NEI Corporate Engagement Focus List List 2018 April Update EN.pdfchocolate manufacturer founded in 1894 and is one of the largest chocolate ma nufacturers in the world. Brands include

NEI Corporate Engagement Focus ListQ1 Update: April 2018

Company Overview ESG Issues Dialogue Results Holdings

CONSUMER

Amazon

Amazon.com Inc is anAmerican electroniccommerce company andone of the largest internetretailers in the world.

www.amazon.com

• Governance Matters -Cyber Security

• Getting Real About theEnergy Transition - InvestorDecarbonisation Initiative

In the context of a PRI collaboration for which we co-leadengagement with Amazon, the company replied to our earlierletter regarding the company's cyber security governance andresponsible data stewardship by outlining processes it has inplace. We requested a more in-depth follow-up meeting withcompany representatives.

In February 2018 we were part of the Investor DecarbonisationInitiative that wrote to Amazon asking the company to committo sourcing 100% of its electricity needs from renewableenergy and to set science-based targets for GHG reductionsthat would align the company with the Paris Agreement climategoals.

NEI Ethical GlobalEquity Fund

NEI NorthwestGlobal Equity Fund

Dr. PepperSnapple Group

Dr Pepper Snapple Group isan American soft drinkcompany based in Texas.Famous brands includeDr.Pepper, 7Up and CanadaDry.

www.drpeppersnapplegroup.com

• Farm to Fork - Access toNutrition

In January 2018 we participated in a collaborative engagementmeeting with Dr. Pepper Snapple Group to discuss thecompany's health and nutrition targets. The companyexplained that it had made progress on its Balance CaloriesInitiative 2025 goal to reduce the beverage calories consumedper person by 20% and that it remained committed to reducingsugar content in its beverages.

NEI Ethical GlobalDividend Fund

(SOLD)

http://www.amazon.com

http://www.drpeppersnapplegroup.com

http://www.drpeppersnapplegroup.com


General Mills

General Mills is amultinational manufacturerand marketer of brandedconsumer foods soldthrough retail stores, basedin the U.S.

www.generalmills.com

• Responsibility to RespectHuman Rights - ResponsibleSupply Chains

In the context of the PRI Collaboration on labour standards inthe agricultural supply chain, we participated in a collaborativeengagement meeting with General Mills in January 2018 todiscuss the company's supply chain due diligence efforts. Wediscussed the company's implementation of its supplier codeincluding details on third-party audits.


Hershey's

Hershey's is an Americanchocolate manufacturerfounded in 1894 and is oneof the largest chocolate manufacturers in the world.Brands include Reese's,KitKat and Hershey'sKisses.

www.hersheys.com

• Responsibility to RespectHuman Rights - ResponsibleSupply Chains

In January 2018 we participated in a collaborative engagementmeeting with Hershey's to discuss the company's supply chaindue diligence efforts with respect to living wage and childlabour in cocoa production. The company discussed itspartnership with International Cocoa Initiative (ICI), an initiativeto promote child protection in cocoa-growing communities.


(Sold)

Kao Corporation

Kao Corporation is aJapanese chemical andcosmetics corporation,founded in 1887.

www.kao.com

• Governance Matters -Board Diversity

Given significant exposure across our funds to Japanesecompanies, we implemented specialized proxy votingguidelines for the market in 2017 aiming to incentivize boardindependence and diversity in line with local market bestpractice. In this context we wrote to Kao Corporation in March2018 to inform the company how we intended to vote at itsupcoming Annual General Meeting. Specifically, we expressedconcern about the lack of gender diversity on the board andencouraged the company to disclose to investors how it plansto address this. We outlined our view on leading practices,including publishing an official board diversity policy. Kaoresponded to our letter noting that it recognized the value ofdiversity and was actively trying to recruit female boardmembers. The company also outlined its training strategy toincrease the number of female executive managers.


http://www.generalmills.com

http://www.hersheys.com

http://www.kao.com


Leon'sFurniture

Leon’s is a Canadianfurniture and applianceretailer.

www.leons.ca

• Responsibility to Respect- Responsible Supply Chains

• Governance Matters -Advancing ESGManagement andDisclosure

In February 2018, we met with Leon's to continue our dialogueon enhancing ESG disclosure. We discussed progress inupdating the supplier code of conduct and related policyupdates.

