Investor Tools

Do well + do good

(SRI) Socially Responsible Investing as a concept has been around for a very long time and evolving in various forms, but isn’t widely talked about among individual, institutional investors or major financial institutions. Today SRI goes further than older investment models like traditional, exclusionary screened Ethical Funds, which would exclude investing in things like weapons, tobacco, alcohol, or sometimes fossil fuels. SRI is about proactive investment in companies that don’t just, ‘not do harm’, but go the extra mile to do good. And it’s through SRI that investors have so much opportunity to move sustainability forward. Socially Responsible Investing is a way to both invest in the markets, and support the companies that take their (ESG) environmental, social, governance performance, and sustainability seriously. As an investor, of course you want investments to perform well, but don’t you also want your investments to do good? The good news is, more and more of us do, and we’re voting with our investment dollars for it!

OUR COLLECTIVE INVESTOR POWER IS MASSIVE

One example is the Climate Action 100+, which alone, is a conglomerate of 450+ Institutional Investors (large firms/pension funds), representing over $40 Trillion USD in assets under management. As a large investor initiative, they leverage their collective interests to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change. 

Companies who take ESG and sustainability seriously are ultimately, often among the best managed companies out there, period. They understand both risk and opportunity beyond their day-to-day business and quarter-by-quarter targets. They factor in some of the world’s biggest challenges including macro-issues like climate change and social justice. This allows them to build these risk and opportunity factors into their core long-term business strategies, proactively addressing risk, pursuing innovation, gaining investor confidence and improved access to capital, ultimately increasing their potential for longer-term success - and yes, return on your investment.

Most major Canadian financial institutions / banks will also offer various SRI options.

Here are some helpful tools and resources for any investor to explore, or to ask your investment advisor about:

 
 

S&P Dow Jones Sustainability Index (DJSI) - Robecosam (SAM)

Ticker: A1SGI

The Dow Jones Sustainability North American Index includes SAM rated North American sustainability leaders, based on long-term economic, environmental and social criteria, representing the top 20% of the largest 600 North American companies in the S&P Global BMI.

S&P 500 ESG Index:

Additional S&P resources include the S&P 500 ESG Index, which aligns investment objectives with environmental, social, and governance (ESG) values, excluding companies not in compliance with the UN Global Compact (UNGC). The index offers broad market exposure and industry diversification, resulting in a return profile similar to the S&P 500.

 

Principle for Responsible Investment (PRI)

PRI is an internationally recognized, independent organization working to help investors better incorporate (ESG) environment, social and governance performance into their investment decisions, to enhance returns and manage risk. Many of the largest Canadian financial institutions are signatories to PRI.

PRI offers a wealth of investor tools and resources, covering a broad range of responsible investment subjects:

  • Investment Strategy and Policy

  • Active Ownership

  • ESG Issues

  • Sustainable Markets

  • SDGs

 
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Impact Investing

Looking to go further than exclusionary Ethical Fund investing, and SRI? Want to have an even more direct, positive social and environmental impact? Then Impact Investing could be for you?!.

Impact investments are about specific, measurable social and environmental impact, with a financial return. It focuses on providing capital to invest in areas like sustainable agriculture, renewable energy, small-business microfinance, and affordable housing, healthcare, and education.

GIIN, the Global Impact Investment Network, based out of New York, is a solid online source of info on impact investing.

Most major Canadian financial institutions / banks, will also offer impact investing options. We just need to start asking.