As fixed income specialists, we take a proactive approach to managing ESG and fully integrate ESG risk analysis across all our investment portfolios. We have been analysing ESG risk in portfolios since 2013 and have developed proprietary tools and methods to support client responsible investment needs across the fixed income spectrum.
We focus our efforts with regards to both:
- New investments (pre-investments), and
- Existing investments (post-investment)
Incorporation of ESG factors occurs on many different levels:
- Issuer level, credit analysis to understand RBC BlueBay’s ESG risk exposure on an individual issuer by issuer level
- Sector level, as part of the issuer analysis to assess the material ESG risks for certain industries/sectors, and to what degree are there common ESG risks across sectors
- Portfolio level, portfolio characteristics and ESG investment risk exposures at a fund level
- Group level, oversight of ESG risks across RBC BlueBay’s portfolio strategies e.g. what is RBC BlueBay's investment risk exposure across all the investment teams?
At a RBC BlueBay level, the below ESG components are applied:
- Firmwide policies
- External ESG data
- Issuer ESG evaluation
- PRI signatory, other memberships & collaborations
Exclusions / negative screening (product based)
ESG Exclusions (product based) / ESG Norms-based Screening (conduct based):
Full details of the ESG screening applied for BlueBay Funds and BlueBay Structured Funds.