Product Responsibility
"Responsibility" may not be the first thing you
think of when it
comes to how a bank develops its financial products and services
-
at least not the same way you might be concerned about how
your
child's toys are manufactured, or how your car was designed.
But
mortgages and loans, bank accounts, insurance offerings and
credit cards are all considered products, too, and at RBC,
we ensure
that all the products and services we develop for our clients
align
with our vision and values and are guided by our comprehensive
Code of Conduct.
Development of Products and Services
RBC has a formal policy that sets out a defined, rigorous
process
before we launch any new product or significantly change an
existing
one. We evaluate products for a range of risks and ensure
they
align with client needs, our Code of Conduct, laws and regulations,
and voluntary consumer protection codes that we have signed.
Approval levels within RBC correspond to the level of risk
identified
for a particular product or service.
Green Products and Services
One of our priorities is to provide products and services
that help
our clients mitigate their environmental impact. This includes
online
banking, and electronic statements and bill payment. In 2008,
we continued to offer incentives for clients to switch off
paper
statements, have a home energy audit, buy a lower-emission
car,
and switch to green power. We also invest in clean energy
funds
and provide investment banking, financing, and advisory services
to the renewable energy sector.
Responsible Investing
As investors continue to express an interest in socially
responsible
investing (SRI), RBC has reinforced its commitment to offering
products that incorporate environmental, social and governance
(ESG) criteria in the investment process.
- RBC Asset Management helps financial advisors meet the
needs of clients who want to screen their investments to
ensure they are investing in a responsible manner, using
information provided by Jantzi Research Associates. In addition,
our clients have access to all the SRI funds in the Canadian
marketplace through our network of advisors.
- In Canada, RBC Asset Management offers three SRI funds
- the RBC Jantzi Balanced Fund™, the RBC Jantzi Canadian
Equity Fund™ and the RBC Jantzi Global Equity Fund™.
- In 2008, more than 10,000 RBC retail banking employees
in Canada were trained on SRI products through a special
publication, a roadshow, webcasts, and in-branch presentations.
Almost 600 of our Wealth Management investment advisors
have attended in-depth presentations on SRI trends and funds.
- In 2008, we expanded our SRI options through the acquisition
of Phillips, Hager & North Investment Management Ltd.,
which manages the PH&N Community Values Funds.
- Through Voyageur Asset Management Inc., we acquired certain
assets of Boston-based Access Capital Strategies, LLC (Access
Capital) in 2008. Access Capital invests in debt securities
that support community development serving low- and moderate-income
individuals and communities across the U.S.
- In the U.S., RBC Wealth Management® has a specialized
team of financial consultants based in San Francisco, providing
an investment consulting platform focused on environmental,
social and governance investment strategies. This group
works with high net worth individuals, foundations, endowments,
unions and pension funds, and consults on approximately
US$1 billion in assets. Clients have access to a customized
ESG investment platform that includes custom portfolio screening,
cleantech private equity, shareholder engagement and mission-related
investing.
Responsible Lending
RBC provides credit and banking services to companies in
many industries. Our risk management policies and processes
provide assurance that these services are properly designed
and sold to appropriate customer segments and individuals.
We also have policies covering areas of particular concern,
such as environmental responsibility and anti-corruption.
For instance, RBC will not support or finance transactions
that are directly related to trade in or manufacturing of
material for nuclear, chemical, and biological warfare, landmines
or cluster bombs. RBC is a signatory to the Equator Principles,
a set of voluntary guidelines addressing environmental and
social risks associated with project finance, as outlined
in our Environment
section.
RBC has a number of anti-corruption controls which require
us to
apply appropriate scrutiny and monitoring measures to high-risk
clients whose business activities are known to be susceptible
to
criminal activity or have been designated as high risk for
money
laundering or financing of terrorism.
For a full overview of our risk management policies and protocols,
see our 2008
Annual Report.
