Category: News

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 Audet (RIS), Desjardins
Ben Baker (RIS), Meridian Credit Union
Brody Bossuyt (RIS), Cambrian Credit Union
Jean-Sébastien Boucher (RIS), Desjardins
Annie Campagna (RIS), Caisse Desjardins du Nord de Laval
Abdoul Aziz NDAW (RIS), Desjardins caisse de Mercier est anjou
Nancie Taylor (RIS), Aviso Wealth
Susyn Wagner (RIAC)

Majority of investors surveyed believe their portfolio companies must mitigate risks associated with their use of AI, while also investing in its continued development.

TORONTO – February 29, 2024 – The vast majority of Canadian retail investors are concerned about AI and want to see risk mitigation embedded in their portfolios, according to a new survey from the Responsible Investment Association (RIA).

The 2023 RIA Investor Opinion Survey, based on an Ipsos poll of 1,001 individual investors in Canada, found that 79% feel it is important for their portfolio companies to identify and mitigate possible risks associated with AI, and 74% want companies to provide information on how they are using and investing in it.

Investors are slightly less concerned about greenwashing than they were in 2022, with 68% very or somewhat concerned compared to the previously reported 75%. A strong majority of 69% of respondents agree that RI can have a real impact on the economy and contribute to positive change for society.

The survey, sponsored by AGF Investments and Desjardins Investments, also shows that two thirds of respondents want their financial services provider to inform them about responsible investments (RI) that are aligned with their values, while less than a third report to have been asked if they were interested. RI ownership has remained consistent since 2020, with a third of respondents indicating current ownership.

“Retail investors are interested in responsible investment and want their portfolios to reflect their concerns about social and environmental issues,” said Patricia Fletcher, CEO of the RIA. “However, they lack knowledge on the subject, presenting a significant opportunity for financial advisors to equip themselves to meet these demands and inform their clients on investment options that align with their preferences and personal values.”

AGF Investments

“We’re proud to once again sponsor a survey that inspires meaningful dialogue about RI, while covering timely topics like greenwashing and the perceived risks of AI,” said Judy Goldring, President and Head of Global Distribution, AGF Management Ltd. “This year’s survey uncovers some notable findings and we’re committed to ensuring the advisors we work with have the resources they need to engage in informed discussions with their clients.”

Desjardins Investments

“The results of the questions asked for the first time on Artificial Intelligence speak volumes –
investors want to be informed of the issues surrounding the use of AI and perceive AI more as a
risk than an opportunity,” says Sébastien Vallée – President and CEO, Desjardins Investments.
“This prompts us to consider this crucial dimension in our analyses.”

Additional Highlights:

• Two thirds of respondents (65%) are interested in RI, with younger respondents generally expressing greater interest than older respondents, and female respondents more interested than their male counterparts.
• Unchanged from last year, 70% of respondents know little or nothing about RI, including 21% that have never heard of it.
• Considering the impact of world events, 36% of respondents say they are more likely to choose RI than one year ago, while 44% say they are neither more nor less likely. RI ownership has remained consistent since 2020.
• 67% of respondents would like their financial services provider to inform them about RI options, however, only 32% said their provider had ever broached the subject.
• Greenwashing concerns continue to be a deterrent to RI. 68% of respondents are very or somewhat concerned about greenwashing, however, this is lower than the 75% expressing concern in 2022.
• 46% of respondents view AI as much or somewhat more of a risk than an opportunity. 8 in 10 say it is important for companies in their portfolio to identify and mitigate potential risks associated with AI, while half say it is as important for them to invest in the development of AI and make use of it in their products or services.

View the full report here.

About the RIA Investor Opinion Survey

The Responsible Investment Association publishes the RIA Investor Opinion Survey annually to track individual investors’ perspectives on responsible investment and various environmental, social, and governance (ESG) issues. The 2023 Survey is based on data collected by Ipsos from 1,001 Canadian individual investors between November 24th and November 28th, 2023. 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 $40 trillion in assets. Learn more at www.riacanada.ca.

Media Contact

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

February 27th, 2024 – Toronto – The Responsible Investment Association (RIA) is pleased to announce that Sun Life has become a Sustaining Member of the RIA.

“We are excited to welcome Sun Life as a Sustaining Member of the Responsible Investment Association,” said Patricia Fletcher, Chief Executive Officer of the RIA. “Our partnership continues to strengthen, and we look forward to collaborating more closely towards our shared goal of a more sustainable future.”

