ESG integration

Our investment teams incorporate material environmental, social, and governance (ESG) factors into their investment decisions for applicable types of investments.

What is ESG integration?

ESG integration is the ongoing incorporation of material ESG factors into investment decision making with an aim to identify potential risks and opportunities and improve risk-adjusted, long-term returns.

Environmental

How does the issuer interact with their environment, and vice versa?
  • Air and water pollution
  • Biodiversity
  • Climate Change
  • Ecosystem integrity
  • Natural resource management and use
  • Waste management
  • Water quality and availability

Social

How does the issuer interact with its employees, customers, and communities?
  • Community relations
  • Data privacy and security
  • Employee engagement
  • Gender and Diversity
  • Health and Safety
  • Human rights
  • Indigenous rights
  • Labour practices

Governance

How does the issuer govern itself?
  • Board structure and independence
  • Bribery and corruption
  • Executive compensation
  • Lobbying and political contributions
  • Shareholder rights
  • Tax strategy and accounting standards

Featured insights

RBC GAM's approach to ESG integration

At RBC Global Asset Management (RBC GAM), ESG integration means that investment teams consider material ESG factors when making investment-related decisions within the portfolios that they manage, for applicable types of investments, with an aim to identify potential material risks and opportunities and improve risk-adjusted, long-term performance.

1. Investment-led

Our investment teams have developed their own methods to integrate material ESG factors into their respective investment analysis and decision-making processes for applicable types of investments. This approach allows our investment teams to tailor the ESG integration tools and resources to their distinct investment methodologies. The ESG integration activities undertaken by each team are intended to reflect the best interests of our clients and the time horizon of their investment strategies.

2. Focuses on materiality

Our investment teams focus on those ESG factors that they have determined may impact the value of the investment. The extent of these impacts depends on the issuer, the industries and geographies in which it operates, and the nature of the investment strategy for which it is purchased.

3. Continuously improves and innovates

The culture at RBC GAM revolves around innovation, continuous learning, and harnessing the power of human and machine. Our investment teams explore new and, in our opinion, improved ways to integrate material ESG factors into their investment approaches. Some of our continuous learning initiatives include: firm-wide ESG education sessions with external experts and speakers; internal ESG research on emerging data, themes, tools, and methodologies; an internal ESG network where our investment teams share perspectives on ESG topics; and a monthly internal newsletter on new developments in responsible investment.