ENVIRONMENTAL, SOCIAL, GOVERNANCE
Our thinking at T. Rowe Price
2023 ESG Investing Annual Report
Learn about our ESG capabilities, approach to ESG integration, company engagements, and proxy voting activities in our ESG Investing Annual Report.
Initiatives Promoting Advocacy and Engagement
Our goal is to help clients achieve their investing goals - whether financial, sustainable, or both.
President and CEO, T. Rowe Price
Our ESG Integration Approach
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.*
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.
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.
- 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?
Our approach to proxy voting
Proxy voting is a critical component of our approach to corporate governance. We offer our clients a high degree of transparency related to the votes we cast on their behalf.
T. Rowe Price Associates, Inc. (TRPA)
Proxy voting guidelines
Proxy voting case studies
Proxy voting records
2024 Proxy voting summary
T. Rowe Price Investment Management, Inc. (TRPIM)
Proxy voting guidelines
Proxy voting records
2024 Proxy voting summary
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.
T. Rowe Price International Ltd’s Report is aligned with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
The report sets out how we take climate-related matters into account when managing or administering investments on behalf of our clients.
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