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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

Nuclear Power: a necessary step in the path to net-zero

Reviewing the Bruce Power LP green bond sale
Sustainable debt investors have been debating the inclusion of nuclear power projects in the use of proceeds of green financing. Recently, Bruce Power, which produces 30% of Ontario’s energy, did just that. Aaron Young and Ryan Vaughn spoke with Bloomberg about the reason for this debate and our views on the topic.

A Closer Look: Women in the Workplace

ESG Committee Q&A
Three members of our ESG Committee, Ozioma Nwankwo, Aaron Young, and Lubna Reda, participated in a Q&A to discuss the "S" in ESG, specifically when it comes to women in the workplace.

Enbridge’s SLB Addressing the “Transition Gap” in Energy

What we believe this means for the Energy Sector based on our involvement in this issuance.
Canada faces a “transition gap” that must be addressed by Energy and Utility companies who face accelerating risks as economies move away from fossil fuels. We are happy to be a part of Enbridge's inaugural transactions, which we believe represent the key first step in addressing this gap.

Where's Your Ambition?

As ESG-linked bonds rise in popularity, are issuers being ambitious enough with their use of proceeds?
One of the most important developments in global credit markets has been the exponential growth of ESG-linked instruments that have been issued across many sectors and from companies at different stages of their ESG development. However, are companies making effort to make meaningful incremental or future changes in their operations or simply benefiting from a lower cost of debt?
 

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.