As an asset manager and fiduciary of our clients’ assets, we have an important responsibility to consider all material factors that may impact the risk-adjusted returns of our investments. At RBC Global Asset Management (RBC GAM)1 , we believe that integrating environmental, social and governance (ESG) factors into our investment process empowers us to enhance the long-term, risk-adjusted performance of our portfolios and supports our fiduciary duty. Climate change is one such factor.
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The impacts of climate change are systemic and unprecedented. They’re also already apparent. While climate change has the potential to affect the global economy, the economic impacts on specific markets, regions, and investments are complex, varied, and uncertain. As asset managers and investors, and stewards of our clients’ assets, we believe considering climate-related risks and opportunities in our investment approach can enhance our long-term risk-adjusted results.
“We take our responsibility to secure a better financial future for our clients and their beneficiaries seriously and considering the financial impacts of climate change is an essential part of fulfilling that responsibility.”
- Damon Williams, Chief Executive Officer, RBC GAM
Board oversight, management accountability, and cross-enterprise collaboration are essential for effective implementation. It is for this reason that RBC GAM’s approach to climate change has been approved by the RBC GAM Executive Committee, which reviews and monitors progress against our objectives on an annual basis. The Corporate Governance and Responsible Investment (CGRI) group and our investment teams are primarily responsible for implementation. Our Chief Investment Officer (CIO) serves as the ultimate investment risk owner.
RBC GAM currently analyses and assesses climate-related data, and continues to evaluate new tools and approaches for integrating this data into our investment processes. For example, we have:
introduced carbon footprinting of our portfolios
implemented new proxy voting guidelines that set out how we will vote on climate-related shareholder proposals
actively engaged with our investee companies to encourage disclosure of the impacts of climate change on their business models.
This is a good start, but there is more work to be done. We are committed to integrating climate change consideration into our investment processes and providing clients with climate-based solutions and reporting that meet their needs. Our approach to climate change the actions we are taking to meet this commitment.
“Climate change will impact economies, markets, and societies, posing both risks and opportunities for investors. We are committed to continually assessing climate metrics and forward-looking methodologies to inform our investment process and maximize risk-adjusted returns for our clients.”
- Daniel E. Chornous, Chief Investment Officer, RBC GAM