wrote to Aramark to encourage the company totake steps to enhance its performance on animalwelfare, as it had remained a mid-tier performer in the2016 Business Benchmark on Farm Animal Welfare. Thecompany responded, highlighting recent commitmentsand disclosures on this topic.

NEI GenerationalLeaders Fund

Northwest GlobalEquity Fund

Aritzia

Aritzia is a Canadianwomen's fashion appareland accessories retailcompany.

www.aritzia.com

• Responsibility torespect human rights -supply chain

• Governance matters -enhancing ESGdisclosure

In June 2017 we met with Aritzia for the first time todiscuss its plans for ESG disclosure and annual reporting.As a recent IPO, the company was in the process ofdeveloping its reporting frameworks and providing moredisclosure on its corporate website. We shared ourrecommendations for ESG disclosure best practices inthe apparel sector, including expectations for carbondisclosure and responsible sourcing.

Ethical Special EquityFund

http://www.aramark.com

http://www.aritzia.com


CampbellSoup

Campbell Soup Companyis an U.S.-basedproducer of cannedsoups and relatedproducts.

www.campbellsoupcompany.com

• Energy transition -science based targets

We were part of an investor collaboration that wrote toCampbell Soup to encourage the company to createscience-based targets for greenhouse gas (GHG)reductions. The company had previously expressed aninterest in pursuing this goal and our letter encouragedthe company to continue to work towards this objective.Campbell Soup responded to our letter, indicating that itwas firmly committed to setting a science-based targetof a 25% reduction in GHG emissions by 2025. Thecompany also planned to increase its portfolio ofrenewable energy as part of this strategy.


CharoenPokphand

Headquartered inThailand, CharoenPokphand is aconglomerate withinterests in food andagriculture, retail andcommunications.

www.cpgroupglobal.com


In April 2017 we were part of an investor collaborationthat wrote to Charoen Pokphand, a new company withinthe 2016 Business Benchmark on Farm Animal Welfare,highlighting investor interest in animal welfare issuesand encouraging enhanced performance in this area. Thecompany responded, expressing openness to furtherdialogue.


Coca-Cola

The Coca-Cola Companyis an Americanmultinational beveragecorporation andmanufacturer, retailerand marketer ofnon-alcoholic beverageconcentrates and syrups.

www.coca-cola.com

• Farm to fork - accessto nutrition

With the CEO transition in Spring 2017, Coca- Colaannounced new strategy, including an enhanced focus onnutrition (including sugar concerns), product innovationand social license - issues that had been key topics of theICCR collaborative engagement that we initiated severalyears earlier. Given the significant re-organization withinthe company as a result of the strategy changes, it wasagreed that the next meeting with the investorcollaboration would be scheduled for the next quarter.

Ethical Global DividendFund

http://www.campbellsoupcompany.com

http://www.campbellsoupcompany.com

http://www.cpgroupglobal.com

http://www.coca-cola.com


Compass

Headquartered in the U.K., Compass is a multi-national food and support services company.

compass-group.com


In April 2017 we were part of an investor collaborationthat wrote to Compass to encourage the company totake steps to enhance its performance on animalwelfare, as its performance tier had declined in the 2016Business Benchmark on Farm Animal Welfare. Thecompany responded, highlighting recent commitmentsand disclosures on this topic.



Danone

Danone is amultinational foodproducts corporationbased in Paris, France.

www.danone.com


In April 2017 we were part of an investor collaborationthat wrote to Danone to encourage the company to takesteps to enhance its performance on animal welfare, as ithad remained a mid-tier performer in the 2016 BusinessBenchmark on Farm Animal Welfare. The companyresponded, highlighting recent commitments anddisclosures on this topic.

Ethical InternationalEquity Fund

Darden

Headquartered in theU.S., Darden operates avariety of full-servicerestaurant chains.

www.darden.com


In April 2017 we were part of an investor collaborationthat wrote to Darden to encourage the company to takesteps to enhance its performance on animal welfare, asits performance tier had declined in the 2016 BusinessBenchmark on Farm Animal Welfare.


http://www.compass-group.com

http://www.danone.com

http://www.darden.com


GeneralMills

General Mills is amultinationalmanufacturer andmarketer of brandedconsumer foods soldthrough retail stores,based in the U.S.

www.generalmills.com


In April 2017 we were part of an investor collaborationthat wrote to General Mills to encourage the company totake steps to enhance its performance on animalwelfare, as it had remained a mid-tier performer in the2016 Business Benchmark on Farm Animal Welfare. Thecompany responded, highlighting recent commitmentsand disclosures on this topic.


