Sustainability Report 2025
RPIA
www.rpia.ca
Email Address: investors@rpia.ca General Line: +1 647 776 1777 Investor Services: +1 647 776 2566
43 Hazelton Ave. Toronto, ON M5R 2E3
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OVERVIEW
CORPORATE SUSTAINABILITY
ESG INTEGRATION
CULTURE & VALUES
CONTENTS
OVERVIEW
CORPORATE SUSTAINABILITY
Corporate Governance
7
Foreword
4
Measuring Our Climate Impact
8
About RPIA
5
Industry & Community Commitments
10
Thought Leadership
12
Task Force on Climate Related Financial Disclosures (TCFD) Report
13
ESG INTEGRATION
CULTURE & VALUES
Our ESG Integration Process
15
Supporting Our Employees
26
Stewardship
18
Empowering Women in the Workplace
29
The Barometer in Action
20
Giving Back to Our Community
31
Thematic Portfolios: Fossil Fuel Exclusion Strategies 24
RPIA ACE Program
32
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CORPORATE SUSTAINABILITY
ESG INTEGRATION
CULTURE & VALUES
OVERVIEW
OVERVIEW
Foreword
4
About RPIA
5
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OVERVIEW
FOREWORD At RPIA, we are committed to working closely with our investors to leverage our expertise in pursuit of their investment goals. We take pride in our ongoing partnerships with clients to develop sustainable investment solutions that align with their objectives. As global fixed-income experts and stewards of our investors’ capital, we recognize that Environmental, Social, and Governance (ESG) factors play a critical role in shaping the risk and return profile of corporate fixed income securities.
David Matheson Principal, Co-Chief Investment Officer
This report highlights how we embed ESG considerations across key areas, including our investment process, corporate sustainability practices, and firm initiatives.
As ESG frameworks continue to evolve within the investment industry, we remain dedicated to integrating sustainability considerations into our investment process through our investment expertise and the proprietary tools we have developed to aid our ESG assessments. In 2025, we enhanced our proprietary Risk Portal through the integration of exclusion levers for each ESG- focused strategy, allowing all our systems to be more synchronous and seamless while making it easier for Portfolio Managers to work with strategy-level exclusions. We continue to engage with industry organizations to collaborate on the evolution of sustainability practices within asset management and financial services. In 2025, we became a member of the Responsible Investment Association, furthering our commitment to help grow and support responsible investing in Canada and around the world. We also took on a leadership role at Climate Engagement Canada, serving as Co-Lead, actively guiding engagement priorities and collaborating with peers to align Canada’s financial system with a low-carbon future.
Peter Metcalfe Principal, Co-Chief Investment Officer
We are proud of our progress, and eager for the future. If you would like to discuss our approach to sustainability within the firm and our investment process, please feel free to contact us at investors@rpia.ca.
Sincerely, David Matheson & Peter Metcalfe
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CORPORATE SUSTAINABILITY
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OVERVIEW
ABOUT RPIA RPIA is an investment management firm, independently owned by employees and specialized in global fixed income strategies. The firm was founded in 2009 by experienced investment professionals who have extensive global credit expertise. Over the past 16+ years, the firm has grown to over 120 team members. At the end of 2025, RPIA was managing approximately $21 billion of assets for institutions, high-net-worth individuals, and investment advisors. As stewards of our investors’ capital, we believe sustainability considerations are a vital component of our investment philosophy and our business. In this publication, we are proud to report updates on our progress over the past year.
We Serve Diverse Investor Needs
35%
Private Clients & Family Offices Institutions Investment Advisors
40%
$21B Assets Under Management
$614M ESG-Focused Assets 1
UN PRI Signatory Since 2018
Founded in 2009
25%
Investor base breakdown is an internal estimate as of December 31, 2025. For illustrative purposes only.
Core Values
Client-First We are dedicated to delivering exceptional service and acting in our clients’ best
Innovation
Excellence
Innovation drives progress. We embrace new ideas, leverage technology, and develop forward-thinking solutions that create new possibilities. Our adaptability and vision keep us ahead in an evolving landscape. Integrity is at the core of everything we do. We uphold the highest ethical standards, act with accountability, and build trust through transparency and sound judgment. Our reputation is grounded in consistently doing what is right.
We hold ourselves to the highest standards of performance, precision, and innovation. With a disciplined approach and a continuous pursuit of improvement, we strive to exceed expectations and deliver impactful results.
interests. Through expertise and strategic insight, we anticipate needs, drive meaningful outcomes, and create lasting value.
Partnership Strong partnerships are built on trust, alignment, and collaboration. We listen actively, think strategically, and tailor solutions that foster mutual success. By integrating perspectives and working seamlessly, we create lasting value together.
Integrity
Giving Back We believe in making a meaningful
impact beyond financial success. Through philanthropy, mentorship, and community engagement, we invest in the growth and well-being of our investors, employees, and the broader community.
