Integrated approach

As fixed income specialists, we take a proactive approach to managing ESG and integrate ESG risk analysis across all our investment portfolios for applicable investments*. We have been analysing ESG risk in portfolios since 2013 and have developed proprietary tools and methods to support client responsible investment needs across the fixed income spectrum.

* 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.

We focus our efforts with regards to both:

• New investments (pre-investments), and
• Existing investments (post-investment)

 
Incorporation of ESG factors occurs on many different levels:

• Issuer level, credit analysis to understand RBC BlueBay’s ESG risk exposure on an individual issuer by issuer level
• Sector level, as part of the issuer analysis to assess the material ESG risks for certain industries/sectors, and to what degree are there common ESG risks across sectors
• Portfolio level, portfolio characteristics and ESG investment risk exposures at a fund level
• Group level, oversight of ESG risks across RBC BlueBay’s portfolio strategies e.g. what is RBC BlueBay's investment risk exposure across all the investment teams?

At a RBC BlueBay level, the below ESG components are applied:

ESG integration

• Firmwide policies
• External ESG data
• Issuer ESG evaluation
• PRI signatory, other memberships & collaborations

Stewardship

• Engagement
• Proxy voting

Exclusions / negative screening (product based)

• Controversial weapons

ESG Exclusions (product based) / ESG Norms-based Screening (conduct based):

Full details of the ESG screening applied for BlueBay Funds and BlueBay Structured Funds.