T. Rowe Price Environmental, Social and Governance Investment Policy Statement

At T. Rowe Price, fundamental analysis is the foundation of our investment decisions. Through our bottom-up approach, we endeavour to understand the long-term sustainability of a company’s business model, and the factors that could cause it to change.

We believe that environmental, social and governance (ESG) issues can influence investment risk and return and, therefore, incorporate ESG risk considerations into our fundamental investment analysis. Accordingly, T. Rowe Price is a signatory of the Principles for Responsible Investment (UN PRI)1. We support the PRI framework as an effective means to encourage better dialogue among investors and improve disclosure from companies globally. Our ESG analysis serves to complement our ultimate objective of delivering superior long-term investment returns to clients.

How do we integrate ESG issues?

  • Responsibility for incorporating ESG risks into investment decisions is embedded across the research platform. At T. Rowe Price we have analysts who are experts in their fields. They cover a specific region or sector, and may well follow some companies for over 10 years. Their responsibilities include meeting the management teams, conducting site visits and producing detailed company and industry analysis.
  • In order to supplement our analysts’ assessment of ESG risk factors, we use external research partners to provide detailed company-level reports. These help to verify and challenge our in-house views. We also have a proprietary system for analysing and recording our portfolio managers’ proxy voting decisions and our engagement activities.
  • Finally, we have our own full-time specialists in global corporate governance and legislative affairs integrated into our research teams. These experts work with our investment analysts and portfolio managers to help them understand relevant political, governance and regulatory risks.

Read the full policy statement

1 Launched in 2006, the UN Principles for Responsible Investment (UN PRI) are a set of voluntary best-practice standards that asset owners and asset managers pledge to uphold in order to incorporate environmental, social and governance (ESG) issues into their investment processes. We are also members of the Carbon Disclosure Project and compliant with the UK Financial Reporting Council’s Stewardship Code.