At RBC GAM*, we believe that being an active, engaged and responsible owner empowers us to enhance the long-term, sustainable performance of our portfolios. We recognize that the rights we have as a large, global investor come with the obligation to actively use those rights in a responsible way.
We believe that the proper disclosure and consideration of environmental, social and governance (ESG) risks and opportunities by the companies or countries in which we are invested is critical to strengthening the overall performance of our portfolios. We seek to integrate ESG factors into our investment process when doing so may have a material impact on our investment risk or return.
Our commitment to integrate ESG factors into our investment process is firm-wide. In addition, we have a dedicated Corporate Governance and Responsible Investment (CGRI) team whose role is to advance ESG integration by managing and coordinating ESG research, engaging with our investee companies on ESG–related issues, overseeing all of our proxy voting, collaborating with like-minded investors and engaging with lawmakers or regulators.
For more information about ESG integration at RBC GAM, please see our Approach to Responsible Investment.
Responsible Investment Commitments
UN Principles of Responsible Investment (UN PRI)
RBC GAM is signatory to the UN PRI. We are committed to putting the UN PRI's six Principles of Responsible Investment into practice and believe that they are aligned with our existing approach to responsible investment.
The PRI assesses signatories' approaches to the Principles based on its assessment methodology. As indicated in our most recent Assessment Report's Summary Scorecard, the PRI gave each of our modules a score of A+, excluding the "Listed Equity – Active Ownership" module where we were given a score of A.
Detailed responses to the UN PRI on our responsible investing activities for the most recent year can be found in our 2018 RI Transparency Report.
In 2017, RBC GAM joined a coalition of Canada's largest institutional investors known as the Canadian 30% Club Investor Group. As communicated in its Statement of Intent, the group's objective is to achieve a minimum of 30% of women on the boards and in senior management roles of S&P/TSX composite index companies by 2022.
RBC GAM is a founding member of the Investor Stewardship Group (ISG). The ISG is a collective of institutional investors brought together to establish a framework of basic standards of investment stewardship for institutional investors and corporate governance principles for U.S. listed companies.
RBC GAM is a signatory to the UK Stewardship Code, which aims to enhance the quality of engagement between asset managers and companies to help improve long-term risk-adjusted returns to shareholders. We update our Stewardship Code Statement annually.
RBC GAM has accepted the Japan Stewardship Code and have detailed how we comply with the code in our Commitment to the Japan Stewardship Code. RBC GAM will review this document annually and update as necessary after each annual review. Additional information that complements our Commitment to the Japan Stewardship Code, such as information about our proxy voting practices and voting record and our firm approach to responsible investing, can be accessed from this page.
RBC GAM has provided additional disclosure of its approach to stewardship through the NAPF Stewardship Disclosure Framework.
RBC GAM is a signatory to the Carbon Disclosure Project, which incentivizes companies and cities to measure and disclose their environmental information by putting this information at the heart of business, investment and policy decision making. We are also a signatory to the PRI Statement on ESG in Credit Ratings, which encourages credit rating agencies to proactively take ESG factors into consideration for relevant issuers.
Latest Independent Research
Responsible Investing: Charting a Sustainable Advantage examines the key conclusions drawn from RBC Global Asset Management's 2018 responsible investing survey of 542 institutional asset owners and investment consultants across the US, Canada, Europe and Asia.
The 2018 results reveal that adoption of responsible investing, including ESG integration, impact investing and engagement by asset owners, is growing steadily as the focus of institutional investors shifts from "whether to" to "how to" implement a responsible investment approach. The report also compares and contrasts the differing attitudes toward responsible investing from the various participating regions.
READ THE REPORT
We are pleased to share with you our 2018 Annual Report, which highlights our recent activities, progress and achievements regarding our commitment to responsible investment.
Throughout 2018, the investment teams at RBC GAM continued to make tangible improvements in their ESG integration, demonstrated in part by activities that you can learn more about in this report, such as:
READ THE REPORT
- Proxy voting: statistics and highlights
- ESG engagements: engagements with the companies in which we invest on issues of climate change, gender diversity, and more
- Charting a sustainable advantage: Results from our 3rd Annual Responsible Investing Survey.
- Integrating ESG in fixed income: A look at the activities of our Investment-Grade Corporate Credit team
RBC GAM frequently conducts research on corporate governance and responsible investment. Scroll down for our other publications.
Proxy voting is a key part of our engagement process as it provides an important way for us to convey our views to boards and management. Voting responsibly is part of our fiduciary duty and we make our voting decisions independently and in accordance with our customized Proxy Voting Guidelines. We publish our proxy voting records.
We engage with management or the directors of our investee companies to address risks and opportunities related to ESG factors when they have been identified as particularly material for that company. For example, over the previous year we have had extensive engagement with companies on the issues of executive compensation, board independence, corporate governance and shareholder rights.
We work closely with other like-minded investors and investor coalitions to improve the ESG-related disclosure and practices of our investee companies.
RBC GAM is a founding member of the Canadian Coalition for Good Governance (CCGG) and our CIO in Canada, Dan Chornous, is the immediate past Chair and current Vice-Chair of the board. CCGG engages collectively on behalf of all of its members with Canadian public companies in which they have invested.
RBC GAM collaborated with other investors through Ceresâ€™ Investor Network on Climate Risk to release a Statement of Investor Expectations that promotes a consistent framework for the green bond market that builds on the Green Bond Principles.
RBC GAM is a sustaining member of the Responsible Investment Association, Canada's association for responsible investment. A member of our CGRI team is the Board Secretary.
We are pleased to share our recent publications.
* References to RBC GAM include one or more of the following: RBC Global Asset Management Inc. (including Phillips, Hager & North Investment Management), RBC Global Asset Management (U.S.) Inc., RBC Global Asset Management (UK) Limited and the asset management division of RBC Investment Management (Asia) Limited.