Month: July 2025

The 2025 RIA Investor Opinion Survey paints a nuanced picture of Canadian retail investors’ attitudes toward responsible investment (RI). While interest in RI remains strong and is even growing among certain groups, significant challenges around awareness, advisor engagement and concerns about greenwashing continue to temper enthusiasm.

According to the survey, two-thirds of Canadian investors express interest in responsible investing, with younger investors and women showing the highest levels of interest. Interestingly, the survey also notes a rising interest among those aged 55 and older, suggesting that RI is becoming a priority across generations. Despite this widespread interest, knowledge about responsible investment remains limited. About two-thirds of respondents admit to knowing little or nothing about RI, and nearly one in five have never even heard of the concept.

The influence of global events is also shaping investor behavior. Over a third of respondents say they are more likely to choose responsible investments now than they were a year ago. However, this increased interest has not yet translated into higher ownership, as RI holdings have slightly decreased since late 2023. This disconnect points to barriers beyond mere interest, including a critical gap in communication between investors and their financial advisors.

RI Service Gap

Source: 2025 RIA Investor Opinion Survey

While a striking 76% of investors want their advisors or financial institutions to ask them specific questions about RI, only 28% report ever being asked such questions. Even when these conversations do occur, just 35% describe them as meaningful. This lack of engagement suggests missed opportunities for advisors to connect with clients and guide them toward investment choices that reflect their ethical priorities.

Greenwashing, the practice of marketing investments as more sustainable than they truly are, is once again a primary concern for investors. Despite the Canadian Securities Administrators (CSA) updated guidance on disclosures related to ESG considerations in March 2024, more than half of respondents now cite greenwashing as a deterrent to responsible investing, up from 46% previously. This increasing skepticism underscores the need for greater transparency and accountability in the RI space.

Artificial intelligence (AI) is another emerging area of interest and concern. Most investors are unfamiliar with how AI is applied in investment decision-making, with 64% reporting low or no familiarity. Yet, a majority believe it is important for companies in their portfolios, as well as their financial advisors and institutions, to adopt responsible AI frameworks and principles.

Ultimately, the survey reveals that Canadian retail investors value responsible investment not only for its potential to generate returns but also for its role in risk reduction and alignment with personal values. Nearly all respondents emphasized the importance of considering investment opportunities that incorporate RI in portfolios, and that financial advisors remain a trusted source of information for these decisions.

The 2025 RIA Investor Opinion Survey makes it clear that while interest in responsible investing is high and expanding, there is a pressing need for better education, more proactive advisor engagement, and stronger safeguards against greenwashing. Addressing these challenges will be key to turning investor interest into meaningful action and fostering a more sustainable investment landscape in Canada.

Responsible Investment Research Initiative

This report was produced as part of the Responsible Investment (RI) Research Initiative. A program of the RIA, the Initiative delivers objective, data-driven insights that give clarity on where the Canadian marketplace stands. The initiative is grounded in three marquee reports, published annually, providing a 360-degree view of responsible investment in Canada:

The Investor Opinion Survey (Learn more) brings the voice of everyday Canadians into the conversation. It tells us what retail investors think, what they value and where responsible investment fits into their financial goals.

The Advisor RI Insights Study (Coming October 2025) explores how Canadian financial advisors approach responsible investing, including what they’re hearing from clients, what they’re recommending and where the barriers still lie.

The Canadian RI Trends Report (Coming November 2025) tracks the practices of institutional investors, from pension plans to fund managers, and helps us understand how responsible investment is evolving across Canada’s capital markets.

These reports speak to different segments of our ecosystem, but together they tell a powerful story of where we are, what we’re facing, and where we can go next. This initiative is about giving our members, and the broader investment community, the insights needed to set strategy, communicate with stakeholders, and measure progress.

The RI Research Initiative is generously supported by partners Addenda Capital, Desjardins, Mackenzie Investments, National Bank Investments, RBC Global Asset Management, and TD Asset Management. Learn more at www.ri-research-initiative.ca.

Critical minerals have emerged as an important input in the global energy transition. Minerals like copper, lithium, cobalt, nickel and rare earth elements play an indispensable role in manufacturing electric vehicles (EVs), renewable energy systems and advanced electronics. As global demand intensifies, concerns around sustainability and supply chain security introduce both risks and opportunities for commodity investors.

Rising Demand for Critical Minerals

Over the past decade, prices for these minerals have generally risen, with lithium and cobalt seeing increases of 53% and 70%, respectively. With accelerating electrification and clean tech deployment, demand is expected to surge further by 2030.

