Social finance is the use of private capital and financial markets for public good. It involves using financial and economic incentives to solve complex societal problems. Like traditional finance, the social finance ecosystem includes those who supply capital, those who demand capital, and intermediaries and enablers. Investors supply capital to projects, programs and businesses that deliver solutions to social and environmental problems, and could be governments, individuals, foundations, banks and pension funds. The demand side of the market includes social enterprises, non-profits, charities, cooperatives, and projects that need capital to open, operate and expand activities. Intermediaries and enablers support the placement of investments, develop financial products and help entrepreneurs become investment ready.
Impact investing is a type of investing where investors seek to place capital in companies or organizations that offer market-based solutions to a particular social or environmental challenge. Impact investing differs from traditional investing in three important ways:
The figure below illustrates where impact investing is situated across a continuum of investment approaches.
The RBC Generator is a $10-million pool of capital for investing in social enterprises that deliver impact in the areas of water, energy, education and employment, as well as financial returns.
RBC offers a number of investment products and services that align our clients’ financial goals with their personal values.
You are on: Socially Responsible Investment Funds
Socially Responsible Investing (SRI) is a popular investment approach, which involves the formal integration of social values into the traditional investment process. SRI has emerged as a viable investment approach for those who want to achieve competitive investment returns while ensuring their money is managed in accordance with certain values. RBC Global Asset Management offers the RBC Jantzi Funds and PH&N Community Values Fund to meet the needs of investors who want to invest in companies with attractive ESG practices.
You are on: SRI Wealth Management Group
To support the growth in socially responsible investing among high net-worth individuals, foundations, unions, and pension funds, our SRI Wealth Management Group provides SRI expertise to clients across the United States.
You are on: Access Capital Strategies
Access Capital Strategies is a pioneer in the creation of secondary markets for Community Development Investments by developing specialized products that support low- and moderate-income homebuyers, affordable housing, education, health care and job creation in underserved communities in the United States.
You are on: Green Bonds
Green Bonds are capital-raising instruments used for projects with positive environmental benefits. The amount of capital available to fund green projects has risen sharply since the first issuance in 2007. Many institutional investors now have mandates to support socially responsible investments, and have participated in green bond issues. RBC was the first Canadian bank to endorse the Green Bond Principles in 2014, which strive to provide voluntary guidelines for the process and development of green bonds. Since 2010, RBC Capital Markets has acted as lead manager on several green bond issuances.