Category: News

Dear RIA Members, 

It’s hard to believe that a year has passed since I shared reflections on 2023 and aspirations for 2024. Taking stock of how the last year unfolded, one of our most significant feats was the launch of the RIA’s new strategic plan. Your strategic plan. Every aspect was conceived with members in mind and informed by extensive consultation. It became clear that the RIA’s priorities had to evolve alongside our rapidly changing industry in order to meet your needs, both today and into future. 

The strategic plan is anchored by three pillars that the RIA holds itself accountable to. The first is Build Community, where we act as a hub for members and RI market participants to impactfully collaborate, share, learn and stay abreast of the dynamic industry and environment. The second is to Drive Change and Influence Policy where we aim to be a bridge between investors and regulators and build trust and confidence in RI by advocating for policies and standards. And the third is to Educate and Inspire. Here the intention is to be a trusted source of objective data and insights, tapping into industry sentiments and charting the progress of RI. Foundational to all of this is the delivery of an exceptional member experience.  

Although many initiatives converge across all three pillars, a cornerstone of building community is convening. For the first time since 2017, we received a warm west coast welcome in beautiful British Columbia for the 2024 Vancouver Conference. We learned, connected and drew inspiration from the stellar speaker lineup and from each other. We also enjoyed the vibrancy of the RI community in la belle province at the Colloque de Montréal, which focused on economic reconciliation and responsible investment. Another highlight was hosting our Global Sustainable Investment Alliance (GSIA) colleagues at our Toronto offices this fall in the lead-up to PRI in Person, where the RIA and Climate Engagement Canada (CEC) had an active presence.  

Other events took place in hybrid or online formats, including round tables, working groups and 15 webinar sessions addressing timely topics from regulatory developments to retail product knowledge, research launches, and everything in between. We also convened industry councils such as the Policy Stewardship Group, RIA Leadership Council and the new Public Policy and Advocacy Council. Their invaluable insights inform our priority initiatives, including our policy and advocacy agenda.  

2024 held no shortage of opportunities to entrench RI in Canada’s financial ecosystem through strategic advocacy. From organizing member audiences with key regulators, delivering in-the-moment briefings on active industry consultations and consequential new legislation, to conducting a member survey and roundtable to inform our submission to the Competition Bureau on Bill C-59 and the new greenwashing provisions. The RIA was at the forefront, ensuring responsible investors had a seat at the table.   

The voice of investors will be particularly critical as part of the recently announced Canada Climate Week Xchange (CCWX), of which the RIA is a founding member alongside the TSX and other notable organizations. Together with our role as partner of the Circular Finance in Canada Working Group and member of the of the Sustainable Finance Forum organizing committee, among other carefully selected partnerships, we continued to increase our impact.  

Speaking of impact, 2024 was a fundamental in setting up tools, processes and optimized capacity that will palpably enhance your member experience into next year. Learners and credential holders will have already noticed some process changes, but we have only scratched the surface. 2025 will bring new digital infrastructure and exciting developments that will be shared in due course. All of this will set us up for a productive and ambitious year.  

2025 will be all about driving member value and I’m incredibly excited about all the initiatives we’ll be delivering. Highlights include the inauguration of our Retail Strategy Advisory Group, the launch of working groups for institutional members, 360-degree research and insights spanning the full spectrum of responsible investment in Canada, our webinar series, the inaugural Canada Climate Week Xchange, and the 2025 RIA Conference on June 3-4 in Toronto. The most rewarding part of my job is connecting with you, our members, and I truly hope to see you there. And be sure to look out for a member survey where you can share direct input on the program and the issues that matter to you the most.  

Thank you for your ongoing commitment to our industry and steadfast support of the RIA. I wish you a happy and healthy start to the new year and look forward to all that we will accomplish together in 2025.  

Sincerely,

Patricia Fletcher
CEO
Responsible Investment Association 

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.

