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Responsible investing

Good for your finances and good for the planet

What’s responsible investing?

Responsible investing is an investment strategy that selects and manages investments based on environmental, social and governance (ESG) criteria. It’s products are designed for those who want to see their investment grow while supporting businesses that promote sustainable development and respect social and human responsibilities.

Environmental, social and governance criteria (ESG)

  • Environmental

    • Climate change
    • Protection of biodiversity
    • Water management
    • Sustainability of resources
  • Social

    • Respect for human rights
    • Working conditions
  • Governance

    • Composition of the Board of Directors
    • Executive compensation
    • Shareholder rights

Strategies for investing responsibly

By choosing responsible investing, you’re investing your money in companies that combine strong financial results with responsible practices. Use your money as a lever for change!

According to the established exclusion filters, certain companies may be excluded from selection, for example companies from the tobacco, weapons or nuclear energy industries.

Added to the financial analysis of the companies is the assessment of their environmental, social and governance practices. This assessment could look at different aspects such as respect for human rights, labour practices or climate change.

Thematic investments are made based on one or more of the targeted issues among the chosen companies that offer competitive financial returns.

Engaged shareholders interact directly with the companies that make up an investment portfolio. It steers them to improve their environmental, social and governance practices and gives investors a voice.

A variety of ways are used to exert influence over companies:

  • Opening a dialogue to improve practices
  • Making proposals to stimulate change
  • Exercising voting rights at annual company meetings

Coalitions can be formed with other institutional investors to push for improvements such as environmental policies or industry standards.

Choosing RI pays off!

RI lets you support sustainable development without sacrificing your returns. In fact, 1,800 studies published since 1970 shows a neutral or positive link between ESG criteria and financial returnsfootnote 1.

Companies that care about ESG issues are often better equipped to manage the risks posed by the challenges of our modern economy. They can also provide interesting business opportunities through their investments in certain sectors, such as alternative energies.

Comparison table

The socially responsible stock market index (Jantzi Social Index® (JSI)footnote 2) is just as successful, if not more so, than the S&P/TSX 60footnote 3, and represents leading companies in Canada’s major industrial sectors.

Comparison of the evolution of a traditional market index and a responsible investment index

Growth of $1,000 from 2000 to 2017

Companies that meet repsonsible investment criteria are just as profitable as other companies – sometimes even more.

Desjardins – A pioneer in responsible investing

  • 1990 Launch of the Desjardins Environment Fund
  • 2009 Launch of the SocieTerra Portfolios
  • 2016 Announcement of $2 billion in assets under management in Desjardins Funds RI products
    Launch of the first Canada Green Bonds Fund, the Desjardins Environmental Bond Fund
  • 2018 Desjardins doubles its RI offer with the launch of 3 new mutual funds, and 8 responsible exchange traded funds (ETFs)

To learn more about This link will open in a new tab. responsible investing

  1. ESG and financial performance : aggregated evidence from more than 2,000 empirical studies, Deutsche Asset & Wealth Management, University of Hamburg
  2. The Jantzi Social Index® (JSI) is a socially screened market capitalization-weighted common stock index modelled on the S&P/TSX 60. It consists of 60 Canadian companies that meet a series of criteria based mainly on environmental, social and governance performance. Source : This link will open in a new tab. www.sustainalytics.com
  3. The S&P/TSX 60 Index is designed to represent leading companies in leading industries. Its 60 stocks make it ideal for coverage of companies with large market capitalizations and a cost-efficient way to achieve Canadian equity exposure. The S&P/TSX 60 Index also represents the Canadian component of Standard & Poor's flagship S&P Global 1200 Index. Source : This link will open in a new tab. www.tmxmoney.com/en/