July 2021 / ENVIRONMENTAL, SOCIAL, AND GOVERNANCE
Aligning to Global ESG Frameworks
United Nations Sustainable Development Goals
The UN Sustainable Development Goals (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 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 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.
United Nations Global Compact
T. Rowe Price is a signatory to the United Nations Global Compact (UNGC). Established in 1999, the UNGC has 10 principles built around human rights, labor standards, the environment, and anticorruption. In addition to capturing whether companies are signatories to the UNGC, RIIM measures UNGC values at multiple levels:
- Human Rights and Labor Standards: Management of human capital is assessed through supply chain analysis for human rights violations, as well as an evaluation of employee treatment that looks at labor-related incidents, accident rates, and other factors.
- Environment: This is assessed via energy use and emissions, water and waste outputs and targets, sustainable sourcing of raw materials, and end-product sustainability and impact on the environment.
- Anticorruption: Programs in place and company track records are evaluated within the model’s ethics analysis.
Sustainability Accounting Standards Board (SASB)
T. Rowe Price is a member of the SASB Alliance. We advocate for our investee companies to utilize the reporting framework. Task Force on Climate-related Financial Disclosures (TCFD) T. Rowe Price is a supporter of the TCFD. We advocate for our investee companies to utilize the reporting framework.
Task Force on Climate-related Financial Disclosures (TCFD)
T. Rowe Price is a supporter of the TCFD. We advocate for our investee companies to utilize the reporting framework.
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