The RIA is Canada’s industry association dedicated to advancing responsible investment, which refers to the incorporation of ESG factors into the selection and management of investments. RIA Sustaining Members play a critical role in advancing responsible investment in Canada, providing leadership and a stable funding base to support the operations of the RIA.

“At Sun Life, being sustainability-driven is central to our Purpose of helping Clients achieve lifetime financial security and live healthier lives,” said Adelina Romanelli, Director, Responsible Investing, Sun Life Global Investments. “As a global financial services company, we’re striving to create positive impact for our Clients, communities, and our planet. Sun Life is committed to advancing responsible investing and contributing to the transition to a low-carbon and more inclusive economy. We’re pleased to partner with the RIA as a Sustaining Member to drive progress and build a brighter future, together.”

About Responsible Investment Association
The Responsible Investment Association (RIA) is Canada’s membership association for Responsible Investment (RI). Members include mutual fund companies, financial institutions, asset management firms, advisors, consultants, investment research firms, asset owners, individual investors and others interested in RI. Our members believe that the integration of environmental, social and governance (ESG) factors into the selection and management of investments can provide superior risk adjusted returns and positive societal impact.

About Sun Life
Sun Life is a leading international financial services organization providing asset management, wealth, insurance and health solutions to individual and institutional Clients. Sun Life has operations in a number of markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of December 31, 2023, Sun Life had total assets under management of $1.40 trillion. For more information, please visit www.sunlife.com.

Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.

SLGI Asset Management Inc. is the investment manager of the Sun Life family of mutual funds. Sun Life Global Investments is a trade name of SLGI Asset Management Inc., Sun Life Assurance Company of Canada and Sun Life Financial Trust Inc. all of which are members of the Sun Life group of companies.

Media Enquiries
Damiano Passarelli, Senior Marketing and Communications Specialist, RIA, (416) 461-6042 x8

Highlights from Q3 2023

• Canadian RI funds stood at $45.8 billion at the end of September, representing a decline of 4.3% from all-time highs noted in the second quarter, but still a 13.3% increase versus Q3 2022.
• This quarter, 13 new RI products were launched, representing the most funds launched in a single quarter since Q1 2022.
• At the end of 2023’s third quarter, CIFSC identified 272 mutual funds and exchange- traded funds that follow at least one of its six RI strategies.

RI Fund Performance

• Based on data provided by Morningstar, 44.3% of RI funds ranked in the bottom quartile of their respective peer groups during Q3.
• Despite weakness in the third quarter, RI funds maintained relatively good results over the last year ended September 2023, with 47% landing in the top half of their peer groups.

RI Fund Flows:

• According to Morningstar, investors pulled $22.4 million out of sustainable funds during Q3. This was the first time there were net outflows from sustainable funds since Q2 2020, but unsurprising given the larger trend of overall fund redemptions during a challenging quarter of global market performance and uncertainty surrounding inflation expectations and central bank rates.
• Canadian RI funds still saw over $1.6 billion of inflows from January to the end of September.
• One organization’s RI funds accounted for 35.7% of the inflows into active sustainable funds in this quarter, collecting $601.2 million during the period.

Canadian Equity

Global Equity

US Equity

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.

Download Q3 2023 Highlights PDF.

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

 

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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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.

Employer: Responsible Investment Association (RIA)
Location: Downtown Toronto
Status: Permanent, Full-Time

If you are passionate about sustainability and looking to grow your career while doing meaningful work for a purpose driven organization, we’d like to hear from you. The RIA aims to drive the growth and development of Responsible Investment (RI) in Canada, with a vision to align capital with sustainable and inclusive development. With a membership base representing over $40 trillion in AUM, the RIA is uniquely poised to play a catalytic role in the transformation of the Canadian economy.

As the trusted voice of responsible investment for Canada’s institutional and retail investor community, we offer an exciting opportunity to work on the leading edge of the surging sustainable finance industry.

Position Overview

Reporting directly to the CEO, your primary role is to advance the development of the RIA’s advocacy and industry insight initiatives. As a member of the RIA’s Senior Leadership Team, you will play a key role in helping drive change and shape the future of RI in Canada by overseeing the development and execution of the RIA’s advocacy strategy and thought leadership priorities.

