Informing on and supporting BlueBay’s ESG investment framework both at the firm-level and Fund / strategy-level are our collaborations and partnerships with ESG investment related industry bodies and initiatives.
Our commitment is to evolve our practices in line with industry best practice, and to actively input and share insights in terms of what this looks like.
We have summarised some of the key ongoing ESG investment related partnerships and affiliations BlueBay is involved with.
(The) Alternative Investment Management Association (AIMA)
As AIMA members, we input into their ESG investment related initiatives via their Responsible Investment working group, and any further issue specific working groups. Since early 2019, this has involved providing input into AIMA responses to public ESG investment related consultations with regulators, as well as AIMA ESG research and briefings, and panel participation in AIMA convened ESG events.
BlueBay became a CDP (formerly the Carbon Disclosure Project) investor signatory in December 2016 to show support for increased corporate environmental public disclosure as such information is critical to ensuring informed investment analysis of credit relevant environmental risk factors where this is material for an issuer. CDP has gathered the largest global collection of self-reported environmental information by leveraging the power of shareholder and lenders to help increase disclosure from companies. Specifically, we have signed up to the following programmes:
- Climate change
- Carbon action
Climate Action 100+
This global investor initiative was launched in 2017 to engage with the world’s largest corporate greenhouse gas emitters on their climate change practices. Specifically, it focuses on encouraging companies to curb their emissions, improve their governance practices, and strengthen climate-related financial disclosures. BlueBay joined the initiative in March 2020
(The) Emerging Markets Investor Alliance
Since March 2020 BlueBay has been participating in events organized by the Emerging Markets Investors Alliance. The Alliance was established in 2010 and aims at enabling institutional emerging market investors to support good governance, promote sustainable development, and improve investment performance in the governments and companies in which they invest. It convenes various workstreams on specific topics which BlueBay is a participant in.
(The) European Leveraged Finance Association (ELFA)
As an ELFA member, BlueBay formally joined their ESG Committee during December 2019, and in this capacity has supported and led on specific initiatives, including the investor ESG survey and associated briefing, and the subsequent initiative to encourage issuer ESG disclosure.
Farm Animal Investment Risk & Return (FAIRR)
BlueBay became a Network Member of FAIRR during July 2020. The FAIRR initiative is a collaborative investor network that raises awareness of the ESG risks and opportunities caused by intensive livestock production. It provides research, tools and collaborative opportunities to help investments integrate these risks and opportunities into investment decisions and active stewardship processes.
Green Bond Transparency Platform (GBTP)
The Inter-American Development Bank (IDB) announced the creation of the Green Bond Transparency Platform (GBTP) in December 2019, an innovative digital tool that brings greater transparency to the Latin American and Caribbean green bond market. The platform is currently in its testing stage with official launch scheduled for 2020. BlueBay is a supporter of the GBTP, and has been providing input to the pilot for the platform.
(The) Investment Association
The IA represents investment managers in the UK. As a member of their Sustainability Distribution Group, we input into their ESG investment related activities such as IA responses to public consultations with regulators and other bodies. During February 2020, we joined their Responsible Investment Fund-Level Communication Working Group.
Investors Policy Dialogue on Deforestation (IPDD)
BlueBay signed onto an open investor letter to Brazilian embassies expressing concerns about deforestation in June 2020. In July 2020, the engagement effort was formalized under the IPDD banner, with the goal of coordinating a public policy dialogue with Brazilian authorities and associations on halting deforestation. BlueBay is a co-chair of the initiative.
The Principles for Responsible Investment (PRI)
BlueBay became a signatory to the (UN-supported) PRI in July 2013. Founded in 2005, it is the world’s leading proponent of responsible investment and works to support its global network of investor signatories in incorporating ESG factors into their investment and stewardship decisions. We are actively involved in a number of the ESG fixed income working groups, as well as their collaborative engagement initiatives which have ranged from focusing on specific issues (e.g. cyber risk), to specific sectors (e.g. tailings dam management in extractives sector) to company specific engagement.
Visit the document library to access our annual PRI reports.
The Standards Board for Alternative Investments (SBAI)
As a member of SBAI, BlueBay joined the Responsible Investment Working Group in March 2020 which aims to help institutional investors and alternative investment managers better understand how RI can be applied in different alternative investment strategies, as well as the specific challenges and questions that arise in these contexts. There are a few specific workstreams we participate in which are being pursued as part of the Working Group’s activities.
(The FSB) Task Force on Climate Related Financial Disclosures (TCFD)
In March 2020, BlueBay signed on as a TCFD investor supporter, formerly signalling our support for this initiative aimed at developing voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to investors as well as other stakeholders.
Transition Pathway Initiative (TPI)
The Transition Pathway Initiative (TPI) is a global, asset-owner led initiative which assesses companies’ preparedness for the transition to a low carbon economy. BlueBay joined as a supporter of the TPI during July 2020, this reflects our commitment to using the TPI tool and its findings in a range of ways, including to inform their investment research and in engagement with companies.
Verisk Maplecroft currently provides sovereign ESG data services for BlueBay. Beyond this over the last couple of years, we have been collaborating on a research project with Verisk Maplecroft on the role of ESG in sovereign debt investing. We published a paper on the initial phase of the collaboration in 2019 which looks at conducting some back-testing analysis to determine investment materiality of ESG factors. Based on the findings, we are currently working to identify priorities to take forward for further analysis.
NOTE: BlueBay forms part of RBC Global Asset Management, which is itself part of the parent company, Royal Bank of Canada (RBC). RBC Global Asset Management itself is also part of various ESG investment related industry groups, including some that BlueBay has listed.