Canada’s Sustainable Investing Interest Is Growing

Mackenzie Investments annual Earth Day Study showed a rising interest in sustainable investing as Canadians are becoming more familiar with ESG and what it stands for. The study in question revealed that 23 percent of Canadians are now investing in sustainable assets, a small bump from the 20 percent who claimed that last year.

In addition, 45 percent of Canadians are seriously considering including sustainable investments into their portfolios over the next few years. All of this shows promise for a variety of reasons.

People Are More Attuned To Greenwashing

One of the critical problems in sustainable investing today is greenwashing. Through greenwashing, companies are able to erode trust in not only themselves but also in this movement as a whole. Trust is crucial for a movement that stands for transparency and corporate accountability as some of its core tenants.

While further regulations can help with that, the fact that people are showing more interest in wanting to be involved in sustainable investing can be a factor for businesses to be more accountable. After all, that same Earth Day Study found 61 percent of Canadians showing apprehension to the lack of transparency and excessive greenwashing companies are doing.

It Encourages Sustainable Investing To Be More

On top of Canadians pointing out the transparency issues of sustainable investing, which is true, many are misinformed about other parts of the industry.

Such as that sustainable investments yield lower returns compared to traditional investments.

With ESG being more integrated into businesses these days, we’re actually seeing more of a rise in returns from sustainable investing over traditional investments. Last year, Morgan Stanley Institute conducted an analysis that found sustainable funds outperforming its traditional ones.

All in all, the skepticism and criticisms leave an opportunity for more discussion around the topic. It’s an opportunity to show sustainable investing can be more. This is all to clear especially since the Earth Day Study found only 33 percent of Canadians with financial advisors have actually talked about sustainable investing.

Sustainable Investing Can Lead To Stronger Renewables

Overall, Canadians are all for the energy transitions that Canada is making - moving away from fossil fuels and excessive carbon usage to low-carbon and renewable options. And from an investing standpoint that is shown by nearly half of survey Canadians saying they are likely to invest in energy transition over the next few years.

And this is further reinforced by 77 percent of people who have sustainable investment holdings to increase their stakes.

All this is saying is that the average Canadian is becoming more savvy about the ongoing global warming issues, biodiversity loss, and how to solve those issues. Putting more money into companies that’ll make stronger renewables will not only smooth out the transition but make the movement more appealing.

Read the full MacKenzie Earth Day Study here.

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