Our approach to responsible investment
At RBC Global Asset Management (RBC GAM), our approach to responsible investment (RI) is anchored by the knowledge that our clients have entrusted us to help them secure a better financial future for themselves or for the beneficiaries of the portfolios they manage. We believe that being an active, engaged, and responsible investor empowers us to enhance the risk-adjusted, long-term performance of our portfolios.

Our approach to responsible investment
At RBC Global Asset Management (RBC GAM), our approach to responsible investment (RI) is anchored by the knowledge that our clients have entrusted us to help them secure a better financial future for themselves or for the beneficiaries of the portfolios they manage. We believe that being an active, engaged, and responsible investor empowers us to enhance the risk-adjusted, long-term performance of our portfolios.

We believe that climate- and nature-related factors are systemic risks that may materially affect issuers and the economies, markets, and societies in which they operate.1 We recognize the importance of the global goal of achieving net-zero emissions by 2050 or sooner, in order to mitigate climate-related risks.2
Read the RBC GAM Climate Report 2024What is responsible investment?
Responsible investment (RI) is an umbrella term used to describe a broad range of approaches for incorporating ESG 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.
At RBC GAM, RI includes the following investment strategies:
Systematically incorporating material ESG factors into investment decision making to identify potential risks and opportunities and improve long-term, risk-adjusted returns.
Applying positive or negative screens to include or exclude assets from the investment universe.
Investing in assets involved in a particular ESG-related theme or seeking to address a specific social or environmental issue.
Investing in assets that intend to generate a measurable positive social or environmental impact.
At RBC GAM, we believe that being an active, engaged and responsible investor empowers us to enhance the risk-adjusted, long-term performance of our portfolios and is consistent with our fiduciary duty.
We believe that issuers that manage their material ESG factors and related risks will likely reduce the probability of experiencing losses that would accompany an ESG-related incident. Our investment teams incorporate material ESG factors into their investment decisions for applicable types of investments 2.
We have a dedicated team whose role is to lead RI activities, execute proxy voting activities, liaise with industry initiatives, and support the implementation of our approach to responsible investment.
1References to material ESG factors refer to ESG factors that in our judgment are most likely to have an impact on the financial performance of an issuer, security, and/or investment portfolio.
2Certain investment strategies or asset classes do not integrate ESG factors, including but not limited to money market, passive and certain third-party sub-advised strategies.
What is ESG investing?
The ESG issue(s) material to an investment can differ based on the issuer, the industries and geographies in which it operates, and the nature of the investment strategy for which it is purchased.
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 and accounting standards