skip to main content
Choose your site Corporate Financial Intermediaries
Your location and language
English

ENVIRONMENTAL, SOCIAL, GOVERNANCE

Our thinking at T. Rowe Price

ESG Annual Reports & Insights

2022 ESG Investing Annual Report

Our latest ESG Annual Report details our comprehensive ESG investment integration, company engagement, and proxy voting activities for 2022.

ESG 2021 Annual Report
ESG 2020 Annual Report
2023 Proxy Voting Case Studies
The Year in Shareholder Resolutions - 2022

Initiative Promoting Advocacy and Engagement

Our Thinking on ESG

To learn more about our approach to ESG investing and explore our insights, please tell us who you are:

Our ESG Integration Approach

INTEGRATION

At T. Rowe Price, we have embedded environmental, social, and governance analysis into the investment process, meaning the responsibility for integrating ESG factors into investment decisions lies with our analysts and portfolio managers.*

COLLABORATION

In order to support our investment professionals’ capacity to incorporate ESG factors into their decision-making, we have specialists in ESG and regulatory research within our investment research teams who work with our analysts and portfolio managers to delve into situations where these issues are particularly significant.

MATERIALITY

We focus on the ESG factors we consider most likely to have a material impact on the performance of the investments in our clients’ portfolios.

* ESG considerations form a part of our overall research process, helping us alongside other factors to identify investment opportunities and manage investment risk. This is known as ESG integration. However, we may conclude that other attributes of an investment outweigh ESG considerations when making investment decisions.

Integration of Environmental, Social,
and Governance Factors

Environmental, Social, and Governance factors comprise a broad spectrum of considerations --positive and negative --that our investment analysts, supported by our ESG specialist teams, consider in the context of any company, industry, or region of the world.

Our perspective on shareholder activism

The purpose of this statement is to share our philosophy and policies on shareholder activism with our clients, portfolio companies, activist investors and other market participants.

Engaging with portfolio companies in a variety of ways.

Assessing a broad range of investment concerns (including environmental and social issues) is integral to our investment process. Based on this view, our interactions with issuers of corporate securities are driven by portfolio management and supported by the expertise of our industry-focused analysts and our in-house specialists in corporate governance and sustainability.

Our priorities in these efforts are tightly connected to our investment views on a company, so we generally conduct our company-level engagement activities privately. In contrast, we tend to collaborate with other shareholders on policy-level concerns, such as advocating with regulators for better disclosure or the protection of shareholder rights.

In our view, the following questions are investment issues:
  • Who represents shareholders on a company’s Board?
  • What drives the executive incentive program?
  • How robust are shareholders’ rights at the company?
  • How is the company managing its environmental risks,human resources, facilities, stakeholder relations, and long-term access to critical resources?

T. Rowe Price Investment Management, Inc. (TRPIM) makes independent proxy voting decisions, as described in their proxy voting guidelines, from T. Rowe Price Associates, Inc. (TRPA) and its investment advisory affiliates.

Our approach to engagement

We maintain regular dialogue with the managements of issuers represented across our portfolios.

Where we find areas of concern, we make those concerns known to them.

 

Other Areas of Interest

1 As of March 7th, 2022 RIIM analysis will be different across advisers. T. Rowe Price Investment Management, Inc. (TRPIM) was established as a separately registered U.S. investment adviser. TRPIM has a separate ESG team to that of T. Rowe Price Associates, Inc. (TRPA). TRPA and TRPIM ESG teams are both dedicated to supporting investment decisions and leverage a similar approach, framework, and philosophy.

2 As of December 31 2021

202310-3151592