As I explained in May 2016, responsible investing (RI) is gaining popularity.
Recent data compiled by the Canadian Investment Association indicates that as of December 31, 2015, 38% of all assets under management in Canada featured environmental, social and governance (ESG) concerns. This is the equivalent of more than $1,500 billion, an increase of 49% in two years.
Growth of the Canadian RI Industry (in $B CAD)footnote 1
We see a similar growth elsewhere in the world. For example, a reportfootnote 2 from March 27, 2017 confirms that total global assets that incorporate ESG factors have attained almost US $23,000 billion, an increase of 25% since 2014.
In both of these cases, assets of institutional investors – such as pension funds – account for more of this calculation because the practice of RI is much less widespread among individual investors.
In fact, this type of approach and the products that enable it to be adopted are less known by financial advisors. For the individual investor, it may be difficult to identify sources of environmental, social and governance risks in companies whose securities they want, as few tools are available.
We have only one planet and it is important to take care of it. As Earth Day approaches, which aims to celebrate it and educating individuals and organizations on the importance of reducing their impact on the environment, I will be hosting a webinar on April 20 discussing various concepts and tools available to independent investors who wish to take this aspect into account in their investment decisions.
I look forward to hearing from you about this topic!