Royal Bank of Canada
200 Bay StreetRoyal Bank Plaza
Toronto, ON M5J 2J5
With all of the turmoil in the financial sector over the past year, one major bank has managed to avoid any bombshells to date – Royal Bank of Canada (NYSE – RBC). It happens to be one of the world’s best managed banks with respect to sustainability issues, and its stock has held up remarkably well. It is down about half as much as the S&P 500 financial sector over the past year (-27 percent versus -56 percent).
Royal Bank of Canada is a diversified financial services company. It is Canada’s largest bank by assets and market capitalization and the largest mutual fund provider. Canada accounts for about 66 percent of revenues, the US 22 percent, and international 12 percent. RBC’s strategy includes expansion in the U.S. market and building critical mass in key businesses. RBC is also focused on growing its new Wealth Management segment. It is well positioned to take advantage of a fragmented global wealth management industry.
Royal Bank of Canada is the North American sector leader in sustainability according to Innovest. The company was ranked first in Newsweek’s “Global 100 Greenest Companies.” Environmental and social factors are integrated throughout the company’s business lines, allowing the company to mitigate risk and identify strategic profit opportunities. The company has had an environmental policy in place for more than 15 years, has a Climate Risk Program to monitor risks in its portfolio, is a signatory to the Equator Principles, and uses an intranet tool, Climate Change Central, to allow employees to examine the environmental impacts of their actions.
The company has invested in more than two dozen wind projects, and invests directly in the Global Environment Fund Clean Tech Fund, a private equity fund that finances technologies to reduce the environmental impact of traditional industrial companies.
Portfolio Profiles are not recommendations for any investment action. They are intended expressly to provide social, environmental and business information on companies that may appear in Trillium Asset Management Corporation client portfolios. Clients and/or employees of Trillium may own this stock.