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
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