Responsible Investing
Over longer periods of time (five years or more), investments such as stocks, shares and funds have the potential to give you higher returns compared to cash savings. But the value of investments can fall as well as rise. Eligibility criteria, fees and charges apply.
The content on this page applies to the Royal Bank Invest Personal Portfolio Funds (PPF).
For more information on how this is applied, please see the investment managers, Coutts, Responsible Investing Policy.
The Personal Portfolio Funds are invested in custom-built and third-party funds, with limited direct exposure to equities and bonds. The custom-built funds are managed via our strategic relationships where Coutts, the investment manager, defines the investment parameters and ESG policies.
While Coutts does not define the investment parameters or ESG policies of third-party funds, they assess their climate strategies as part of our net-zero investment framework and consider responsible investing in our fund due diligence process.
Voting and engagement (referred to as stewardship) are two methods Coutts use to influence and communicate with companies and encourage responsible behaviour.
Voting rights give Coutts a voice on potential company changes and engagement enables a longer-term, active dialogue to encourage improved disclosure and practices.
As a responsible investor, the preferred strategy is to engage with companies, however, there are certain investments where Coutts believe that engagement will not be effective or where they decide to take a prudent approach until they gain sufficient confidence that the relevant issues can be addressed.
We understand that acting responsibly is a collective ambition or goal, and this is why Coutts works with some of the world's leading investor initiatives.
They take part in industry working groups to set standards around how they can best incorporate ESG practices into investment selection, and they join collaborative engagement initiatives to encourage companies manage material ESG risks and opportunities.
Climate change presents risks and opportunities which are different for every company and country. If companies do not manage these risks and opportunities well, their profitability and resilience could be impacted which in turn could impact your investments.
To manage the climate risks and opportunities in your investments, Coutts, the investment manager, have a long-term goal to reach net zero across all their assets under management by 2050. This goal aligns with the UK Government’s legally binding target to reach net zero by 2050 across the UK economy.
To find out more on our targets, progress and approach to climate change, please see our Entity Climate-related Disclosures Report and Product Climate-related Disclosures Report.
Get into the detail of the Personal Portfolio Funds with these documents, available to download and learn more.
Whether you’re an experienced investor or just finding out what investing is, we’ve got a range of articles to help you understand more about investing.
You’ll need to be a Royal Bank of Scotland customer with Digital Banking, aged 18 – 84 and a UK residence for tax purposes.
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