Environmental, Social, Governance (ESG)
Our thinking at T. Rowe Price
Robert W. Sharps, CFA
Chair of the Board, Chief Executive Officer and President
Our ESG integration approach
Integration
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.*
Collaboration
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.
Materiality
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.
How we integrate ESG into our investment research process
*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.
ESG annual reports & insights
The Year in Shareholder Resolutions
Initiatives promoting advocacy and engagement
T. Rowe Price has joined or led various initiatives promoting advocacy and engagement.
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.
Read about our policy on how we integrate ESG factors into our investment research process.
Read about how we implement ESG exclusions.
Read about how we engage with companies on ESG issues.
Read about our policy on integrating the analysis of climate change factors into our investment research process.
Read about our policy on integrating the assessment of biodiversity issues into our investment research process.
Read our policy on integrating the assessment of human rights issues into our investment research process.
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.
Read our philosophy and policies on shareholder activism with our clients, portfolio companies, activist investors and other market participants.
In our view, the following questions are investment issues:
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)
T. Rowe Price Investment Management, Inc. (TRPIM)
2025 Proxy Voting Summary – coming soon
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.
Continue exploring our sustainability approach
Corporate sustainability
We embed sustainability into our operations, working towards measurable and material improvements.
Journey to Net Zero
Find out what we are doing, both as a business and as a fiduciary of our clients’ assets.
Our thinking on ESG
Learn more about our approach to ESG investing and explore our insights.
Institutional Investors / Consultants
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