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© Copyright 2023
Responsible Investment Association.

Category: News

2023 Call for Applications: RIA Board of Directors

Application Deadline: Friday, April 7th at 9:00am ET.

The Responsible Investment Association (RIA) invites its Members to submit an application to serve on the RIA Board of Directors. The Board has one seat up for election in 2023. These elected positions will be voted on by RIA Members via electronic ballot in advance of the Annual General Meeting, which will take place in person on Wednesday, June 7th, 2023 at 8:00am ET.

1. Director Responsibilities

The Board is charged with contributing to the advancement of the purpose of the RIA and with providing overall governance and direction for the Association. Each director is a fiduciary, putting the Association’s interests ahead of their own or their employer’s.

Directors are expected to fulfill the following responsibilities:

A. Attend all Board meetings. We expect to hold approximately four Board virtual meetings per year, in addition to the Annual General Meeting. We recognize that from time-to-time unavoidable conflicts will arise. Thus, it will be seen as a significant concern if fewer than 75% of meetings are attended.

B. Attend face-to-face meetings, including planning sessions, the annual conference and board dinner (when possible), and attend virtually when necessary. The Board holds strategy sessions on an as-needed basis where we address issues of major strategic importance to the association and the responsible investment industry. In addition, the annual conference and contemporaneous board meeting and dinner are excellent opportunities for building board cohesion. It is expected that all directors will attend these sessions.

C. Actively participate in the work of the organization. Each director must be willing to support the Association by either serving actively on a Board committee or participating in an RIA Working Group. Directors must also remain informed and supportive of the mission, policies, and programs of the RIA.

D. Act as an ambassador for the RIA. Each director should, whenever possible and appropriate, represent the RIA at industry related events in his/her region or industry and act as a resource to stakeholders interested in learning more about the work of the RIA.

E. Remain aware of and attempt to avoid any conflicts of interest. Should a conflict of interest arise, it is imperative that it be reported to the Board, Board chair, or the staff of the RIA immediately.

F. Adhere to RIA policies and procedures applicable to the Board, which may be amended from time to time.

G. On a best efforts’ basis, we ask each director to help with the following:

i) Assist in identifying and recruiting new RIA members.
ii) Participate in and support RIA events including the national conference, research, and other sponsorship opportunities.
iii) Suggest possible nominees to the board.
iv) Where possible, we expect directors to help the Nominating Committee identify and recruit other qualified Board members.

2. Eligibility

Applicants (individual members) or their employers (corporate members) must have been a member of the RIA for at least one year prior to the Annual General Meeting. The RIA Board of Directors may vote to waive the one-year minimum at its discretion.

3. Diversity

The RIA supports diversity and values the benefits that diversity can bring to its Board, and we therefore welcome applications from diverse candidates. The RIA considers diversity to encompass all the differences among people – including, but not limited to, gender, race, ethnicity, religion, cultural group including indigenous status, sexual orientation, disability, geography, generations, and socio-economic status.

Diversity enables the inclusion of different perspectives, ideas, experiences, talents, skills, and opinions, and it ensures that the RIA has the opportunity to benefit from all available talent to address the RIA’s goals in the most effective manner. The promotion of a diverse Board represents better corporate governance consistent with the purpose of the RIA and makes prudent business sense.

View the RIA’s Board Diversity Policy here.

4. Evaluation Criteria

The Nomination Committee maintains a Board skills matrix, and there are several areas of experience and influence that are critical to contributing to the RIA’s long-term success. These are in the areas of finance, governance, law and compliance, marketing, human resources, and advocacy, as well as particular experience and knowledge of responsible investment.

Additionally, the ability of a candidate to commit sufficient time and attention to the affairs of the organization, assume a reasonable proportion of the workload of the board, and the absence of material conflicts of interest are key considerations.  The RIA’s commitment to diversity and inclusion, as represented in the Board Diversity Policy, are also important considerations.

5. How to Apply

If you wish to apply, please submit your résumé and a cover letter describing how you can contribute to the RIA, and three references from current RIA members describing your credentials and commitment to responsible investment. References can be single-page documents consisting of 1 or 2 short paragraphs.

The RIA welcomes bilingual and multilingual applicants. Board and Committee meetings are conducted in English and therefore, we request that applications be submitted in English.