Greggs

Based in the U.K., Greggsis a bakery andconvenience foodcompany.

www.greggs.co.uk


In April 2017 we were part of an investor collaborationthat wrote to Greggs to congratulate the company onbeing one of the small number of upper-tier performersin the 2016 Business Benchmark on Farm AnimalWelfare. The company responded, commenting on thevalue of the benchmark exercise as a driver for change.

Ethical Global EquityFund

Hilton

Hilton Worldwide is an American multinational hospitality company that manages and franchises a broad portfolio of hotels and resorts

hiltonworldwide.com


We were part of an investor collaboration that wrote toHilton to encourage the company to createscience-based targets for greenhouse gas (GHG)reductions. The company had previously expressed aninterest in pursuing this goal and our letter encouragedthe company to continue to work towards this objective.Hilton responded to our letter, noting its public supportfor the Paris Agreement and indicated that it would beinterested in further dialogue.


http://www.generalmills.com

http://www.greggs.co.uk

http://www.hiltonworldwide.com


Kroger

Kroger is retail companyfounded in 1883, whichoperates the largestsupermarket chain in theU.S. based on revenue.

www.kroger.com


• Farm to fork - Animalwelfare

In April 2017 we were part of an investor collaborationthat wrote to Kroger to encourage the company to takesteps to enhance its performance on animal welfare, as ithad remained a mid-tier performer in the 2016 BusinessBenchmark on Farm Animal Welfare.


Lassonde

Lassonde Industries is aQuebec-based foodcompany.

www.lassonde.com



Following up on earlier engagement, we correspondedwith Lassonde in April 2017, learning more about thecompany's approach to supply chain management. Thecompany published a sustainable development report inMay 2017, focused on water, packaging and health &safety issues.


Northwest SpecialtyEquity Fund

LKQCorporation

LKQ Corporation is anAmerican auto partscompany that provideswholesale used andrefurbished auto partsvia its subsidiariesacross the United Statesand the world.

www.lqkcorp.com


As part of our engagement collaboration with partners inthe Impax Environmental Leaders strategy, we wrote toLKQ in May 2017 to encourage the company to improveits ESG disclosure. We provided our rationale on howdisclosing on ESG performance could create tangiblevalue for the company and expressed our interest inengaging the company further on the issue. In June 2017we followed up with LKQ to express our continuedinterest in a dialogue.

NEI EnvironmentalLeaders Fund

http://www.kroger.com

http://www.lassonde.com

http://www.lqkcorp.com


Loblaw

Loblaw CompaniesLimited is Canada'slargest food retailer anda leading provider ofdrugstore, generalmerchandise andfinancial products andservices.

www.loblaw.ca


• Farm to fork - accessto nutrition, food waste& animal welfare

In April 2017 we were part of an investor collaborationthat wrote to Loblaw to acknowledge the improvementin its performance tier in the 2016 Business Benchmarkon Farm Animal Welfare. The ESG risk posed by animalabuse was highlighted in June when cruelty to chickensat a supplier of Loblaw and other Canadian supermarketchains received significant media coverage.

Also in April, we were signatory to a global investmentstatement marking the anniversary of the Rana Plazadisaster, and calling for the extension of efforts byapparel brands to influence factory safety in the supplychain. We were encouraged when Loblaw, as owner ofthe Joe Fresh brand, announced in June 2017 that itwould renew its commitment to the Accord on Fire andBuilding Safety in Bangladesh.

Ethical Balanced Fund

Ethical Canadian EquityFund

McDonald’s

McDonald’s operates andfranchises restaurantsglobally. The restaurantsoffer food itemsincluding hamburgers,french fries, salads, andbeverages.

www.mcdonalds.com


In April 2017 we were part of an investor collaborationthat wrote to McDonald's to congratulate the companyon being one of the small number of upper-tierperformers in the 2016 Business Benchmark on FarmAnimal Welfare

Ethical US Equity Fund


http://www.loblaw.ca

http://www.mcdonalds.com


Nestle

Nestlé is a globalnutrition and healthcompany, headquarteredin Switzerland.

www.nestle.com


In April 2017 we were part of an investor collaborationthat wrote to Nestlé to encourage the company to takesteps to enhance its performance on animal welfare, as ithad remained a mid-tier performer in the 2016 BusinessBenchmark on Farm Animal Welfare. The companyprovided a detailed response on its updatedcommitments and disclosure plans.


