RPIA SUSTAINABILITY REPORT 2023
OVERVIEW FIRM
20
INVESTMENT MANAGEMENT
OUR ESG INTEGRATION PROCESS
Our ESG Integration Framework We aim to integrate the consideration of ESG risks and opportunities into the investment process to support and augment our fundamental financial and credit analysis. As the landscape evolves with new ESG data, disclosures, regulations, and reporting frameworks, we will continue to mature our approach to ESG integration. Our ESG integration framework enables the investment team to collect and analyze ESG-related data and disclosures from issuers. As part of our framework, we leverage the SASB framework, TCFD guidance, and our unique views and deep sector knowledge to assess ESG topics and trends that we believe are most likely to impact the investments we make on behalf of the portfolios we manage. ESG analysis occurs in line with portfolio objectives and in collaboration with our fundamental credit analysis when assessing potential investment opportunities. We also benefit from our global capital markets expertise, which enhances the team’s ability to engage with issuers on disclosure, trends, gaps and risks, including ESG risks, that we have identified. Credit analysis requires a complete understanding of the context of how a borrower operates, and it is clear to us that well-managed, well-governed companies are more likely to fulfill their obligations. Therefore, it becomes prudent to analyze and price all material risks, including financial, macroeconomic, and geopolitical risks. In our view, environmental, social, and governance risks intersect with and complement our traditional risk assessment efforts. In 2023, we leveraged findings from our ESG integration practices to help drive targeted engagement with select issuers. In this report, we highlight three engagements, each dealing with a different pillar of ESG: (1) environmental factors ; (2) social factors ; and (3) governance factors . Beyond our ESG integration framework, RPIA offers thematic portfolios that focus on specific ESG objectives. We are pleased to share an update on the progress of the Fossil Fuel Exclusion strategy in this report. ESG information, including details related to material risks and opportunities is part of the total mix of information RPIA considers as part of its investment decision making, and is not itself investment determinative. The impact and weight of ESG consideration, including our issuer engagement efforts, can differ between our portfolios based on individual portfolio objectives, strategies and suitability of investments. We encourage investors to review the offering documents of the respective RPIA managed funds for additional information.
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