These materials may be sent to applications@riacanada.ca and should be addressed to the Nomination Committee. Applications will be reviewed and considered by the RIA’s Nomination Committee, a subcommittee of the RIA Board of Directors.

Application Deadline: Friday, April 7th at 9:00am ET.

February 2023 Recipients of RI Credentials

Congratulations to Canada’s newest recipients of the RIA’s financial credentials in recognition of expertise in responsible investing. View a full list of RIA credential holders here.

Learn more about the RIA’s training and credentials here.

Kabir Ahmed (RIS), PenFinancial Credit Union
Ana Milena Arango Patino (RIS), Desjardins
Laurianne Dionne Arseneault (RIS), IA groupe financier
Christien Cormier (RIS), UNI coopération financière
Donald Cornack (RIS), IG Wealth Management
RACHEL DAIGLE (RIS), UNI
Gwen Davidson (RIS), RCU Insurance Services
Jeff Elliott (RIS), TCU Wealth Management
Martin Gendron (RIPC)
Frédéric Girard Girard (RIS), Desjardins
Joan Lahondes (RIS), Desjardins
Patrick Lavoie (RIAC)
François Leroux (RIPC)
Morgan Leroy (RIPC)
Derek Levesque (RIAC)
Christiane Masson (RIS), Caisse de l’Administration et des Services Publics
Marie-Ève Mc Lean (RIS), Proactif services financiers
Ricardo Moullas (RIS), BMO Global Asset Management
Huy Phuong (Phil) Nguyen (RIS), Prairie Centre Credit Union
Harrison Nnebe (RIS), Vancity Credit Union
Hamon Philippe (RIS), AVISO
Carole Saumier (RIS), Caisse Desjardins de l’Administration et des Services publics
Benoit Therrien (RIAC)
David Vachon (RIS), Desjardins
Fang Wang (RIS), Desjardins
Megan Wenckowski (RIS), Harvest Wealth Management

January 2023 Recipients of RI Credentials

Congratulations to Canada’s newest recipients of the RIA’s financial credentials in recognition of expertise in responsible investing.

Learn more about the RIA’s training and credentials here.

Clara Benjamin (RIS), Prairie Centre Credit Union
Paul Bowolin (RIS), Nelson Family Financial Services
Jennifer Broad (RIS), CUSO Wealth Strategies Inc
Myriam Busque (RIS), Caisse Desjardins de l’Administration et des Services
Jason Charchar (RIS), Meridian Credit Union
Tao Chen (RIS), AI Financial
Yuchuan Cheng (RIS), AI Financial
Michael Chumakov (RIS), Alterna Savings and Credit Union
Teresa Cutting (RIS), IG Wealth Management
Yannick Decosse (RIS), IG Wealth Management
Xiaoyi Deng (RIS), AI Financial
Khush Dhaliwal (RIS), Tandia Financial Credit Union
Audrey Dubois (RIS), Desjardins caisse des Bois-Francs
Derek Duchesne (RIS), National Bank Financial
Bronson Fridal (RIS), Desjardins
Albertine Girard (RIS), Desjardins
Guylaine Guillemette (RIS), Caisse Desjardins De L’Administration et des Services Publics
Lyne Marie Guitard (RIS), UNI Cooperation Financière
Shu-Hua Ho (RIS), Ai Financial
YI HUA LU (RIS), AI Financial Power Group
Hsiu-Chu Ivory Hsieh (RIS), AI Financial
Faiza Kabissi (RIPC)
Weiqing KANG (RIS), AI financial
Graeme Kaye (RIS), Island Savings, a Division of First West Credit Union
Jessica Kohlhauser (RIS), Synergy Credit Union
Stephanie Koleszar (RIS), Capital Group
Maxime Lafleur (RIS), Caisse d’économie solidaire Desjardins
Emilou Laplante (RIS), Prairie Centre Credit Union/Credential Asset Management
Lisa Leblanc (RIS), Investia Financial
Guohua Liu (RIS), AI Financial
Jun Lu (RIS), AI Financial Power Group
Alexandre Mathieu MAHÉ (RIS), Desjardins
Christiane Masson (RIS), Caisse de l’Administration et des Services Publics
Paul Moffatt (RIS), IG Wealth Management
Tim Nash (RIS), Good Investing
Sarah Nimmo (RIS), Integris Credit Union
Arlene Pelley (RIS), The Co-operators
Louis Savoie (RIS), Credential Asset Management
Chuanli Shi (RIS), AI Financial
Jasleen Sidhu (RIS), Steinbach Credit Union
Erika Stewart (RIS), CH Financial Ltd.
Shaoling Su (RIS), AI Financial
Tao Wang (RIS), AI Financial
Deborah Williams (RIS), DFSIN
Angela Wittmann (RIAC)
Jacky Xi Feng (RIS), Ai Financial Power Group
Noémie Xin Savard (RIS), Desjadins
Jie Xing (RIS), AI Financial
Kylie Young (RIS), Swan Valley Credit Union
Shimin Zhou (RIS), AI Financial