Deval Desai (RIS), Synergy Credit Union
Matthew Robertson (RIS), RBC
Wendy Hagan (RIS), Kindred Credit Union
Michael Stark (RIS), Coast Capital Savings
Emma Lefebvre (RIS), Desjardins
Sarah Tekkouk (RIS), FÉRIQUE
El mehdi EL khaddari (RIS), Desjardins
Maimouna Bela Bah (RIS), Caisse Desjardins du Nord de Laval
Shirley Huang (RIS), CANADA LIFE

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.

Justin Bertone (RIS), PenFinancial
David Corriveau (RIS), Investia
Krystopher Giardina (RIS), Services d’investissements Férique
Brett Hatheway (RIS), CU Financial Management
Carol Hiebert (RIS), Kindred Credit Union
Tyler Koronas (RIS), PenFinancial
Stephanie MacKenzie Vivaraies (RIS)
Chantal Martin (RIS), Caisse Desjardins du Nord de Laval
Jason Miner (RIS), PenFinancial Credit Union
Leslie Moore (RIS), Kindred Credit Union/Aviso
Hamza Moussaid (RIS), FÉRIQUE

Toronto – November 19, 2024 – The market share of responsible investment (RI) assets under management (AUM) in Canada has grown significantly, according to the latest findings from the 2024 Canadian Responsible Investment Trends Report. Released today by the Responsible Investment Association (RIA), the report tracks the national trends and outlook for RI, which refers to investments that incorporate environmental, social and governance (ESG) factors into the selection and management process.

The 2024 Report reveals a pivotal milestone for the industry, with RI now accounting for 71% of total AUM. This growth is accompanied by a marked rise in investor confidence, driven by clearer definitions of RI strategies and improved ESG reporting practices. The Report also identifies key challenges that continue to hinder RI’s full potential, including greenwashing, regulatory uncertainty and performance concerns.

“As responsible investing continues to evolve, we cannot become complacent,” says Patricia Fletcher, CEO of the Responsible Investment Association. “Collective action and advocacy are necessary to further advance the adoption of RI and mobilize capital to strengthen Canada’s economic resilience.”

Key findings from the 2024 Report:

• Rising Confidence in ESG Reporting: Nearly 60% of respondents report increased confidence in the quality of ESG reporting, driven by clearer RI strategy definitions. However, continued demand for standardized reporting practices remains strong, signaling the need for further progress.
• Climate Change and Investor Demand Fuel RI Growth: Climate change concerns, investor demand for ESG/impact investments and regulatory guidance/requirements remain the primary drivers of RI growth. Notably, younger and retail investors are emerging as powerful forces, alongside institutional players and regulators, in shaping the future of RI.
• ESG Integration Leads; Risk Mitigation and Long-Term Returns Drive Adoption: Risk mitigation remains the primary reason organizations consider ESG factors, followed by enhancing long-term returns and fulfilling fiduciary duties. Commonly considered ESG factors include GHG emissions, board diversity and climate change mitigation. ESG integration leads as the most widely used strategy, with screening and stewardship also prevalent. Impact investing is less common with a use incidence near 50%.
• Barriers to Progress: Greenwashing and lack of standardization remain top obstacles, while concerns related to perceived performance of RI are more pronounced. As the profile of the industry grows, further alignment on definitions and practices will be crucial to maintain investor trust and build on continued momentum.
• A Window of Opportunity: Evolving regulations present both challenges and opportunities for RI expansion. Retail investors are playing an increasingly pivotal role in driving this momentum. There is growing consensus on the need for an RI standard for advisors, better equipping them to meet rising client demand and navigate the complexities of the evolving investment landscape.

 Quotes from 2024 Canadian RI Trends Report Partners:

