Socially Responsible Investing (SRI) continues its transition into the mainstream and SRI solutions are enjoying the increased profile and demand that comes with mass market awareness. Never has the investing public been more conscious of environmental challenges, their socio-economic implications and how individual financial decisions can impact environmental outcomes.
Investing ethically might not be a fringe strategy. Environmental and social issues are risks that all companies must address, many say. There are a number of great resources and investment products that cater to socially responsible investing for Canadian investors. For any products you should look at the prospectus to see if the companies they hold fit your definition of socially responsible. You can find this information on the fund company’s websites
The 2015 Canadian Responsible Investment Trends Report reveals that Canada’s socially responsible investment market is experiencing rapid growth. SRI refers to the integration of environmental, social, and corporate governance (ESG) criteria into the selection and management of investments.
The RI industry’s significant growth can be attributed to at least three factors.
- First, Canada’s large pension funds under RI guidelines grew by $288.57 billion. SRI pension fund assets are at $821.27 billion.
- Second, there have been many new entrants to the industry, particularly among investment managers. Whereas only 24 investment management firms reported Canadian RI assets at the start of 2012, there are now 41.
- Third, qualitative factors including personal values increased awareness of ESG risks, and generational transfer of wealth are playing an important role in the growth of SRI in Canada, particularly on the retail side.
Financial products that enable the average person to invest in a way that is consistent with their values have also improved and come down in price. But it is critical to be aware of the trade-offs.
Contact us at 403-804-3228 if you are interested in hearing more about Socially Responsible Investing.