Data as of December 31, 2025. 1 Assets invested in private pooled strategies with a fossil fuel exclusion mandate, namely, RP Broad Corporate Bond (Fossil Fuel Exclusion) and RP Broad Corporate Bond (BBB, Fossil Fuel Exclusion).
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CORPORATE SUSTAINABILITY
OVERVIEW
ESG INTEGRATION
CULTURE & VALUES
CORPORATE SUSTAINABILITY
Corporate Governance
7
Measuring Our Climate Impact
8
Industry & Community Commitments
10
Thought Leadership
12
Task Force on Climate Related Financial Disclosures (TCFD) Report
13
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CULTURE & VALUES
CORPORATE GOVERNANCE
ESG and Climate Governance The Firm’s approach to responsible investment and the integration of ESG considerations, including climate-related risks and opportunities, is informed by oversight from the Investment, ESG Steering, and Risk Committees. These groups provide guidance and support the consideration of ESG factors within the firm’s investment and risk management processes. Responsibilities for ESG-related matters are assigned across relevant functions, with oversight provided through the firm’s governance committees.
Cybersecurity Protecting our proprietary and investor data remains a core responsibility, and we continue to invest in people, processes, and technology to ensure the ongoing effectiveness of our cybersecurity frameworks. Our approach emphasizes proactive risk management, continuous improvement, and adherence to Zero Trust principles to safeguard sensitive information across our organization. In 2025, we further strengthened our security posture by modernizing our endpoint and access environment while building a strong foundation for our robust Data Loss Prevention (DLP) framework. This included enhancing our mobile device and endpoint management capabilities through Microsoft Intune, improving device compliance and access governance across the organization, and establishing foundational controls to better classify, monitor, and protect sensitive data. We also transitioned to Azure Virtual Desktop to support a more secure and scalable remote access environment. Ongoing security awareness initiatives and phishing simulations continue to reinforce a culture of shared responsibility among employees. Looking ahead, in 2026, we will continue to mature our endpoint, access and data protection frameworks, building on the DLP foundation established this year while further enhancing monitoring and governance capabilities. As cyber risks evolve, we remain committed to maintaining resilient and scalable security practices that protect both our organization and our investors. Supplementing the work done by the ESG Steering Committee, Principals ensure that the firm adheres to our ESG philosophy and aligns itself with industry best practices.
More details regarding oversight and accountability can be found on page 16.
Committee/ Team
Firm-level Focus
Investment- level Focus
Description
• Cross-functional body comprised of representatives from across RPIA • Oversees firm and Investment-level approach to ESG • Risk and Portfolio Management Leaders, and the Chief Compliance Officer • Oversees management of exclusions and investment- level ESG considerations • Reviews material investment-level ESG and climate- related risks • Comprised of investment professionals with different functional responsibilities across the investment process • ESG and climate-related considerations are addressed within existing roles and responsibilities, as applicable to investment activities
ESG Steering Comittee
X
X
Risk Committee
X
X
Investment Committee
X
Investment Team
X
Principals RPIA Principals include all the equity owners of the business, in both advisory and operating capacities. Within the scope of the Executive and Management Committees, Principals ratify long-term strategic goals for the firm, including ensuring RPIA’s views on climate related risks are upheld across different groups.
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MEASURING OUR CLIMATE IMPACT RPIA recognizes that our operations have an impact on the climate. As part of our sustainability strategy, we measure and track our greenhouse gas (GHG) emissions to better understand the sources of our environmental footprint. Monitoring emissions over time helps us identify trends, assess our impact, and ensure environmental considerations remain part of our operational planning as the firm grows. As part of our ongoing year-over-year emissions tracking, in 2025, we partnered with Carbonhound to support the preparation of our GHG inventory. Carbonhound provides carbon accounting services aligned with the GHG Protocol, helping ensure our emissions reporting is consistent and transparent. The activities captured covered emissions for the fiscal period of 2025: Scope 1: Office natural gas consumption Scope 2: Office electricity use Scope 3: Office waste management, business travel (air/rail travel, hotels, taxis/ Ubers/Lyfts), daily employee commuting, paper consumption, and heat/electricity from work-from-home
Our total emissions increased by approximately 54% compared to FY2024. This increase largely reflects the continued growth of our team and increased business travel as we expand our client relationships across Canada. During this period, we also maintained a hybrid work model, with employees commuting to the office from across the Greater Toronto Area.
GHG Inventory Results
GHG Emissions (tCO 2 e*)
FTE Count
112
250
120
102
96
198.1
100
86
200
71
80
65
128.6
150
56
107.5
60
95.6
79.7
100
71.3
40
50
24.7
20
0
0
Our Emissions
FY2019* FY2020* FY2021* FY2022 FY2023 FY2024 FY2025
Scope 1
Scope 2
Scope 3
Total
FTE Count
In FY2025, RPIA emitted 198.1 tonnes of greenhouse gases, with the majority coming from Scope 3 emissions. The largest contributors were: • Employee commuting • Business travel (road and air travel, and accommodation) • Energy used while working from home
FTE = full-time employee. In 2025, RPIA transitioned to a new third‑party service provider for the calculation of its GHG emissions. As part of this transition, updated calculation methodology and federally published emissions factors have been applied, consistent with prevailing industry standards. To ensure comparability across reporting periods, emissions data for 2022–2024 has been recalculated and restated using the updated methodology and emissions factors. Accordingly, changes in reported emissions between 2022-2024 reflects methodological updates rather than changes in underlying consumption or business activity.
