Western Washington University
PAE-17: Shareholder Advocacy

WWU’s active Clearbridge SAIS... Consider issues relating to work-force diversity, worklife balance, employee retention and training, employee benefits and compensation, labor relations, outsourcing, and foreign sourcing. Consider issues relating to mission-related philanthropy, volunteerism, human rights responsiveness, and public policy engagement. Consider such issues as regulatory compliance, occupational/ workplace safety, environmental “footprint,” eco-efficiency, product safety, pollution prevention, life cycle analysis. Consider such issues as management structure, board com-position, governance guidelines, transparency, disclosure. Standard Avoidance Screening SAI’s standard avoidance screens are designed to restrict exposure to specific industries and/or sectors, based on product offerings or business practices. Standard avoidance screens include: • Tobacco, which excludes companies that have significant involvement in the manufacture of tobacco products • Alcohol, which excludes companies that have significant involvement in the manufacture of alcoholic beverages • Gambling, which excludes companies that have significant involvement in the provision of gaming services • Weapons/Defense, which excludes companies that have significant involvement in the manufacture of firearms, ammunition, or other weapons, as well as companies that have significant weapons-related contracts with the Department of Defense/Department of Energy • Nuclear Power, which excludes companies that have significant involvement in the production of nuclear power Investments in other companies also may be excluded. The SAI team determines what is “significant” for avoidance screening purposes and may decide on different screening approaches for different companies and different sectors. Standard Supportive or Affirmative Screening SAI’s standard supportive or affirmative screens are applied to all portfolios in the SAI Program to help identify those companies that, on balance, understand and respond to the sociocultural factors arising in their operating arena which, in turn, could affect their competitive position, risk profile, and future growth opportunities. This determination is made through a “best of class” analysis of a company’s culture, management systems, policies, and performance track record, drawing on information from the companies themselves, advocacy organizations, government agencies, and/or public policy institutes.