• “The growth of RI assets as well as their continued increase in market share despite significant headwinds attest the validity of this approach in today’s investment industry, said Roger Beauchemin, President and CEO of Addenda Capital. Organizations and investment teams are committed to improving risk management and to unlocking opportunities by increasing the breadth and the scope of their research, analysis of and their stewardship with their portfolio companies. That appears to be the state of play of responsible investment today.”
• “As a longtime supporter of the RIA, we are pleased to continue our sponsorship of the 2024 Canadian Responsible Investment Trends Report and applaud the work being done to bring awareness to the national trends and outlook for RI,” said Judy Goldring, President and Head of Global Distribution, AGF Management Limited. “The Report provides a clearer understanding of the opportunities and challenges in responsible investing, and we believe the findings will help shape the way we engage and educate our clients.”
• “It has been a long time coming, but the continued push for improved standardization of responsible investment terminology and reporting frameworks appears to be bearing fruit. As investment managers gain confidence in these areas, they will have an easier time passing the relevant information to their clients in a way that’s meaningful to them. For NEI, that means we’ll be better positioned to share with everyday Canadians how their investments are generating long-term sustainable value.” Adelaide Chiu, VP & PM, Head of Responsible Investing, NEI Investments
• “Responsible investing is no longer a niche; it has become the standard expectation across the Canadian investment community. This progress is crucial for the Canadian economy as it fosters sustainable growth, attracts global investors, and ensures long-term financial stability. By prioritizing responsible investment practices, Canada will lead the way in building a resilient and prosperous future.” Fate Saghir, Senior Vice President, Head of Sustainability, Mackenzie Investments
• “RBC Global Asset Management is proud to continue our collaboration with RIA Canada by sponsoring the 2024 Canadian Responsible Investment Trends Report. The findings from this year’s report address several key issues that are becoming increasingly important to shareholders, such as the standardization of reporting practices by issuers. To continue to move the needle on this topic and others, we believe collective action is very important to maximize our impact.” Melanie Adams, Managing Director and Head, Responsible Investment, RBC Global Asset Management, and Chair of the Board, RIA

 About the Canadian RI Trends Report:

The Canadian Responsible Investment Trends Report, published by the Responsible Investment Association (RIA), serves as a tool for monitoring the evolution of responsible investment (RI) practices in Canada. This 2024 report draws on responses gathered from a survey of Canadian institutional asset managers and asset owners, which took place between May 22nd and July 19th, 2024. The previous survey was conducted in 2023.

The 2024 report was generously sponsored by Addenda Capital, AGF Management Ltd., Mackenzie Investments, NEI Investments and RBC Global Asset Management.

About the Responsible Investment Association (RIA):

The RIA is Canada’s investment industry association with a purpose of entrenching responsible investment (RI) in Canada’s financial ecosystem. The RIA’s membership includes asset managers, asset owners, advisors and service providers. Institutional members collectively manage over $45 trillion in assets globally. Learn more at www.riacanada.ca

For more information or interview requests, please contact:

Ady Jonsohn
Vice President, Content Development and Delivery
Responsible Investment Association
+1 416-461-6042

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.

Rabah Alliche (RIS), Desjardins
Joan Baron (RIS), Art of Pay
Katherine Bélanger (RIS), Larochelle-Conseils
Nadia Bellefleur (RIS), UNI Coopération Financière
Chantal Brunet (RIS), Caisse Desjardins du Nord de Laval
Jean-Sébastien Contant (RIS), Desjardins
Nancy Cornish (RIS), Meridian Credit Union
Olivier Duguay-Leclerc (RIS), FÉRIQUE
Ahmed El Oufir (RIS), Services d\’Investissement Férique
Connor Farrell (RIAC)
Alejandra Gamboa Paris (RIS), Férique
Stamen Garnenkov (RIS), Services d’Investissement FERIQUE
Stephane Gelinas (RIS), Desjardins
Stacey Girdlestone (RIS), Meridian Credit Union
Natascha Haas (RIS), connectFirst Wealth
Abderrahim Houmoumid (RIS), Caisse Desjardins Nord de Laval
Jakub Jankowiak (RIS), Meridian Credit Union / Aviso
Philippe Lamarre (RIS), Desjardins
Alexandre Larouche (RIS), Desjardins
Sacha Leduc (RIS), caisse desjardins du nord de laval
Cristina Leporé (RIS), Desjardins
Tu Anh Mai (RIS), CAISSE DESJARDINS DU NORD DE LAVAL
Ma. Frea Belle Malacas (RIS), Synergy Credit Union
Natascha Parrillo (RIS), Services d\’investissement FERIQUE
Tricia Pujos-Michel (RIS), Edward Jones
Timothy Ross (RIAC)
Mairah Sahar (RIS), Synergy Credit Union
Maria Salera (RIS), Mouvement Desjardins
Mohannad Sarris (RIS), Desjardins Nord de Laval
Massinissa Sebti (RIS), Caisse Desjardins du Nord de Laval
Ludovic St-Gelais-Isabelle (RIAC)
Matthieu Turcotte (RIS), FÉRIQUE

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.