Quarterly Responsible Investment Funds Report: Highlights from Q4 2022

Highlights from Q4 2022

  • In the fourth quarter of 2022, one-half (49%) of RI funds outperformed the average return for their respective asset class category. Last quarter, this proportion was about 60%.
  • Net asset flows to Canadian-domiciled RI funds in the fourth quarter of 2022 remained positive at $660 million. This was a 164% increase from the previous quarter.
  • This quarter, only 1 new RI product was launched, which was a mutual fund. Year-to-date 2022, 45 new RI products have been launched.

RI Fund Performance

  • Based on data provided by Morningstar, in Q4 2022 49% of Canadian-domiciled RI products outperformed the average return for their respective asset class. For the 12 months ending December 31st, 2022, just 21% of Canadian RI products outperformed their respective average asset class return.
  • Over the medium term, 42% of Canadian-domiciled RI products outperformed the average return for their respective asset class over the 3 years ending December 31st, 2022, as did 42% over the 5-year period.
  • The following information highlights RI fund performance for notable asset classes, in Q4 2022 and over longer time periods.

Canadian Fixed Income

For the Canadian Fixed Income fund class, 54% of RI Canadian Fixed Income products outperformed the average for the asset class in the fourth quarter of 2022. This quarter, the average RI product slightly underperformed the average for the asset class. For all other time periods examined in this report, the average RI product outperformed its asset class counterpart.

Global Fixed Income

For the Global Fixed Income fund class, in the fourth quarter of 2022, 57% of RI funds outperformed the average asset return for the category. For the 12 months ending December 31st, 2022, the average RI fund outperformed the category average. Over the 3, 5, and 10 year periods reviewed in this report, the average RI fund just slightly underperformed the category average.

US Equity

For the US Equity fund class, 69% of RI funds outperformed the average asset class return in the fourth quarter. For the previous 1, 3, and 5 years the average RI product outperformed the asset class average, and for the previous 10 years the average RI product just slightly underperformed the asset class average.

Note: For the purpose of this report, RI funds include those that are marketed as responsible investments with RI strategies/policies disclosed in regulatory documents. Average asset class return includes RI and non-RI funds. Returns for periods greater than one year are annualized. Excludes fund-of-funds.

RI Fund Flows

Net asset flows into RI mutual funds and ETFs were positive this quarter at approximately $660 million, a significant increase from the third quarter net assets flows of $250 million. Both passive and active strategies had positive inflows in the fourth quarter, with active strategies representing about 90% of the total inflows. For the full year, net asset flows into RI funds totaled $5.1 billion, compared to $12.8 billion in all of 2021.

Canadian RI Mutual Fund and RI ETF Net Flows

Source: Morningstar Direct. Data as of December 31st, 2022. Excludes funds of funds.

RI Product Launches

Based on information from Morningstar, RI product launches slowed down significantly from the previous quarter. In Q4 2022, only 1 new product was launched, which was a mutual fund. In 2022 in total, 45 new RI products have been launched, compared to 50 in 2021.

Canadian RI Mutual Fund and RI ETF Launches

Source: Morningstar Direct. Data as of December 30th, 2022.

 

Download Q4 2022 Highlights PDF.

RIA Members can download the full report by logging in to their account and accessing Member Resources.

 

Data provided by

©2022 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Disclosure
The information contained in this report is for educational and general information purposes only. The information contained herein does not constitute advice nor does it constitute an offering of securities or any advertisement for the offering of securities. You should not act or rely on the information without seeking professional advice. While we believe the information to be reliable [and endeavour to keep the information up to date and correct], we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, timeliness, suitability or availability with respect to the report or the information, products, services or related graphics contained in the report for any purpose. The RIA does not endorse, recommend or guarantee any investment products listed in the report.