Pepsico

Pepsico is an Americanmultinational food, snackand beveragecorporation.

www.pepsico.com


We were part of an investor collaboration that wrote toPepsico to encourage the company to createscience-based targets for greenhouse gas (GHG)reductions. The company had previously expressed aninterest in pursuing this goal and our letter encouragedthe company to continue to work towards this objective.Pepsico responded to our letter, indicating that it had seta science based target of reducing its emissions acrossits entire value chain by 20% by 2030.



Northwest US DividendFund

Northwest TacticalYield Fund

RestaurantBrands Inter

national

Restaurant Brands is theCanada-based holdingcompany for TimHortons and BurgerKing.

www.rbi.com


In April 2017 we were part of an investor collaborationthat wrote to Restaurant Brands, a new company withinthe 2016 Business Benchmark on Farm Animal Welfare,highlighting investor interest in animal welfare issuesand encouraging enhanced performance in this area. Wecorresponded with the company to arrange anintroductory meeting on ESG matters.



http://www.nestle.com

http://www.pepsico.com

http://www.rbi.com


Sodexo

Headquartered inFrance, Sodexo providesfood and facilityservices.

www.sodexo.com


In April 2017 we were part of an investor collaborationthat wrote to Sodexo to encourage the company to takesteps to enhance its performance on animal welfare, as ithad remained a mid-tier performer in the 2016 BusinessBenchmark on Farm Animal Welfare.


Sysco

Headquartered in theU.S., Sysco is a foodservice distributioncompany.

www.sysco.com


In April 2017 we were part of an investor collaborationthat wrote to Sysco to acknowledge the improvement inits performance tier in the 2016 Business Benchmark onFarm Animal Welfare.



Target

Target is thesecond-largestdepartmentstore retailer in theUnited States.

www.target.com

• Energy transition -science basedtargets Farm to fork- animal welfare

We were part of an investor collaboration that wrote toTarget to encourage the company to createscience-based targets for greenhouse gas (GHG)reductions. The company had previously expressed aninterest in pursuing this goal and our letter encouragedthe company to continue to work towards this objective.Target responded to our letter, indicating that it wasdetermining the best way to set science based targetsthat would reflect its extensive supply chain. It alsonoted it had 2020 goals of having solar installations on500 of its stores and having 80% of its buildings EnergyStar certified.

In April 2017 we were part of an investor collaborationthat wrote to Target to encourage the company to takesteps to enhance its performance on animal welfare, as itwas ranked in the lowest tiers of the 2016 BusinessBenchmark on Farm Animal Welfare.



http://www.sodexo.com

http://www.sysco.com

http://www.target.com


TysonFoods

Tyson Foods is a meatand prepared foodscompany, headquarteredin the U.S.

www.tysonfoods.com


In April 2017 we were part of an investor collaborationthat wrote to Tyson to encourage the company to takesteps to enhance its performance on animal welfare, as ithad remained a mid-tier performer in the 2016 BusinessBenchmark on Farm Animal Welfare.


Unilever

Unilever is amultinational consumergoods company for food,beverages, householdand personal careproducts,co-headquartered in theNetherlands and the UK.

www.unilever.com


In April 2017 we were part of an investor collaborationthat wrote to Unilever to congratulate the company onbeing one of the small number of upper-tier performersin the 2016 Business Benchmark on Farm AnimalWelfare. The company responded, commenting on thevalue of the benchmark exercise as a driver for change




Northwest CanadianDividend Fund

Walmart

Walmart Stores Inc(Walmart) is anAmerican multinationalretail corporation,operating a chain ofmarkets, discountdepartment stores andgrocery stores.

www.walmart.ca


In April 2017 we were part of an investor collaborationthat wrote to Walmart to encourage the company to takesteps to enhance its performance on animal welfare, as ithad remained a mid-tier performer in the 2016 BusinessBenchmark on Farm Animal Welfare.




http://www.tysonfoods.com

http://www.unilever.com

http://www.walmart.ca


Walt Disney

The Walt DisneyCompany is a globalentertainment company.

www.thewaltdisneycompany.com

• Governance matters -policy lobbying

In June 2017 Disney's CEO announced his resignationfrom the U.S. President's business advisory council,because the company disagreed with the decision towithdraw the U.S. from the Paris Climate Agreement.