Accountabilities

• Oversight of the RIA’s thought leadership, research, and policy and advocacy initiatives
• Project management of the RIA’s key research projects
• Design and write research reports
• Review research findings, identifying themes and trends with a view to reflecting the perspective of the Responsible Investor
• Contribute to the RIA’s annual content strategy
• Craft editorial and public remarks
• Develop and execute the RIA’s Investor Roundtable strategy
• Work with key stakeholders and investor networks to develop policy responses, determine advocacy priorities and design outreach strategies
• Manage relationships with regulators and government officials
• Represent the RIA at key industry working groups
• Ensure that the RIA Marketplace structure reflects relevant industry best practices, standards and definitions
• Review curriculum and agendas to ensure investor lens is appropriately reflected
• Represent the RIA at industry events as appropriate
• Manage one direct report

Qualifications

• Minimum of 8 years of relevant investment industry experience, preferably in the field of responsible investment
• Post-secondary degree in a relevant field. CFA, LLB would be an asset
• Good knowledge of the Canadian investment industry’s policy and regulatory landscape
• Track record of achieving organizational objectives in a multi-stakeholder environment
• Strong critical thinking, analysis, research skills
• Exceptional verbal and written communicator with experience in high-level representation
• Ability to handle and prioritize multiple tasks in a deadline-oriented environment
• Effective, caring and highly collaborative team member, with a strong sense of initiative and accountability
• Highly professional, maintaining a standard of excellence in all matters
• Functionally bilingual in French and English

Diversity

The RIA embraces diversity and strives to foster an inclusive workplace culture driven by purpose, wellness, development, and productivity. We encourage applications from traditionally underrepresented groups, including but not limited to: Indigenous peoples, members of visible minorities, women, members of the LGBT2Q2SI+ community, and persons with disabilities.

To Apply

Please send your resume and cover letter as a single PDF to careers@riacanada.ca with the subject line, “Head of Advocacy and Industry Insights”.

Applications will be accepted on an ongoing basis.

Are you interested, but not sure if you are the right person? Tell us why we need your skills. We want to hear from you. You may not meet all of these requirements, but we encourage you to apply anyway to allow us to take into consideration what you bring.

We thank all applicants for their interest; however, only those pre-selected 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.

Mona Abou-Jamous (RIS), Desjardins
Alex Alvarez (RIS), DUCA Financial Services Credit Union Ltd.
Zachary J. Billingsley (RIS), Credential Securities
Hannah Boyd (RIS), Fidelity Investments Canada
Paul Brebber (RIS), VanCity – Credential Securities
Heather Coles (RIS), Assiniboine Credit Union Ltd.
Aaron Cook (RIS), Vancity/Credential Asset Management
Mélissa Desbiens-Desrosiers (RIS), Desjardins
Harkirat Dhillon (RIS), Invesco
Shane Dixon (RIS), Fidelity Canada
Mathilde Duverger (RIS), Desjardins
Brianne Fitzpatrick (RIS), Affinity Credit Union
Riley Friesen (RIS), Invesco
Sophie Guertin (RIS), Desjardins
Patrick Guilbault (RIS), VMBL
Rody Hernandez (RIS), Desjardins
Dan Iamonaco (RIS), Meridian™ l Credential Asset Management Inc.
Julia Jolly (RIPC)
Alexander Keech (RIS), Invesco Ltd
Alexandre Kessedjian (RIS), Desjardins
Mario Lambert (RIS), Caisse Desjardins des Bois-Francs
James Lauckner (RIS), Libro Credit Union
Shannon Lerner (RIS), Canada Life and Quadrus
Omar Maaytah (RIS), Invesco Ltd.
Jean-Philippe Mathieu (RIS), RGP Investments
Glenda Melanson (RIS), UNI Corporation
Lucas Palovic (RIS), Invesco
Diana Powell (RIS), Vancity/Wealth Advisor
Michael Pullano (RIS), Fidelity Investment Canada
Yanick Racicot (RIS), Finandicap Inc.
Sandy Rose (RIPC)
Kevin Scarsbrook (RIS), Coast Capital Wealth Management
Jofrani Solon (RIS), Desjardins
Jack Sowden (RIS), Invesco Canada Ltd
Stéphanie St-Amour (RIS), Desjardins
Michael S Suderman (RIS), Co-operators Financial
Mélanie Tremblay (RIS), Valeurs Mobilières Desjardins
Guy Olivier Voho (RIS), RBC
Chen Wang (RIS, RIPC), The Co-operators
Ryan Watson (RIS, RIPC), Co-operators Life Insurance Company
Christian Yapi (RIS), Uni coopération financiere

First-Ever Net Zero Assessment of Canada’s Top Reporting or Estimated Emitters on the Toronto Stock Exchange.

