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RPIA Investment Integration Overview
The RP Barometer
The RP Barometer (“the Barometer”) is a proprietary tool that aggregates relevant ESG data. Built on the SASB Standards, the Barometer supports our ESG integration approach, aiding in the identification of material ESG factors and presenting them in a consistent format. 3 The Barometer is a data-driven tool designed to complement the financial analysis of issuers with a focus on ESG factors. Some highlights of the barometer are: • Peer relative rankings for current and momentum metrics, • Suggested discussion topics for engagement discussions, and • Thematic modules that address specific areas such as transition risk and workplace equity. When we believe engaging with an issuer on ESG factors would be valuable to our analysis, the Barometer can help us direct conversations toward the most material ESG risks and opportunities, ensuring that we address the issues that are most likely to be relevant and impactful. The Barometer evaluates current and trend metrics as they relate to environmental risk factors in addition to assessing how an issuer compares against its peer group. Moreover, the Barometer assesses transition risks based on carbon budget trends in the sector versus the overall market, and for issuers verses their sector. Transition risks are also evaluated in the context of an issuer’s carbon profile and trajectory of both an absolute and intensity basis for scopes 1, 2, and 3 emissions. The Barometer also includes a framework which grades workplace equity based on five key pillars: workforce participation, equal pay, upward mobility, representation, and leadership. Governance considerations underpin the data analyzed for both environment and social factors, including assessing policies and action plans published by the company.
3 Please see the Important Information section at the end of this document for additional information on our ESG Integration Framework and RP Barometer.
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