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. We recognize the importance of the global goal of achieving net-zero emissions by 2050 or sooner, in order to mitigate climate-related risks.
Read the RBC GAM Climate Report 2024We take specific actions under each of these three pillars to deliver on our aim of maximizing our clients' investment returns without undue risk of loss, in accordance with the investment objectives, strategies, and restrictions of each investment mandate.
ESG integration
Our investment teams incorporate material environmental, social and governance (ESG) factors1 into their investment decisions for applicable types of investments.
Active stewardship
We consider material ESG factors in proxy voting and engagement with issuers for applicable types of investments. We may also participate in RI industry initiatives, where applicable.
Client-driven solutions and reporting
We aim to align our solutions with client demand and provide transparent and meaningful reporting.
Our investment teams consider material ESG factors when making investment-related decisions within the portfolios they manage, for applicable types of investments, with an aim to identify potential material risks and opportunities and improve risk-adjusted, long-term performance. Examples of ESG factors that may be material include the following.
Environmental
- Air and water pollution
- Biodiversity
- Climate change
- Ecosystem integrity
- Natural resource management and use
- Waste management
- Water quality and availability
Social
- Community relations
- Data privacy and security
- Employee engagement
- Gender and diversity
- Health and safety
- Human rights
- Indigenous rights
- Labour practices
Governance
- Board structure and independence
- Bribery and corruption
- Executive compensation
- Lobbying and political contributions
- Shareholder rights
- Tax strategy and accounting standards
Activity disclosures, research and insights
Providing responsible investment solutions
While many of our products incorporate responsible investment through ESG integration, we also offer funds that apply ESG screening and exclusion based on a defined set of ESG-related criteria.
ESG integration
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.
ESG screening and thematic ESG investing
ESG screening and exclusion apply positive or negative screens to include/exclude assets from the investment universe. Thematic ESG investing focuses on investing in assets involved in a particular ESG-related theme or seeking to address a specific ESG issue.
While any ESG factor may be material to an investment or portfolio, we believe that there are certain systemic ESG factors that are likely material to issuers across most sectors and geographies. Such systemic ESG factors include governance, climate change and nature, and human rights. For more information on our approach to managing our investments' exposure to these systemic ESG factors, please read 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 does 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 addresses 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.