FinanceMap scores this financial institution in the following areas. Please navigate to the relevant tab for in-depth analysis
FinanceMap assesses these portfolios for this financial institution. Please navigate to the relevant tab for in-depth analysis.
Portfolio Paris Alignment analysis of this institution's activities in this portfolio area in 2020–2021.
Value Assessed: $196B
Sector Paris Alignment scores for the sectors to which this portfolio has exposure. FinanceMap Paris Alignment analysis is limited to the automotive, upstream fossil fuel, and power sectors.
Portfolio Paris Alignment analysis of this institution's activities in this portfolio area in 2020–2021.
Value Assessed: $121B
Sector Paris Alignment scores for the sectors to which this portfolio has exposure. FinanceMap Paris Alignment analysis is limited to the automotive, upstream fossil fuel, and power sectors.
Portfolio Paris Alignment analysis of this institution's activities in this portfolio area in 2020–2021.
Value Assessed: $27.6B
Sector Paris Alignment scores for the sectors to which this portfolio has exposure. FinanceMap Paris Alignment analysis is limited to the automotive, upstream fossil fuel, and power sectors.
Fossil fuel production companies are defined as those with primary sector of operations in the up-, mid-, and/or downstream segments of fossil fuel production. Green companies are defined as companies having over 75% revenue deriving from Substantial Contribution to Mitigation activities under the EU Taxonomy.
Portion of AUM Assessed: $4.4B
Sector Paris Alignment scores for the sectors in which the asset manager has shareholdings. FinanceMap Paris Alignment analysis is limited to the automotive, upstream fossil fuel, and power sectors.
| Holding Name | Contribution to Sector Production |
|---|---|
| Orsted A/S | 21.4% |
| Brazilian Electric Power Co | 21.3% |
| Capital Power Corp | 19.2% |
| Algonquin Power & Utilities Corp | 7.4% |
| RWE AG | 5.5% |
| Engie SA | 3.8% |
| Consolidated Edison Inc | 3.5% |
| Energy of Minas Gerais Co | 2.6% |
| EDP Energias de Portugal SA | 2.2% |
| TransAlta Renewables Inc | 2.1% |
| Holding Name | Contribution to Sector Production |
|---|---|
| Mahindra and Mahindra Ltd | 70.0% |
| Stellantis NV | 7.8% |
| Hyundai Motor Co | 4.7% |
| Mazda Motor Corp | 4.5% |
| Ford Motor Co | 2.7% |
| Dongfeng Motor Group Co Ltd | 2.3% |
| Bayerische Motoren Werke AG | 1.9% |
| Subaru Corp | 1.6% |
| Mercedes Benz Group AG | 1.3% |
| Honda Motor Co Ltd | 1.0% |
| Holding Name | Contribution to Sector Production |
|---|---|
| CONSOL Energy Inc | 51.8% |
| Warrior Met Coal Inc | 23.7% |
| China Shenhua Energy Co Ltd | 9.1% |
| Exxaro Resources Ltd | 6.2% |
| Adaro Energy Indonesia TBK PT | 5.4% |
| Coal India Ltd | 2.3% |
| Inner Mongolia Yitai Coal Co Ltd | 0.9% |
| United Tractors Tbk PT | 0.6% |
| Holding Name | Contribution to Sector Production |
|---|---|
| Equinor ASA | 25.3% |
| PDC Energy Inc | 10.7% |
| EOG Resources Inc | 7.1% |
| Canadian Natural Resources Ltd | 7.1% |
| Magnolia Oil & Gas Corp | 6.8% |
| National Fuel Gas Co | 4.4% |
| Suncor Energy Inc | 3.9% |
| ARC Resources Ltd | 3.3% |
| Peyto Exploration & Development Corp | 3.0% |
| Conocophillips | 3.0% |
All equity funds that FinanceMap has identified as being managed by this asset manager. Click through to a fund's profile page to view in-depth analysis.
The Royal Bank of Canada (RBC) Global Asset Management appears to be engaging with companies around climate change. The asset manager has a strategy for climate engagements that focuses on climate disclosures as well as emissions reduction targets and action plans. It does not appear to use defined milestones to measure engagement progress but states it is working towards a systematic engagement tracking system. The asset manager employs three main escalation methods, which are private dialogue, public statements, and proxy voting.
RBC GAM is engaging companies on climate, for example it engaged with an optical lens manufacturer on climate disclosures and emissions reduction plans, and its engagements with an energy infrastructure company led the company to develop interim carbon intensity targets. It updated it voting guidelines, stating it supports disclosure of climate lobbying and alignment of lobbying with climate initiatives, but does not provide examples of engagements on this topic. The asset manager is involved with several collaborative investor initiatives and has participated in collaborative engagements with CA100+.
