August 2021 / ESG
Aligning our Impact Investment to the UN Sustainable Development Goals (UN SDGs)
Our Global Impact Equity strategy philosophy aligns with the UN SDGs to end poverty, protect the planet, and ensure prosperity.
Aligning our impact investments to the United Nations Sustainable Development Goals (UN SDGs)
Our Global Impact Equity strategy philosophy aligns with the UN SDGs, a globally recognised framework designed to end poverty, protect the planet, and ensure prosperity. We believe this is the best way to align all stakeholders in the impact journey, encompassing our clients, investment team, and the businesses our strategy owns.
To ensure our approach has substance and materiality, we adopt a forward-looking perspective on change while ensuring all investment decisions are based on a clearly defined, positive impact thesis that is both material and measurable. We assess business activities and how they align to the following three investment pillars and eight sub-pillars, guided by the UN SDGs:
Companies must meet at least one of the following four impact inclusion criteria, to be eligible for consideration:
- Majority of current revenues or profits is tied to at least one impact sub-pillar
- Majority of projected revenues or profits in 10 years is tied to at least one impact sub-pillar
- Best-in-class response to impact situations
- Unique impact situation
The UN SDGs—aligning portfolios for the future
Pursuing positive impact from our investments against these pillars is the start point for every investment decision we make.
What Are the United Nations Sustainable Development Goals?
The UN SDGs are a blueprint for a more sustainable world. Signatory countries are expected to establish a national framework for achieving each of the 17 SDGs.
While the SDGs are a tool to allow countries to implement sustainability regulations, they are also commonly adopted as a framework for identifying environmental, social, and governance (ESG) related pressure points that can impact corporate and other securities. Indeed, the goals are represented across the range of factors that we analyze within our proprietary Responsible Investing Indicator Model (RIIM).
Companies are likely to face greater scrutiny in relation to the sustainability objectives of the SDGs over time. This could include greater regulatory burdens, taxation, litigation, and/or consumer dissatisfaction. Conversely, companies that provide solutions are likely to have much more sustainable business models. It makes sense therefore that our RIIM analysis is aligned with the SDGs.
To learn more about the T. Rowe Price Global Impact Equity strategy, please speak to your local T. Rowe Price Relationship Manager or visit troweprice.com.au
This material is being furnished for general informational and/or marketing purposes only. The material does not constitute or undertake to give advice of any nature, including fiduciary investment advice, nor is it intended to serve as the primary basis for an investment decision. Prospective investors are recommended to seek independent legal, financial and tax advice before making any investment decision. T. Rowe Price group of companies including T. Rowe Price Associates, Inc. and/or its affiliates receive revenue from T. Rowe Price investment products and services. Past performance is not a reliable indicator of future performance. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested.
The material does not constitute a distribution, an offer, an invitation, a personal or general recommendation or solicitation to sell or buy any securities in any jurisdiction or to conduct any particular investment activity. The material has not been reviewed by any regulatory authority in any jurisdiction.
Information and opinions presented have been obtained or derived from sources believed to be reliable and current; however, we cannot guarantee the sources' accuracy or completeness. There is no guarantee that any forecasts made will come to pass. The views contained herein are as of the date noted on the material and are subject to change without notice; these views may differ from those of other T. Rowe Price group companies and/or associates. Under no circumstances should the material, in whole or in part, be copied or redistributed without consent from T. Rowe Price.
The material is not intended for use by persons in jurisdictions which prohibit or restrict the distribution of the material and in certain countries the material is provided upon specific request.
It is not intended for distribution to retail investors in any jurisdiction.