RPIA SUSTAINABILITY REPORT 2023
OVERVIEW FIRM
22
INVESTMENT MANAGEMENT
Implementing Our ESG Integration Approach RPIA’s ESG integration approach, comprised of our analysis and engagement efforts, applies to all strategies managed by the firm. The approach may vary between portfolios based on individual portfolio objectives, strategies, and composition. As we analyze and engage on ESG factors, we consider the three pillars of ESG: (1) environmental factors ; (2) social factors ; and (3) governance factors , and seek to identify risks and opportunities that are likely to be material to the issuers we invest in over the short, medium and long term. Analysis of Issuers As part of our focus to determine the existence and materiality of the ESG risks and opportunities an issuer may face, we prioritize understanding the context in which an issuer operates, which includes an assessment of, among other items, its public reports, industry news and feedback from rating agencies. To enhance our analysis, we deploy our proprietary tool, the RP Barometer , to build a better understanding of the ESG risks an issuer may face. The Barometer captures quantitative metrics (e.g., current data and trends over time) and qualitative data that provide insights into how an issuers’ management team and boards develop and present ESG risks and deliver improvements. The Barometer is designed to supplement our fundamental analysis, and includes an evaluation of an issuer’s transition risk and workplace equity. Data outputs from the Barometer can also be used to understand the overall ESG performance of the issuers we invest in, and can help the investment team identify engagement opportunities. Qualitative inputs to our ESG analysis are important to understand the context of an issuer’s operations. This data can be used by our team to initiate discussions with management teams and third parties such as regulators, rating agencies, and other investors globally, on specific ESG factors and topics.
RP Barometer: Our ESG Analysis Process
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
RP Barometer
ESG Factors Common themes under each ESG Pillar used to categorize areas of focus
Metrics Quantifiable information assessed both on most recent data and trends overtime
Discussion Points Qualitative information to help guide assessment of company’s future management of ESG risks/opportunities
ESG Assessment
ESG Engagement
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