Nicolas Boyer-Dagenais (RIAC)
Ty Alao (RIS), Prospera Credit Union
Benjamin Alton (RIS), Libro Credit Union
Eric Boivin (RIS), Desjardins sécurité financière
Martine Cinq-Mars (RIS), IG Gestion de patrimoine
Nicolas Claveau-Simard (RIAC)
Rylan Couture (RIS), Diamond North Credit Union
Pierre-Luc Desrosiers (RIAC)
Jean-Benoit Dion-Armand (RIS), Desjardins
Terri Imhoff (RIS), Synergy Credit Union
Kelly Jordan (RIS), Meridian
Martin Lacroix (RIS), Financière Banque Nationale
Sylvie Laporte (RIS), Desjardins
Davina Markan (RIS), Coast Capital
Guillaume Mercier (RIS), Desjardins (DSF)
Maureen Murphy (RIS), Penfinancial Credit Union Limited
Marie-Hélène Paradis (RIS), Desjardins
Richard Pelletier (RIS), Caisse de la Rivière-du-Nord
Timothy Ross (RIS), Brock Shores Financial
Fawz Slougui (RIS), Desjardins
Frédérick St-Pierre (RIS), Caisse Desjardins du Nord de Laval
Guy Roland Tchinjo Fotso (RIS), Desjardins
Janick Tremblay (RIAC)
Quoc-Binh Trinh (RIS), Desjardins

In 2023, 65% of surveyed Canadian investors expressed interest in responsible investment (RI). However, only a small percentage of those surveyed reported that their advisors are initiating discussions around RI. Why are so many financial advisors sitting on the sidelines of responsible investment?

With the support of AGF Investments, Mackenzie Investments, and TD Asset Management, the RIA launched the 2024 Advisor RI Insights Study to find out.

Key Findings

• Reasons not to offer RI currently centre around a lack of knowledge and resources, or a perceived administration burden. Product availability is not a barrier.
• Education and knowledge of RI are tightly linked to the overall use of RI. The more confident an advisor is about RI, the more extensively they will use it in their practice.
• Advisors rely on investment companies – especially wholesalers – for information, and are likely to turn to them with questions when introducing or increasing their RI usage.
• Investor demand is driving advisor adoption.
• Nearly 90% of RI users anticipate the positive growth of RI over the coming years, and non-users are open to using RI.

Influences on initial decision to offer RI

Of current RI users, nearly four in ten say their clients are the reason they started offering RI.

Reasons advisors offer RI in practice

 

Beyond client-driven requests, advisors are recognizing the benefits of incorporating RI into their practice.

The responsible investment industry continues to strengthen and evolve, with:

• Significant investor interest in RI solutions.
• Supportive regulatory guidance.
• Increased RI product availability.
  High expectations RI will continue to grow and become mainstream.

There has never been a better time to start the conversation.

Client and Advisor Fulfillment Gaps

The RIA is ideally positioned to support financial advisors through our commitment to delivering best-in-class RI education, programming, and collaborative opportunities.

For more information on the 2024 RIA Advisor RI Insights Study, or to learn more about RIA resources for your practice, reach out to membership@riacanada.ca.

The RIA is launching a new Retail Strategy Working Group in fall 2024. In support of the RIA’s mission to drive the growth and development of responsible investment in Canada, the Working Group’s mandate will be to inform and work with RIA management on the advancement and execution of its responsible investment retail strategy.

Specifically, the Working Group will:

• Provide ongoing advice and support to management on the RIA’s responsible investment retail strategy.
• Help management set priorities and identify key content and programming needs related to retail investment.
• Assist management in staying abreast of relevant developments in the regulatory and credentialing landscapes.
• Identify opportunities and/or barriers for growth of adoption of RI in retail investing.

