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Google AdWords documentation for ad formats list several requirements for creating ads in HTML5. One of the requirements is:

For environment target actions, timer and multiple exits are not supported.

I understand what the other requirements mean, but I haven't been able to find any documentation for "environment target actions". I'm creating a dynamic HTML5 ad for my website and I need to make sure that it complies with all these policies.

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This is in reference to the Action tab inside the Events dialog. Take a look at this picture:

Google Web Designer - Events Dialog - Action Tab - Google Ad

Don't use those settings and you should be in the clear. This is straight from GWD team member:

In the Events dialog of GWD, there is Google Ad section in the Action tab. Some of the items don't work with AdWords environment such as timer. Also if you set multiple exits the ad is not accepted.

Description:

Timer

A timer lets you measure the length of any action.

Exit

An exit is a click-through area in an ad.

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