Economic Principles

We have a duty to act in the best long-term interests of our beneficiaries. In this fiduciary role, we believe that environmental, social, and governance issues can affect the performance of investment portfolios. We also recognize that applying these Principles may better align investors with broader objectives of the society. We will promote acceptance and implementation of the Principles within the investment industry. We will work together to enhance our effectiveness in implementing the Principles. We will each report on our activities and progress towards 6 implementing the Principles. We believe that an economically efficient, sustainable global financial system is a necessity for long-term value creation. Such a system will reward long-term, responsible investment and benefit the environment and society as a whole. We advise on the investment practices of trillions of dollars worldwide. They are a recognized source of authority and knowledge. We will continue to review the way that consultants and their clients publish investment strategies and beliefs, implement investment beliefs throughout the organization and include government performance as a standard agenda item at performance review meetings. There are many barriers in market structure, industry practice, and policy and regulation that need to be overcome. Without addressing these barriers there will be little change in the advice provided by investment consultants. We will incorporate governance issues into investment analysis and decision-making processes.