RBC Announces $20 Million in Commitments to
New Social and Environmental Initiative
RBC Impact Fund Breaks New Ground in Canadian Banking Sector
TORONTO, January 24, 2012 — RBC today announced
a $20 million commitment to a new social and environmental
initiative aimed at facilitating solutions to social and environmental
problems. "Impact finance" describes a range of
financial vehicles and services that use private capital to
finance solutions to social and environmental challenges while
generating financial return, and is expected to help drive
the next wave of innovation and productivity growth in the
global economy.
This initiative is comprised of:
- A new $10 million capital fund - the RBC Impact Fund -
to help finance projects by organizations and entrepreneurs
tackling social and environmental challenges. Priority areas
will include projects promoting environmental sustainability
and water resource management, and providing employment
opportunities for youth and newcomers to Canada; and
- A $10 million investment by the RBC Foundation of its
own assets into Socially Responsible Investment (SRI) funds.
“We've been waiting for the right moment to launch a
program of this nature, and the moment is now," said
Gordon M. Nixon, president and CEO, RBC. "We are confident
that our initial investment of $10 million in the RBC Impact
Fund will not only spark entrepreneurship and innovation in
Canada, but also catalyze similar investments from others
in the business community. We are also proud to put our money
where our values are by investing an additional $10 million
of our own funds through the RBC Foundation in socially and
environmentally screened funds.”
This is the first such initiative announced by a major Canadian
financial institution. RBC has had a history of innovation
in the field of Socially Responsible Investing; in 2007, RBC
launched the RBC Jantzi Funds suite of products and in 2008,
the PH&N Community Values Fund, became part of the RBC
Global Asset Management suite of funds. Both offerings provide
investors with socially and environmentally screened investment
opportunities, allowing them to help sustain the planet and
support communities, while generating strong returns on their
investments.
“RBC's initiative will provide an exciting opportunity
to support ventures that have a positive impact on people,
planet, and profit," said Ilse Treurnicht, CEO of MaRS
and chair of the Canadian Task Force on Social Finance. "This
announcement is an important watershed moment for impact finance
in Canada. RBC's commitment is both innovative and forward-thinking.”
MaRS recently launched a Centre for Impact Investing to support
the development of the social finance marketplace in Canada.
In the next few months, RBC will assemble an advisory panel
to assist an internal group in developing criteria for the
RBC Impact Fund (including types of organizations eligible
for funding, terms of funding, geographical limitations, etc.),
an appropriate governance structure, and processes. More detailed
information on the eligibility criteria and application process
for the Fund will be communicated in the coming months.
RBC employs approximately 74,000 full and part-time people
who serve more than 15 million clients in Canada, the United
States, and 56 other countries. RBC is recognized among the
world's financial, social and environmental leaders, and is
listed in the 2011-2012 Dow Jones Sustainability World Index,
the Global 100 Most Sustainable Corporations, and the DJSI
North American Index. RBC has been named one of Canada's Greenest
Employers, one of Canada's Best Diversity Employers, one of
Canada's 50 Most Socially Responsible Corporations and one
of the Best Workplaces in Canada. RBC is also listed on the
Jantzi Social Index, the FTSE4Good Index, and the Canadian
Carbon Disclosure Project Leadership Index.
RBC and its employees support and participate in a broad
range of community initiatives through donations, sponsorships
and volunteer activities. In 2011, RBC contributed more than
$98 million to causes worldwide through donations of $64 million
and sponsorship of community events and organizations of $34
million.
For more information, please contact:
Jackie Braden,
RBC Corporate Communications (416) 974-1724
Chris Stevenson, Director, Communications, MaRS Discovery
District, 416 673-8104
Financial references in
Canadian dollars
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