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Emissions Intensity
Overall, RPIA continues to maintain a relatively low operational carbon footprint. In FY2025, RPIA reported 0.2 tonnes of CO 2 e per full-time employee (FTE) across Scopes 1 and 2, based on a workforce of 112 FTEs. RPIA’s emission intensity remains significantly lower than benchmark peers, at 0.2 tonnes of CO 2 e per FTE, compared with 3.7 tonnes per FTE for the TMX Group of Companies. Compared to similar office-based financial firms, RPIA’s operational emissions remain relatively low. This reflects the nature of our business, which has limited direct emissions and modest energy use. As a result, the areas where we can have the greatest impact in the future are likely within our Scope 3 emissions.
Carbon Offsets
As part of our broader sustainability efforts, RPIA is taking steps to offset the carbon emissions generated by our operations.
Carbon offsets allow organizations to balance emissions that cannot currently be reduced by supporting projects that remove or prevent greenhouse gases elsewhere. As we finalize our offset purchases, we expect these projects to contribute not only to emissions reductions but also to broader environmental and social benefits, such as supporting local economies, creating jobs, and protecting ecosystems. Looking ahead, we plan to continue incorporating carbon offsets into our sustainability approach as one way of addressing our environmental impact while we work to better understand and manage our emissions.
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INDUSTRY & COMMUNITY COMMITMENTS We continue to solidify our commitment to integrating ESG into our firm and investment process through memberships in leading organizations that align with our goals and provide forums for thoughtful discussions on evolving topics, initiatives, and disclosure standards. We also seek to identify industry groups that provide our firm with the opportunity to amplify our voice and make an impact through collaborative action.
We are proud members of:
Standards & Regulations
UN Principles for Responsible Investing The United Nations Principles for Responsible Investing (UN PRI) is an internationally recognized proponent of responsible investment. As a signatory of UN PRI, RPIA publicly demonstrates our commitment to responsible investment and places it at the heart of a global community seeking to build a more sustainable financial system. Please see our 2025 UN PRI Assessment and Transparency Report to read more about RPIA’s responsible investing practices.
FSB Task Force on Climate-Related Financial Disclosures In 2015, the Task Force on Climate-Related Financial Disclosures (TCFD) was created by the Financial Stability Board (FSB) to recommend climate-related disclosure requirements that support market transparency and more informed capital allocation. RPIA has published an annual TCFD report since 2021. Please see our 2025 TCFD Report to read more about RPIA’s efforts in these areas. As of October 2023, the TCFD fulfilled its remit and was disbanded. The TCFD’s recommendations were adopted by the IFRS Foundation’s International Sustainability Standards Board (ISSB) while creating the IFRS S2 Standards. RPIA is dedicated to monitoring industry trends and transitioning our annual TCFD reporting to align with IFRS S2 standards.
The Sustainability Accounting Standards Board Founded in 2011, the Sustainability Accounting Standards Board (SASB) is a non-profit organization that establishes industry-specific sustainability accounting standards. As a member, RPIA partakes in the organization’s mission to help businesses globally identify, manage, and report on the sustainability topics that are material to their business and important to their investors. Additionally, the SASB materiality matrix is embedded in RPIA’s ESG Integration efforts and the RP Barometer.
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Industry Collaborations
Responsible Investment Association (RIA) In 2025, RPIA became a member of the Responsible Investment Association (RIA), Canada’s investment industry association dedicated to advancing responsible investment across the country’s financial system. Through its research, advocacy, and industry collaboration, RIA works to embed responsible investment practices across the full spectrum of market participants, from individual Canadian investors to institutional investors, regulators, and government.
Canadian Coalition for Good Governance The Canadian Coalition for Good Governance (CCGG) promotes good governance practices in Canadian public companies and the improvement of the regulatory environment to best align the interests of boards and management with those of their stakeholders, and to promote the efficiency and effectiveness of the Canadian capital markets. RPIA participates in CCGG committees and provides inputs to engagements with company boards and Canadian regulators.
Climate Engagement Canada Climate Engagement Canada (CEC) is a finance-led initiative that drives dialogue between finance and industry to promote a just transition to a net-zero economy. CEC’s focus is to strategically engage with top emitters on the Toronto Stock Exchange (TSX) for the alignment of expectations on climate risk governance, disclosure, and the transition to a low- carbon economy in Canada. In 2025, RPIA strengthened its leadership within CEC by taking on a co-lead investor role for a focus list company, actively guiding engagement priorities and collaborating with peers to help align Canada’s financial system with a low-carbon future.