The CEC Net Zero Benchmark provides a set of common standards for investors to evaluate corporate issuers’ progress towards aligning with the Paris Agreement’s ambition, limiting global warming to well below 2 degrees Celsius, while pursuing efforts to limit the increase to 1.5 degrees.

TORONTO | Traditional territories of the Mississaugas of the Credit, the Anishinaabeg, the Haudenosaunee, and the Huron-Wendat – Climate Engagement Canada (CEC) is an investor-led engagement mechanism driving Canada’s business transition to Net Zero. The initiative has released its first-ever Net Zero Benchmark, allowing CEC participant investors to frame and measure their engagements with Focus List companies. These companies represent Canada’s top reporting or estimated emitters and/or corporate issuers with a significant opportunity to contribute to the transition to a low-carbon future in Canada. The CEC Net Zero Benchmark, provides a set of detailed and comparative common standards to support corporate issuers’ progress towards aligning with the Paris Agreement’s ambition.

DOWNLOAD THE ASSESSMENTS HERE

CEC Benchmark Insights and Roadmap

The Benchmark follows a rigorous evaluation process designed to provide a comprehensive view of each company’s progress in addressing climate-related challenges. Given the specific challenges faced by certain sectors, the results of the Benchmark also reflect the practical implications of addressing the net-zero transition. The Benchmark is provided as a roadmap for Canadian companies and investors, highlighting its purpose as a guiding tool rather than a conventional scorecard. It will be used to foster a constructive dialogue with Focus List companies on areas of strength, areas of opportunity, and areas requiring further effort.

Key Findings

• 98% of focus list companies explicitly commit to align disclosures with the Task Force on Climate-Related Financial Disclosure (TCFD) recommendations and/or are a public supporter of TCFD.
• Nearly half (44%) of CEC focus list companies have made a qualitative net zero ambition that covers all or nearly all of direct operations. However, the lack of 5°C-aligned short-term targets suggests that additional work is required to demonstrate credible net zero transition strategies.
• Overall, significant effort and further disclosures are required to demonstrate climate action plans i) have positive social and economic impacts for communities and workers; ii) meet thresholds of Free, Prior, and Informed Consent for Indigenous communities; and iii) are supported by sound financial planning and capital alignment.
• 41% of Focus List companies indicate that their CEO and/or at least one other senior executive’s remuneration specifically incorporates climate change performance as a key performance indicator (KPI).
• While several companies have begun mobilising their capital expenditures to align with action on climate, none have explicitly aligned capital expenditures to their targets in disclosures.

CEC participants will use the Benchmark for input and discussion in their collaborative engagement activities with Focus List companies. The results of the Benchmark also provide input to investor participants and other stakeholders on areas that require additional focus, research, or support. In the coming months, CEC will continue to provide insight and input into the Benchmark results, trends, and opportunities for collaboration and engagement. The Benchmark and ongoing efforts will continue to support CEC’s goal of driving dialogue with Canadian corporate issuers to promote a Just Transition to a Net-Zero economy.

CEC remains committed to working closely with investor participants and Focus List companies, leveraging their insights to refine and enhance the Benchmark’s impact on companies, investors, and the broader transition to Net Zero.

CEC Disclaimer and Data Usage Terms and Conditions

The CEC Net Zero Benchmark does not score or rank corporate issuers, nor does it use overall numeric or alphabetic ratings. Please see both the CEC Disclaimer and the Data Usage Terms and Conditions for additional information.

CEC Net Zero Implementation and Progress

CEC Research and Education Contributors Quinn+Partners and Manifest Climate Inc. undertook an assessment of the CEC Focus List Companies against the CEC Net Zero Benchmark, with supportive review from Ernst & Young and the Canada Climate Law Initiative.  This process was guided by the CEC Joint Secretariat, with the approval and oversight of the CEC’s Technical and Steering Committees.