WH Group

Headquartered in HongKong, WH Group is anintegrated porkproduction companywith worldwideoperations.

www.wh-group.com


In April 2017 we were part of an investor collaborationthat wrote to WH Group to encourage the company totake steps to enhance its performance on animalwelfare, as it had remained a mid-tier performer in the2016 Business Benchmark on Farm Animal Welfare.


http://www.thewaltdisneycompany.com

http://www.thewaltdisneycompany.com

http://www.wh-group.com


ENERGY

AltaGas

AltaGas is a NorthAmerican-focusedenergy infrastructurecompany with assets ingas, power, and utilities.

www.altagas.ca

• Energy transition -climate strategy, GHGemissions & public policy


• Aboriginalengagement strategy

We met with Altagas in May 2017 to discuss thecompany's ESG disclosure plans, energy transitionstrategy, and Aboriginal engagement strategy. Weprovided the company with feedback on its currentreporting and recommendations for future improvement.We discussed Altagas' strategy for the energy transition,where it is focused on opportunities related tolow-carbon power generation, and the company'semphasis on building long-term relationships withAboriginal communities. We also discussed the prevailingsituation in regard to its Alton gas project, where it wasworking with the local Aboriginal community to addressenvironmental concerns and build a long-term benefitsagreement.




Cenovus

Cenovus Energy is aCalgary-basedintegrated oil & gascompany with a focus onin-situ oilsandsoperations in Alberta.


In response to our ongoing dialogue about providingdisclosure on the company's strategic resilience in alow-carbon future, Cenovus published a commitment inits 2017 proxy circular to produce a report on this topicfor investors. The company noted the materiality of thisissue and committed to provide reporting thataddressed, among other things, the company's strategyfor staying resilient through lowering its carbonfootprint, and the results of its 2°C scenario analysis. Wemet with Cenovus in May 2017 to discuss thiscommitment and to provide early feedback on what wesaw as best practice in low-carbon resiliency reporting.


http://www.altagas.ca


Chevron

Chevron Energy is one ofthe world’s largestintegrated oil & gascompanies,headquartered inCalifornia, U.S.

www.chevron.com


In April 2017 Chevron produced a report on its resiliencyin a low-carbon future. Subsequently, the investorcoalition in which we were participating decided towithdraw the shareholder proposal it had filed on thistopic. The decision to withdraw was intended toacknowledge the company's efforts to addressshareholder concerns and to encourage further dialogueon the topic. However, in our view the company couldgreatly improve the quality of its report and futureengagement would focus on its low-carbon strategy.




CNRL

Canadian NaturalResources Limited(CNRL) is an oil and gasexploration,development andproduction companywith its corporate headoffice in Calgary,Alberta.

www.cnrl.com


We met with CNRL in May 2017 to discuss recentdevelopments in low-carbon strategic resiliencyreporting among its peers, and to further theconversation about the company's own assessment ofclimate-related risks. We also commended CNRL on itsefforts to avoid significant layoffs during the downturnand learned how the company had used the downturn toreassign internal talent to new ESG-related challenges,such as increasing the pace of its reclamation effortsand reducing its methane emission rate. On the topic ofmethane we noted our support for the continuedreduction in venting associated with its heavy oiloperations and discussed the company's future plans forreductions in light of the provincial and federal targets ofachieving a 45% reduction in methane emissions.




http://www.chevron.com

http://www.cnrl.com


Enbridge /Spectra

Enbridge is an energyinfrastructure companybased in Alberta,Canada. It focuses on thetransportation,distribution andgeneration of energy,primarily in NorthAmerica.

www.enbridge.com


• Aboriginalengagement strategy

In May 2017 we met with Enbridge to discuss ESGconcerns in the context of its merger with SpectraEnergy, its plans to address ongoing risks associatedwith Aboriginal opposition to pipelines, and its plans toprovide enhanced disclosure on low-carbon resiliencystrategy. Enbridge noted that it treated the merger as atransformational process, and that part of this effort wasto align the Spectra assets with the company's plans tocreate carbon reduction targets for all of its businessunits. We noted Enbridge's strategy going forward wasto shift towards the low-carbon opportunities of theenergy transition, and urged the company to considerenhancing its disclosure to investors by providing detailsof scenario analysis for a low-carbon future. In regard toAboriginal engagement issues, Enbridge explained that itwas focused on providing enhanced disclosure on itsprocesses and activities in light of concerns surroundingthe company's involvement with the Dakota AccessPipeline, and its Line 3 project.


