Skip to content


A Collaborative Approach to ESG

Donna Anderson, CFA, Global Head of Corporate Governance


The term responsible investment in our industry has come to cover what we would call three different categories. There are environmental issues that companies face, social issues, and corporate governance issues. Together these issues are often called ESG, or on a higher level responsible investment.

The way we have organised our research in this area at T. Rowe Price is we group environmental and social issues together and corporate governance as a separate pillar, so we view these as side by side pillars under the responsible investment umbrella.

The reason to separate them is there's a cadence to corporate governance. Every equity security has to have a shareholder meeting every year, so there's a certain annual cadence to that. There's also a lot better disclosure in markets around the world about governance issues relative to environmental and social issues, so they are related certainly, but they are distinct specialties in our view.



At T. Rowe Price the responsible investing, or RI, team are subject matter experts on environmental and social issues. We work in tandem with our governance team to support our analysts and portfolio managers in ESG integration.

A core tenant of our ESG integration philosophy is that it is most effective when done by analysts and portfolio managers. As such our team works to provide the right information and tools so that our investors can easily understand which environmental and social factors could impact the performance of an investment. 



When I think about the match between the ESG program we have and the core values of this firm, one clear link is we're very client focused at T. Rowe Price and our clients are deeply interested in matters of environmental, social and governance considerations. Whatever our clients are interested in we're going to be interested in.

The other way I would say is our dedication to fundamental research. I mean, this is a firm built on core research capability.



To help our analysts and portfolio managers consider the impact of environmental and social factors, the RI team conducts analysis on individual securities as well as the wider portfolio. It also assists with company engagement. At T. Rowe Price our central mission is to help our clients reach their long-term financial goals. 

Consistent with that objective, we have an obligation to understand the long-term sustainability of the companies and issuers in which we invest.

This is why environmental, social and governance factors are a consideration in our investment approach. 

Important Information

This material is being furnished for general informational purposes only. The material does not constitute or undertake to give advice of any nature, including fiduciary investment advice, and 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 written 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.

T. ROWE PRICE, INVEST WITH CONFIDENCE, and the bighorn sheep design are, collectively and/or apart, trademarks of T. Rowe Price Group, Inc. © 2018 T. Rowe Price. All rights reserved.



Audience for the document: Share Class: Language of the document:
Download Cancel


Share Class: Language of the document:
Download Cancel
Sign in to manage subscriptions for products, insights and email updates.
Continue with sign in?
To complete sign in and be redirected to your registered country, please select continue. Select cancel to remain on the current site.
Continue Cancel
Once registered, you'll be able to start subscribing.

By clicking the Continue button, I acknowledge that I have read and accepted the Privacy Notice

Continue Back

Change Details

If you need to change your email address please contact us.
You are ready to start subscribing.
Get started by going to our products or insights section to follow what you're interested in.

Products Insights

GIPS® Information

T. Rowe Price ("TRP") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. T. Rowe Price has been independently verified for the twenty four-year period ended June 30, 2020, by KPMG LLP. The verification report is available upon request. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report.

TRP is a U.S. investment management firm with various investment advisers registered with the U.S. Securities and Exchange Commission, the U.K. Financial Conduct Authority, and other regulatory bodies in various countries and holds itself out as such to potential clients for GIPS purposes. TRP further defines itself under GIPS as a discretionary investment manager providing services primarily to institutional clients with regard to various mandates, which include U.S, international, and global strategies but excluding the services of the Private Asset Management group.

A complete list and description of all of the Firm's composites and/or a presentation that adheres to the GIPS® standards are available upon request. Additional information regarding the firm's policies and procedures for calculating and reporting performance results is available upon request

Other Literature

You have successfully subscribed.

Notify me by email when
regular data and commentary is available
exceptional commentary is available
new articles become available

Thank you for your continued interest