Canadian retail investors seek biodiversity protection in their portfolios, want advisors to offer responsible investments

Majority of investors surveyed believe companies in their portfolios need to commit to preventing the loss of biodiversity in the way they conduct their business.

TORONTO – January 24, 2023 – The vast majority of Canadian retail investors are concerned about biodiversity loss and want to see biodiversity protection reflected in their portfolios, according to a new survey from the Responsible Investment Association (RIA).

The 2022 RIA Investor Opinion Survey, which is based on an Ipsos poll of 1,005 individual investors in Canada, found that 74% of respondents are concerned about biodiversity loss, with 68% agreeing that it was important for companies in their portfolios to commit to preventing biodiversity loss.

Investors’ concern about greenwashing remained steady at 75%, similar to what was expressed in 2021. In a year characterized by greenwashing headlines, 78% of respondents agreed that there needs to be increased scrutiny in the investment industry around greenwashing. Despite these concerns, 76% of respondents agreed that RI can have a real impact on the economy and contribute to positive change for society.

The survey, sponsored by AGF Investments Inc. and Desjardins Group, also shows that 73% of respondents want their financial services provider to inform them about responsible investments (RI) that are aligned with their values, while only 31% said they had ever been asked if they were interested. About one-third of respondents said they currently own responsible investments, similar to the last 3 years.

“It’s clear that investors are thinking about social and environmental issues and want their portfolios to reflect their concerns,” said Patricia Fletcher, CEO of the RIA. “This is an opportunity for financial advisors that are knowledgeable about responsible investing to meet investor demand and provide investment opportunities that align with their clients’ ESG preferences and personal values.”

“We are pleased to support the 2022 RIA Investor Opinion Survey,” said Eric Landry, Vice-President, Investment Solutions at Desjardins Investments. “It’s a valuable tool that confirms the importance of focusing our efforts on advisor education and greenwashing prevention.”

“We are proud to once again sponsor a survey that inspires dialogue about RI, while covering timely topics like biodiversity and greenwashing,” said Judy Goldring, President and Head of Global Distribution at AGF Management Limited. “We are encouraged by the ongoing interest in responsible investing and are committed to ensuring the advisors we work with have the resources they need to engage in informed discussions with their clients.”

Additional Highlights:

  • Most respondents are interested in RI, with 64% expressing interest. Younger respondents generally are more interested than those aged 55+, while female respondents are more interested than their male counterparts.
  • 70% of respondents know little or nothing about RI, including one-quarter that have never heard of it. Levels of RI knowledge have flattened off in the past 2 years.
  • Looking ahead, 40% of respondents said they were now more likely to choose RI than one year ago, while 44% said they were neither more nor less likely than one year ago.
  • The topic of biodiversity loss resonated with respondents. The majority of respondents were concerned about biodiversity loss, with 74% saying they were either very or somewhat concerned. Additionally, 68% of respondents agreed that it was either very or somewhat important that companies are committed to preventing biodiversity loss.
  • Investors are concerned about greenwashing in the investment industry. 75% of respondents said they were either very or somewhat concerned about greenwashing, similar to the level expressed in 2021. Meanwhile, 78% of respondents either strongly or somewhat agreed that there needs to be increased regulation and scrutiny in the investment industry to combat greenwashing.

View the full report here.

About the RIA Investor Opinion Survey
The RIA publishes the RIA Investor Opinion Survey annually to track individual investors’ perspectives on responsible investment and various environmental, social, and governance (ESG) issues. The 2022 Survey is based on data collected by Ipsos from 1,005 Canadian individual investors between November 2nd and November 8th, 2022. Investors are defined as individuals who currently own investments such as mutual funds, exchange-traded funds, stocks, bonds, or other securities. The poll has a Bayesian credibility interval of ±3.5%.

About the Responsible Investment Association (RIA)
The RIA is Canada’s industry association for responsible investment. The RIA’s membership includes asset managers, asset owners, advisors, and service providers who support its mandate of promoting responsible investment in Canada’s retail and institutional markets. RIA institutional members collectively manage more than $42 trillion in assets. Learn more at www.riacanada.ca.

