Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Waste Management

Environmental Achievements

• Reduced greenhouse gas emissions by 14.1% between 2010 and 2019, exceeding the 13% target by 2025.
• Reduced landfill waste by 93% between 2010 and 2019, exceeding the 92% target by 2025.
• Increased recycling by 76% since 2010.
• Increased composting by 105% since 2014.
• Increased energy recovery rate by 724% since 2010.
• 5% reduction in electric consumption at Owings Mills campus in 2019 vs 2018
• 3% reduction in electric consumption at Colorado Springs campus in 2019 vs 2018
• 13% aggregate reduction in electric consumption in 2019 vs 2018
• 22% decrease in fuel oil use at international facilities.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic constrained ability to revisit emission and waste reduction targets due to significant portion of workforce working from home.

Mitigation Strategies

• Undertook a firmwide assessment of future flexibility and remote work to influence emissions reduction trajectory. New targets will be communicated after evaluation.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol

Certifications: Null

Third-party Assurance: Cventure LLC

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Environmental Challenges

• Growing societal pressures related to inequality and the impact of technology on jobs.
• Climate change and its impact on various sectors (e.g., catastrophic weather events).

Mitigation Strategies

• Investing in companies addressing climate change through carbon capture, sustainable packaging, and green alternatives.
• Supporting companies investing in renewable energy infrastructure.
• Engaging with tech companies to guide their ESG journeys and influence their decision-making.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Catastrophic weather events (forest fires, hurricanes, flooding)

Opportunities

• Companies addressing climate change through carbon capture, sustainable packaging, and green alternatives.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Community Investment

Environmental Achievements

• Reduced greenhouse gas (GHG) emissions by 13% ahead of the 2025 deadline (compared to 2010 baseline)
• Implemented a centralized waste management system increasing recycling and composting
• Began offsetting GHG emissions from business travel

Social Achievements

• 83% of workforce feels a sense of belonging
• 43% of associates are members of at least one business resource group (BRG)
• Total firm giving to communities was USD 35.2 million

Governance Achievements

• Joined the Net Zero Asset Managers initiative
• Managed USD 95 billion in assets in socially responsible accounts

Climate Goals & Targets

Environmental Challenges

• Climate-related risks (physical and transition risks)
• Increased energy and operational costs due to new climate-related regulations
• Costly implementation of emerging regulatory and legal requirements

Mitigation Strategies

• Implementing energy efficiency measures and exploring longer-term mitigation strategies (infrastructure investments)
• Utilizing CDP Climate Change questionnaire to benchmark climate change strategy performance
• Embedding ESG (including climate-related risks and opportunities) throughout investment research platform
• Developing a corporate net zero strategy and action plan
• Partnering with Climate Vault to purchase carbon allowances

Supply Chain Management

Responsible Procurement

• Supplier diversity program aiming for USD 50 million in spending with diverse-owned businesses by 2025

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rising sea levels
• Increased wildfires

Transition Risks

• Policy and legal changes
• Technological shifts
• Market shifts

Opportunities

• Energy efficiency gains
• Investment in low-emission technologies

Reporting Standards

Frameworks Used: TCFD, SASB, UN Global Compact

Certifications: LEED Platinum (target for new Baltimore headquarters), BREEAM Excellent (target for London office)

Third-party Assurance: Cventure LLC (limited assurance for GHG emissions)

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 5 (Gender Equality)
• SDG 8 (Decent Work and Economic Growth)
• SDG 13 (Climate Action)

T. Rowe Price focuses efforts on these SDGs through various initiatives.

Awards & Recognition

• Barron's Top 100 Most Sustainable Companies (14th place)
• Fortune World's Most Admired Companies
• Pensions & Investments Best Places to Work in Money Management

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Energy Transition
• Corporate Governance
• Social Equity
• Sustainable Innovation

Environmental Achievements

• Launched first suite of strategies that promote ESG characteristics in Europe
• Expanded ESG-focused teams
• Developed proprietary ESG research tool and rating systems for various asset classes (equities, corporate bonds, sovereign bonds, municipal bonds, securitized bonds)
• Engaged with companies on GHG emissions, environmental data disclosure, product sustainability, water usage, and single-use plastics.
• Supported the development of the ISSB standards and advocated for their adoption by investee companies.

