Granular measurement of our environmental footprint
Intentional investment in sustainability
The impacts of climate change are systemic, unprecedented and already apparent. Extreme changes in weather patterns will have an effect on all of us, but underserved and lower-income populations will be affected disproportionately. While some of the effects of climate change are obvious, such as crop viability and general livability, others are more subtle, such as the potential impact on insurance, property risk, and real estate trends. Some of these changes are highly undesirable and may lead to forced migration and social unrest. Unless significant changes are made, we will likely need to prepare for these challenges and possibly more.
Impact investing for climate change solutions offers investors the ability to pursue competitive financial returns while also supporting environmental sustainability and the preservation of our planet’s natural resources.
Measuring climate impact: net-carbon negative
Impact Measurement is Key
Measurement of the positive and negative impacts of any investment is critical to understanding its actual environmental footprint. Passive fixed income strategies tend to be carbon-heavy – but carbon negative investment strategies are possible, as demonstrated by this comparison of a $1M investment in the RBC Impact Bond Strategy versus a $1M investment in the general fixed income market:
Climate Focused Sustainable Development Goals
We seek to mitigate risk and invest in high impact climate solutions to create resilient portfolios over the long term. To do this, we invest in projects that promote:
- renewable energy
- clean air and water
- land preservation
- efficient resource use
- environmental remediation projects
These investments can be guided by focusing on a subset of the United Nations Sustainable Development Goals, a global agenda to end poverty, protect the planet, and ensure prosperity for all by the year 2030.