Figure 1: Growing Industrial Applications of Critical Minerals

Sources: International Energy Agency (IAE), European Commission, Cobalt Institute, Bloomberg Finance L.P, TDAM Research. As of March 2025.

An EV requires roughly 440 pounds of critical minerals, compared to just 66 pounds in a gas-powered car. Demand is also rising from data-driven sectors like AI and cloud computing, which intensify rare earth usage. Governments and corporations are racing to secure diversified supplies, but doing so remains difficult amid refining bottlenecks and geopolitical tensions.

Challenges in the Supply Chain

Despite strong demand tailwinds, several factors threaten the stable supply of critical minerals: geopolitical disruptions, environmental concerns, extreme weather events and social issues.

China dominates a significant portion of the global critical mineral supply chain, refining over 70% of the world’s cobalt and producing nearly 60% of its lithium. Many Western nations are attempting to diversify their supply chains to reduce reliance on China, but progress has been slow, posing persistent geopolitical risks.

These risks are compounded by environmental concerns worldwide. Nickel mining in Indonesia has caused widespread deforestation and water pollution. Similarly, lithium extraction in South America’s so-called Lithium Triangle requires large amounts of water, raising sustainability concerns.

Extreme weather events like floods and droughts also are increasingly disrupting mining operations. In Australia, severe flooding has halted transport and delayed project timelines. In Chile, prolonged droughts in water-scarce regions are increasing pressure on lithium extraction and raising operational sustainability concerns.

Mining operations have also triggered ethical concerns in several regions. In countries like the Democratic Republic of Congo, there are widespread reports of child labor in illegal mining sites, particularly for lithium and cobalt. Meanwhile, violent clashes with Indigenous communities in Brazil and Australia have brought mining projects to a halt or led to legal action. In Canada, protests over Ontario’s “Ring of Fire” project – which includes minerals such as chromite, copper, zinc, gold, diamond, nickel and platinum group elements – have underscored the critical importance of inclusive consultation with First Nations communities. Without this, companies risk losing their social license to operate.

All these challenges have important market and investment implications.

Price Volatility

Supply shocks and rapid demand swings have made critical mineral markets highly volatile. For example, lithium prices skyrocketed in 2022 due to shortages and investor speculation, only for them to tank in 2023 amid fears of oversupply and cooling EV demand. This volatility complicates budgeting, hedging and long-term planning for industries dependent on mineral-intensive technologies.

Corporate and Government Investments

In response to supply insecurity, companies are pursuing upstream acquisitions to lock in critical inputs. A notable example is Rio Tinto’s recent $10 billion acquisition of Arcadium, a lithium refining company, which signaled the growing trend of vertical integration in the mining sector. On the policy side, governments are stepping in with incentives. The 2022 U.S. Inflation Reduction Act included generous tax credits for domestic extraction and battery production, a goal supported by the current administration, while the European Union’s 2024 Critical Raw Materials Act pushes for diversified, localized mineral supply.

Strategic Responses to Supply Risks

To reduce reliance on volatile supply chains, firms are exploring the use of alternative materials. One scalable alternative which is gaining traction are sodium-ion batteries. They use sodium, which is more abundant and widely available than lithium. While their energy density is still lower, these batteries could play a significant role in grid storage and low-cost EV markets in the years ahead.

Recycling and Circular Economy

Recycling of critical minerals is emerging as a key strategy for mitigating supply risk and lowering environmental impact. Companies like Nth Cycle are rolling out clean-tech methods to recover critical materials like nickel and cobalt from e-waste and industrial scrap. Their closed-loop systems aim to reduce reliance on mining and to be far less carbon-intensive. Their process can also cut emissions by up to 90% compared to traditional extraction methods.

Policy and Regulation

Governments are increasingly aligning policy with sustainability goals. The 2024 bipartisan U.S. Critical Mineral Consistency Act mandates more transparent sourcing and supports domestic processing through tax credits. In parallel, the European Union is reviewing and expanding its Conflict Minerals Regulation to include minerals such as cobalt and lithium, moving beyond its original focus on tin, tantalum, tungsten and gold. These steps aim to improve ethical sourcing and boost investor confidence in mineral supply chains.

Conclusion

Critical minerals are the backbone of the global clean energy transformation. Despite their importance, the path from mine to market is increasingly complex — shaped by geopolitical risk, environmental externalities and growing social expectations. To meet rising demand while ensuring long-term sustainability, governments and investors must look beyond securing access to critical minerals. They must champion innovation in recycling, fast-track supply diversification and integrate ESG principles into the core of mineral sourcing strategies. Only then can the global race for critical minerals serve as a catalyst — rather than a contradiction — to the energy transition.

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