A new $10 million commitment from RBC to “impact investing” represents a first by a mainstream financial institution in the sector in Canada.
Royal Bank of Canada (TSX:RBC) announced Tuesday that it’s creating a new $10 million capital fund, the RBC Impact Fund, to help finance projects by organizations and entrepreneurs that address social and environmental challenges. And, it’s also making a $10 million investment by the RBC Foundation of its own assets into socially responsible investment funds.
“RBC’s initiative will provide an exciting opportunity to support ventures that have a positive impact on people, planet, and profit,” said Ilse Treurnicht, chair of the Canadian Task Force on Social Finance, and CEO of MaRS, which recently launched a Centre for Impact Investing to support the development of the social finance marketplace in Canada. “This announcement is an important watershed moment for impact finance in Canada. RBC’s commitment is both innovative and forward-thinking.”
The bank notes that in the next few months it will assemble an advisory panel to assist an internal group in developing criteria for the new RBC Impact Fund (including types of organizations eligible for funding, terms of funding, geographical limitations, etc.), an appropriate governance structure, and processes. Details on the eligibility criteria and application process for the fund will be communicated in the coming months.
“We’ve been waiting for the right moment to launch a program of this nature, and the moment is now,” said Gord 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.”