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RPIA Investment Integration Overview
RPIA ESG Integration Framework
Our ESG integration approach emphasizes our belief that supplementing our fundamental and technical analysis with relevant ESG factors is important in assessing risks and opportunities across our strategies. Incorporating ESG factors into our investment process – both at the issuer-level and in the context of specific sectors and regions – enables us to have a complete view of material credit risks. While ESG integration is an important consideration in managing our strategies in support of their primary investment objectives, the application of integration can vary in weight and prominence between strategies. 2 With the exception of our Fossil Fuel Exclusion strategies (as described in the Thematic Portfolios section in the document), our approach to integrating ESG considerations does not impose investment limitations. 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 global sustainability challenges, such as climate change, we aim to support corporations in adapting to meet these demands, rather than avoiding the challenges they face. In assessing ESG risks within a particular company or sector, we are likely willing to accept less spread compensation for a lower risk profile, and vice versa. There is considerable nuance involved in balancing the probability and potential severity of ESG risks against the need for additional compensation. To navigate this complexity, we rely on our investment team’s expertise and experience for guidance. To incorporate ESG considerations into our investment research and decision-making activities, we employ our ESG Integration Framework across our strategies. How We Consider ESG Factors
ESG Integration Framework 2
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
RP Barometer
Discussion Points Qualitative information to help guide assessment of company’s future management of ESG risks/opportunities
Metrics Quantifiable information assessed both on most recent data and trends overtime
ESG Assessment
2 Please see the Important Information section at the end of this document for additional information on our ESG Integration Framework.
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