What is responsible investment?
Responsible investment (RI) is an umbrella term used to describe a broad range of approaches for incorporating ESG (Environmental, Social, and Governance) 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.
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 exclusion
Applying positive or negative screens to include or exclude assets from the investment universe.
Thematic ESG investing
Investing in assets involved in a particular ESG-related theme or seeking to address a specific ESG issue.
Impact investing
Investing in assets with the intent to generate a measurable positive social or environmental impact.
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
To learn more about responsible investment, click here.
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. For clarity, RBC Indigo Asset Management Inc. and its fund products are not covered by the information presented on this webpage, unless otherwise indicated.