Responsible Business Initiatives
VersaFi (formerly Women in Capital Markets) VersaFi is the largest network of professionals in Canadian Finance. The organization aims to advance equity for women in the finance sector by fostering a growing pipeline of talent, leading the gender equity conversation, and partnering with industry members. RPIA employees participate in various VersiFi initiatives, events, and mentorship programs.
The 30% Club The 30% Club’s mission is to reach at least 30%
representation of women on all boards and C-suites. It acknowledges that business leadership is vital to the mission, taking the issue beyond a specialist diversity effort and integrating it into enterprise-wide strategy development. RPIA is aligned and committed to achieving this goal, please see our ‘Women in the Workplace’ data on page 29.
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THOUGHT LEADERSHIP
Nuclear is the New Green The evolution of nuclear energy in sustainable investing
Combating Emerging Water Shortage Risks The role of blue and water-impact bonds
Announcing TAF’s Impact Investment in Our Fossil Fuel Strategy The Atmospheric Fund: Value- Aligned Investing We are thrilled to announce a new investment from The Atmospheric Fund (TAF) in our RP Broad Corporate Bond (Fossil Fuel Exclusion) strategy. This partnership underscores our commitment to providing solutions that meet the financial goals of clients like TAF while promoting sustainability.
Explore Our ESG-Related Market Insights >
As decarbonization goals accelerate and energy demand from AI grows, nuclear power is gaining attention as a reliable, low-carbon energy source. Sustainable funds are beginning to lift long-standing exclusions as investors recognize the role of nuclear energy in advancing energy security and net zero targets.
As water scarcity becomes increasingly evident, blue and water- impact bonds are becoming an innovative bridge to attract private investments into water health- related projects. Although still in its infancy, it is a potential tool to combat climate risks.
| Read Post
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TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD) REPORT
Climate change continues to be an urgent source of ESG risk for humanity and global economies. No sector has escaped the present or potential impact of climate change risks. As stewards of our investors’ capital, we continue to monitor short, medium, and longer-term effects on corporate credit arising from physical and transition risks. More frequent extreme weather events and the continued transition away from fossil fuels have significant impacts on many sectors in which we invest, such as Energy, Transportation, Automotive, and Financials to name a few.
We encourage you to review our annual TCFD report 3 , which outlines our views on climate change and how we integrate this analysis into our investment process.
Read the TCFD Report
3 As of October 2023, the TCFD fulfilled its remit and was disbanded. TCFD’s recommendations were adopted by the IFRS Foundation’s International Sustainability Standards Board (ISSB) while creating the IFRS S2 standards. RPIA is dedicated to monitoring industry trends and transitioning our annual TCFD reporting to align with IFRS S2 standards as applicable in the future.
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ESG INTEGRATION
OVERVIEW
CORPORATE SUSTAINABILITY
CULTURE & VALUES
ESG INTEGRATION
Our ESG Integration Process
15
Stewardship
18
The Barometer in Action
20
Thematic Portfolios: Fossil Fuel Exclusion Strategies 24
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OUR ESG INTEGRATION PROCESS
Integration Framework
ESG considerations are one of many risk metrics that we evaluate as we determine whether we invest in a credit. We are able and willing to invest in companies that are still developing their ESG practices or are early in their ESG journeys. Recognizing the magnitude of efforts required to address sustainability and climate challenges, we aim to support corporations in adapting to meet their demands, rather than avoiding the challenges they face. ESG information, including details related to material risks and opportunities, is part of the total mix of information RPIA considers as part of our investment decision-making, and is not itself investment determinative. There is considerable nuance involved in balancing the probability and potential severity of ESG risks against the need for additional spread compensation. To navigate this complexity, we rely on our investment team’s expertise for guidance.
Our ESG integration approach emphasizes our view that supplementing our fundamental and technical analysis with relevant ESG factors can be relevant to assessing risks and opportunities. Incorporating ESG factors into our investment process – both at the issuer-level and in the context of specific sectors and regions – supports a broader assessment of material credit risks. As the landscape evolves with new ESG data, disclosures, regulations, and reporting frameworks, we continue to review and refine our approach to ESG integration. Our ESG integration framework enables the investment team to collect and analyze ESG-related data and disclosures from issuers. As part of our framework, we leverage the SASB standards, TCFD guidance, and our internal research and sector knowledge to assess ESG topics and trends that we believe are likely to impact the investments we make on behalf of the portfolios we manage. ESG analysis occurs in line with portfolio objectives and as a complement to our fundamental credit analysis when assessing potential investment opportunities. We also benefit from our global capital markets expertise, which enhances the team’s ability to engage with issuers on disclosures, trends, gaps and risks, including ESG risks that we have identified. The application of ESG integration, including our issuer engagement efforts, varies in weight and prominence between strategies. We encourage investors to review the offering documents of the respective RPIA managed funds for additional information. Apart from our thematic portfolios (see page 24 for an update on the progress of the Fossil Fuel Exclusion Strategy), our approach to integrating ESG considerations does not impose investment limitations.