(Enbridge Income FundHoldings)

Northwest US DividendFund (Spectra)

Northwest TacticalYield Fund (Spectra)

http://www.enbridge.com


ExxonMobil

Exxon, headquartered inHouston, Texas, is theworld’s largest publiclytraded oil & gascompany.

www.exxonmobil.com


We voted to support several climate-related proposals atExxon's 2017 AGM, as we had discussed with thecompany in earlier correspondence. The proposal askingExxon to provide a report to investors on its carbonasset risk (i.e. low-carbon resiliency reporting) passedwith 62% support. This was one of the firstclimate-themed resolutions to win majority support.

In June 2017 Exxon announced that it was a foundingmember of the Climate Leadership Council, a bi-partisanorganization of companies and other stakeholderscommitted to pushing for a price on carbon in the U.S.Our engagement had focused on the opportunities forExxon to show leadership on this front in light of itspotential significant impact on U.S. politics. We felt thiswas a notable positive development in the effort todevelop effective carbon policy in the U.S.




http://www.exxonmobil.com


OccidentalPetroleum

Occidental Petroleum isan international oil & gascompany with operationsin the United States,Middle East and LatinAmerica.

www.oxy.com


We were part of a group of investors that met withOccidental in April 2017 to discuss the company'sactivities in regard to climate change-related lobbying.The company noted that it was not actively involved inlobbying against climate-related regulations but was stilla member of various organizations that did. Occidentalexplained that it had formed a coalition withenvironmental groups in order to lobby congress onsupporting the ongoing development of carbon captureand storage technology, which the company has beenvery active in developing. We urged the company toconsider being more vocal in support of otherclimate-related regulations, and to engage with itsvarious industry associations on the topic as well.

In June 2017 we voted in favour of a shareholderresolution at the company AGM that asked Occidental toprovide reporting to shareholders on its strategies inregard to a low-carbon future. The proposal received67% support from shareholders - an unprecedentedresult that will form the basis of future dialogue with thecompany on low-carbon resiliency.



http://www.oxy.com


Suncor

Suncor Energy Inc. isCanada’s largestintegrated energycompany, focused ondevelopment of theAthabasca oil sands.

www.suncor.com


In April 2017 Suncor published its low-carbon resiliencyreport to investors, as it had committed to do insupporting our 2016 shareholder resolution. This markedthe first time a Canadian energy company had provideda report to investors on how it planned to stay resilientthrough the energy transition. The disclosure provided asubstantive discussion of its strategy in relation to its oilsands assets, efforts to reduce its carbon footprint,exposure to carbon pricing impacts, its plans fordiversification into renewables, and the risks facing someof its proposed projects in a low-carbon future. We metwith Suncor in May 2017 to discuss the report and itsexperience in performing scenario analysis. Thecompany reiterated that the process was extremelyvaluable and had helped inform company strategy andrisk management.



FINANCIALS

Bank ofMontreal

BMO Financial Group is afinancial servicesprovider that servesmore than 12 millionpersonal, commercial,corporate andinstitutional customersin North America andinternationally.

www.bmo.com

• Energy transition -climate finance

• Responsibility torespect human rights

• Governance matters

In May 2017 we participated in BMO's sustainabilitystakeholder survey and interview process, highlightingthe importance of responsible lending policies in thecontext of the energy transition, as well ascustomer-oriented business ethics in the wake of theWells Fargo cross-selling scandal.

Northwest CanadianEquity Fund

http://www.suncor.com

http://www.bmo.com


Metlife

Metlife is a globalinsurance providerfounded in 1868 in theUS.

www.MetLife.com


We were part of an investor collaboration that wrote toMetlife to encourage the company to createscience-based targets for greenhouse gas (GHG)reductions. The company had previously expressed aninterest in pursuing this goal and our letter encouragedthe company to continue to work towards this objective.Collaboration members met with Metlife in April 2017where the company indicated it was interested in settingscience based targets and in further dialogue withinvestors.





TD Bank

TD Bank Group,headquartered inToronto with officesaround the world, offersa full range of financialproducts and services.

www.td.com

• Energy transition -climate finance

• Responsibility torespect human rights

• Governance matters

TD was one of several financial services companiesinvolved in the project finance consortium for thecontroversial Dakota Access Pipeline. We had engagedthe bank and other consortium members to encouragetransparency on the results of a human rightsassessment report commissioned by TD and Citi onbehalf of the lenders. The recommendations resultingfrom the assessment were made public in May 2017,providing guidance around engagement with indigenouspeoples and addressing the gap between requirementsunder current U.S. law and international industry bestpractices.




