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How we incorporate ESG

Aligned to the values of our investors

Our Commitment to ESG 

 

We consider Environmental, Social and Governance (“ESG”) factors when making investment decisions for all the strategies we manage. When we include these factors alongside traditional financial metrics, we are able to think more broadly about risk, and make more prudent investment decisions. In other words, it is in the best interests of our clients to integrate ESG into our process.

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Through our in-depth credit research, RPIA is in regular communication with the management teams of the issuers in which we invest. We use this platform as a way to champion ESG analysis, discussing with companies the importance of ESG-related disclosures and the risks that we see from an ESG perspective.

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“There are three very simple reasons why we take ESG seriously - to minimize risk, to improve the quality of our returns, and to fulfill our duty to our investors” – Mike Quinn, Principal & Senior Advisor    

We have also partnered with an institutional investor to design a strategy that targets specific ESG outcomes and in this case, an Environmental outcome. This strategy aims to outperform the relevant benchmark while avoiding certain industry sectors and having a lower carbon intensity. We will continue to partner with our clients to develop innovative investment solutions that help them achieve the ESG outcomes that they care most about.

To demonstrate and formalize our commitment to ESG, RPIA became a signatory to UN Principles for Responsible Investment in August 2018. This solidified our commitment to incorporate ESG factors in our investment process, to engage bond issuers on ESG matters, and to advance ESG through peer collaboration and public action.
Download our ESG Policy

Read our 2021 Sustainability Report

Market Insights

Is the "Greenium" Dead?

The Maturing of ESG Debt Markets
In the past few years, we've seen ESG-labeled bonds benefiting from a cost advantage that became known as the "greenium." As the ESG bond market has grown, we've noticed this "greenium" fade as the market matures and the advantages ESG bond issuers once had becomes tied to the ambition of their projects, not just the label of their bond.

Climate Risk Takes Centre Stage

Codifying Climate Disclosures
The SEC recently unveiled its landmark proposal requiring companies to disclose a variety of climate-related data as part of their annual reports and audited financial statements, covering both quantitative and qualitative information. We see this as an important step in the codifying of climate-related risks in line with what we already see in the Eurozone.

Continued Firsts for the Canadian SLB Market

Tamarack Valley Energy's example of tying social impact to their financing
Tamarack Valley Energy made a mark in the Canadian SLB market as the first Canadian oil and gas exploration and high yield issuer to enter the SLB market, tying financing costs to their ESG targets.

Evolution of the EU Taxonomy

The Inclusion of “Transition” Technology
The EU Taxonomy is a classification system that defines environmentally sustainable economic activity under EU law. in this article, we take a look at where we stand and our views on the taxonomy, especially for natural gas and nuclear energy.
 

RPIA is a signatory of the UN Principles for Responsible Investment, and as part of our commitment, we consider Environmental, Social & Governance (“ESG”) factors as part of our firm-level activities, including our investment management process. ESG integration into our investment management process is supplemental to our core investment research and analysis functions and is conducted in accordance with relevant offering documents. ESG-related inputs into our investment process may vary between different funds and strategies, is subject to internal policies, and may be revised as a result of external market and economic factors, as well as strategic investment management decisions, suitability of investments, and/or the stated investment objectives and strategies of the relevant RPIA managed portfolios. ESG integration into an investment process may introduce certain ESG-related risks and does not predict or imply positive future investment returns.