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Oversight and Accountability
ESG Steering Committee
The ESG Steering Committee is a cross-functional body comprising senior designees from different business units. The Committee’s goal is to evolve and guide RPIA’s approach to ESG, as applied to the firm’s operations and corporate culture. The committee provides strategic oversight of the firm’s ESG Policy as necessary, including oversight of ESG integration in investment practices; reviews and approves ESG-related disclosures prepared for industry organizations, including those aligned with the United Nations Principles for Responsible Investment (UNPRI); reviews and approves RPIA’s association or membership with industry organizations or initiatives that promote ESG; reviews and approves RPIA’s direct or indirect engagement with policymakers on ESG and sustainable investment; and champions continuous improvement of RPIA’s ESG commitments.
Our ESG policy is applicable to all RPIA employees as it relates to their role within the firm and our commitment to responsible investment is overseen by the firm’s Investment Committee, ESG Steering Committee, and Risk Committee, and supported by each of the firm’s Principals.
Risk Committee
The Risk Committee consists of experienced Risk and Portfolio Management team members, the Chief Risk Officer, the Chief Financial & Operating Officer, and the Chief Compliance Officer. The Risk Committee sets limits, monitors all strategies against their risk policies, alerts the respective decision makers on any portfolio positioning that is approaching policy limits, and independently evaluates market conditions to assess evident risks.
Investment Committee
The Investment Committee consists of experienced investment professionals from the Portfolio Management and Risk Teams. The Investment Committee reviews material ESG risks identified by the Portfolio Management Team when appropriate or required.
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Implementing Our ESG Integration Approach
RPIA’s ESG integration approach - our analysis and engagement efforts - applies to all strategies managed by the firm. The approaches and degrees may vary between portfolios based on individual portfolio objectives, strategies, and composition. As we analyze and engage on ESG factors, we consider the three pillars of ESG: (1) environmental factors; (2) social factors; and (3) governance factors, and seek to identify risks and opportunities that are likely to be material to the issuers we invest in over the short, medium, and long term.
Analysis of Issuers As part of our approach to assessing the existence and materiality of the ESG risks and opportunities, we prioritize understanding the context in which an issuer operates. This includes reviewing, among other sources, public disclosures, industry news, and feedback from third-party research organizations and rating agencies. To support our analysis, we deploy our proprietary tool, the RP Barometer, to develop a more comprehensive view of the ESG risks an issuer may face. The RP Barometer incorporates both quantitative metrics (e.g. current data and trends over time) and qualitative inputs that provide insights into how an issuer’s management team and boards identify, manage, and communicate ESG risks, as well as how they demonstrate progress over time. The RP Barometer is designed to supplement our fundamental analysis and includes an evaluation of an issuer’s transition risk and workplace equity. Data outputs from the RP Barometer can also be used to understand the overall ESG performance of the issuers we invest in and can help the investment team identify engagement opportunities. Qualitative inputs to our ESG analysis are important to understand the context of an issuer’s operations.
RP Barometer: Our ESG Analysis Process
Inputs Information from companies through reporting and engagement, data providers, rating agencies, news outlets, etc.
ESG Pillars Categorize inputs under ESG Pillars and Transition Analysis
RP Barometer
ESG Factors Common themes under each ESG Pillar used to categorize areas of focus
Metrics Quantifiable information assessed both on most recent data and trends overtime
Discussion Points Qualitative information to help guide assessment of company’s future management of ESG risks/ opportunities
ESG Assessment
ESG Engagement
We also leverage information from third party research organizations and rating agencies.
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STEWARDSHIP
Engagement Activities in 2025
We incorporate ESG into our engagement practice by: • Identifying industry and company-specific ESG factors on which to engage with issuers • Advocating for the adoption of, or enhancements to, ESG disclosures that align with globally recognized reporting standards and frameworks • Supporting issuers in identifying material ESG information, gaps, and best practices • Updating our understanding of issuers’ ESG profiles, including their future targets and progress toward achieving them
As an active fixed income investor, we regularly interact with issuers as part of our investment and credit assessment process. We use engagement as one of several tools to better understand issuer business models, risk profiles, and material considerations, including ESG-related risks and opportunities. Fixed income investing offers opportunities for interaction with a broad range of issuers, as outstanding debt typically represents a larger portion of corporate balance sheets than equity, and private companies also access global capital markets through debt issuance. This enables fixed income asset managers to engage with influential issuers that may not be accessible to public equity investors. Engagements with issuers can be conducted at different stages of the credit story: pre-issuance or pre-deal stages, pre-investment stage, holding period, refinancing stage, or if an issuer faces a material credit impact. The level and focus of engagements may vary between issuers, according to the relevance and materiality of ESG risks and opportunities for each company. Through our ongoing discussions with issuers, we gain deeper insights in addition to available data and reports. These engagements provide an opportunity for management teams to share their future visions for managing ESG-related risks and opportunities. They also enable constructive dialogue on areas for improvement and allow us to communicate the ESG topics that matter most to our investors.