The RIA is seeking up to seven individuals to form the inaugural Working Group cohort.

What’s in it for you?

Participation in the RIA’s Retail Investment Working Group is a unique opportunity to:

• Contribute to the growth, development and entrenchment of responsible investment in Canada.
• Help shape, inform and develop the responsible investment retail landscape in Canada.
• Gain access to important industry insights and studies.
• Play a direct role in ensuring needs are met in this important and growing sector.

Expectations of Working Group members:

• Participation in quarterly Working Group meetings.
• Accessible to RIA management for occasional input on priority initiatives (outside of quarterly meetings).
• One-year commitment (with the possibility of renewal).

The Working Group is not:

• An oversight or governance body.
• A platform to evaluate or promote products or services.

Working Group Composition:

• Advisors (three – with different credentials)
• Fund manufacturer (one)
• Fund Wholesaler (one)
• Data company (one)
• RI/ESG subject matter expert (one)

Note: Working Group participation is in a volunteer capacity and is contingent on being an RIA member in good standing.

Are you the ideal candidate to contribute to the RIA’s Responsible Investment Retail Strategy?

Kindly complete the application form by close of business on September 20, 2024.

The RIA thanks all applicants. However, due to the limited number of positions, only short-listed candidates will be contacted.

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.

Dominic Bernard (RIAC)
Marc-André Boudreau (RIS), Desjardins
Martine Carignan (RIS), Caisse du Nord de Laval (Desjardins)
Yifan Dong (RIS), Desjardins
Jonathan Elie (RIS), Services d’investissements férique
Caroline Gautreau Hadley (RIS), UNI Cooperation financière
Allan Grace (RIS), Desjardins Financial Security Investments Inc.
Maxime Haché (RIS), UNI Cooperation financière
Guillaume Ross (RIAC)
Alexis Joel St Amand (RIS), UNI Financial Cooperation
Derick Symonds (RIS), Meridian Credit Union
Minh Tung Trinh (RIS), Caisse Desjardins du nord de Laval
Dawn Walton (RIS), Meridian Credit Union

Highlights from Q2 2024

• Flows into Canadian sustainable funds saw an increase of 20.8% compared to the previous quarter, reaching an all-time high in this quarter of C$60.9 billion total assets.
• This quarter, seven new RI products were launched, marginally increasing from the six funds launched in the first quarter of 2024.
• All the seven funds were awarded various CIFSC identifiers, but none received ESG Integration and Evaluation or Impact Investing.

Sustainable Fund Assets

Source: Morningstar Direct, Manager Research. Data as of June 30, 2024. Excludes funds of funds.

RI Fund Performance

Based on data provided by Morningstar, over 50% of sustainable funds ranked in the top half of their respective categories:

• 38% of sustainable allocation funds ranked in their peers’ top quartile.
• 30% of equity funds ranked in their categories’ top quartile.

US equity funds have reportedly registered mixed results, with broad sustainable US equity funds ranking in the top half of the peer group, and sustainable US dividend and income equity funds ranked in the bottom half1.

1 Morningstar, Canada Sustainable Funds Landscape Report Q2 2024

Canadian Equity

Global Equity

US Equity

RI Fund Flows:

• Both active and passive sustainable funds saw outflows in the second-quarter 2024. Passive funds had more outflows than active; CAD 1.6 billion versus CAD 442 million.
• Active funds have registered outflows for only the second time in five years.
• Almost half of sustainable funds saw net outflows in the second quarter of this year.

Sustainable Fund Flows

Source: Morningstar Direct, Manager Research. Data as of June 30, 2024. Excludes funds of funds.

 

Note 1: 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.

Note 2: More information on the Canadian Sustainable Funds can be found in Morningstar Canada Sustainable Funds Landscape Report Q2 2024, uploaded on the RIA website.

Download Q2 2024 Highlights PDF.

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

For more information about the Canada Sustainable Funds Landscape from Morningstar, click here.

 

Data provided by

©2023 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

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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.