RPIA SUSTAINABILITY REPORT 2022
OVERVIEW FIRM
24
INVESTMENT MANAGEMENT
EVOLVING OUR ESG INTEGRATION
Our ESG Framework
ESG considerations have been an important framework within our investment process for many years. As the landscape evolves with new ESG data, disclosures and reporting frameworks, we continue to develop our approach and integration. Our framework allows the investment team to collect and analyze ESG-related data with materiality mapping across sectors, using the SASB model as the base for our proprietary tools. This allows our team to more accurately pinpoint which ESG factors are important for individual sectors and better understand how we can leverage issuer engagements to complete our analysis of material ESG risks and opportunities for any given issuer. Our ESG analysis occurs in parallel with fundamental credit analysis before we invest, where possible. We also benefit from our global capital markets expertise and active trading style, which enhances the team’s ability to engage with issuers on disclosure, trends, and gaps in their ESG profiles. Credit analysis requires a complete understanding of the long-term 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 imperative to analyze and price all risks, including financial, macroeconomic, and geopolitical risks. In our view, environmental, social, and governance trends are no different; in most cases, they intersect with and complement the more traditional risks that all analysts must consider. In 2022, we leveraged the RP Barometer to drive engagement with issuers around ESG considerations. In this report, we highlight three engagements, each dealing with a different pillar of ESG. Another key component of our approach is targeted portfolios that focus on specific ESG objectives. To that end, we developed a targeted ESG strategy in partnership with an institutional client, designed to help them continue achieving their sustainability goals.
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