Social Achievements

• Engaged with companies on social data disclosure, employee safety and treatment, diversity, equity, and inclusion, supply chain issues, and product safety and sustainability.
• Participated in collaborative engagements focusing on diversity, equity, and inclusion, and better nutrition strategies among UK retailers.
• Signed the 30% Club’s UK Investor Group Statement on race equity.

Governance Achievements

• Enhanced proxy voting disclosure and published proxy voting case studies.
• Expanded the scope of the 2022 Stewardship Report.
• Engaged with companies on executive compensation, board composition, succession planning, ESG accountability, and governance data disclosure.
• Established T. Rowe Price Investment Management, Inc. (TRPIM) with a separate ESG team.

Climate Goals & Targets

Environmental Challenges

• Data availability for environmental and social factors remains a challenge.
• ESG backlash in the US due to rebound in oil prices and energy crisis in Europe.
• Increase in volume of shareholder proposals, with a decrease in overall quality and rise in anti-ESG resolutions.
• Lack of comparable and consistent reporting on biodiversity impact.

Mitigation Strategies

• Advocated for the use of SASB and TCFD standards (now incorporated into ISSB).
• Developed proprietary RIIM model to analyze ESG factors across asset classes.
• Leveraged quantitative and qualitative inputs to assess biodiversity risks and opportunities.
• Emphasized a company-by-company approach to evaluating shareholder proposals.
• Continued to strengthen analytical capabilities, including ESG, to pursue the best possible results for clients.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN SDGs, UN Global Compact, SASB, TCFD, ISSB, ICMA Green Bond Principles, ICMA Social Bond Principles, ICMA Sustainability Bond Guidelines, ICMA Sustainability-Linked Bond Principles, TNFD

UN Sustainable Development Goals

• All 17 SDGs

RIIM analysis is aligned with the SDGs; impact investing targets align with the SDGs.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Governance
• Responsible Investing
• Supply Chain Sustainability
• Community Investment

Environmental Achievements

• 4% reduction in Scope 1 and 2 emissions since 2021 base year
• 48% of real estate by square footage was environmentally certified by year-end 2023
• Partnership with IFC to launch a blue bond venture

Social Achievements

• 44% of the firm’s global workforce were women
• 32.5% of senior roles were held by women
• USD 50 million spend with underrepresented suppliers in 2023
• 95% successful completion rate for Fitch ESG Foundation Certificate

Governance Achievements

• Formalized ESG Oversight Committee
• Developed Net Zero Transition Framework for global equities and corporate bonds
• Established a net zero voting policy

Climate Goals & Targets

Environmental Challenges

• Impact on investment performance due to climate change
• Impact on client preferences for investment products
• Regulatory impact of climate change
• Impact on the firm’s reputation
• Impact of acute disruptions to operations from weather events
• Lack of disclosure on key environmental metrics
• Divergence in local sustainability standards

Mitigation Strategies

• ESG integration into investment analysis
• Offering investment products with environmental mandates
• Business continuity planning for extreme weather
• Monitoring global ESG/climate regulatory proposals
• Active stewardship program
• Advocacy for global regulatory coordination
• Developing a long-term energy contract for largest facilities

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rising sea levels
• Wildfires

Transition Risks

• Regulatory changes
• Technological shifts
• Market shifts

Opportunities

• Development of energy-efficient products
• Investment in renewable energy

Reporting Standards

Frameworks Used: TCFD, SASB, GRI, UNGC, NZAM

Third-party Assurance: Grant Thornton LLP (limited assurance)

UN Sustainable Development Goals

• SDG 5
• SDG 6
• SDG 10
• SDG 11
• SDG 13
• SDG 14

Alignment with SDGs through investment strategies and operational initiatives

Sustainable Products & Innovation

• Net Zero Transition Fund
• Impact investment strategies

Awards & Recognition

• Climate Vault’s Carbon Champion Game Changer award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity
• Governance

Climate Goals & Targets

Environmental Challenges

• ESG risk: Environmental, social, or governance event(s) or condition(s) may occur, which could have a material negative impact on the value of an investment and performance of the fund.
• Sustainability risk: Due to environmental changes, shifting societal views, and an evolving regulatory landscape related to sustainability issues, the earnings and/or profitability of investments that a fund is invested in may be impacted.

Mitigation Strategies

• Incorporates ESG risk considerations into its fundamental investment analysis.
• Implements the following investment strategies: NetZeroTransition Framework, sustainable investment exposure and application of a responsible exclusion screen.
• Uses a proprietary Responsible Investing Indicator Model (RIIM) to assess SU risks.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SFDR