The CEC Net Zero Benchmark is a key element of the initiative’s engagement strategy and offers participant investors a common standard and a framework for dialogue with corporate issuers. The CEC Net Zero Benchmark includes ten disclosure indicators—as recommended by the Technical Committee (TC) and its Just Transition/Indigenous Issues Working Group (i.e., a subgroup convened by the CEC TC with labour, Indigenous, and finance experts)—whilst layering in additional context specific to Canada’s unique economy. The CEC Net Zero Benchmark was further refined by incorporating feedback from a consultation period, which involved CEC participant investors—including some of Canada’s largest asset managers and asset owners—, NGOs, and Indigenous representation.

The company assessments were based on the companies’ public disclosures from June 2022 to June 2023 and in line with the CEC evaluation guidance. Companies were provided with an opportunity to submit additional feedback or disclosures to be considered as part of the assessment process. The final results of the Benchmark assessment were completed by the Research and Education Contributors, with support from the CEC Joint Secretariat, and provided to CEC participants and Focus Companies in advance of the public release. Any disclosures that were published after the assessment period may be considered in future annual iterations of the Benchmark.

Over the coming months and following the approval of the program’s governance bodies, CEC will build on these assessments by publishing analysis and information on alignment indicators.

• Barbara Zvan, President & CEO, UPP, and CEC Steering Committee Chair – “By providing a comprehensive and comparable view of a company’s progress against the net-zero transition, the CEC Net Zero Benchmark enables constructive, action-oriented, and ultimately, measurable dialogue between investors and key Canadian corporate emitters. The Benchmark sets a new standard and roadmap for collaborative stakeholder engagement in Canada, adding important momentum on our path toward a more sustainable future.”
• Katie Wheatley, Head of Canada, UN-backed Principles for Responsible Investment (PRI), and CEC Steering Committee Vice Chair – “The CEC Net Zero Benchmark brings together a comparable, consistent set of standards to assess Canadian corporate issuer alignment with the Paris Agreement. The CEC Benchmark will serve as an important springboard for participating investors to drive progress towards net zero among important emitters across the Toronto Stock Exchange (TSX). The time is now for leadership on climate action among Canadian corporates, and the CEC Benchmark empowers investors to support further momentum for a just transition to a low-carbon economy.”
• Maia Becker, Senior Director, Responsible Investment, RBC Global Asset Management, and CEC Technical Committee Chair – “The CEC’s first Net Zero Benchmark provides investors with a comprehensive view of progress and areas of opportunity for the Focus List companies, helping investors target their engagement efforts on areas that will have the most impact. As the world seeks to advance the transition to a net zero economy, RBC Global Asset Management is proud to support and collaborate with our peers on this critical initiative.”
• Delaney Greig, Director, Investor Stewardship, UPP, and CEC Technical Committee Vice Chair – “The CEC Net Zero Benchmark is significant not only for its findings, but how it was developed – support from across the Canadian financial sector, alignment with global frameworks, and independent expert research and assessment. The Benchmark indicators channel both investor and issuer attention to the aspects of climate strategy and performance that matter most for economy-wide net-zero transition.”
• Katharine Preston, Vice President, Sustainable Investing, OMERS, and Chair of the CEC Industry Leaders Advisory Panel – “Climate Engagement Canada is making a critical step forward with the launch of the Net Zero Benchmark. This tool provides support to investors as we engage with companies, focusing on the most critical areas as we navigate the transition. We look forward to the ongoing partnership with CEC members as we continue to make progress towards our net zero ambition.”
• Peter Ellsworth, Senior Director, Ceres Investor Network, CEC Steering Committee Member and CEC Founding Organization  –  “By providing a structured framework for engagement between investors and companies, the CEC Net Zero Benchmark will help accelerate how companies align their business practices to net zero – and how investors can measure that progress. As one of the founding members of CEC, Ceres knows this formula works in successfully influencing the behaviour of companies engaged by investors.  The CEC assessment, which promotes both disclosure and action, will contribute to the necessary transition of these Canadian companies to a net zero and just economy.”
• Pat Fletcher, CEO at RIA, CEC Joint Secretariat Co-Lead, and CEC Steering Committee Member – “The release of the CEC Net Zero Benchmark final assessment results represents another significant milestone for our initiative. Since its inception in 2021, CEC continues to foster constructive dialogue between investors and corporate issuers, accelerating Canada’s transition to Net Zero. These results acknowledge areas of positive progress among corporate issuers while identifying where additional strategic guidance and support are needed. This roadmap underscores the importance of ongoing engagement and dialogue to collectively elevate industry standards.”
• Kevin Thomas, CEO at SHARE, CEC Joint Secretariat Co-Lead, and CEC Steering Committee Member – “These results reveal that when it comes to achieving our country’s climate commitments, all of us have a lot more work to do. We’re in the turn-around decade on climate. We can’t afford to waste any time. Let’s use this benchmark as a mutual work plan between investors and companies and show how much we can get done together when the next year’s results come in.”
• Priti Shokeen, Vice President & Director, TD Asset Management Inc, CEC Industry Leaders Advisory Panel, and CEC Participant – The publication of the first Net Zero Benchmark is an important milestone for Climate Engagement Canada, and the results demonstrate there is steady progress in corporate climate action in Canada. The Benchmark provides investors with a blueprint for engagements with the CEC focus list of companies during this crucial early phase of the transition in Canada, while also providing companies with a roadmap and collaborative process to support them as they continue to improve on their goals and ambitions.
• Adam Rochwerg, Head of Climate Solutions, Operations, Manifest Climate – “The benchmarking is powered by Manifest Climate’s proprietary AI-powered software engine to identify relevant public company disclosures with precision, speed, and accuracy. Manifest Climate’s software accelerates climate risk planning and provides clients with a clear, actionable roadmap to reaching climate goals. Manifest Climate creates a common language for decision makers to incorporate climate risk and opportunities into financial decision making by harnessing AI to reduce and standardize the manual work to categorize disclosure and assess peers.”
• Tony Pringle, CEO and Co-Founder, Quinn+Partners – “We are delighted to help advance Canadian corporate climate action and a just transition toward a net-zero economy. The inaugural CEC Benchmark assessment is an important first step to foster constructive dialogue between leading corporations and investors. We look forward to seeing the Canadian market set the bar for climate engagement excellence and make meaningful progress.”
• Thibaut Millet, Partner, Climate Change & Sustainability Services, Ernst & Young LLP – “Climate-related disclosures have become mainstream for almost a decade now, and the need for action is more urgent than ever. The reality is that investors, government regulators, stakeholders and the public are demanding far more than just disclosures from companies. It is not enough to simply offer long-term ambitions without a clearly articulated plan of how to achieve them. The focus is now on action that drives measurable results, as exemplified by the results of the CEC Net Zero Benchmark. The good news is that when companies shift their mindsets from a mere tick-box exercise to a real strategic analysis, they discover opportunities to thrive and create value.”
• Sonia li Trottier, Director, Canada Climate Law Initiative – “We were pleased to contribute by reviewing the CEC Net Zero Benchmark as a Research Collaborator. The Benchmark will help investors assess and compare companies, and make informed investment decisions. We believe corporate engagement is key to driving climate actions, and the Benchmark will foster that engagement and collaboration between investors and the Focus List companies.”

