From reducing single use plastics to cutting down on shower times, you have been doing what you can to protect the environment and set the world up for a brighter future. We know that small changes add up but how can you take that next step? Can your investments make an impact around the globe?
The companies that we invest in have drastic impacts on what the earth will look like 10, 50 and even 100 years from now. By choosing environmentally conscious funds, you can grow your savings while protecting the future of our planet.
Responsible investing (RI) — occasionally known as ethical investing or sustainable investing — means considering more than just a company’s balance sheet and the financial returns they can provide. It is about the positive impact a company has on society as a whole. Responsible investing combines traditional financial analysis with an analysis of Environmental, Social and Governance (ESG) factors to inform investment decisions.
At least once every three years (sometimes more in high-risk industries), a third-party audit of a company’s policies and practices is conducted to ensure that the company continuously meets the prescribed ESG standards. This not only ensures that companies who create a positive impact will thrive, it also holds companies accountable to the investors. They must prove the effective use of resources during audits, are less vulnerable to shifts in energy and commodity prices due to efficient practices and are focused on compliance standards and risk management.
When you commit to the responsible investing method, you can feel secure that your savings are working hard today to support a sustainable and prosperous future.
Responsible Investing (RI) doesn’t mean you have to sacrifice returns. Like all investments, financial analysis is still vital – the RI investment method just allows you to align your financial goals and your personal values.
The most popular misconception of RI is that it underperforms in the long run. In reality, ESG policies result in higher profitability, better operational performance and potentially higher dividends and valuations. Fund manager and our partner, NEI Investments is Canada's leading provider of Responsible Investment (RI) solutions with the largest in-house team of ESG analysts. All of their products are RI products and their top performing funds cover all major asset classes, investment styles and geographic regions. ESG translates to better outcomes for investors because the companies are held to higher standards.
The general sentiment that performance needs to be sacrificed for moral investments has been proven to be untrue – good news for the future of the planet!
Explore responsible investing further with these articles:
Invest in industries that are positively impacting the future. Our winwin EarthLink™ GIC / TERM DEPOSIT* allows you to align your investment growth with your values – with no compromise. The market-linked GIC offers a minimum guaranteed return with higher return potential, the opportunity to benefit from the growth of international companies committed to reducing environmental impacts and peace of mind that your savings are not only protecting your future but creating a healthy future.
With every investment decision, you have the power to positively impact the mark you leave on our world. Speak with an advisor to ensure your investments are reflecting your values today!
Mutual funds and related financial planning services are offered through Qtrade Asset Management (a tradename of Credential Asset Management Inc). Financial planning services are available only from advisors who hold financial planning accreditation from applicable regulatory authorities. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual fund securities and cash balances are not insured or guaranteed and are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. Their values change frequently and past performance may not be repeated.
NEI Investments is a registered trademark of Northwest & Ethical Investments L.P. (“NEI LP”). Northwest & Ethical Investments Inc. is the general partner of NEI LP and a wholly-owned subsidiary of Aviso Wealth Inc. (“Aviso”). Aviso is the sole limited partner of the NEI LP. Aviso is a wholly-owned subsidiary of Aviso Wealth LP, which in turn is owned 50% by Desjardins Financial Holding Inc. and 50% by a limited partnership owned by the five Provincial Credit Union Centrals and the CUMIS Group Limited. Credential Qtrade Securities Inc., Credential Asset Management Inc. and Northwest & Ethical Investments L.P. are all wholly owned subsidiaries of Aviso Wealth Inc. Credential Asset Management Inc. and NEI LP are all wholly owned subsidiaries of Aviso Wealth Inc.
*This product has a ceiling that determines the maximum return you may receive at maturity. Terms and conditions apply.