Northwest Growth &Income Fund

Northwest CanadianEquity Fund


http://www.MetLife.com

http://www.td.com


Wells Fargo

Wells Fargo is anAmerican multinationalfinancial servicescompany.

www.wellsfargo.com

• Governance matters -business ethics

In April 2017 the shareholder proposal we had co-filed atWells Fargo calling for a business standards review wentto a vote at the AGM, gaining 22% support. In itsresponse to the proposal in the proxy circular, the bankagreed with the need to review business practices in thelight of the illegal cross-selling scandal. However, itstated that actions taken or disclosed up to that point,including a report released shortly before the AGM,effectively answered our request. We were not satisfiedwith the report: we disagreed with the narrow focus onthe most recent scandal; some important issues were notfully addressed, including the role of the board and theextent of harm to customers and employees; andindicators to track the rehabilitation of the retail bankingbusiness were not presented. Several board membersonly narrowly achieved a majority vote, indicatingwidespread dissatisfaction among investors.


Northwest CanadianDividend Fund Fund



HEALTHCARE

Abbvie

Abbvie is an Americanbiopharmaceuticalcompany.

www.abbvie.com


We were part of an investor collaboration that wrote toAbbvie to encourage the company to createscience-based targets for greenhouse gas (GHG)reductions. The company had previously expressed aninterest in pursuing this goal and our letter encouragedthe company to continue to work towards this objective.Abbvie responded to our letter and noted its currenttargets for GHG reduction include a goal of 50%reduction by 2035, including sourcing its electricityneeds from 100% renewable energy.



http://www.wellsfargo.com

http://www.abbvie.com


AgilentTechnologies

Agilent Technologies isan American Healthcareequipment and servicescompany.

www.agilent.com

• Governance matters -board structure

As part of our engagement collaboration with partners inthe Impax Environmental Leaders strategy, in May 2017we wrote to the board of Agilent to ask if it intended torevisit the issue of declassifying the board. The companyhad previously tried, and failed, to declassify in previousyears due to certain restrictions in the bylaws. Agilentresponded to our letter, noting that it would be revisitingthe idea of declassification prior to the next AGM. Wereiterated our desire to see the board address the issueof declassification and committed to further dialogue onthe issue.


Johnson &Johnson

Johnson & Johnson is anAmerican multinationalmedical devices,pharmaceutical andconsumer packagedgoods manufacturerfounded in 1886.

www.jnj.com

• Better pharma

In the context of our concerns about the impact ofincome inequality on the economy, in 2017 we extendedto the U.S. market our proxy voting guideline capping thelevel of CEO pay that we can support based on a verticalcomparison with median household income. NorthAmerica has the highest CEO pay in the world and U.S.income inequality is also significant. At Johnson &Johnson’s Annual Meeting in April 2017, we applied thisguideline in voting against the CEO pay package of overU.S. $27 million, and voted against the compensationcommittee members because of excessive CEO pay.




http://www.agilent.com

http://www.jnj.com


Merck

Merck & Co, known asMSD outside of NorthAmerica, is a globalhealthcare companyfounded in 1891.

www.merck.com

• Better pharma - drugpricing, access tomedicine & SDGs


• Energy transition -science-based targets

We were part of an investor collaboration that wrote toMerck to encourage the company to createscience-based targets for greenhouse gas (GHG)reductions. The company had previously expressed aninterest in pursuing this goal and our letter encouragedthe company to continue to work towards this objective.Merck responded to our letter, indicating that it had metits earlier reduction targets and would be announcing anew 10-year science-based target in 2017.






IT

Mitel

Mitel is a multinationalcorporation specializingin businesscommunicationstechnology, includingphone systems, on-siteand cloud-basedcollaboration andcontact center solutions.Mitel is headquartered inOttawa, Canada.

www.mitel.com

• Governance matters -board diversity, equitable compensation & enhancing ESG disclosure

In April 2017 we commended Mitel for successfullyrecruiting a female nominee to its board of directors andfor implementing several good pay practices that havebeen ongoing asks in our engagement. At Mitel's AGM inMay 2017 we were able for the first time to support alldirector nominees, and although we highlighted someconcerns, were also able to support its executivecompensation plan.


http://www.merck.com

http://www.mitel.com


Trimble

Trimble is an Americanmanufacturer of GPSreceivers and othervarieties of navigationalproducts and softwareprocessing tools, basedin California.

www.trimble.com


As part of our engagement collaboration with partners inthe Impax Environmental Leaders strategy, in June 2017we met with Trimble to discuss opportunities to improveits ESG disclosure. We learned the company has beenevaluating different frameworks for disclosure andconsiders its ESG performance to be a key differentiatorfor the company. We provided Trimble withrecommendations on key disclosure areas to highlightand on useful frameworks to guide its disclosure.