Media Contacts
Nick Buccheri
Director, Operations
Responsible Investment Association
nick@riacanada.ca
+1(416) 461-6042 x5

Quarterly Responsible Investment Funds Report: Highlights from Q3 2022

Highlights from Q3 2022

  • The third quarter of 2022 saw significant improvement in overall responsible investment (RI) funds’ performance relative to the fund universe, compared to the second quarter. The majority (60%) of RI funds outperformed the average return for their respective asset class category in the third quarter. Last quarter, this proportion was only about 25%.
  • Net asset flows to Canadian-domiciled RI funds in the third quarter of 2022 remained positive at CAD 243 million. However, this was an 85% decline from the previous quarter.
  • This quarter, 5 new RI financial products were launched, all of which were mutual funds. Year-to-date 2022, 44 new RI products have been launched.

RI Fund Performance

  • Based on data provided by Morningstar, in Q3 2022 60% of Canadian-domiciled RI products outperformed the average return for their respective asset class. For the 12 months ending September 30, 2022, just 33% of Canadian RI products outperformed their respective average asset class return.
  • Over the medium term, 46% of Canadian-domiciled RI products outperformed the average return for their respective asset class over the 3 years ending September 30, 2022, and 52% over the 5-year period.
  • The following information highlights RI fund performance for notable asset classes, in Q3 2022 and over longer time periods.

Canadian Equity

For the Canadian Equity fund class, in the third quarter of 2022, 88% of RI funds outperformed the average asset return for the category. For the 12 months ending September 30, 2022, the average RI fund underperformed the category average. Over the longer periods reviewed in this report, the majority of RI funds outperformed the category average.

Canadian Fixed Income

For the Canadian Fixed Income fund class, 59% of RI Canadian Fixed Income products outperformed the average for the asset class in the third quarter of 2022. The average RI product outperformed its asset class average counterpart for all previous time periods examined in this report.

US Equity

For the US Equity fund class, 64% of RI funds outperformed the average asset class return in the third quarter. 63% outperformed over the 12 month period, 40% over 3 years, 83% over 5 years, 38% over 10 years and 67% over 15 years.

Note: For the purpose of this report, RI funds include those that are marketed as responsible investments with RI strategies/policies disclosed in regulatory documents. Average asset class return includes RI and non-RI funds. Returns for periods greater than one year are annualized. Excludes fund-of-funds.

RI Fund Flows

Net asset flows into RI mutual funds and ETFs were positive this quarter at approximately CAD 243 million. This represents a significant drop from the second quarter, and the lowest level over the past two years. All of the inflows were towards active strategies at CAD 278.2 million, while passive strategies had outflows of CAD 34.4 million.

Canadian RI Mutual Fund and RI ETF Net Flows

Source: Morningstar Direct. Data as of September 30, 2022. Excludes funds of funds.

RI Product Launches

Based on information from Morningstar, RI product launches slowed down significantly from the previous quarter. In Q3 2022, only 5 new products were launched, all of which were mutual funds. Year-to-date in 2022, 44 new RI products have been launched.

Canadian RI Mutual Fund and RI ETF Launches

Source: Morningstar Direct. Data as of September 30, 2022.

 

Download Q3 2022 Highlights PDF.

RIA Members can download the full report by logging in to their account and accessing Member Resources.

 

Data provided by

©2022 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Disclosure
The information contained in this report is for educational and general information purposes only. The information contained herein does not constitute advice nor does it constitute an offering of securities or any advertisement for the offering of securities. You should not act or rely on the information without seeking professional advice. While we believe the information to be reliable [and endeavour to keep the information up to date and correct], we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, timeliness, suitability or availability with respect to the report or the information, products, services or related graphics contained in the report for any purpose. The RIA does not endorse, recommend or guarantee any investment products listed in the report.

December 2022 Recipients of RI Credentials

Congratulations to Canada’s newest recipients of the RIA’s financial credentials in recognition of expertise in responsible investing.

Learn more about the RIA’s training and credentials here.

