RPIA SUSTAINABILITY REPORT 2021
OVERVIEW FIRM
RPIA SUSTAINABILITY REPORT 2021
OVERVIEW FIRM
20
21
INVESTMENT MANAGEMENT
INVESTMENT MANAGEMENT
How Does the ESG Integration Process Work?
Outputs From Our ESG Integration
We prioritize numerous inputs to capture material ESG-risks and opportunities based on the sector within which an issuer operates. These inputs are mapped to ESG pillars and specific factors that differ by sector. The framework has a greater focus on the materiality of the specific ESG factors for each industry (guided by SASB and TCFD Standards). We capture quantitative metrics (current data and trends over time) and qualitative discussion points that provide insights into how management teams and boards develop and present their ESG profiles and deliver improvements over time. We also believe that the qualitative inputs to the ESG analysis are increasingly important to understand and discuss with both management teams and third parties such as regulators, rating agencies, and other investors globally.
Sector Rating Positive / Stable / Negative
Issuer Rating Leader / Average / Laggard
ESG OUTPUTS
Our ESG Integration Process
Transition Rating Leader / Average / Laggard
Workplace Equality Score 0 to 100
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 ESG Factors Common themes under each ESG Pillar used to categorize areas of focus
Our updated, but still evolving ESG integration processes build on the quantitative scoring in our original ESG framework but have been redesigned to incorporate the additional relative-value lens through which we manage our portfolios. This includes rankings against the broad sector as well as direct peer groups of the respective issuer. We also construct ESG sectoral views and ratings that supplement our fundamental analysis. Most importantly, our analysis includes the subjective views of our Credit Research and Execution teams, who can apply their sectoral and market expertise to analyzing issuers and structures from an ESG perspective. The RP Barometer is a proprietary tool that aggregates all the above data and allows Credit Research, Execution, and Risk team members to find all relevant ESG information and relative rankings in one location in a consistent format for each company. The Barometer includes current and trend metrics (ranked against comparable issuers and the overall industry), policy analysis, suggested discussion topics for each of the ESG pillars, and modules dedicated to Transition Risk and DE&I analysis.
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
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