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.
Our approach to climate change
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 2024What is responsible investment?
Responsible investment is an umbrella term used to describe a broad range of approaches for incorporating ESG considerations into the investment process. These approaches are not mutually exclusive; multiple approaches can be applied simultaneously within the investment process. For instance, a solution applying exclusionary criteria to the investment universe can also apply ESG integration to remaining assets eligible for investment.
At RBC Global Asset Management (RBC GAM), RI includes the following investment strategies:
Ongoing 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.
Our approach to responsible investment
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.