NEI Ethical SpecialEquity Fund

Loblaw

Loblaw Companies Limitedis Canada's largest foodretailer and a leadingprovider of drugstore,general merchandise andfinancial products andservices.

www.loblaw.ca


• Farm to Fork - Access toNutrition, Food Waste &Animal Welfare

Partly in the context of a PRI collaboration on labour standardsin the agricultural supply chain, we led a meeting with Loblawin January 2018 to discuss its supply chain due diligenceefforts. We highlighted increased investor interest in grievancemechanisms for workers in the supply chain and independentthird party audits of company factories. We also discussedLoblaw's approach to farm animal welfare and the company'smembership in the National Farm Animal Care Council(NFACC). In January 2018 the company published an updatedfarm animal welfare policy.

NEI EthicalBalanced Fund

NEI EthicalCanadian Equity

Fund

Metro

Metro Inc. is a food retaileroperating in the provincesof Quebec and Ontario,based in Montreal.

www.metro.ca


• Farm to Fork - Access toNutrition, Food Waste &Animal Welfare

Partly in the context of a PRI collaboration on labour standardsin the agricultural supply chain, we met with Metro in February2018 to discuss the company's supply chain due diligenceefforts, access to nutrition and animal welfare practices. Wediscussed the company's efforts to implement its ResponsibleProcurement Framework and Supplier Code of Conduct forResponsible Procurement as well as animal welfare andnutrition-based commitments.



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NEI NorthwestSpecialty Equity

Fund

NEI NorthwestCanadian Dividend

Fund

http://www.leons.ca

http://www.loblaw.ca

http://www.metro.ca


Nestlé

Nestlé is a global nutritionand health company,headquartered inSwitzerland.

www.nestle.com

• Farm to Fork -Community Relations

Following up on an earlier collaborative investor letter, weparticipated in a meeting with Nestlé sustainabilityrepresentatives in March 2018. In the context of thecontroversies surrounding Nestlé's bottling operations inOntario and Michigan, we discussed how the company'sCommunity Relations Programs could work to mitigate thesocial risk of drawing water in water-stressed regions.

NEI EthicalInternational Equity

Fund

Target

Target is the second-largestdepartment store retailer inthe United States.

www.target.com


In the context of a PRI collaboration on cyber security forwhich we are leading engagement with Target, we wrote to thecompany in January 2018 to learn more about its cybersecurity governance, including board oversight and directorskills, cyber security auditing and employee training. Targetresponded to our letter by outlining some of the processes andpolicies it has in place to address risks and implement bestpractices, noting it was open to further discussion withinvestors.

NEI Northwest U.S.Dividend Fund

NEI NorthwestTactical Yield Fund

http://www.nestle.com

http://www.target.com


Canadian Tire

Canadian Tire Corporationis a general retailer offeringeveryday products andservices through more than1,700 retail and gasolineoutlets across Canada.

www.canadiantire.ca

• Getting Real About theEnergy Transition -Implementing TCFDRecommendations onClimate Disclosure

• Responsibility to Respect- Bangladesh ApparelFactory Safety

After the Rana Plaza disaster in 2013, we joined the BangladeshInvestor Initiative supporting the Accord for Fire and BuildingSafety (the Accord). Five years on, 85% of factory safetyissues identified during initial inspection have been addressed,but further effort is required to complete remediation and buildeffective worker safety committees within all factories. As suchwe signed an ICCR statement in January 2018 calling on globalapparel brands and retailers to join the extension of theAccord. In that context, in March 2018 we led a collaborativeinvestor letter to Canadian Tire asking the company how itplanned to follow up on its participation in the parallel Alliancefor Bangladesh Worker Safety, which planned to phase out in2018.

We also led a collaborative meeting with Canadian Tire inFebruary 2018 to share investor expectations arising from therecommendations of the Task Force on Climate-relatedFinancial Disclosures. The company was keen to learn moreabout investor expectations for climate disclosure in theconsumer sector and asked for feedback on upcomingreporting. We provided the company with best practiceexamples of disclosure in other industries and suggestions onaspects of disclosure on which the company could focus itsattention.



