RPIA SUSTAINABILITY REPORT 2021
OVERVIEW FIRM
RPIA SUSTAINABILITY REPORT 2021
OVERVIEW FIRM
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INVESTMENT MANAGEMENT
INVESTMENT MANAGEMENT
PROVIDING THOUGHT LEADERSHIP
In 2021, the changes implemented in our investment team and processes enabled us to generate additional thought leadership content on ESG, focusing on topics that are important to the investment community and our investors. Our published commentaries target the ESG-related themes that we believe will remain topical and impactful to investing in the fixed income markets over the coming years. In addition, the investment team has been active in discussions and initiatives with organizations such as The Credit Roundtable, the UNPRI, Climate Engagement Canada, and others to promote ESG awareness and progression.
With every additional increment of global warming, changes in extremes continue to become larger. For example, every additional 0.5 ° C of global warming causes clearly discernible increases in the intesnity and frequency of hot extremes, including heatwaves, and heavy precipitation, as well as agricultural and ecological droughts in some regions.
- IPCC Climate Change 2021 - Physical Science Basis
The Evolution of ESG A discussion on how RPIA integrates ESG into our strategies and where we see trends going forward.
Where’s Your Amibition How do we assess the impact from ESG-linked bonds and whether issues are funding incremental change or “business-as-usual.”
More frequent extreme weather events and the continued transition away from fossil fuels have significant impacts on many sectors in which we invest, similar to the examples outlined below:
• Energy companies face continued pressure to pivot their operations away from coal, oil, and natural gas and toward renewable products. • Transport and automotive manufacturers continue to transition from internal combustion engines toward electric vehicles with large-scale implications for global supply chains. • Lending institutions face pressure to reduce underwriting and lending to fossil-fuel intensive businesses. • Insurance companies face heightened risks due to higher claims from more frequent global extreme weather events and rising sea levels. Simply put, climate change permeates all elements of the global economy and our portfolios. To this end, we have completed our second annual TCFD report, which outlines our views on climate change and how we integrate this analysis into our investment process.
Enbridge’s SLB Addressing the “Transition Gap” in Energy Enbridge’s landmark Canadian energy sustainability-linked bond deal was the first step in addressing the “transition gap” between an energy- dominant economy and the need to decarbonize. The Transition to Net Zero - A Fixed Income Perspective A summary of Liam O’Sullivan’s presentation at the Pension Investment Association of Canada Conference (PIAC). This two-pager provides a summary of the themes he shared with the attendees. Nuclear Power: a necessary step in the path to net-zero Following Bruce Power’s inaugural green bond deal, we discuss the benefits of nuclear as a near-zero greenhouse gas emissions technology but the risks associated with waste management and a highly politicized view of nuclear power. A Discussion on Climate Change, Sustainable Living & Investing This interactive event covered the pressing topic of climate change and the need for sustainable actions. Our speakers provided an educational discussion from the lens of an individual and an investor, touching on the impact of climate change, changes we as individuals can incorporate to reduce our carbon footprint, and the growth and importance of sustainable investing.
TCFD Report
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