The aim of this report is to provide stakeholders with additional information on climate-related risks and opportunities of the RBC Emerging Markets Equity Strategy (“the strategy”).
We believe that companies that invest and plan for the future and focus on a range of material ESG factors, including climate change, have more durable business practices and are therefore more likely to achieve resilient, long-term returns while also avoiding risks.
RBC GAM has developed a number of climate data tools for measuring and monitoring changes in our portfolio’s climate-related risks and opportunities. Using these tools and other inputs, we can provide climate-related metrics for each of the categories below:
Given our focus on ESG integration as part of our investment philosophy and process, the strategy currently has a 72% lower weighted average carbon intensity (“WACI”) than the MSCI EM Index (based on WACI sales, Scope 1 and 2 emissions)3. The portfolio’s temperature alignment is 2.3°C, based on MSCI’s Implied Temperature Rise (“ITR”)4.
Whilst we don’t seek a climate-related investment objective, through our analysis5 we expect the strategy will reach Scope 1 & 2 operational net-zero by 2050, based on the target years of our underlying holdings. For companies in our portfolio where climate change presents a material risk, we expect them to have a short-term carbon emissions reduction target, a net-zero target year, and net-zero plan.
We will continue to engage with companies in which we are invested, and closely monitor their progress in meeting these expectations.
For our full report, please contact marketing@bluebay.com.
1 The Paris Agreement is a legally binding international treaty on climate change. It was adopted by 196 parties at the UN Climate Change Conference (“COP21”) in Paris, France on 12 December 2015. It entered into force on 4 November 2016.
2 Net-zero transition | World Economic Forum (weforum.org).
3, 4 RBC GAM, MSCI ESG climate change metrics, MSCI®, as at 30 June 2026. The Implied Temperature Rise (ITR) is a forward-looking metric that indicates what the global average temperature increase would be in 2100 if the global economy had the same carbon emissions and targets as an issuer or portfolio. This metric considers the carbon emissions of issuers, the expected reduction in emissions due to published emission reduction targets, and the likelihood of achieving established targets. As such, the ITR provides an indication of the alignment of an issuer or portfolio to a particular temperature pathway.
5 Analysis is based on carbon emissions and each holding’s weight and stated net-zero target year.
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RBC GAM is the asset management division of Royal Bank of Canada (RBC) which includes RBC Global Asset Management Inc. (RBC GAM Inc.), RBC Global Asset Management (U.S.) Inc. (RBC GAM-US), RBC Global Asset Management (UK) Limited (RBC GAM-UK), and RBC Global Asset Management (Asia) Limited (RBC GAM-Asia), which are separate, but affiliated subsidiaries of RBC.
In Canada, this material is provided by RBC GAM Inc. (including PH&N Institutional), which is regulated by each provincial and territorial securities commission. In the United States (US), this material is provided by RBC GAM-US, a federally registered investment adviser. In the United Kingdom (UK) and Australia this material is provided by RBC GAM-UK, which is authorised and regulated by the UK Financial Conduct Authority. In the European Economic Area (EEA), this material is provided by BlueBay Funds Management Company S.A. (BBFM S.A.), which is regulated by the Commission de Surveillance du Secteur Financier (CSSF). In Germany, France, Sweden, Italy, Spain and Netherlands the BBFM S.A. is operating under a branch passport pursuant to the Undertakings for Collective Investment in Transferable Securities Directive (2009/65/EC) and the Alternative Investment Fund Managers Directive (2011/61/EU). In Spain, BlueBay Funds Management S.A is registered with the CNMV under No. 607. In Switzerland, this material is provided by BlueBay Asset Management AG where the Representative and Paying Agent is BNP Paribas Securities Services, Paris, succursale de Zurich, Selnaustrasse 16, 8002 Zurich, Switzerland. In Japan, this material is provided by BlueBay Asset Management International Limited, which is registered with the Kanto Local Finance Bureau of Ministry of Finance, Japan. In Asia, this material is provided by RBC GAM-Asia, which is licensed by the Securities and Futures Commission (SFC) in Hong Kong.
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Any investment and economic outlook information contained in this material has been compiled by RBC GAM from various sources. Information obtained from third parties is believed to be reliable, but no representation or warranty, express or implied, is made by RBC GAM, its affiliates or any other person as to its accuracy, completeness or correctness. RBC GAM and its affiliates assume no responsibility for any errors or omissions in such information.
Opinions contained herein reflect the judgment and thought leadership of RBC GAM and are subject to change at any time. Such opinions are for informational purposes only and are not intended to be investment or financial advice and should not be relied or acted upon for providing such advice. RBC GAM does not undertake any obligation or responsibility to update such opinions.
RBC GAM reserves the right at any time and without notice to change, amend or cease publication of this information.
Past performance is not indicative of future results. It is not possible to invest directly in an index.
Some of the statements contained in this material may be considered forward-looking statements which provide current expectations or forecasts of future results or events. Forward-looking statements are not guarantees of future performance or events and involve risks and uncertainties. Do not place undue reliance on these statements because actual results or events may differ materially from those described in such forward-looking statements as a result of various factors. Before making any investment decisions, we encourage you to consider all relevant factors carefully.
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© RBC Global Asset Management Inc., 2026
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