Fund

http://www.canadiantire.ca


ENERGY

ChevronCorporation

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

www.chevron.com

• Getting Real About theEnergy Transition -Advancing the U.S. EnergyTransition

In January 2018, we met with Chevron to discuss theshareholder resolution we co-filed with the company onseparating the CEO and Chair positions. Our rationale for theproposal was in part influenced by our concern that the boardwas not adequately addressing several key ESG risks, fromhuman rights concerns to climate change, and that enhancedindependent oversight was required. The company indicatedthat it did not foresee separating the roles of CEO and Chair atthe current time and as a result the resolution would go to avote at the AGM.

In March 2018, Chevron released an updated low-carbonresiliency report, Climate Change Resilience: A Framework forDecision Making. In 2017 we were part of an investor group thathad filed a shareholder resolution asking for the report, andhad withdrawn the resolution with the understanding that thecompany would be addressing our concerns. While we werepleased that the company had significantly improved itsdisclosure on the risks it faced from a low-carbon future, westill saw many flaws in the disclosure. The company had utilizedthe framework of the Task Force on Climate-related FinancialDisclosures, which was an important milestone for the industry.However, the report did not provide assurance that thecompany saw action on climate change as a priority, pointingto the need for further dialogue on the company's strategy inthis respect.




http://www.chevron.com


Enbridge

Enbridge is an energyinfrastructure companybased in Alberta, Canada. Itfocuses on thetransportation, distributionand generation of energy,primarily in North America.

www.enbridge.com

• Getting Real About theEnergy Transition -Advancing the CanadianEnergy Transition

We met with Enbridge in March 2018 to continue discussion onour request for improved disclosure on its strategic resilienceto a low-carbon future. We also shared key developments inlow-carbon resiliency reporting in the energy sector, and notedour expectation that the company include methane emissionmanagement as a key aspect of its mitigation strategy. We alsodiscussed Enbridge's recent announcements relating todivestment of some of its onshore renewable energy assets.The company reiterated that it remained committed to growingits renewable energy business but had decided to offloadcertain non-operated assets in order to reduce its debt load.



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Exxon

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

www.exxonmobil.com


In February 2018 Exxon published the report 2018 Energy &Carbon Summary: Positioning for a Lower-Carbon EnergyFuture. The report was the company's response to a 2017shareholder resolution that gained majority support frominvestors. The release of the report was a significant milestonefor the company, and more broadly for the industry. While wehad some reservations about the content of the report, we feltthat in general that it was a positive development comparedwith previous disclosures. Several aspects of the reportreflected the dialogue we had with the company, in particularthe explicit support for a price on carbon, the use of 2°Cscenario analysis, and discussion of the various indicators thatExxon was tracking to gauge the pace of the energy transition.The tone of the report, which generally conceded theimperative to transition the energy system, was a significantstep for US progress on climate change.




http://www.enbridge.com

http://www.exxonmobil.com


Gibson Energy

Gibson Energy is aCanadian energy servicescompany based in Alberta.It operates refineries,storage facilities andtrucking services.

www.gibsons.com


• Governance Matters -Enhancing ESGManagement & Disclosure

We met with Gibson Energy's CFO in January 2018 to continueour dialogue with the company on its management anddisclosure of key ESG issues, specifically in regard to climatechange risks and opportunities, and safety performance. Thecompany had recently changed leadership, and part of the newstrategic mandate for the executive team was to increasetransparency. In response to a request from Gibson Energy, weshared best practice examples of disclosure from thecompany's peers, and noted that investor interest inclimate-related disclosures was increasing dramatically. Thecompany noted that it already tracked key metrics relevant toclimate change issues and agreed that its current disclosurelikely could be improved.




Fund

Mullen Group

Mullen Group providesspecialized transportationand related services to theoil and natural gas industryin western Canada.

www.mullen-group.com



We met with company executives in January 2018 to discussMullen Group's management and disclosure of key ESG issues,including climate change risks and opportunities, diversity, andsafety performance. The company continued to improve itsESG reporting and noted that it was discussing the possibilityof enhancing its ESG-related disclosure in the annualinformation form in response to our dialogue. In regard to theenergy transition, the company noted that the board regularlyreviewed this topic, and that it was pursuing several mitigationstrategies, ranging from enhanced fuel efficiency through theSmartWay Initiative, to meeting with auto manufacturers tounderstand developments in new engine technologies such aselectrification. The company was also actively seeking ways toincrease diversity internally through its succession planningand leadership training initiatives. In February 2018 thecompany released its Annual Information Form whichcontained enhanced ESG disclosure on issues we had beendiscussing in our dialogue.


http://www.gibsons.com

http://www.mullen-group.com


OccidentalPetroleum

Occidental Petroleum is aninternational oil & gascompany with operations inthe United States, MiddleEast and Latin America.

www.oxy.com


In March 2018, Occidental released its low-carbon resiliencyreport Climate-Related Risks and Opportunities: Positioning fora Lower-Carbon Economy. We were pleased that manyrecommendations from earlier dialogue were included in thefinal report and felt it represented a significant milestone forthe company.



