Climate change policy
Incorporating the investment risks andopportunities associated with climate change

russellinvestments.com

Policy overview
Russell Investments’ policy is to research, measure, report and consider climate change risk
and opportunities as integral parts of our investing practice, our active ownership and ourbusiness operations. Our measures, reported metrics, and consideration of climate risk andopportunities are integrated into our subadvisor research and selection, portfolio
management, advice, proxy voting and shareholder engagement and day-to-day business.

Russell Investments climate change policy
Since the signing of The Paris Agreement1 asset owners, investment managers and regulators
are increasingly acknowledging the importance of climate change to investment risk and return
opportunities. Russell Investments has also recognized climate change as a material
investment issue.
Russell Investments has built its responsible investing policy and practice from our beliefs.
These responsible investing beliefs are naturally inclusive of climate change risk andopportunities and we demonstrate formally their linkage below:

Responsible investing belief

Link to climate change

Environmental, social and governance(ESG) factors impact security prices.
These factors can vary by company,
industry and region, and theirimportance can vary through time.

Climate change is an importantenvironmental issue. Indeed, its effect on
sectors, industries and regions will varyand increases in intensity over time.

A deep understanding of how ESG
factors impact security prices is valueadding to a skillful investment process.

The reach, timing, risk and opportunities
associated with climate change arecomplex.

Embedding ESG considerations into afirm’s culture and processes improvesthe likelihood of prolonged andsuccessful investing.

Meeting the challenge of climate change is
an imperative for any business’ssustainability. Investment managers will
have a critical role to play, as exemplified
by the Taskforce for the Climate-related
Financial Disclosure (TCFD).

Active ownership of securities is aneffective tool for improving investment
outcomes.

By focusing on climate change, andthrough our partnership with Climate Action
100+, we impact and improve bothinvestment outcomes and corporatedecisions.

Our responsible investing policy and practice provide us a strong basis for investing, advising,and building products that reflect our beliefs, while helping to meet clients’ goals, preferences
and circumstances. As climate change risks and opportunities become more topical, investors
demand more disclosure on portfolio positioning and regulators have expanded theirrequirements. Russell Investments looks to understand thoroughly the implications of climatechange for investing, research robust and thoughtful solutions and provide our clients with theinformation they need.

1The Paris Agreement is an agreement within the United Nations Framework Convention on Climate Change (UNFCCC), dealing with greenhouse-gas-emissions
mitigation, adaptation, and finance, signed in 2016. The Paris Agreement | UNFCCC

Russell Investments / Climate change policy/2

TCFD framework2A key motivation establishing a formal climate change policy is our support for the TCFD
initiative as of 2019. The TCFD has an established framework for reporting on climate-relatedtopics.

Core elements of recommended climate-related financial
disclosures
Governance
Governance

The organization’s governance aroundclimate-related risks and opportunities.
StrategyStrategy

Riskmanagement

The actual and potential impacts ofclimate-related risks and opportunities on
the organization’s businesses, strategy
and financial planning.
Risk management

Metrics andtargets

The processes used by the organization
to identify, assess and manage climaterelated risks.
Metrics and targets
The metrics and targets used to assess
and manage relevant climate-related risks
and opportunities.

Source: TCFD. April 2020.

How our responsible investing practice addresses
climate change
Our climate change policy is an extension of our responsible investing practice.3 The current
state of that practice, its trajectory and our aspirational goals include several climate-changefeatures:•Manager research incorporates the impact of climate change through the ESG
components of our research rank framework•

Quantitative research has focused on several climate change themes including water,
resource efficiency and the development of our Material ESG Score4.

•Low carbon strategies explicitly target climate change risk and opportunities•

Active ownership practice explicitly targets climate change

Russell Investments acknowledges that carbon and climate change are investment issues tobe understood. As we evolve our practice, Russell Investments is devoting material resources
to understand and integrate the financial impact of climate change.

2

https://www.fsb-tcfd.org/Ross, L. (2018) Best practices for Responsible Investing may be found at russellinvestments.com/us/corporate-responsibility/responsible-investing.
4
Steinbarth, E. (2018) Materiality matters: Targeting the ESG issues that can impact performance may be found at russellinvestments.com/us/corporateresponsibility/responsible-investing.
3

Russell Investments / Climate change policy/3Climate change and our business operations
Sustainable offices and travel policy
Russell Investments has a strong record of resource efficiency which has real benefits in termsof our overall environmental impact while improving our own bottom line with lower costs.

