RPIA SUSTAINABILITY REPORT 2021
RPIA SUSTAINABILITY REPORT 2021
OVERVIEW FIRM
OVERVIEW FIRM
38
39
INVESTMENT MANAGEMENT
INVESTMENT MANAGEMENT
Breakdown of 2021 ESG Meetings by Industry and Country
Engagement Case Study 1: Oil & Gas
6%
Background This case study focuses on a meeting with one of the largest Canadian energy infrastructure companies to discuss environmental and social themes. The issuer operates within one of the highest emitting sectors in Canada, and the nature of its operations has a considerable impact on Canadian communities, specifically Indigenous groups. Engagement Focus Conversations focused on two impact themes for the issuer: (1) reducing the carbon footprint of their operations and (2) engagement with communities in which the company has a significant physical footprint. The issuer had just released a detailed carbon accounting report and set carbon reduction plans for their operations. RPIA also discussed the impacts of the company’s physical footprint on Indigenous communities to understand how the issuer considered community rights, equity, and representation within the company itself.
Banking
12%
O&G Producers
29%
Biotech & Pharma
18%
Electric Utilities
Telecommunications
17%
Insurance
18%
6%
Canada
6%
Unites States
6%
Progress and Monitoring
Italy
6%
35%
We deemed the company’s carbon disclosure to be advanced relative to peers, and their reduction plans were in line with what has been implemented at Canadian and US peers within the same subsector. This included credible medium and long-term targets with clear progress points along the timeline. RPIA raised the concern that the company’s recent emissions trends were increasing, which would make future reductions more difficult. We will monitor the company’s actions to modernize their current projects to reduce the impact of carbon from operations (better controls around fugitive emissions, electrification of operations, renewable power purchase agreements, etc.).
Israel
12%
Germany
France
29%
United Kingdom
10,000 12,500 15,000 17,500 20,000
Major topics discussed with issuers over 2021 included carbon reduction target setting across all industries, research and development (R&D) in new environmental technology such as carbon capture, access to healthcare in developing markets, engagement with Indigenous populations, and representation of women across the corporate structure. Many of our conversations included discussions on issuing ESG-related bonds, focusing on sustainability-linked bonds, which embed an adjustment in financing cost if issuers do not hit certain ESG-related targets.
Issuer (Scope 2) Issuer (Scope 1)
0 2,500 5,000 7,500
Peer (Scope 2)
Peer (Scope 1)
2017
2018
2019
2020
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