Secure EnergyServices

Secure Energy Services Inc.provides fluids and solidssolutions to the oil and gasindustry.

www.secure-energy.com




We met with Secure Energy's CEO in January 2018 to continueour dialogue on the company's management and disclosure ofkey ESG issues and its ongoing strategy to diversify itsbusiness. The company continued to see opportunities in thearea of water management and was actively pursuingcontinued growth in this key area. In response to our dialogueSecure Energy continued to enhance the integration of ESGdisclosure into its Annual Report and acknowledged the needto improve disclosure related to climate change risks andopportunities. In regard to our ongoing dialogue on boarddiversity, the company noted that it had hired a firm to findqualified female candidates.


Suncor Energy

Suncor Energy Inc. isCanada’s largest integratedenergy company, focusedon development of theAthabasca oil sands.

www.suncor.com

• Getting Real About theEnergy Transition -Advancing the CanadianEnergy Transition

In January 2018 we met with Suncor Energy at the company'srequest to provide detailed feedback on its sustainabilitydisclosures. In March 2018 we were invited by the company tobe part of a multi-stakeholder expert group tasked withproviding guidance and input to the company on its strategyfor measuring and meeting its greenhouse gas (GHG) emissionsreduction target. The company had set a target of reducing theGHG-intensity of its production by 30% by 2030. This sessionprovided Suncor with guidance on how to best measureprogress against this goal, and what kind of metrics wouldincent actual reductions and support the creation of a companyculture around GHG-efficiency.



Fund

http://www.oxy.com

http://www.secure-energy.com

http://www.suncor.com


Superior Plus

Superior Plus distributesand markets propane andnatural gas in NorthAmerica andinternationally.

www.superiorplus.com



We met with senior executives at Superior Plus in January2018 to continue our dialogue on the company's managementand disclosure of key ESG issues, including safety culture,safety performance, and climate change risks andopportunities. The company noted that it had been tasked bythe board to address its lack of ESG disclosure, and that ourprevious dialogue had been helpful in raising the prominence ofthis issue. We provided the company with relevant bestpractice examples of disclosure by its peers and suggestions onwhere it could focus its attention.

In March 2018, we met with Superior Plus to follow up on ourJanuary conversation and to provide specific feedback on thecompany's plans to improve its ESG disclosure in response toour previous input. We were pleased that the company plannedto address several of the material issues we identified in ourearlier meetings and we provided further feedback on howdisclosure could be enhanced. The company subsequentlypublished enhanced ESG disclosure in its 2018 AnnualInformation Form.



Fund

AltaGas Ltd.

AltaGas is a NorthAmerican-focused energyinfrastructure companywith assets in gas, power,and utilities.

www.altagas.ca



In March 2018 we met with AltaGas to discuss progress relatingto our request that the company improve disclosure on itsstrategic resilience to a low-carbon future. We also discussedthe status of the company’s methane-related projects andplans in Alberta. The company provided an update on recentmergers and its plans for enhancing sustainability reporting.


NEI Special EquityFund


Fund

http://www.superiorplus.com

http://www.altagas.ca


FINANCE

Bank ofMontreal

BMO Financial Group is afinancial services providerthat serves more than 12million personal,commercial, corporate andinstitutional customers inNorth America andinternationally.

www.bmo.com

• Responsibility to Respect- Responsible Lending

In February 2018 we met with BMO to follow up on our earlierletter regarding strengthening the Equator Principlesframework for responsible lending, and to learn more about thecompany’s environmental and social due diligence processes.We emphasized that relying on regulatory compliance may notbe sufficient to address social risks, noting the Indigenousopposition to the Dakota Access Pipeline and the related risksto the financial institutions financing this controversial project.We also highlighted the increased expectations that banksshould demonstrate a constructive role in engagement withclients regarding controversial loans.


