Responsible Investing

An active approach to responsible investing

To support our clients’ investment objectives, we:

Integrate environmental, social and governance (ESG) analysis into our investment process and reporting for applicable investments*
Take an issues-led and stewardship approach to responsible investing, engaging directly with companies and sovereigns we invest in
Apply an active thematic approach to impact investing

Our approach to climate change

The economic impacts of climate change on specific markets, regions, and investments are complex, varied, and uncertain. We support the global goal of achieving net-zero emissions by 2050 or sooner, and believe that considering climate-related risks and opportunities in our investment approach can enhance our long-term risk-adjusted returns.

(TCFD Report)

RBC GAM Climate Report 2022

We believe our approach is unique:

Engagement: Analysts log engagement with underlying investments on our proprietary research tool. Analysts lead engagement in all issuer interactions, including ESG for applicable investments**.

Screens: We have a number of sector and external screens; particularly with respect to ESG specific strategies.

Strategy tilt: In credit, our focus is on left tail risk and avoiding defaults, which means we focus on downside risk

Investment materiality: Our ESG checklists are very granular on E, S and G factors and the information contained builds on quantitative data from external sources as well as input based on our own qualitative assessments

Regular review: All credits are formally reviewed at least once a year by analysts and typically much more often (around quarterly earnings). When credit reviews are taking place, ESG factors are incorporated into this analysis for applicable investments*. Formal ESG checklists are reviewed in detail every two years, or if the investment return proposition has materially shifted

Climate change: We are reviewing all credits in terms of their ‘E’ factor. We are also producing carbon footing for all investments and all portfolios within our proprietary portfolio investment platform

Sustainability: As part of ESG analysis, sustainability is measured as an investment consideration

* Certain investment strategies, asset classes, exposure and security types do not integrate ESG factors, including but not limited to money market, buy-and maintain, passive, and certain third-party sub-advised strategies or certain currency or derivative instruments. Different strategies that integrate ESG factors will be at varying stages of implementation.

** In certain instances, including but not limited to those involving quantitative investment, buy-and maintain, passive, and certain third-party sub-advised strategies, there is no engagement with issuers.