We are proud that our facilities havebeen acknowledged by severalorganizations:5

As well, we are further reducing ourcosts and our footprint by:•Seattle – LEED (Leadership in Energy
and Environmental Design) Platinumcertified, 100 ENERGY STAR® score••

New York – LEED O+M

Lowering energy and water
consumption: a voluntary program ofimproved energy efficiency and reducedwater consumption is in place•

Chicago – LEED – CI 1.0••Sydney – NABERS Energy rating 5stars, NABERS Water rating 3.5 stars(National Australian Built Environment
Rating System) on a 6-star scale

Managing waste and materials: we arecommitted to reducing and recycling
non-hazardous waste•

Using recycled materials: we incorporate
recycled materials within our working
environment, wherever possible•

Toronto – LEED Gold (EB:OM)••

Amsterdam – BREEAM In-Use certified(Building Research Establishment
Environmental Assessment Method)

Promoting paperless environments: forexample, introducing electronic supplychain transactions6•Hosting genuinely sustainable corporate
events, featuring carbon offsets, digitalmaterials, sustainable food and venues
and the avoidance of single-use plastic.

Russell Investments has acknowledged the benefits of reducing business travel, and inoffsetting travel emissions. Our corporate values7 acknowledge the importance of stewarding
our clients’ assets, trust and fees. This stewardship has contributed to a gradual reduction incorporate travel over the last decade which, in turn, reduces our carbon footprint.

Industry collaboration and support
Russell Investments has an active role in sustainability and responsible investing throughmemberships with organizations promoting the inclusion of sustainability in investment
processes. We are signatories or members of:5

See page 5 for more details of these certifications.
https://russellinvestments.com/us/corporate-responsibility/environmental-activities
7
https://russellinvestments.com/us/careers
6

Russell Investments / Climate change policy/4About Russell Investments
Russell Investments is a global asset manager with a unique set of capabilities that we believe is essential to managing
your total portfolio and to meeting your desired outcome. At Russell Investments, we stand with you, whether you’re aninstitutional investor, a financial adviser, or an individual guided by an advisor’s personalized advice. We believe the best
way to reach your desired outcomes is with a multi-asset approach that combines: asset allocation, capital markets
insights, factor exposures, manager research and portfolio implementation.

For more information
Call Russell Investments at 800-426-8506 or visit russellinvestments.com/

Certifications
Seattle: LEED (Leadership in Energy and Environmental Design) Platinum-certified (2012), 100 ENERGY STAR® score(re-certified 2019), https://www.usgbc.org/projects/russell-investments-center
New York: LEED OM (Operations and Maintenance) Existing Buildings v-3 (2009) https://www.usgbc.org/projects/3bryant-park
Chicago: LEED -CI 1.0 Pilot (2006); https://www.usgbc.org/projects/71-south-wacker
Sydney: National Australian Built Environment Rating System (NABERS) Energy rating 5.0 stars, NABERS Water rating
3 .5 stars on a 6-star scale. (2109) https://www.nabers.gov.au/
Toronto: LEED Gold (EB:OM) (2012); https://www.brookfieldproperties.com/portfolio/toronto/first-canadian-place/
Amsterdam: BREEAM In-Use certified (Building Research Establishment Environmental Assessment Method) (2017)https://www.wtcamsterdam.com/sites/default/files/wtc17-ma04-lr.pdf

Important information
Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion
regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained inthis publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed
professional.
Russell Investments’ ownership is composed of a majority stake held by funds managed by TA Associates withminority stakes held by funds managed by Reverence Capital Partners and Russell Investments’ management.
Frank Russell Company is the owner of the Russell trademarks contained in this material and all trademark rights
related to the Russell trademarks, which the members of the Russell Investments group of companies are permitted touse under license from Frank Russell Company. The members of the Russell Investments group of companies are notaffiliated in any manner with Frank Russell Company or any entity operating under the “FTSE RUSSELL” brand.
Copyright © 2020. Russell Investments Group, LLC. All rights reserved. This material is proprietary and may not be
reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It isdelivered on an "as is" basis without warranty.
First used: March 2020. Revised: April 2020

AI-28243-04-21

russellinvestments.com