How will you align your investments with your personal beliefs and values? More and more people are turning to responsible investing—a process that applies environmental, social and governance (ESG) data to your investment portfolio.
This type of investing isn’t new—responsible investing assets have skyrocketed to $17.1 trillion as of 2020, a 42 percent increase in two years, according to the US SIF Foundation.1 As companies continue to innovate and strive for positive impacts, responsible investing opportunities continue to increase.
Like many of our clients, RBC Wealth Management focuses on community involvement, diversity and inclusion and environmental responsibility to support both current and future generations. To help you create a positive social and environmental impact, we offer a broad range of solutions designed to align with your values and financial goals.
We can help you invest with purpose and apply responsible investing approaches to your wealth plan, including ESG integration, socially responsible investing (SRI) and impact investing.
Read the latest Insights into responsible investing newsletter
Support companies that perorm well on environmental, social and governance metrics
Support social or environmental issues with the expectation of measurable results
Socially responsible investing
Create or withdraw support for companies/sectors in portfolio that do/don't meet personal values
Show your support for companies that perform well on environmental, social and governance metrics, including:
Environmental concerns: Climate change, natural resources conservation, pollution and waste management, and water scarcity
Social issues: Corporate philanthropy, community and government relations, workplace health and safety, human rights and diversity
Governance topics: Accounting practices, board accountability and structure, disclosure practices, executive compensation, corporate ethics, regulatory compliance and transparency
Socially responsible investing
Use ESG data to create or withdraw support for companies and sectors that do or don’t align with your personal values. This involves both negative and positive screening of companies, industries or sectors to eliminate or select investments.
Support social or environmental issues with the expectation of achieving measurable results rather than profits alone. Impact investors want a return on their investment but may also be willing to take a capital loss as long as there are tangible results for the investment. In that way, it's essential to measure the impact of this investment.
A third dimension of performance
Due diligence processes do not assure a profit or protect against loss. Like any type of investing, ESG and responsible investing involve risks, including possible loss of principal.
RBC is a leader in sustainability, another key area of focus for responsible investors. RBC's approach to sustainability is central to its business and stated purpose: to help clients thrive and communities prosper. RBC is listed as a holding in several responsible investing indexes, including Pax Ellevate Management’s Impax Global Women’s Leadership Index and the FTSE4Good Index. Additionally, RBC received the 2021 Catalyst Award for initiatives that have accelerated progress for women and elevated inclusion within its organization.
We also believe capital can be a force for positive change, as clearly demonstrated by RBC's new business target: $500 billion in sustainable finance by 2025 and net-zero emissions in lending by 2050, which is aligned with the global goals of the Paris Agreement.
1 “2020 Trends Report,” US SIF Foundation, https://www.ussif.org/files/Trends/2020_Trends_Highlights_OnePager.pdf