We use integration as our primary ESG incorporation strategy since it is a comprehensive method that allows ESG risks and opportunities to be considered in the company specific context. As part of our integration efforts, we engage with companies and provide them with an opportunity to address ESG issues, which ultimately improves the long term, sustainable performance of our investments.
A combination of screening and integration is applied to our designated socially responsible strategies. These strategies have been specifically designed to screen out companies that manufacture products and/or provide services that socially responsible investors may wish to avoid. These strategies also employ a qualitative screen that assesses practices in a number of areas such as environment, employees, human rights, etc. In addition to these negative screens, integration is used to assess the remaining companies to ensure the relevant ESG factors are appropriately addressed as mentioned above.
In 2016 RBC GAM launched a global equity fossil fuel free strategy. This strategy employs a fossil free screen that eliminates fossil fuel producers from the portfolio, and integrates ESG factors.
In all instances when we control the investment policy for a portfolio, we will not knowingly invest in companies whose business activities would contravene the prohibitions contained in the Anti-Personnel Landmines Convention or the Convention on Cluster Munitions.