Growing Investor Confidence In RI 

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. 

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. 

For the second year in a row, close to 60% of respondents say they are more confident in the overall quality of reporting than they were last year. And in each category of ESG reporting that was measured, only 6% of respondents, or fewer, expressed less confidence than last year.  When asked what would further increase their confidence in reporting, respondents noted that more universally accepted frameworks, alongside standardization and auditing of reporting, would be helpful.

Confidence in Reporting of RI AUM and Specific RI Approaches

Source: 2024 Canadian RI Trends Report

“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.”

A window of opportunity exists to further strengthen RI in Canada, and this will require collective action and advocacy. Standardization is needed to further improve confidence and unlock the value that RI brings to investment decision-making. Recent definition changes have increased confidence, but more changes and standardization are on the horizon, and the industry must continue to adapt.

Author

RIA Staff

Responsible Investment Association

The Responsible Investment Association (RIA) is Canada’s industry association for responsible investment. RIA Members include asset managers, asset owners, advisors, and service providers who support our mandate of promoting responsible investment in Canada’s retail and institutional markets.