About Climate Engagement Canada (CEC)

Climate Engagement Canada (CEC) is a finance-led initiative that drives dialogue between the financial community and corporate issuers to promote a just transition to a Net Zero economy. Through CEC, 41+ investor participants (with +$5.1T in assets under management covered by the initiative) (a) help Canadian public companies missed by global initiatives successfully evolve their business models and transition toward our country’s climate commitments, and (b) enhance the level of transparency into Canadian climate risk exposure and transition strategies. In 2019, Canada’s Expert Panel on Sustainable Finance made a recommendation to establish a national engagement program to drive a broader and more consistent dialogue with Canadian issuers around climate risks and opportunities (Recommendation 10.2). CEC is a response to that call to action.

Through multi-year CEC engagements, company boards and senior leaders of Canadian companies can learn about the concerns and expectations of the financial sector as they relate to a timely transition to Net Zero emissions by 2050. This includes i) Strong governance frameworks with oversight of climate change risks and opportunities; ii) GHG-emission reduction strategies consistent with the goals of the Paris Agreement; iii) Measurable, sector-relevant targets; iv) Global standard disclosures (e.g., Task Force on Climate-related Financial Disclosures); and, v) Paris Agreement-aligned advocacy activities. CEC is coordinated by its Joint Secretariat: The Responsible Investment Association (RIA) and the Shareholder Association for Research and Education (SHARE). The initiative is also supported by the international investor networks the UN Principles for Responsible Investment (UNPRI) and Ceres.

