April 26, 2019

Summary of the 5th Global Asset Owners’ ForumThe 5th Global Asset Owners’ Forum was convened by GPIF on March 4, 2019, in Washington D.C.
The asset owners represented at the Forum included:

GPIF* – Japan
CalPERS* – USA
CalSTRS* – USA
World Bank (host) – USA
Florida State Board of Administration – USA
New York State Common Retirement Fund – USA
British Columbia Investment Management Corporation – Canada
Ontario Teachers’ Pension Plan – Canada
APG – The Netherlands
PGGM – The Netherlands*Three asset owners are organizers of the Forum.

1) Sustainable Development Goals (SDGs) – Participants described their views on the SDGs
The group believes the SDGs are gaining momentum. Forum participants are at various stagesof integration. Some of the Dutch funds have integrated the SDGs into their responsible
investment policy and are investing in opportunities that clearly link to the SDGs. Other
investors continue to evaluate implementation to determine how the SDGs might fit within their
existing investment mandates. Some investors raised challenges related to the perception of theSDGs - some internal staff do not generally understand the SDGs. Investors believe it isimportant to discuss the SDGs in the context of long-term investing and the expectation that
future sustainable development will impact long-term investment risks and opportunities.
The group raised the need for additional investments in developing countries to satisfy theSDGs. Some investors indicated that infrastructure investments in the middle to lower income
countries are typically less risky. They raised that risk is easier to measure in developed
countries versus developing countries.

The World Bank provided an overview of how the SDGs were established and how theirorganization supports the SDGs which includes developing a framework for financing the SDGs.

2) Climate Action 100+ (CA100+) Update – Participants shared their views on the Initiative
CA100+ company engagements are well underway - total of 161 companies are being engaged
across the globe. The purpose of the Initiative is to engage portfolio companies to 1) improvegovernance of climate-related risks and opportunities, 2) curb GHG emissions, and 3)
strengthen climate-related financial disclosures.

3) Task Force on Climate-related Financial Disclosure (TCFD) Framework – Participants
shared their views on the TCFD framework
The group agreed that portfolio companies have generally responded favorably to the TCFD
framework. Investors believe the “metrics and targets” section of the TCFD framework is themost challenging section for companies to address as companies have expressed concernswith potential legal ramifications. The group agreed that investor alignment and consistentmessaging is important concerning sustainability reporting frameworks.

4) Sustainable Accounting Board Standards (SASB) – Participants shared their views on SASB
The group believes SASB’s sector standards are relevant to all investors - noted that theStandards seem to have more of a U.S. perspective. Investors find SASB’s materiality map tobe useful as it helps identify what is material for each sector. The group is encouraged to see
SASB has moved away from mandating disclosure in the financial statements. Investors raised
concerns with SASB not including governance in their Standards. Investors hope to encourage
SASB to include governance and compensation in their Standards.

5) GPIF’s Research Project on Asset Managers Compensation – GPIF shared insights on theirresearch
GPIF hired a consultant to survey its external asset managers and evaluate incentive structuresof executives and stewardship teams. Preliminary results suggest that alignment between asset
owners and asset managers could be improved with greater emphasis on longer-term incentiveperiods.

The attendees at the Forum unanimously agreed to release a summary of discussions on theChatham House Rules basis.
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