INDUSTRIALS

3M

3M (formerly calledMinnesota Mining andManufacturingCompany) is anAmerican multinationalconglomerate.

www.3m.com


We were part of an investor collaboration that wrote to3M to encourage the company to create science-basedtargets for greenhouse gas (GHG) reductions. Thecompany had previously expressed an interest inpursuing this goal and our letter encouraged thecompany to continue to work towards this objective. 3Mresponded to our letter, noting it had achieved a 69%reduction in absolute GHG emissions since 2002, andwas currently working to develop a new science-basedtarget. The company currently has goals to increase itsenergy efficiency by 30% by 2025, and to increase itsuse of renewable energy to 25% by 2025.


http://www.trimble.com

http://www.3m.com


AcuityBrands

Acuity Brands is anAmerican electronicsmanufacturing companyspecializing in lightingequipment.

www.acuitybrands.com

• Governance matters -board capacity, equitablecompensation &enhancing ESGdisclosure

As part of our engagement collaboration with partners inthe Impax Environmental Leaders strategy, we wrote toAcuity Brands to commend the company for enhancingcorporate governance by moving to declassify its boardand provide proxy access to investors. We alsoencouraged the company to consider enhancing overalldisclosure to provide more insight into its ESGperformance.

In June 2017, we wrote to Acuity to further recommendthat the company consider enhancing its ESG disclosureand to encourage it to resolve problematic corporategovernance issues, such as board independence, directorover-boarding, lack of board diversity and excessiveexecutive compensation.


Hubbell

Hubbell is an Americanmanufacturer ofelectrical and electronicproducts and lighting.

www.hubbell.com


We were part of an investor collaboration that wrote toHubbell in May 2017 to encourage the company toimprove its ESG disclosure. We provided our perspectiveon how disclosure on ESG performance could createtangible value for the company and offered to engagewith the company further on the issue. In June 2017 wefollowed up with Hubbell to express our continuedinterest in dialogue.


http://www.acuitybrands.com

http://www.hubbell.com


MATERIALS

TeckResources

Teck is Canada's largestdiversified resourcecompany, producingmetallurgical coal,copper, zinc and energy.

www.teck.com


At the request of Teck Resources we provided feedbackon its approach to communicating with investors onsustainability issues.

Northwest SpecialGlobal High Yield Bond

Fund (SOLD)

CanadianUtilities /

ATCO

ATCO is anAlberta-based diversified corporation whose businesses include structures and logistics, electricity and pipelines. Canadian Utilities is an ATCO company.

www.atco.com www.canadianutilities.com


We met with ATCO/Canadian Utilities in April 2017 todiscuss the company's strategy in regard to the energytransition, and to learn more about ongoingimprovements in its corporate reporting. The companynoted that it was aligning its strategy to take advantageof energy transition opportunities, in particular in thearea of renewables, transitioning away from coal, andlooking into new opportunities in distributed energy,energy efficiency and energy stewardship.ATCO/Canadian Utilities also noted that it was graduallymoving to an integrated reporting model, where its ESGdisclosure would be produced at the same time as itsfinancial reporting, and was already incorporating keyESG strategy topics in its annual reporting.



http://www.teck.com

http://www.atco.com

http://www.canadianutilities.com


Hydro One

Hydro One is anelectricity transmissionand distribution utilityserving the Canadianprovince of Ontario.

www.hydroone.com



We wrote to Hydro One in April 2017 to commend itsdecision to participate in the CDP survey, as well as thecompany's overall commitment to integrating ESGpractices into its corporate strategy. We specificallycommended Hydro One for its active support andcorporate leadership in climate change strategy.Additionally, we provided feedback on the company'sinitial CDP reporting and shared examples of bestpractices for carbon-related reporting.


