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Ontario Pension Board (OPB)

PRI reporting framework 2017

Basic Information [OO 01 - 09] Gateway asset class implementation indicators [OO 10 - 12]

Objectives and strategies [SG 05 - 06] Governance and human resources [SG 07 - 08] Promoting responsible investment [SG 09 - 11] Implementation not in other modules [SG 12 - 16] Innovation [SG 17]

Indirect – Manager Selection, Appointment and Monitoring

Overview [SAM 01 - 02] Listed Equity and Fixed Income Strategies [SAM 03 - 04] Selection [SAM 05 - 06] Monitoring [SAM 08 - 10] Outputs and outcomes [SAM 11 - 12] Communication [SAM 13]

Direct - Listed Equity Active Ownership

Engagement [LEA 01 - 16] Overview [LEA 01 - 02] Process [LEA 03 - 10] Process for engagements conducted with/on your behalf by service providers [LEA 07 - 08] General processes for all three groups of engagers [LEA 09 - 10] Outputs and outcomes [LEA 11 - 15] Communication [LEA 16] (Proxy) voting and shareholder resolutions [LEA 17 - 27] Overview [LEA 17] Process [LEA 18 - 22] Outputs and outcomes [LEA 23 - 26] Communication [LEA 27]

Direct - Property

Overview [PR 01 - 04] Pre-investment (selection) [PR 07 - 09] Selection, appointment and monitoring third-party property managers [PR 10] Post-investment (monitoring and active ownership) [PR 11 - 17] Overview [PR 11] Property monitoring and management [PR 12 - 13] Property developments and major renovations [PR 14] Occupier engagement [PR 15 - 16] Communication [PR 20]

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You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

Yes

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types	Coverage by AUM
Policy setting out your overall approach Formalised guidelines on environmental factors Formalised guidelines on social factors Formalised guidelines on corporate governance factors Asset class-specific RI guidelines Sector specific RI guidelines Screening / exclusions policy Engagement policy (Proxy) voting policy Other, specify (1) Other, specify(2)	Applicable policies cover all AUM Applicable policies cover a majority of AUM Applicable policies cover a minority of AUM

01.3. Indicate if the investment policy covers any of the following

Your organisation’s definition of ESG and/or responsible investment and it’s relation to investments

Your investment objectives that take ESG factors/real economy influence into account

Processes / approaches to incorporating ESG

Time horizon of your investment

Governance structure of organisational ESG responsibilities

ESG incorporation approaches

Active ownership approaches

Reporting

Other RI considerations, specify (1)

Other RI considerations, specify (2)

01.4. Indicate what norms you have used to develop your investment policy that covers your responsible investment approach.

UN Global Compact Principles

UN Guiding Principles on Business and Human Rights

Universal Declaration of Human Rights

International Bill of Human Rights

International Labour Organization Conventions

United Nations Convention Against Corruption

OECD Guidelines for Multinational Enterprises

Other, specify (1)

Other, specify (2)

Other, specify (3)

None of the above

01.5. Describe your organisation’s investment principles, and overall investment strategy, and how they consider ESG factors and real economy impact.

The overriding objectives of the Fund are to provide security for the promised benefits, invest within an acceptable level of risk, and allow for stable and reasonable contribution rates. In general, OPB believes that supporting environmental, social, and governance (ESG) initiatives will improve corporate disclosure practices and will enable long term investors, such as OPB, to better evaluate investment return-risk tradeoffs and ultimately support OPB's efforts to achieve the Plan's objectives.

OPB does not engage in the practice of screening in its investment decision making process. OPB adopts a pragmatic approach to integrating ESG considerations into its investment policies and procedures for the Fund.

OPB has fiduciary responsibilities to act in the best interests of Plan beneficiaries and for the long term sustainability of the Fund and therefore it is important that factors such as ESG are incorporated in a manner that supports, and does not take precedence over, OPB’s overriding fiduciary responsibilities.

OPB is a signatory to the United Nations-backed Principles for Responsible Investment (PRI). This international network of investors is collaborating to put Responsible Investment into practice and help build a more sustainable global financial system.

01.6. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

SG 02. Publicly available RI policy or guidance documents

New selection options have been added to this indicator. Please review your prefilled responses carefully.

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

Policy setting out your overall approach

Engagement policy

(Proxy) voting policy

We do not publicly disclose our investment policy documents

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

Processes / approaches to incorporating ESG

Time horizon of your investment

ESG incorporation approaches

Active ownership approaches

We do not publicly disclose any investment policy components

02.3. Indicate if your organisation’s investment principles, and overall investment strategy is publicly available

Yes

URL http://www.opb.ca

02.4. Additional information [Optional].

OPB has established a Statement of Investment Policies and Procedures (SIPP) that sets out OPB’s policies and procedures for the Plan’s portfolio of investments and loans, including how we incorporate environmental, social and governance (ESG) considerations. OPB provides a copy of the SIPP to members, former members and retired members upon request.

SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

Yes

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

OPB’s Statement of Investment Policies and Procedures prohibits any OPB member, officer, employee, portfolio manager or other person appointed to carry out duties and responsibilities on behalf of OPB (an “OPB Agent”) to knowingly permit his or her interest to conflict with his or her duties and powers in respect of the Ontario Public Service Pension Plan (the “Plan”). A conflict of interest includes any direct, indirect, actual or perceived material pecuniary interest of an OPB Agent in any investment in which OPB participates or proposes to participate. Any such conflict of interest is required to be disclosed by the OPB Agent to the Secretary of OPB. To the extent any investment matter requires the approval or vote of any committee of OPB, such OPB Agent must declare his/her conflict of interest and refrain from participating in the discussion or voting on such investment matter.

In addition, both the SIPP and the applicable Canadian pension legislation prohibits, subject to specific legislative exemptions, OPB from directly or indirectly lending its money to or investing its money in, or entering into a transaction with a person or entity that is considered a “related party” to the Plan.

03.3. Additional information. [Optional]

SG 04. Identifying incidents occurring within portfolios (Not Completed)

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