For media inquiries, please contact: cec@riacanada.ca.

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.

Madeline Cann (RIS), NEI Investments (Aviso Wealth)
Robert Coruzzi (RIS), Meridian Credit Union
Shelly Dundas (RIS), First West Credit Union
Lindy Homenick (RIS), Prospera Credit Union
Brenda Horan (RIS), Horan & Associates Brokers Inc.
Erin Ludvigson (RIS), Synergy Credit Union
Rottem Maor (RIS), Fidelity Investments Canada
Vadims Martinovs (RIS), Meridian Credit Union
Shafin Rana (RIS), Servus Credit Union | Credential Asset Management
Roman Stadler (RIS), Credential/Meridian
Stephanie Wallis (RIS), FirstOntario Credit Union

Review finds US$30 trillion invested in sustainable assets

• $30.3 trillion is invested globally in sustainable investing assets.
• Data published in new GSIA report – Global Sustainable Investment Review 2022 – the 6th edition of this landmark publication.
• In non-US markets, sustainable investment assets under management (AUM) have increased by 20% since 2020.
• Increased rigour in US results in decline in assets labelled as ‘sustainable’
• Findings reflect continued efforts by industry, regulators and policymakers to better define sustainable investments and address greenwashing risks, leading to more reliable measurements of global sustainable AUM.
• Launched to inform discussions at COP28, sustainable investment organisations from across the world make a series of policy recommendations for the international community to consider.

The Global Sustainable Investment Alliance (GSIA) has today published its sixth edition of the biennial Global Sustainable Investment Review (GSIR), sponsored by HSBC Global Research, finding that US$30.3 trillion is invested in sustainable assets globally.

The report shows that in non-US markets – Canada, Europe, Japan, Australia and New Zealand – there has been a 20% increase in sustainable assets under management (AUM) since the 2020 GSIR.

The report also showcases a maturing of the industry, which includes the adoption of tighter definitions of when a fund can be described as ‘sustainable’. These newly imposed standards were a direct response to growing concerns around ‘greenwashing’ and thus impacted how the US SIF has measured ‘sustainable assets’ in the period to 2022. As a result of the US SIF’s methodology change, the report finds a drop from $17tn in reported AUM in the United States in 2020 to $8.4tn in 2022.

Similarly, in Europe, the long-term trend suggests that the proportion of assets defined as ‘sustainable’ has been declining by around 5% per year. Increased requirements around disclosure regulations and the tightening of definitions around sustainable investing and its related approaches may be contributing to this decline.

A wider trend is also emerging globally highlighting the need for clearer definitions and a more shared understanding around what makes a sustainable asset ‘sustainable’. Further developments can be expected in the years to come, as the EU’s Sustainable Financial Disclosures Regulation (SFDR) continues to evolve, alongside other global disclosure and labelling approaches, and as data availability and quality increases.

The sustainable and responsible investment industry’s continued maturation is also visible in the strategies being deployed by firms and their clients to promote sustainable outcomes. The GSIR finds investors are increasingly making use of corporate engagement and shareholder action to drive corporate change and reduce sustainability-related investment risks.

James Alexander, GSIA Chair, said:

“The global sustainable finance industry is continuing to mature, with the introduction of clearer disclosure and labelling regimes – such as the EU’s SFDR, the UK’s SDR, and the SEC’s proposed Climate Disclosure Rule – helping drive forward our collective understanding of sustainable investment approaches and providing clarity over how sustainable investments are defined.

“But much more can be done to accelerate the transition to a sustainable future. That is why, for the first time, GSIA has made a series of policy recommendations in the GSIR – covering measures to increase investment opportunities in the net-zero transition, the need for closer global alignment on sustainable finance regulations, enhanced data sharing, and a sharper focus on disclosure of nature and biodiversity risks and opportunities.

“With the right actions and support from policymakers around the world, the global finance industry can play a prominent role in helping bring about positive change in the years to come.”

Maria Lettini, CEO of the US Sustainable Investment Forum (US SIF) said:

“The GSIA report on sustainable investment trends comes at a critical juncture in the global investment industry.

“While we continue to elevate the need to address our own nuanced local financial market challenges, we also support the incorporation of enhanced rigor and learnings from our peers across regions.

“I applaud the collaborative work of the GSIA secretariat to align the diverse regional approaches of the SIFs across the world into a strong holistic sustainable investment voice as we address global policymakers ahead of COP 28.”