Fund

NEI GenerationalLeaders Fund

CIBC

CIBC is a leadingCanadian-based financialinstitution and provides afull suite of financialproducts and services inCanada and around theworld.

www.cibc.com


• Getting Real About theEnergy Transition -Advancing the CanadianEnergy Transition &Implementing TCFDRecommendations onClimate Disclosure

In February 2018 we met with CIBC to follow up on earlierdialogue where we had expressed concern about the absenceof a publicly-disclosed social risk management policy. Weemphasized that social due diligence should apply to allcorporate lending transactions - not just to project financecovered by the Equator Principles framework. We alsoemphasized that relying on regulatory compliance may not besufficient to address social risks, noting the Indigenousopposition to the Dakota Access Pipeline and the related risksto the financial institutions financing this controversial project.

In collaboration with SHARE, we met with CIBC in March 2018to discuss its role in the transition to a low-carbon economyand to better understand its perspectives on therecommendations of the Task Force on Climate-relatedFinancial Disclosures. We encouraged the bank to play a moreactive role by engaging its clients on climate change, and to seta low-carbon financing target.



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http://www.bmo.com

http://www.cibc.com


LaurentianBank

Laurentian Bank of Canadais a Quebec bankinginstitution operating acrossCanada, providing a fullsuite of financial products.

www.laurentianbank.com

• Governance Matters -Advancing Governance ofCanadian Holdings

In March 2018, we wrote to Laurentian Bank to share how wemight vote at the company's 2018 Annual Meeting. We werepleased that we were able to support all directors on the ballotand that, following our request, the bank had improveddisclosures on its executive compensation framework. We alsoexplained our view regarding the shareholder proposals on theballot, which touched on director nomination, climate changeand pay equity. The bank appreciated our outreach andresponded by providing further background on the filedshareholder proposals.


NEI NorthwestSpecialty Equity

Fund


Fund

http://www.laurentianbank.com


TD Bank

TD Bank Group,headquartered in Torontowith offices around theworld, offers a full range offinancial products andservices.

www.td.com


In January 2018, we wrote to TD to follow up on our earlierrequest that the company should provide an update on itsengagement activities in relation to financing of the DakotaAccess Pipeline and the Kinder Morgan pipeline. We highlightedthe importance of demonstrating that the bank was playing aconstructive role with respect to controversial projects, notingthat other leading banks had disclosed more information ontheir engagement with clients and other stakeholders inrelation to the Dakota Access Pipeline project.



NEI NorthwestGrowth & Income

Fund

NEI NorthwestCanadian Equity

Fund



Fund

http://www.td.com


Wells Fargo

Wells Fargo is an Americanmultinational financialservices company.

www.wellsfargo.com

• Governance Matters -Business Ethics

We continued to participate in the steering group for the ICCRdialogue with Wells Fargo on business ethics, through which wehad co-filed a shareholder proposal calling for a comprehensivebusiness standards review and report. When the companyindicated that it was willing to undertake the review, thecollaboration wrote to Wells Fargo to establish terms ofreference and a timeline. The company committed in February2018 to conduct a comprehensive business standards reviewwith stakeholder input, and to issue a report by the end of 2018as requested by the investor collaboration: as such the co-filerswere able to withdraw the shareholder proposal.

NEI Ethical U.S.Equity Fund


Fund



HEALTH CARE

Bristol-MyersSquibb

Bristol-Myers Squibb (BMS)is an Americanpharmaceutical companyfounded in 1858,headquartered in New YorkCity.

www.bms.com

• Making Pharma Better -Access to Medicine &Advancing U.S. Health Care

As part of an ICCR collaboration we met with Bristol-MyersSquibb (BMS) in March 2018 to discuss progress on access tomedicine initiatives, implementing the SustainableDevelopment Goals, and sustainability reporting. BMS hadmade significant progress on expanding access to affordablehealthcare in low-income countries. Investors encouraged thecompany to measure the impact of its programs in low andmiddle-income countries and were pleased to hear thecompany was working to enhance related disclosure in itsannual reporting.



http://www.wellsfargo.com

http://www.bms.com


Johnson &Johnson

Johnson & Johnson is anAmerican multinationalmedical devices,pharmaceutical andconsumer packaged goodsmanufacturer founded in1886.

