Environmental, Social, and Governance Reporting Update

In addition, the agreement includes the MSCI Carbon Portfolio Analytics reporting package that is part of MSCI's Climate Lab Enterprise, a comprehensive set of climate data and analytics. Carbon Portfolio Analytics reporting from MSCI ESG Research helps investors understand, measure and manage carbon risk at the portfolio, sector and company level. Both MSCI products are being provided on a managed service basis whereby City staff provide portfolio information to MSCI via secured channels and MSCI generate reports on a portfolio and consolidated basis for the Long-Term Fund (LTF) and Sinking Fund (SF). Benchmark index information is also provided for comparison. The information from MSCI is proprietary and confidential. There are a number of identifiable individual companies and governments in their detailed reports. The agreement with MSCI allows for the viewing and use of the information on a confidential basis by a limited number of City staff, the Board and City Council. The contract does allow for the public use of general consolidated information on a limited basis. Portfolio holdings as at March 31, 2025 were submitted to MSCI in May 2025. Results were received as at the date of this report. Summary data is provided in this report as well as in Confidential Attachments 1, 2, 3 and 4. Discussions with Aon Solutions Canada (Aon) were held regarding ESG rating analysis and enhancements. As part of this review, separate discussions were held with the current third-party ESG information provider (MSCI) as the information is part of a service that is strictly confidential. During the meetings with MSCI, it was decided they could assist by ensuring one of their staff could attend Board meetings to respond to questions. The Director, Capital Markets recommends that the attendance of MSCI at Board meetings to be the most cost-effective solution while obtaining enhanced insights to the reports provided and responding to inquiries from the Board.