• For more information about our proxy voting, visit: www.neiinvestments.com/pages/about-nei/about-ethical-funds/esg-difference/proxy-voting/

http://www.hydroone.com


Collaborative Engagement

Food from Farm to Fork

• In April 2017 we participated in an investor collaboration writing to all the companies included in the Business Benchmark on Farm Animal Welfare,encouraging enhancements in policy, practice and performance. In June 2017 we provided investor perspective feedback on the Benchmark for its nextiteration

Getting Real about the Energy Transition

• In May 2017 we joined a PRI collaboration on reducing methane emissions in the oil and gas industry, where we will be leading the engagement with CanadianNatural Resources ltd, Vermilion Energy, and Pembina Pipeline Corporation.

• We were part of an ICCR investor collaboration that wrote to several companies including Campbell Soup, 3M, Abbvie and Pepsico, to encourage thecompanies to create science-based targets for greenhouse gas (GHG) reductions.

Responsibility to Respect Human Rights

• In April 2017 we were signatory to a global investment statement marking the anniversary of the Rana Plaza disaster, and calling for the extension of effortsby apparel brands to influence factory safety in the supply chain.


Proxy Voting

Farm to Fork - Systemic ESG Risks

In the 2017 proxy season we supported several shareholder proposals asking companies to address environmental issues that could pose a systemic risk to long-term sustainable value across our portfolios.

• We supported a shareholder proposal at McDonald's, asking for an environmental assessment of the impact of the company’s use of polystyrene foam cups. Polystyrene foam waste is a large contributor to ocean pollution, threatening marine life and potentially human health.

• In the context of the growing health concerns about non-therapeutic use of antibiotics in animal farming and the systemic risk antibiotic resistance presents to human health, we also supported a shareholder proposal at McDonald's asking for disclosure on how it plans to control the use of antibiotics throughout its meat supply chain.

• At PepsiCo and DrPepper, we supported a shareholder proposal asking for the companies to report on plans to minimize use of pesticides in the supply chain that are harmful to bees. Pollinators are of systemic importance to the growing of food and the global agricultural supply chain.

Getting Real about the Energy Transition – Low-carbon resiliency

We supported significant advances on climate change action in the North American oil and gas sector.

• In April 2017 Suncor published its low-carbon resiliency report to investors, as it had committed to through our 2016 shareholder resolution. This marked the first time a Canadian energy company provided a report to investors on how it planned to stay resilient in an economy taking action to keep global climate change under 2°C. In response to our ongoing dialogue, Cenovus published in its proxy circular a commitment to produce a similar report.

• We supported shareholder proposals on low-carbon resiliency reporting, including at Occidental and Exxon, which both passed with well over 60% support. These are among the first climate-themed resolutions in the U.S. to have won majority support.

Governance Matters – Excessive compensation

• In the context of our concerns about the impact of income inequality on the economy, in 2017 we extended to the U.S. market our proxy voting guidelinecapping the level of CEO pay that we can support based on a vertical comparison with median household income. North America has the highest CEO pay in theworld and U.S. income inequality is significant. This led us to vote against pay packages at 29 U.S. companies, and we also voted against 21 compensationcommittees at companies where the total compensation exceeded US $21.5 million, such as IBM, Johnson & Johnson, Pepsico, Abbvie, JP Morgan Chase,Discovery Communications, Amazon, Merck & Co, BlackRock, Omnicom Group, Chevron, Exxon Mobil, Facebook, Wal-Mart, Alphabet and Time Warner.


Public Policy

Enabling Responsible Investment

• In May 2017 we signed the Council for Institutional Investors' letter to U.S. legislators, opposing the rollback of shareholder rights through provisions includedin the CHOICE Act.

Food from Farm to Fork

• In June 2017 we participated in the National Zero Waste Council's survey on the National Food Waste Reduction Strategy, providing our investor perspectiveon food waste issues.

Getting Real about the Energy Transition

• In June 2017 we met with representatives from the Ontario Securities Commission and the Alberta Securities Commission to urge them to consider makingclimate-related disclosure expectations mandatory for issuers.

• In April 2017 the Expert Panel for the Review of Environmental Assessment Processes in Canada released its final report and recommendations. We werepleased to see that two of the key recommendations we made to the Panel in our December 2016 submission were adopted by the Panel. Namely, thatindividual environmental assessment processes should be informed by Regional Strategic Environmental Assessments that are able to incorporate cumulativeeffects of development, and that all projects undergoing assessment should be assessed within a strategic framework that accounts for Canada’s climatechange strategy and targets.

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Documents

NEI Corporate Engagement Focus List · 2017. 9. 12. · NEI Corporate Engagement Focus List Q2 Update: June 2017 Compass Headquartered in the U.K., Compass is a multi-national food