ESG Investments
In recent years, Environmental, Social, and Governance (ESG) investing has gained significant popularity among Canadians. According to a report by the Responsible Investment Association, the Canadian responsible investment industry reached $3.2 trillion in assets under management (AUM) in 2020, up from $2.1 trillion in 2017.
ESG investing considers a company's environmental, social, and governance factors in addition to financial performance when making investment decisions.
There are several reasons why Canadians are increasingly prioritizing socially responsible investments like ESGs over traditional investments. One major reason is the growing awareness and concern about environmental and social issues. Many Canadians are aware of the impact of climate change, social inequalities, and corporate governance practices, and they want their investments to align with their values.
Research shows that companies with strong ESG practices are more likely to outperform their peers over the long term. This means ESG investing is good for the planet, society, and investors' portfolios.
There are several ESG investment providers in Canada. At Tune Financial, we’ve partnered with Desjardins, a leading provider of responsible investment solutions in Canada.
Desjardins offers a wide range of ESG investment options, including the Desjardins SocieTerra Environmental Bond Fund, which invests in fixed-income securities of companies with strong environmental practices. The Desjardins Global Equity Impact Fund is another popular ESG fund that invests in companies with strong ESG practices and positive social and environmental impacts.
Other top ESG investment providers in Canada include BMO Global Asset Management, RBC Global Asset Management, and TD Asset Management. Now that these top providers are offering a range of ESG investment options, Canadians have new opportunities to invest responsibly and positively impact the world.
Interested in socially responsible investing? We’d love to talk to you more, book a time here.