RBC GAM has clearly described its stewardship governance and review processes, and appears to regularly communicate with clients to reflect their views in its stewardship approach. The asset manager only provides anonymous case studies in its reporting, however it has disclosed all proxy voting data including voting rationale for votes against management. RBC GAM states that it is willing to use shareholder authority but has not provided evidence of filing climate-related shareholder resolutions.
Insightia data suggests that RBC has mixed support of AGM resolutions InfluenceMap categorizes as in line with the Paris Agreement, supporting 51.3% in 2019, 55.8% in 2020, 51.2% in 2021, and decreasing in 2022 at 28.1%.
FinanceMap's methodology to measure the engagement process on climate was developed in consultation with several of the world's leading asset managers and uses key aspects of the UK Financial Reporting Council's 2020 Stewardship Code . The Stewardship Code was chosen to benchmark engagement quality as it provides an ambitious framework and detailed definitions of what constitutes effective engagement. FinanceMap defines the term ‘engagement’ as referring to all investor actions undertaken to influence the management strategy of the companies they own including private communications with corporate management and appointed advisors; questions at AGMs/other company meetings; comments on the company in the media; escalation and the shareholder resolution process (filing, voting behavior). FinanceMap’s methodology breaks the engagement process down into a set of sub-activities and looks for evidence associated with these across publicly available data sources.
Climate-relevance categorization of shareholder resolutions is based on the IPCC’s Special Report on 1.5°C and its concluded need for “rapid and far-reaching transitions in land, energy, industry, buildings, transport, and cities.” FinanceMap scored voting on any resolution where the intent and likely outcome is consistent with this IPCC stated need. The voting data is drawn from asset managers' disclosures to the US Security Exchange Commission (SEC), asset manager websites (including third-party websites they link to), directly from the asset managers, and through specialist voting data provider Insightia. The full list of resolutions assessed is available here.
The following table outlines the key queries and data sources, which FinanceMap uses to assess financial institutions’ sustainable finance policy engagement. Every evidence piece is assessed on a five-point scale of -2,-1,0,1,2 or NA (not applicable)/NS (not scored). All queries, data sources, and evidence pieces are weighted against one another in a matrix system to arrive at a final top-level score. Clicking on specific cells will load the underlying evidence and information on how it has been assessed.
Royal Bank of Canada (RBC) appears to have taken somewhat positive positions on sustainable finance policy, although details of its engagement with many policies remain unclear.
RBC has recognized the issue of short-termism and stated support for some action to incentivize longer term investments, but generally appears to support an ad-hoc approach to addressing flaws in the financial system instead of systemic reforms. RBC has stated support for action to keep global temperature rise to 1.5C. In October 2021, RBC joined the Glasgow Financial Alliance for Net Zero's banking arm, the Net-Zero Banking Alliance, signaling a commitment to the goal of net-zero emissions by 2050. In a 2021 opinion piece, CEO David McKay encouraged Canada to increase its ambition in tackling climate change, but in an interview in 2020, McKay appeared to support continued investment in the fossil fuel sector. In a 2021 insights article RBC appears to support government action on sustainable finance policy including climate risk disclosure, risk management, and labeling rules. However, in a 2020 insights paper RBC suggested that a market-based approach to sustainable finance would be more effective than government regulation.
RBC has outlined some positive positions on regulated corporate ESG disclosure. In its 2021 CDP report, RBC appears to support mandatory ESG disclosure in line with the TCFD. In its 2021 Corporate Governance and Responsible Investment (CGRI) report, RBC stated that, through industry associations, it had supported the Securities and Exchange Commission’s efforts to enhance climate-related financial disclosures. An RBC Capital Markets article from March 2022 appears supportive of the SEC’s proposed climate disclosure rule, saying it will provide “much-needed clarity.”
In a 2018 white paper, RBC appeared to support standardization of green bonds although it did not specifically call for policy to implement this. In a 2021 insights paper RBC advocated for a transition taxonomy for Canada that would allow investments in fossil fuels to be labeled “green” so that emissions-intensive sectors could access capital needed to make the transition to a low-carbon economy.
In feedback to the US Department of Labor in 2020, RBC strongly opposed two rollbacks that sought to limit fiduciaries' ESG investing and voting around ESG issues. In its 2021 CGRI report RBC mentioned engaging with proposed guidance on ESG-related investment fund disclosures in Canada but details of this engagement are unclear. RBC also described engaging with the EU Sustainable Finance Disclosure Regulation (SFDR) but details of this engagement are unclear.
