Corporate Governance and Responsible Investment

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.

In March 2016, RBC GAM filed its first Transparency Report with the PRI. The PRI assesses signatories’ approaches to the Principles based on its assessment methodology. In our Summary Assessment Report, the PRI gave our overall “Strategy & Governance” a score of A+, with a score of A in every other category reported, with the exception of one where we were given a score of B.

Investor Stewardship Group (ISG)

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 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.


Proxy Voting

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 for our prospectus-qualified mutual funds.

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 for our mutual funds.

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.

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.

Engagement

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.


Collaboration

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 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 Ceres’ 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 Chair of the Board.


SRI Investment

SRI Investment

Socially Responsible Funds

We offer investors a range of socially responsible investment (SRI) funds that integrate SRI criteria into the investment process by screening potential investments based on their ESG policies or the industries in which they operate.

We offer investors impact investing through our Access Capital Community Investment Strategy that aids underserved communities while seeking to earn a market rate of return through the support of low and moderate income home buyers, affordable rental housing units, small business administration loans and economic development projects.

* 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.