T. Rowe Price has received high rankings and recognition for its sustainability achievements and its low risk of being negatively impacted by environmental, social and corporate governance factors, the company said in its 2020 sustainability report.
T. Rowe was given a score of “AA,” on a scale from “AAA”-“CCC,” from the MSCI ESG Ratings assessment; a score of “AA” or “AAA” represents a company leading the industry in managing ESG risks and opportunities.
It received a score of 19.5 from Sustainalytics, which indicates “low” risk of being financially impacted by ESG risks (a score between 20 and 30 would indicate “medium” risk), and a “B” from CDP. T. Rowe’s “B” score was an improvement over the “C” it held from 2017 to 2019, and is above the North American regional average score of a “D.”
Baltimore itself scored an “A” from CDP, making it one of the 88 cities globally that are making the most progress against climate change by CDP’s metrics.
T. Rowe was also recognized for its sustainability efforts by Barron’s, which placed the company at No. 14 in its 2021 list of “Most Sustainable Companies,” rising from its ranking at number 36 in 2020.
“The series of overlapping crises of 2020 have brought to the forefront the need to think holistically about sustainability and to show progress in diversity, equity, and inclusion; community engagement; and climate change,” T. Rowe President Bill Stromberg said in a statement. “This is a complex journey on which we are making progress, and despite the challenges of the past year the resolve of our associates to deliver results responsibly to our clients has never been stronger.”
In the sustainability report, T. Rowe used both Sustainability Accounting Standards Board standards and the Task Force on Climate-Related Financial Disclosures framework to report ESG and sustainability metrics. SASB, which T. Rowe has used once before, and TCFD, which the company used for the first time in this year’s report, are industry standards for disclosure of ESG topics.
T. Rowe also became both a TCFD supporter, which indicates that the firm finds TCFD’s standards a useful tool for creating transparency around climate-related risks, and a member of the SASB Alliance, which focuses on developing best practices related to ESG transparency.
The company’s other recent sustainability accomplishments include reaching its carbon emissions goals in 2019, ahead of deadline and hiring the firm’s first director of corporate ESG in 2020. The company is also focused on sustainable design when planning it upcoming, two-building headquarters in Baltimore’s Harbor Point, which is slated to be completed in 2024.