www.jnj.com



In the context of a PRI collaboration on cyber security for whichwe were leading engagement with Johnson & Johnson, wewrote to the company in January 2018 to request a dialogue onits cyber security governance, including board oversight anddirector skills, cyber security auditing and employee training.We led a collaborative meeting with J&J; in February 2018 todiscuss the central role cyber security played in the company'soperations and medical device design, internal responsibilitiesfor cyber security oversight and management and thecompany's leading part in an FDA pilot project aimed atimproving digital health systems and products. We encouragedthe company to increase disclosure on its cyber governance,including where it is leading its pharmaceutical peers.

We participated in an ICCR collaboration in January 2018 todiscuss Johnson & Johnson's access to medicine approach,reporting against the Sustainable Development Goals, and theupcoming annual Transparency Report which would addressdrug pricing strategies.



Fund


Merck & Co Inc

Merck & Co, known as MSDoutside of North America, isa global healthcarecompany founded in 1891.

www.merck.com


We participated in an ICCR collaborative meeting with Merck inJanuary 2018 to discuss the company's enhanced reportingagainst the Sustainable Development Goals, its access tomedicine strategies, and US market drug pricing. We met withMerck again in March 2018 to discuss our concerns regardingits decision not to participate in the 2018 Access to MedicineIndex (ATMI) data collection process. The Access to MedicineIndex benchmark, published every two years, providesinvestors with an in-depth analysis on how pharmaceuticalcompanies advance access to medicine in low- andmiddle-income countries and how they integrate access tomedicine strategies into their business models. Merckexplained its decision did not affect its commitment toproviding access to medicine and noted it was re-directingresources that would otherwise be taken up by ATMIparticipation to focus on the launch of its renewed SDGstrategy.




http://www.jnj.com

http://www.merck.com


Pfizer

Pfizer is a globalpharmaceutical companyheadquartered in the U.S.

www.pfizer.com

• Making Pharma Better -Opioid Crisis, Access toMedicine & Advancing U.S.Health Care

We met with Pfizer in February 2018 in the context of anInvestors for Opioid Accountability (IOA) collaboration, todiscuss the company's approach to drug pricing, andspecifically pricing of opioid overdose treatments such asnaloxone, in light of the increased naloxone demands fuelled bythe North American opioid crisis.




INDUSTRIALS

CanadianNationalRailway

Company

Canadian National Railway,also known as CN, isCanada's largest and onlytranscontinental railway.The company isheadquartered in Montreal.

www.cn.ca


In February 2018 we met with Canadian National Railway todiscuss its management and disclosure of key ESG issues,notably its climate change strategies and plans to enhancerelevant disclosure in light of the recommendations of the TaskForce on Climate-related Financial Disclosures. We werepleased by the company’s ranking on the Carbon DisclosureProject’s Climate A-List and we provided additional feedbackon how the company’s climate-related disclosure could beenhanced.



Fund

NEI Global ValueFund

CanadianPacific Railway

Canadian Pacific Railway isa rail transport companyheadquartered in Calgaryoperating in Canada and 14US states. The companyincorporated in 1881.

www.cpr.com


• Governance Matters -Advancing ESGManagement andDisclosure

In March 2018 we met with Canadian Pacific Railway to start adialogue on the company's management and disclosure of keyESG issues. The company had recently released an updatedsustainability report and indicated that it planned to continueto enhance its disclosures. We also shared our investorexpectations on climate change risks and opportunities in lightof the recommendations of the Task Force on Climate-relatedFinancial Disclosures. We provided the company with relevantbest practice examples of disclosure by its peers andsuggestions on where we thought the company could focus itsattention.



Fund

http://www.pfizer.com

http://www.cn.ca

http://www.cpr.com


Compagnie deSaint-Gobain

Compagnie de Saint-Gobainis a French multinationalcorporation specializing inconstruction materials,founded in 1665 in Paris.

www.saint-gobain.com


In February 2018 we were part of the Investor DecarbonisationInitiative that wrote to Compagnie de Saint-Gobain asking thecompany to commit to sourcing 100% of its electricity needsfrom renewable energy and to set science-based targets forgreenhouse gas (GHG) reductions that would align thecompany with the Paris Agreement climate goals.


