Responsible investment
An umbrella term used to describe the broad range of approaches that can be used to incorporate environmental, social and governance (ESG) considerations into the investment process.
ESG integration
The systematic integration of ESG factors into investment processes.
Socially responsible investing
The application of positive or negative screens to include or exclude companies from the investment universe based on a defined set of values.
Impact investing
The investment in securities of issuers that intend to generate a measurable positive social or environmental impact.
Environmental
How does a company act as an environmental steward?- climate change
- greenhouse gas (GHG) emissions
- resource depletion, including water
- waste and pollution
- deforestation
Social
How does a company treat employees, customers & communities?- working conditions, including slavery and child labour
- impact on local communities, including indigenous communities
- conflict
- health and safety
- employee relations and diversity
Governance
How does a company govern itself?- executive pay
- bribery and corruption
- political lobbying and donations
- board diversity and structure
- tax strategy
For more information on ESG and how RBC GAM acts as an active, engaged and responsible owner, please see our Approach to Responsible Investment.