• Emphasizing the importance of management presentations and communications that enable transparent disclosure of ESG strategies and performance
Through engagement, we can deepen our assessment of an issuer’s ESG profile across several dimensions: • The breadth of ESG disclosures across business areas, including whether meaningful and decision-useful metrics are tracked and reported • The quality, consistency, and reliability of the information provided • Management’s forward-looking plans for addressing ESG-related risks and opportunities • The capability and governance structures in place to execute these plans effectively • Context and insights related to material developments, including significant events, controversies, or other notable changes affecting the company
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2025 Engagement Breakdown
ESG Discussion Topics
Engagements by Sector
Engagements by Geography
Environment
38%
Social
31%
Canada USA Europe Other
53% 31%
Health Care Energy
22% 22% 16%
9% 6%
Financials Industrials Utilities Real Estate Consumer Disc. Technology Telecommunications Communications
Governance
32%
9% 9% 6% 6% 3% 3% 3%
Data has been rounded to the nearest number, and the sum may not equal to 100%.
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The Barometer in Action
The RP Barometer also incorporates a workplace equity framework that evaluates performance across five key pillars: workplace participation, pay equity, upward mobility, representation, and leadership. Governance considerations underpin the assessment of both environmental and social factors, including a review of relevant policies, oversight structures, and publicly disclosed action plans. The RP Barometer will continue to evolve as ESG data availability and reporting practices develop. In 2026, RPIA expects to implement targeted updates and enhancements to the tool, including the potential incorporation of Indigenous- specific metrics to better assess issuers’ relationships with and impact on Indigenous communities. Data in this area is currently constrained by limited and largely binary disclosures, and RPIA will continue to monitor improvements in data availability to support more meaningful integration.
The RP Barometer is a proprietary tool that supports RPIA’s ESG integration framework, built based on the Sustainability Accounting Standards Board (SASB) standards. It aggregates relevant ESG data, identifies material ESG factors, and presents this information in a consistent, structured format to inform investment decisions. In practice, the RP Barometer is primarily applied to issuers where a material ESG concern has been identified or where emerging trends warrant closer review. This includes issuers whose debt we currently hold, as well as those under consideration for potential investment. The tool supports ongoing monitoring and forward-looking risk assessment. Beyond the excerpts presented on page 21, the full RP Barometer assesses climate transition risk by analyzing carbon budget trends at both the sector and issuer levels, relative to the broader market. Transition risk is further evaluated in the context of an issuer’s carbon profile and emission trajectory, considering both absolute emissions and emission intensity across Scopes 1, 2, and 3.
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CORPORATE SUSTAINABILITY
Case Study: North American Energy Infrastructure Company
Q1 Highlights
• Emission Profile: The RP Barometer indicates below-peer environmental performance (Image 1, Annotation 1) , driven by elevated GHG Emissions, high energy intensity, and 0% renewable energy consumption. The peer comparison snapshot further illustrates this positioning, with the company exhibiting the highest GHG and energy intensities among its peer group (Image 1, Annotation 2) . Management noted that emissions intensity remains structurally high due to the scale of its compressor fleet and increased throughput.
Sector: Energy Geography: Canada Discussion Topic: Environmental, Social, and Governance
Background • The company is a large North American energy infrastructure operator focused on the transportation, storage, and delivery of natural gas across an extensive pipeline network. The company also holds interests in power generation and related energy assets, supporting utilities, industrial customers, and local distribution networks across the continent. • In Q1 2025, we initiated engagement after the company was identified as a high emitter relative to its peers and following its decision to place several ESG targets under review. • In Q4 2025, we conducted a follow-up engagement following the publication of the company’s annual Sustainability Report, which outlined revisions to ESG targets that had previously been under review. • As one of the largest bond issuers in North America and a significant holding across several of our portfolios, the issuer’s approach to emissions management, regulatory alignment, and governance oversight was – and remains – a key focus of our ongoing ESG monitoring.