In a 2021 insights paper, RBC outlined current financial regulatory efforts to incorporate climate risk into stress tests and capital requirements, but it is unclear whether it supports these efforts. In January 2022 RBC joined a consortium that is engaging with banking regulators and policymakers on climate risk policies, but details of this engagement are unclear. In RBC’s March 2022 Statement on Lobbying and Political Contributions RBC discloses direct and indirect engagement on climate risk regulations with US banking regulators, but details of this engagement are unclear.
RBC has described its positions for some sustainable finance policies and mentioned some engagement with regulators and associations on sustainable finance, but often has only described positions in broad terms or omitted mention of desired outcomes. RBC has listed some of its trade association memberships but with few details of indirect influence governance.
InfluenceMap’s methodology for assessing lobbying on sustainable finance policy closely follows InfluenceMap’s established methodology on climate policy engagement, which is used extensively by investors, including via the Climate Action 100+ investor engagement process. Our full methodology can be found here.
Under our assessment of sustainable finance lobbying, InfluenceMap considers engagement on all financial policies which intersect with climate and/or other sustainability issues. The analysis takes into account both the engagement of the financial institution and the activities of industry associations they hold membership of.
InfluenceMap’s methodology covers seven publicly available data sources, searching for evidence of engagement and corporate positioning since 2017. To determine the policy issues within the scope of the analysis, InfluenceMap breaks down sustainable finance policy engagement into a series of subcategories, or 'queries'. These are designed to cover high-level issues relating to the importance of sustainable finance, as well as more specific areas of sustainable finance policymaking. InfluenceMap’s research process searches for evidence of an organization's engagement with each sustainable finance policy issue, across each of the data sources.
The following table outlines the key queries and data sources, which FinanceMap uses to assess asset managers' corporate engagement programs. Every evidence piece is assessed on a five-point scale of -2,-1,0,1,2 or NA (not applicable)/NS (not scored). All queries, data sources, and evidence pieces are weighted against one another in a matrix system to arrive at a final top-level score. Clicking on specific cells will load the underlying evidence and information on how it has been assessed.
In this section, we depict graphically the relationships the corporation has with trade associations, federations, advocacy groups and other third parties who may be acting on their behalf to influence climate change policy. Each of the columns above represents one relationship the corporation appears to have with such a third party.
In these columns, the top, dark section represents the strength of the relationship the corporation has with the influencer. For example if a corporation's senior executive also held a key role in the trade association, we would deem this to be a strong relationship and it would be on the far left of the chart above, with the weaker ones to the right. Click on these grey shaded upper sections for details of these relationships. The middle section contains a link to the organization score details of the influencer concerned, so you can see the details of its climate change policy influence. Click on the middle sections for for details of the trade associations. The lower section contains the organization score of that influencer, the lower the more negatively it is influencing climate policy.
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
David McKay is a board member of the IIF
David McKay (President & CEO, Royal Bank of Canada)
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
Royal Bank of Canada is a Member of the IIF
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
David McKay is a board member of the IIF
David McKay (President & CEO, Royal Bank of Canada)
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
Royal Bank of Canada is a Member of the IIF
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
Ryan Taylor is on the board of SIFMA
Ryan Taylor (Managing Director, U.S. Head of Capital Markets Compliance RBC Capital Markets)
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
RBC is a member of SIFMA.
not specified
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
Ryan Taylor is on the board of SIFMA
Ryan Taylor (Managing Director, U.S. Head of Capital Markets Compliance RBC Capital Markets)
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
RBC is a member of SIFMA.
not specified
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
As of October 2022, Royal Bank of Canada is a member of UK Finance
not specified
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
As of October 2022, Royal Bank of Canada is a member of UK Finance
not specified
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
As of October 2022, RBC is a member of UK Finance, which is a member of the EBF.
not specified
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
As of October 2022, RBC is a member of UK Finance, which is a member of the EBF.
not specified
--no extract--
The Royal Bank of Canada's (RBC) board has oversight of the organization’s approach to climate change and the management of climate-related risks and opportunities. In 2020, the board approved changes to RBC’s risk appetite framework to require considerations of climate risks. Furthermore, in February 2021, RBC announced new sustainable finance and net-zero financing by 2050 targets. Senior management are assigned various climate-related responsibilities. There are clear processes in place within RBC Global Asset Management (GAM) to ensure the board and management-level positions and committees monitor the progress of climate-related issues and initiatives.
RBC references climate-related risks and opportunities it considers relevant over different time horizons in its annual group TCFD report as well as RBC GAM’s TCFD report. It appears to consider climate-related risks and opportunities on its lending, advisory, and investment activities.
The organization is transparent about the climate-related risks and opportunities with the potential to have a substantive financial or strategic impact on the business. It has provided numerous examples of how it has considered the impact of climate-related risks and opportunities on its corporate strategy planning in its reporting.