Inthu Aseerwatham (RIS), Alterna Savings Credit Union
Francis Bédard (RIAC)
Caroline Bouchard (RIS), VMD
Wahib Boutaleb (RIS), Fidelity Investments Canada
Jérôme Carrier (RIS), Desjardins
Yuanyuan Chai (RIS), AI Financial
Charles-Étienne Dagenais (RIAC)
David Dalton (RIS), Coastal Community Credit Union
Robyn Doyle (RIS), Meridian Credit Union
Mariz Fernando (RIS), Alterna Savings
Mike Heslop (RIS), Meridian Credit Union
Mitch Hutton (RIS), Gill & Schmall Agencies
Roselyn Jennison (RIS), Swan Valley Credit Union / Credential Asset Management
Lucas MacIntosh (RIS), MacIntosh Financial Group Ltd.
Jonathan JP Poisson (RIS), Desjardins
Louis Rodrigue (RIAC)
Louis Savoie (RIS), Credential Asset Management
scott syrja (RIS), IG Private Wealth Management
Karyn Tse (RIS)
Adam Van Every (RIS), WFCU
Summer Yang (RIPC)

A new global collaboration to align and refine ESG terminology between the UN Principles for Responsible Investment, the Global Sustainable Investment Alliance and the CFA Institute

Barcelona – The UN Principles for Responsible Investment, the Global Sustainable Investment Alliance and the CFA Institute have been working together over many years on joint programmes relating to ESG disclosure standards, definitions and understanding practices.

They are acutely aware of the increasing pressure on their members and signatories to clearly present approaches to ESG investment so that beneficiaries, regulators and other stakeholders are able to understand ESG approaches taken in investment products and strategies.

Our three organisations have recently formed a collaboration to work to refine, align, improve and harmonize their terms and definitions related to approaches to ESG investment

The objective is to produce an authoritative resource that:

  • Describes and explains approaches to ESG investment,
  • Clarifies and harmonizes terminology associated with these ESG investment approaches (and/or explains differences), and:
  • Provides guidelines for the usage of such terminology.

This public resource is intended to be used by the investment industry, regulators and policy makers with the objective of providing greater clarity and alignment in their usage in literature and across the industry.

It is intended there will be a final paper covering a range of commonly used terms. The resource will be published in summer 2023 as working draft with the opportunity for comment before being finalised. It is intended to include provide essential concepts, a sample definition and guidance for usage.

They will review terms such as ESG integration, screening and stewardship.

David Atkin CEO UN PRI: ‘Increasing collaboration between global organisations such as the CFA, GSIA and PRI will be crucial in enabling our joint members and signatories to meet the evolving demands of regulators, stakeholders and asset owners’

Simon O’Connor Chair Global Sustainable investment Alliance: “This collaboration from three organisations with the broadest coverage of investment organisations and professionals across the globe will fill a crucial gap in the sustainable finance standards landscape. Now more than ever, it is critical that our industry falls in behind a clear and definitive set of standard definitions of responsible investment terminology and approaches. The absence of this clarity makes it harder for consumers to engage with responsible investment, and opens the door for greenwashing in our sector.”

RIA Canada is pleased to have directly supported this initiative, with staff participating in the Working Group and contributing to the development of clarity around definitions for RI strategies. RIA Canada’s latest research, the 2022 Canadian RI Trends report, confirms that clarity and consistency in definitions are needed to help address concerns about greenwashing, which was cited as the top deterrent to growth in RI in Canada.

Further information

  • Confusion around the use of ESG terms has legal, compliance, and reputation risks for investment managers and hinders investors’ ability to find and invest in products that meet their needs and preferences.
  • Investment managers and regulators continue to call for greater standardization of ESG terminology and guidance for using such terms in practice[i].
  • In response to this call, this collaboration has been established to bring greater rigor and consistency to certain terminology associated with the techniques used to incorporate ESG information or issues into an investment product’s objectives or descriptions of investment process. It intends to provide clarification of certain ESG terms and provide guidelines for their usage in various contexts.
  • It started in Autumn 2022 and the initial stage will last till Autumn 2023.
  • It is planned the collaboration will jointly publish a paper(s) relating to a series of ESG-related terms along with sample definitions and recommendations for usage.
  • These will be open for comment in summer 2023.

Media Enquiries:

  • Simon Simon O’Connor; Simonoc@responsibleinvestment.org;
  • Toby Belsom; belsom@unpri.org;
  • Chris Fidler; fidler@cfainstitute.org.