Image 1
Company X: North American Energy Company
Company A-E: Competitors
Environmental Risk Factors Metrics (Current & Trend)
Overall Rank: 3.0 Current Rank: 3.6 Trend Rank: 2.2
Cur- rent
Curr Rank
Trend Rank
Factors
Metric
Unit
Trend
1
GHG Emissions Resource Management Resource Management
Total GHG CO2 Emissions Intensity per Sales Energy Intensity per Sales Pct Renewable Energy Consumed Water Use/Withdrawal Intensity per Sales Waste Generated per Sales
CO2e/Rev MWh/Rev %
1,650.0 7,934.2 0.0 130.0
4 4 4 2
-0.6 0.0 0.0 -25.3
2 2 2 1
Ecological Impact Ecological Impact
m³/Rev Mt/Rev
Metrics (vs. Peer Group)
Metric
X
A
B
C
D
E
Total GHG CO2 Emissions Intensity per Sales Energy Intensity per Sales Pct Renewable Energy Consumed Water Use/Withdrawal Intensity per Sales Waste Generated per Sales
1,650.0 7,934.2 0.0 130.0
259.5 772.5
1,218.5 410.8 0.0 96.7
1,477.7 5,059.7
239.2 1,201.2 0.5 221.8 37.3
741.4 3,241.9 0.8 347.9 8.8
2
3.5 2.4 0.8
1.4 1.6 4.0
Page 22 | RPIA SUSTAINABILITY REPORT 2025
ESG INTEGRATION
OVERVIEW
CORPORATE SUSTAINABILITY
CULTURE & VALUES
Q4 Highlights
• Climate Targets & Actions: Management reiterated its long-term ambition to achieve net zero by 2050 while noting that the previously announced emissions reduction target of 30% by 2030 target is under review. Near- term decarbonization efforts are focused on methane abatement, potential alignment with OGMP 2.0, and pilot projects in carbon capture and hydrogen blending. • Safety, Indigenous Participation, and Governance: Management outlined strengthened safety oversight following prior setbacks, including enhanced frontline training and additional safety personnel. Current safety indicators are trending positively year-over-year, with improvements across key metrics including lost time incidents, total recordable incident rates, and fatalities (Image 2, Annotation 3) . Indigenous economic participation remains integrated into project development through formal advisory councils and structured equity ownership opportunities, with a majority of affected First Nations electing to pursue stakes in a major project. ESG oversight is embedded at the board level, with relevant health, safety, and sustainability expertise represented across directors and supported by ongoing formal education.
• Emission Profile: The Sustainability report indicated a modest year-over-year increase in total operational (Scopes 1+2) emissions (Image 3, Annotation 4) , largely reflecting higher system throughput and asset utilization during the reporting period. At the same time, methane intensity has declined relative to the 2019 baseline, supported by continued abatement and measurement initiatives.
Image 3
2023
2024
Carbon Profile & Trajectory Metrics (Absolute & Intensity)
Metrics (Absolute & Intensity) Carbon Profile & Trajectory
Absolute
Absolute
Total
Scope 1 Scope 2 Scope 3
Total
Scope 1 Scope 2 Scope 3
4
X A B C D E
22,068.0 13,597.0 18,600 15,455.9 1,687.3 5,619.0
21,520.0 7,480.0 15,400.0 13,641.2 1,504.2 4,435.2
548.0 6,117.0 3,200.0 1,814.7 183.1 1,183.9
4,183.0 25,525.1 - 24,992.1 3.5 270.4
X A B C D E
22,777.0 13,169.9 18,600.0 15,520.0 1,793.5 5,573.0
22,351.0 7,522.9 15,400.0 13,390.0 1,630.4 4,492.2
426.0 5,647.0 3,200.0 2,130.0 163.1 1,080.8
4,179.0 33,874.3 - - - 1,124.1
Image 2
Social Risk Factors
Average Rank: 3.0 Current Rank: 2.4 Trend Rank: 2.5
Metrics (Current & Trend)
Avg.
382,144.8
347,792.2
34,353.6
403,147.1
Avg.
396,023.4
357,971.0
38.052.5
443,457.4
Cur- rent
Curr Rank
Trend Rank
Factors
Metric
Unit
Trend
• Climate Targets & Actions: Management noted that the previously announced 30% reduction in GHG intensity by 2030 target has been removed, citing higher-than-anticipated natural gas demand and slower-than-expected technological advancement. In its place, the company introduced a methane intensity reduction target of 40-55% by 2035. Methane represents approximately 19% of Scope 1 emissions and is viewed by management as a pragmatic, operationally controllable abatement lever, while broader targets for Scopes 1 and 2 remain under evaluation.
3
Workplace Health & Safety Workplace Health & Safety Workplace Health & Safety
Lost Time Incident Rate Total Recordable Incident Rate Fatalities
Per 100 Per 100 Total
0.1 0.6 0.0
3 4 1 1 2 3 3 2
-41.2 -1.7 -100.0
1 2 1 1 3 4 4 4
Diversity & Inclusion Diversity & Inclusion Diversity & Inclusion Diversity & Inclusion Community Impact
Pct Women Mngmt. Pct Women Mngmt.
% % % % %
38.0 28.0 18.6
+2.0 -1.0 -0.0 -0.0 -0.5
Pct Minorities Workforce Pct Disabled in Workforce Community Giving
1.4 0.5
Page 23 | RPIA SUSTAINABILITY REPORT 2025
ESG INTEGRATION
OVERVIEW
CORPORATE SUSTAINABILITY
CULTURE & VALUES
• Safety, Indigenous Participation, and Governance: Management noted a shift in safety reporting from total recordable case rates to high-injury and fatality rates, aligning with industry best practice and strengthening serious incident prevention. Indigenous economic participation remains embedded in project development through formal policy (Image 4, Annotation 5) , advisory councils, community investment programs, procurement initiatives, and structured equity ownership opportunities on major projects. ESG oversight remains established at the board level, with ESG competencies represented across directors and regular reporting to relevant committees.
