Art as a Strategic ESG Asset: In the Case of RBC
December 13, 2023 Fanyu Lin for Financial Times (Chinese)
During the recently concluded Art Basel Miami Beach, discussions about art as an asset were abundant. Banks undoubtedly played a crucial role in sponsoring the arts. I recently had a conversation with Corrie Jackson, Senior Curator at the Royal Bank of Canada (RBC), exploring how the bank's support for the arts integrates into its ESG strategy.
In the evolving landscape of business valuation, the paradigm shift from traditional balance sheets to a more comprehensive 'value sheet' has brought forth the prominence of Environmental, Social, and Governance (ESG) considerations. This transition signifies a holistic approach to business practices, where companies recognize the interconnectedness of financial performance with environmental and societal impacts. Increasingly, the intersection of art and ESG emerges as a powerful catalyst. Arguably, art becomes a strategic ESG asset.
Image 1: Corrie Jackson and Van Maltese installing "Subject to Change", 2015 in the RBC Art Collection
A Bank’s ESG Ambitions and the Impact of Its Art Commitment
RBC, a global financial institution, has positioned itself at the forefront of ESG-conscious corporations. The bank aims to leverage its business, operations, people, community investments, as well as its research and insights to advance its three key ESG ambitions: accelerate the transition to a greener economy, equip people with skills for a thriving future and drive more equitable prosperity in its communities. RBC has recognized the intrinsic link between the arts and these ambitions, by placing a priority on Arts & Culture programs within its Impact Measurement Framework, as well as emphasizing donations and investments in the arts as integral components of the "Social" pillar in its ESG report.
RBC has a long and demonstrated commitment to supporting the arts community. Since 2007, RBC has invested a substantial $100 million in supporting the arts, positively impacting over 35,000 artists. The commitment to the arts is not merely philanthropic; it aligns with RBC's broader purpose of helping communities prosper.
Corrie Jackson, RBC's Senior Curator, emphasizes the crucial role artists play in building vibrant communities and strong economies. For example, the arts can help communities come together and better understand themselves, and the arts can foster employment opportunities, contributing to equitable prosperity while nurturing essential skills like creativity, imagination, and communication.
Creating Value for Communities, Employees and Clients
RBC recognizes the pivotal role of Diversity & Inclusion (D&I) within its corporate structure and extends this commitment to its art program. The RBC Art Collection, boasting 5,000 pieces and one of the largest corporate collections of Canadian art, serves as a tool for enhancing employee well-being by creating an environment that fosters creativity, connection, and emotional resonance. The bank actively seeks art that reflects a diversity of perspectives. This approach not only enriches the spaces where RBC operates but also aligns with the company-wide D&I goals.
“Artwork is acquired and installed with the aim to create and inspire cross-generational conversations,” says Corrie, “Through ongoing loans of the collection, as well as actively sharing our collection with employees and clients, RBC celebrates the evolving threads and narratives that explore and redefine Canadian art.”
When acquiring art for the RBC Art Collection, the RBC Curatorial Department considers art that reflects a diversity of perspectives with a focus on underrepresented communities, including BIPOC and female artists. “Arts and culture enrich the spaces where we live and work, acting as the spark for ideas, innovation and connection in ways that benefit our employees and clients.” Employees may feel more recognized and respected because the arts around them also champion and respect differences in backgrounds, cultures, and perspectives.
Image 2: Shannon Bool’s “Defaced Muse” at RBC’s offices in London, England
The collection also provides unique opportunities to engage with their clients globally, as RBC sponsors prominent art organizations and leverages art-related events for client hosting. For example, they are a sponsor of art organizations including Art Toronto, National Gallery of Canada, Art Gallery of Ontario and McMichael Canadian Art Collection. The RBC Art Collection helps spark conversations and advance ideas on diversity and inclusion as well as environmental sustainability beyond the immediate boundaries of their corporation.
At the pinnacle of the bank's head office in Toronto, the 40th floor stands not just as a physical space called "RBC’s Legacy Space" but as a nexus where their employees, clients, and partners converge in a shared commitment to fostering prosperity and well-being. Its purpose and design both embodied RBC's dedication to cultivating relationships with Indigenous people and communities, rooted in mutual respect and shared values.
In a recent contemporary redesign of this iconic floor, RBC seized a unique opportunity to weave elements of Indigenous cultures into the fabric of the space. Corrie shared how its Curatorial team, Corporate Real Estate and the Corporate Citizenship team collaborated together. The Indigenous Canadian art on display across the floor was acquired by Corrie and team in response to the partnership Corporate Citizenship created with the Downie Wenjack Foundation to help curate the space. The design of the space was led by Corporate Real Estate with input from Downie Wenjack. Beyond aesthetic considerations, the redesign aimed to serve as a poignant testament to the importance of legacy, ensuring that the past resonates in the present and shapes the future.
Transformative Power of Art Beyond ESG Metrics
Corporations worldwide are increasingly recognizing the resonance between their ESG ambitions and the cultural enrichment that art brings. This is not just a trend; it's a call to action for corporations to be thoughtful custodians of culture and positive change. RBC's integration of the arts into its ESG strategy exemplifies a forward-thinking approach to corporate responsibility. The bank's commitment to the arts not only aligns with its overarching purpose but also creates tangible value for employees, clients, and the communities it serves.
Beyond singular corporate endeavors, the collaboration between thought leaders, artists, and corporations is becoming a driving force. Together, they are exploring how art can be a strategic asset, enriching not only corporate spaces but also contributing to broader societal and environmental goals. In embracing the nexus of art and ESG, thought leaders and corporations alike have the opportunity to reshape narratives, empower communities, and create environments that inspire. The journey ahead is one of exploration, collaboration, and the recognition that art, when woven into the fabric of ESG, can be a force for lasting positive impact.
When a corporation’s commitment to art transcends financial support; it exemplifies a belief in the inherent value of the arts in building vibrant, thriving communities. The bank's embrace of art as a strategic ESG asset also underscores its recognition of the pivotal role that art plays in shaping a sustainable, inclusive, and prosperous future. Ultimately, art has transformative power that’s beyond the measurable ESG metrics.
In Corrie’s words, “Working in a corporate collection has been deeply rewarding because it brings art into a context where people aren't actively looking to engage with artworks and the proposals artists are bringing forward. I believe in the important role of museums and living with art in our homes, but having art in a workplace creates an opportunity for intimate and reflective engagement that would otherwise go undiscovered. Art sparks self-reflection, conversation and is an opportunity for us to learn not only about ourselves and the assumptions, biases and preferences we bring into looking at art (and by extension into our every-day experience) but also for us to understand the same of those around us. It allows us to create a safe, relatively neutral space for these biases to be shared openly. Seeing art as a catalyst for these discussions is so rewarding. Of course, this also comes hand in hand with challenges of encouraging audiences to allow themselves to feel uncomfortable and to find value in art that is outside of the(ir) familiar.”