KubotaCorporation

Kubota Corporation is aJapanese tractor and heavyequipment manufacturerfounded in 1890.

www.kubota-global.net


Given significant exposure across our funds to Japanesecompanies, we implemented specialized proxy votingguidelines for the market in 2017 aiming to incentivize boardindependence and diversity in line with local market bestpractice. In this context we wrote to Kubota Corporation inMarch 2018 to inform the company how we intended to vote atits upcoming Annual General Meeting. Specifically, weexpressed concern about the lack of gender diversity on theboard and encouraged the company to disclose to investorshow it planned to address this matter. We outlined our view onleading practices, including publishing an official boarddiversity policy. Kubota responded to our letter, noting that ithad recognized board diversity as a matter of concern from acorporate governance perspective and it would take ourfeedback under consideration.

NEI EnvironmentalLeaders Fund

United ParcelService Inc

(UPS)

United Parcel Service (UPS)is an American multinational package delivery andlogistics company foundedin 1907.

www.ups.com


In February 2018 we were part of the Investor DecarbonisationInitiative that wrote to United Parcel Service asking thecompany to commit to sourcing 100% of its electricity needsfrom renewable energy and to set science-based targets forgreenhouse gas (GHG) reductions that would align thecompany with the Paris Agreement climate goals.



http://www.saint-gobain.com

http://www.kubota-global.net

http://www.ups.com


INFORMATION TECHNOLOGY

Intel

Intel Corporation is anAmerican multinationalcorporation and technologycompany headquarteredSilicon Valley, California. Itis the world's secondlargest semiconductor chipmaker.

www.intel.com


In February 2018 we were part of the Investor DecarbonisationInitiative that wrote to Intel asking the company to commit tosourcing 100% of its electricity needs from renewable energyand to set science-based targets for greenhouse gas (GHG)reductions that would align the company with the ParisAgreement climate goals.




SamsungElectronics

Samsung Electronics is aSouth Korean multinationalelectronics company andthe world's largest memorychips manufacturer.

www.samsung.com


In February 2018 we were part of the Investor DecarbonisationInitiative that wrote to Samsung asking the company to committo sourcing 100% of its electricity needs from renewableenergy and to set science-based targets for greenhouse gas(GHG) reductions that would align the company with the ParisAgreement climate goals. The company responded positively,indicating that it would be announcing new GHG reductiongoals in 2018.


NEI NorthwestEmerging Markets

Fund

NEI Global ValueFund

MATERIALS

Cemex

Cemex is a Mexicanmultinational buildingmaterials company foundedin 1906 and is the secondlargest building materialscompany worldwide.

www.cemex.com


In February 2018 we were part of the Investor DecarbonisationInitiative that wrote to Cemex asking the company to committo sourcing 100% of its electricity needs from renewableenergy and to set science-based targets for greenhouse gas(GHG) reductions that would align the company with the ParisAgreement climate goals.

NEI NorthwestSpecialty GlobalHigh Yield Bond

Fund

http://www.intel.com

http://www.samsung.com

http://www.cemex.com


REAL ESTATE

Vonovia SE

Vonovia is Germany'slargest residential propertycompany and one of the 30largest companies inGermany.

www.vonovia.de


In February 2018 we were part of the Investor DecarbonisationInitiative that wrote to Vonovia asking the company to committo sourcing 100% of its electricity needs from renewableenergy and to set science-based targets for greenhouse gas(GHG) reductions that would align the company with the ParisAgreement climate goals.



TELECOMMUNICATIONS

Verizon

Verizon Communications,originally known as BellAtlantic, is an Americanmultinationaltelecommunicationsconglomerate.

www.verizon.com


In the context of a PRI collaboration on cyber security forwhich we are leading engagement with Verizon, we wrote tothe company in January 2018 to request a dialogue on its cybersecurity governance, including board oversight and directorskills, cyber security auditing and employee training. We led acollaborative meeting with Verizon in March 2018 to discusshow it governed and implemented responsible datastewardship and cyber security best practices. The companynoted that cyber security was a top priority for the companyand outlined the comprehensive management structures andprocesses it had in place to ensure customer data privacy.Verizon also discussed board responsibilities for oversight andwhich metrics were reported to the board by management. Weencouraged enhanced disclosure to investors on the company'sbest practices, and were pleased to note that Verizon updateddisclosure on cyber security risk oversight in its ProxyStatement.