RBC has tested the resilience of its loan portfolios using various scenarios, including those consistent with a 2°C or lower warming. It also used a transition scenario to assess its upstream oil and gas and power generation portfolios as well as a physical scenario to assess its home equity finance portfolio. Additionally, RBC GAM has used various scenarios to test its equity and fixed income investment strategies. In 2021, RBC participated in a pilot project convened by the Bank of Canada and OSFI and designed and executed scenario analysis for its RBC Europe Limited subsidiary.
RBC is transparent around the processes used for identifying and prioritizing climate-related risks. For example, the organization has identified and ranked the sensitivity of client sectors to physical and transition risk drivers. Additionally, RBC incorporates climate-related risks into assessments of numerous risk categories and provides some examples of action it has taken to mitigate these risks.
The organization highlights some processes in place to manage climate-related risks, including an ESRM policy and enterprise risk management framework. RBC is transparent about how products or investment strategies might be affected by the transition to a lower-carbon economy and provides some examples of action taken to mitigate these effects.
RBC appears to have integrated climate-related risks into overall risk management. It has identified climate change as an emerging risk, which are integrated into the organization’s "enterprise-wide and business-specific E&S risk management policies".
RBC discloses key metrics used to measure and manage climate-related risks and some climate-related opportunities in its group TCFD, asset management TCFD, and ESG reports.
The organization is transparent regarding Scope 1 and Scope 2 emissions and discloses some relevant Scope 3 emissions data. In 2021, RBC joined PCAF and has committed to disclose financed emissions using this methodology. It has also identified and disclosed the amount and percentage of carbon-related assets relative to total assets, the amount of lending to climate-sensitive sectors, and weighted average carbon intensity of its investment products. In its 2021 TCFD report, RBC states it conducted an initial measurement of financed emissions across all six PCAF asset classes.
In February 2021, RBC announced an updated sustainable financing target and a Net Zero lending by 2050 target and in October 2021, it joined the Net Zero Banking Alliance. RBC outlined its initial 2030 interim targets in October 2022 for three sectors: oil and gas, power generation, and automotive.
RBC is not aligned with IPCC guidance on the role of coal in the energy mix up to 2050. The organization has prohibited financing for certain mining activities including new clients that operate significant thermal coal mining (≤ 60% revenue) or coal power generation assets (≤ 60% generation per megawatt hour (MwH)). However, it appears to otherwise provide coal financing given due diligence.
With regard to natural gas and oil, RBC has not included either sectors in its policy guidelines for sensitive sectors and activities. It names the Arctic and ANWR in this policy, and states that resource and energy development activities in these areas requires enhanced due diligence. Otherwise, the organization will provide finance assuming clients meet due diligence criteria.
The organization has communicated support for a low-carbon economy and has made a sustainable finance commitment of $100 billion by 2025. RBC has also made a net-zero financing goal for 2050, however, it has not yet outlined key short-term targets for achieving this goal.
FinanceMap’s Climate Governance and Policies analysis assesses statements financial institutions (FIs) are making on how they are incorporating climate issues into their decision-making and operations using FinanceMap’s matrix methodology. This methodology is adapted from the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations and guidelines, Net-Zero Banking Alliance (NZBA) or equivalent Glasgow Financial Alliance for Net-Zero (GFANZ) initiative reporting, and IPCC and IEA technology statements. The TCFD provide guidance on 11 recommendations across four areas which are reflected in our matrix: Governance, Strategy, Risk Management, and Metrics and Targets. Additional benchmarks have been introduced to strengthen the ambition of scoring criteria in the assessment of targets, which are supplemented by guidance from the NZBA or equivalent GFANZ initiatives.
Additionally, Science-Based Policy (SBP) benchmarks are used to measure alignment of an FIs technology positions with the science of climate change. These benchmarks are applied to an FIs internal policies on technologies including coal, oil, gas, nuclear, and renewables and also assesses its engagement with broader climate and energy policy issues such as advocacy on the role and importance of different strategy types in the future energy mix.
For each TCFD recommendation and technology, FIs statements are applied to a five point scoring scale ranging from +2 to -2, measuring alignment with the relevant benchmarks. The detailed scores for this FI are displayed below within each matrix cell.
The following table outlines the key queries and data sources, which FinanceMap uses to assess financial institutions climate governance, targets and policies. Every evidence piece is assessed on a five-point scale of -2,-1,0,1,2 or NA (not applicable)/NS (not scored). All queries, data sources, and evidence pieces are weighted against one another in a matrix system to arrive at a final top-level score. Clicking on specific cells will load the underlying evidence and information on how it has been assessed.
Open PDF file of Data Source