Our approach to responsible investment
At RBC Global Asset Management (RBC GAM), our approach to responsible investment (RI) is anchored by the knowledge that our clients have entrusted us to help them secure a better financial future for themselves or for the beneficiaries of the portfolios they manage. We believe that being an active, engaged, and responsible investor empowers us to enhance the risk-adjusted, long-term performance of our portfolios.
We believe that climate- and nature-related factors are systemic risks that may materially affect issuers and the economies, markets, and societies in which they operate.1 We recognize the importance of the global goal of achieving net-zero emissions by 2050 or sooner, in order to mitigate climate-related risks.2
Read the RBC GAM Climate Report 2024Ongoing incorporation of material ESG factors1 into investment decision making with an aim to identify potential risks and opportunities and improve risk-adjusted, long-term returns.
Applying positive or negative screens to include or exclude assets from the investment universe.
Investing in assets involved in a particular ESG-related theme or seeking to address a specific ESG issue.
Investing in assets with the intent to generate a measurable positive social or environmental impact.
At RBC GAM, we believe that being an active, engaged and responsible investor empowers us to enhance the risk-adjusted, long-term performance of our portfolios and is consistent with our fiduciary duty.
We believe that issuers that manage their material ESG factors and related risks will likely reduce the probability of experiencing losses that would accompany an ESG-related incident. Our investment teams incorporate material ESG factors into their investment decisions for applicable types of investments2.
We have a dedicated team whose role is to lead RI activities, execute proxy voting activities, liaise with industry initiatives, and support the implementation of our approach to responsible investment.
1References to material ESG factors refer to ESG factors that in our judgment are most likely to have an impact on the financial performance of an issuer, security, and/or investment portfolio.
This webpage and embedded links include information related to RBC GAM’s approach to responsible investment, which do not apply to certain funds, investment strategies, asset classes, exposure or security types that do not integrate ESG factors. Examples of what would not integrate ESG factors include, but are not limited to, money market, buy and maintain, passive, and certain third-party sub-advised funds/strategies or certain currency or derivative instruments. ESG factors are considered by our investment teams to varying degrees and weights, depending on the investment team’s assessment of that ESG factor’s potential impact on the risk-adjusted, long-term performance of the security and/or the fund. For funds where ESG factors do not form a part of their investment objective, ESG factors are generally not likely to drive investment decisions on their own, and in some cases, may not impact an investment decision at all. RBC GAM has a general approach to active stewardship, proxy voting, and engagement that address ESG matters among other matters. References to active stewardship do not apply to certain investment strategies where proxy voting and/or engagement are not used.
Examples of what would not conduct certain active stewardship activities include, but are not limited to, quantitative investment strategies that do not conduct engagements, passive, and certain third-party sub-advised strategies. RBC GAM does not manage proxy voting for certain third-party sub-advised strategies. For clarity, RBC Indigo Asset Management Inc. and its fund products are not covered by the information presented on this webpage, unless otherwise indicated.
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© RBC Global Asset Management Inc., 2023