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http://www.vonovia.de

http://www.verizon.com


Collaborative Engagement

Getting Real About the Energy Transition

• We continued as a lead investor in the PRI collaborative engagement on methane, where we are co-leading engagements with Canadian Natural Resources and VermilionEnergy.

• We continued to be a part of the advisory committee for the PRI Oil & Gas Engagement collaboration. As a member of the advisory committee, we have been providingfeedback and guidance to help shape the collaborative engagement. We will also be leading several engagements for the initiative when it begins later in 2018.

• In January 2018, the investor collaboration RE100, which was focused on asking companies to commit to 100% renewable energy for their electricity needs, was rolled into theInvestor Decarbonisation Initiative (IDI), to which we are now a signatory. The Investor Decarbonisation Initiative is still urging companies to commit to 100% renewable energysourcing, but is also asking them to consider setting science-based greenhouse gas (GHG) emissions reduction targets that align with the Paris Agreement climate goals. The IDIsent sent letters to multiple companies in February 2018, and is now arranging follow-up with companies that expressed interest in engaging further.

Governance Matters - Cyber Security

• As part of a PRI collaboration on cyber security governance, we led meetings with Johnson & Johnson and Verizon. We also wrote to Target and Amazon to request dialogueon the topic.

Making Pharma Better - Advancing US Health Care & Access to Medicine

• We continue to participate in collaborative ICCR engagements with the pharmaceutical industry on access to medicine, sustainability disclosure, drug pricing and theSustainable Development Goals. In that context we met with Merck, Bristol-Myers Squibb, Pfizer and Johnson & Johnson.

Making Pharma Better - Opioid Crisis

• As part of the Investors for Opioid Accountability (IOA), a coalition of institutional investors addressing the North American opioid crisis through engagement with opioidmanufacturers, opioid overdose treatment manufacturers and opioid distributors in our holdings, we engaged Pfizer on overdose treatment pricing.

Responsibility to Respect - Supply Chain

• In January 2018, we participated in calls with Loblaw, Metro, and General Mills in the context of the PRI collaboration on labour standards in an agricultural supply chain.


Policy Actions

Governance Matters

• In January 2018 we submitted comments to the Canadian Securities Administrators' consultation on the approach to director independence. We explained why a lessconsistent approach by issuers to director independence assessment would be problematic in the proxy voting context.

Making Pharma Better

• We provided investor feedback to, and signed, a letter by the Access to Medicine Foundation to the Sustainability Accounting Standards Board (SASB), on how SASB canimprove implementation of relevant access to medicine performance indicators that are in line with the Access to Medicine benchmark.

Responsibility to Respect

• In March 2018 we were part of a small group of investors that wrote to the Equator Principles Association (EPA) to show support for the EPA's commitment to review itsframework for responsible project finance and to urge the association to ensure that the updated framework contained adequate measures for the protection of the rights ofIndigenous peoples. We also encouraged the EPA to reach out to Indigenous communities to obtain their input on changes to the framework.

• In March 2018, we signed an investor letter to the Roundtable on Sustainable Palm Oil (RSPO) citing the need for a transparent and responsive complaints mechanism givenpersistent allegations that RSPO failed to uphold labour rights-related standards.

• In January 2018 we were signatory to an investor statement led by ICCR, calling on global apparel brands and retailers to join the extension of the Accord on Fire and BuildingSafety in Bangladesh, which was adopted following the Rana Plaza factory disaster in 2013. The initiative was extended to allow additional time for factory remediation andbuilding effective worker safety committees. We coordinated collaborative follow-up on the statement for relevant companies in Canada. In February 2018, we also participatedin meeting led by ICCR with the parallel Alliance for Bangladesh Worker Safety, to discuss whether this initiative would also be extended.

• In February 2018 we followed up on earlier discussions with Retail Council of Canada, providing an update on emerging investor expectations for ESG disclosures by retailers.

• Following up on our earlier collaborative letter, in March 2018 we participated in a meeting organized by the OECD to explore considerations for developing responsiblebusiness conduct guidance for banks.

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Documents

NEI Corporate Engagement Focus List List 2018 April Update EN.pdfchocolate manufacturer founded in 1894 and is one of the largest chocolate ma nufacturers in the world. Brands include