Who are we:

  • Global Sustainable Investment Alliance: GSIA | (gsi-alliance.org)
  • UN Principles for Responsible Investment: PRI | Home (unpri.org)
  • CFA Institute: CFA Institute

[i] For example, IOSCO’s Recommendations on Sustainability-Related Practices, Policies, Procedures and Disclosure in Asset Management[i], issued 2 November 2021, recommends that “securities regulators and/or policymakers, as applicable, should consider encouraging industry participants to develop common sustainable finance-related terms and definitions, including relating to ESG approaches, to ensure consistency throughout the global asset management industry.”

November 2022 Recipients of RI Credentials

Congratulations to Canada’s newest recipients of the RIA’s financial credentials in recognition of expertise in responsible investing.

Learn more about the RIA’s training and credentials here.

Lisa Armstrong (RIS), Steinbach Credit Union
Kévin Aubé-Doucet (RIS), Uni coopération financière
Joline Babonnaud (RIS), Assante
Norma Benwell (RIS), Credential Asset Management
Eugene Chan (RIS), Meridian Credit Union
Abayomi David Dada (RIS), Assiniboine Credit Union
Melissa Ann Different (RIS), Investia Financial Services Inc.
Erin English (RIS), Servus Credit Union
Louis Ha (RIS), Vancity
David Houle (RIS), assante
Andrew J.E. Grieve (RIS), TD Wealth Private Investment Advice
Suparshh Jain (RIS), Canada Life
Gregory James (RIS), Assiniboine Credit Union
Tashana Johnson (RIS), DUCA Financial Services Credit Union
Michelle Julien (RIS), Services Financiers Michelle Julien Inc
james kehler (RIS), Envision Financial
Miranda Knaus (RIS), Credential Financial Strategies
Gabrièle L’Abbé (RIS), Fédération des Caisses du Québec / Desjardins
Candice (Yunxi) Li (RIS), Servus Credit Union
Latife Maatouk (RIS), Alterna Savings Credit Union
Sattie Massicotte (RIS), Desjardins
Alexandros Mastoris (RIS), Meridian Credit Union
Kelsey Mathison (RIS), Credential Asset Management
Sang Me Yeo (RIS), Steinbach Credit Union
Sumant Assante (RIS), DUCA Financial Services Credit Union
Emma Montgomery (RIS), Investia Financial Services
Paul Muszynski (RIS), FÉRIQUE
Tu Nguyen (RIS), Meridian Credit Union
Felipe Oliveira Pinho (RIS), Sunshine Coast Credit Union
Julie Sieh (RIS)
Sumeet Sindoliya (RIS), Libro Credit Union
Taylor Smith (RIS), Servus Credit Union
Sylvain Trudel (RIS), Caisse de l’administration et des services publiques
Lysa Van Herk (RIS), Christian Credit Union | Credential Asset Management
Staci von Dewitz (RIS), Prairie Centre Credit Uinon
Sophia Walker-Stamp (RIS), Credential Asset Management
Jennifer Warren (RIS), Investia Financial Services
Rob Webster (RIS), The Cooperators-Rob Webster Insurance Inc.

Responsible Investment Industry in the Midst of Remarkable Evolution

TORONTO – November 23, 2022 – The responsible investment industry is in the midst of a remarkable evolution, according to new data from the 2022 Canadian Responsible Investment (RI) Trends Report. Released today by Canada’s Responsible Investment Association (RIA), the report tracks the national trends and outlook for RI, which refers to investments that incorporate environmental, social, and corporate governance (ESG) issues into the selection and management process.

This year’s report confirms that RI’s recent momentum is giving way to demand for sophistication and more vigilant reporting, signaling a maturing industry. Over the past two years, the rush into RI claims has been met by forces both external and internal to the financial industry, including the reputational and legal risks associated with greenwashing and lack of clarity around ESG industry terminology and disclosure requirements.

With its updated methodology, the report affirms that RI is entrenched in Canada, with reported assets under management at $3 trillion, and 94% of respondents using ESG integration as an RI strategy. This marks the emergence of a reliable baseline for RI market share and demonstrates that ESG Integration is a fundamental tool in Canadian investors’ decision-making.