Simon O’Connor, Chief Executive of the Responsible Investment Association Australasia, said:

“This year’s GSIR shows a clear story of a rapidly maturing industry, whereby standards have lifted across the world, to a point today where it is simply not sufficient to say you are doing responsible and sustainable investment, without being able to clearly articulate the real impact you are having.

All in all, we welcome these developments that our organisations have been long advocating for, as we see this will result in a stronger industry, that delivers more capital to creating the positive change we need to deliver on a net zero transition.”

Proposals made by GSIA in the report include the convening of a Sustainable Finance Regulatory Convergence Taskforce, which could make recommendations for improvements and greater alignment of regulations in force across the world.

GSIA is also calling for the widespread and rapid adoption of a global baseline for strengthened corporate sustainability disclosures as well as for ESG ratings and benchmarks, to help ensure investors have access to transparent, accessible, and comparable data when making investment decisions. The report also urges the global adoption of the disclosure recommendations prepared by the Taskforce on Nature-related Financial Disclosures (TNFD) and the incorporation of TNFD reporting for corporations into the International Sustainability Standards Board (ISSB) framework.

About the Global Sustainable Investment Review

The Global Sustainable Investment Review 2022 is the sixth edition of this biennial report mapping the state of sustainable investment in the major financial markets globally. This edition collates results from the US Sustainable Investment Forum (US SIF), Japan Sustainable Investment Forum (JSIF), the Responsible Investment Association Canada (RIA Canada) and the Responsible Investment Association Australasia (RIAA). Eurosif and UKSIF do not collect data directly; data for the European region has been sourced from the European Fund and Asset Management Association (EFAMA).
All 2022 assets are reported as of 31 December 2021, except for Japan which reports as of 31 March 2022. Each region or country covered by this report uses a different method to collect data for its respective report. The consolidation in this report is made on a best-effort basis, based on best available regional data.

About The Global Sustainable Investment Alliance

The Global Sustainable Investment Alliance (GSIA) is an international collaboration of membership-based sustainable investment organisations around the world. Its members are: Eurosif (European Sustainable Investment Forum), UKSIF (UK Sustainable Investment and Finance Association), US SIF (US Sustainable Investment Forum, Japan Sustainable Investment Forum (JSIF), the Responsible Investment Association Canada (RIA Canada) and the Responsible Investment Association Australasia (RIAA). Its aim is to unlock the power of the worldwide financial services industry to drive leadership, achieve a substantial impact on key global challenges, and accelerate the transition to a sustainable future. For more information, visit gsi-alliance.org.

The secretariat of GSIA is hosted by UKSIF, and the GSIA Chair is the UKSIF Chief Executive.

About the Responsible Investment Association

The Responsible Investment Association (RIA) is a nonprofit, membership-based organization dedicated to the advancement of responsible investment in Canada. The RIA’s membership is composed of over 600 institutional investors and investment professionals who practice and support responsible investing.

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.

Sandra Beaulieu (RIS), Tandia Credit Union
Wendy Belfry (RIS), Kootenay Savings Credit Union
Angeline Christensen (RIS), KSCU MoneyWorks
Juan De Leon (RIS), RBC Global Asset Management
Sean Elbourne (RIS), Encasa Financial Inc
Christina Graham (RIS), Self employed
Bryan Hames (RIS), Tandia Financial Credit Union
Eric Hoiting (RIS), Meridian Credit Union
Rowan Hughes (RIS), IPC Securiteis
Louis-Philippe L-Lajoie (RIS), Equilibre Finances Assurances et Placements inc.
Renald Lacroix (RIAC)
Nancy Laguë (RIS), Desjardins Caisse Solidaire
Philippe Lavoie (RIAC)
George MacKay (RIS), Tandia Financial Credit Union
Alexandre Ouellet-Gendron (RIPC)
Crystal Pazitka-Perry (RIS), Libro Credit Union
Darryl R MacDonald (RIS), Servus Credit Union
Michael R Pigeon (RIS), Credential Asset Management Inc.
Brij Raj Purohit (RIS), Prospera Credit Union
Enrika Rodrigue (RIPC)
Christine Savard (RIS), VMBL
Shauna Wakeman (RIS), Tandia Financial Credit Union
Dan Yanke (RIS), TD Wealth Private Investment Advice