Outcome
We view the issuer as a benchmark company and industry leader within the North American energy infrastructure sector, and therefore believe continued engagement is important given the influence the company can have on broader industry practices. While management lowered its prior emissions reduction ambitions, we were encouraged that the company undertook a reassessment of its targets and introduced a revised methane intensity reduction goal rather than abandoning emissions commitments altogether. The follow-up engagement provided a clearer context around these target changes and reinforced management’s awareness of prior ESG underperformance, alongside concrete steps to address areas within its operational control. We also note that the company maintains a well- resourced sustainability function with established governance oversight of ESG, and management has demonstrated openness to constructive dialogue and investor feedback through ongoing engagement. Given the issuer’s scale and leadership position in the sector, we believe maintaining an ongoing relationship and engaging with management through their transition journey can be more impactful than immediate divestment. While we have divested from issuers in the past where ESG risks were insufficiently mitigated, our approach considers each issuer individually and in the context of its sector and ESG risk profile. In this instance, based on the outcomes of both engagements, we continue to actively trade the issuer’s bonds, with holdings and positioning varying over time based on market fundamentals and the relative value of individual securities.
Image 4
Policy Implementation
Policy Count: 3/5
Factors
Policy
Y/N
5
Community Impact Diversity & Inclusion Diversity & Inclusion Diversity & Inclusion Community Impact
Indigenous Rights Policy Equal Opportunity Policy Conduct Gender Based Compensation Review
Yes Yes No No Yes
Employee Engagement Survey Community Engagement Policy
Page 24 | RPIA SUSTAINABILITY REPORT 2025
ESG INTEGRATION
OVERVIEW
CORPORATE SUSTAINABILITY
CULTURE & VALUES
THEMATIC PORTFOLIOS FOSSIL FUEL EXCLUSION STRATEGIES We have two thematic strategies: the RP Broad Corporate Bond (Fossil Fuel Exclusion) strategy and the RP Broad Corporate Bond (BBB, Fossil Fuel Exclusion) strategy. Both strategies apply a negative screening approach, consistent with stated ESG-related objectives. In partnership with one of our institutional investors, we developed a first-of-its kind fossil fuel excluded corporate bond strategy in Canada for investors seeking an exclusion-based approach to ESG. This strategy represents an evolution of our RP Broad Corporate Bond strategy, which has a ten-year track record of generating 167 bps of added value above the FTSE Canada All Corporate Bond Index (gross, annualized, since inception). The RP Broad Corporate Bond (Fossil Fuel Exclusion) strategy was launched in July 2022 and employs a rules-based exclusions approach to screening fossil fuel-intensive issuers from both the strategy and its benchmark. The RP Broad Corporate Bond (Fossil Fuel Exclusion) strategy has three additional screens: 1. A baseline exclusion to remove issuers involved in cluster munition and tobacco. 2. The removal of Bloomberg’s BICS Level 2 (Oil & Gas) and four industry sub-sectors using the FTSE Canada schema: Energy Distribution, Energy Exploration, Energy Integrated, and Energy Pipeline. 3. A screen of issuers that Sustainalytics identifies as being involved in the following revenue categories: oil & gas, oil sands, Arctic oil & gas exploration, shale energy, and thermal coal.
This strategy seeks to maintain the performance objective of the original RP Broad Corporate Bond strategy, while introducing an additional objective of maintaining a lower WACI (Weighted Average Carbon Intensity) than the already carbon-reduced FTSE Canada All Corporate ex-Fossil Fuels Enhanced Bond Index. This strategy is intended to provide investors with reduced exposure to fossil fuel-related issuers, while pursuing competitive, risk-adjusted returns.
Performance as of December 31, 2025
Strategy AUM: $244 Million
1 Mo
3 Mo
YTD
1 Yr
3 Yr
SI
RP BCB FFE
-0.98% -0.11% 4.90% 4.90% 7.30% 7.21% -0.49% 0.36% 4.58% 5.58% 6.41% 5.78%
Index
Added Value -0.49% -0.47% 0.33% 0.33% 0.89% 1.44% RP BCB FFE= RP Broad Corporate Bond (Fossil Fuel Exclusion). Index = FTSE Canada All Corporate Ex Fossil Fuel Enhanced Bond Index. Source: FTSE.
RP BCB FFE Weighted Average Carbon Intensity Relative to the Index
% Reduction vs. Index
WACI
20 - 20 30 40 60 50
Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25
Reduction (RS)
Strategy
Index
10
- As at December 31, 2025. Index = FTSE Canada All Corporate Ex Fossil Fuel Enhanced Bond Index. Source: Bloomberg. Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24
Reduction (RS)
Strategy
Index
Page 25 | RPIA SUSTAINABILITY REPORT 2025
CULTURE & VALUES
OVERVIEW
CORPORATE SUSTAINABILITY
ESG INTEGRATION
CULTURE & VALUES
Supporting Our Employees
26
Empowering Women in the Workplace
29
Giving Back to Our Community
31
RPIA ACE Program
32
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