“Greater vigilance is redefining the ‘floor’ of RI assets under management. Increased clarity and alignment are necessary to shape the slope and raise the ceiling,” said Patricia Fletcher, CEO of the RIA. “RI is here to stay, but we have work to do with everyone in the investment ecosystem to get the next steps right in order to propel further growth.”

Growth expectations overall remain strong with 90% of respondents anticipating moderate to high levels of growth over the next two years. The demand for sophistication and vigilance is further reflected in investors’ future outlook, with respondents citing the top three potential deterrents to RI growth as: (1) mistrust or concerns about greenwashing, (2) a lack of standardized ESG disclosure frameworks/standards, and (3) lack of reliable data.

The report found an increase in the prevalence of all other RI strategies in addition to ESG integration, including corporate engagement, positive and negative screening, and thematic and impact investing, further pointing to the growing RI sophistication of Canadian investors. Respondents cited risk management as their top motivation for considering ESG factors.

Additional Highlights

  • Survey respondents reported the top three reasons for considering ESG factors are: (1) to minimize risk over time, (2) to improve returns over time, and (3) to fulfill fiduciary duty.
  • The three most prominent RI strategies by AUM are: (1) ESG Integration, (2) Corporate engagement & shareholder action, and (3) Negative/exclusionary screening.
  • Climate change is an overwhelming concern for responsible investors–-who also believe it is the greatest driver for growth over the next two years.

View the report here.

Quotes from 2022 Canadian RI Trends Report Partners:

“The evolution of responsible investing is a natural and expected process that is beneficial both to investors and the industry,” said Roger Beauchemin, President and CEO of Addenda Capital. “Several trends are helping to strengthen practices: investors’ growing appetite for data on environmental, social and governance (ESG) issues, pressure on companies to improve transparency, and industry efforts to define and meet standards in sustainable investing.”

“As the definition of responsible investing matures and the collective knowledge of our industry continues to increase, we are encouraged to see significantly more respondents turning to thematic approaches and to hear that a desire to address key issues like climate change will continue to drive growth over the next few years,” said Karrie Van Belle, Chief Marketing & Innovation Officer, AGF Investments Inc.

“We are incredibly proud of the progress that Canadian investors are making to deliver more transparency, a diversity of responsible investment solutions, and better client outcomes,” said Fate Saghir, SVP, Head of Sustainability, Mackenzie Investments. “This report reinforces Canada’s ambition to lead in the future low-carbon, equitable, and prosperous economy, and we at Mackenzie, are humbled to participate in this journey on behalf of our clients.”

“We are inspired by the level of attention investors are paying to climate factors. What’s more, the relatively low use of impact investing revealed by the report suggests there is untapped opportunity to leverage investment portfolios to reduce global carbon emissions,” said Adelaide Chiu, VP, Head of Responsible Investing & ESG Services. “We look forward to helping Canadians seize the opportunity to make an impact as they pursue their financial goals.”

“RBC Global Asset Management is proud to collaborate with the RIA Canada and support its efforts to build greater awareness of ESG trends and issues facing the investment community,” said Melanie Adams, Vice President and Head, Corporate Governance and Responsible Investment, RBC Global Asset Management. “Primary research, such as the 2022 Canadian Responsible Investment Trends Report, plays an important role in helping educate Canadian investors and advisors about responsible investment trends and sentiment.”

About the Canadian RI Trends Report

The RIA publishes the Canadian Responsible Investment Trends Report to understand and assess the characteristics of responsible investment in Canada. This study was completed by Environics Research on behalf of the RIA. The results are based on input from organizations invited to participate in an online survey between August 2nd and September 29th, 2022 as well as desk research completed by the RIA. All figures are stated in Canadian dollars as at December 31st, 2021. The 2022 report was generously sponsored by Addenda Capital, AGF Management Limited, Mackenzie Investments, NEI investments, and RBC Global Asset Management.

About the Responsible Investment Association (RIA)

The RIA is Canada’s industry association for responsible investment. The RIA’s membership includes asset managers, asset owners, advisors, and service providers who support its mandate of promoting responsible investment in Canada’s retail and institutional markets. RIA institutional members collectively manage more than $42 trillion in assets. Learn more at www.riacanada.ca.

Contact
Nick Buccheri
Director, Operations
Responsible Investment Association
nick@riacanada.ca
+1(416) 461-6042 x5

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