What is responsible investing?
Responsible investing (RI) involves investing in brands committed to sustainability. This means those focused on environmental, social and governance considerations like carbon emissions, human rights, good working conditions, employee diversity, and more. In other words, it’s a type of investing that allows you to grow your portfolio while also making a difference.
Environmental, social, and governance factors
Environmental impact, social responsibility, and governance practices. What does this really mean? Here’s an overview:
Myth 3: Responsible investing is just a fad
The facts: Responsible investing is growing fast and shows no signs of slowing down. What seemed niche 10 years ago is actually becoming a preferred option, as a growing number of people start paying attention to what their money is invested in.
Recently, 97% of Canadian experts reported that they expected to see moderate to high growth of responsible investing over the next two years (2020 Canadian RI Trends Report). When respondents were asked what they thought was driving this growth, the most common answers included investor demand, climate change, and the impact of ESG factors on investment returns.
Think about what this means: as investor demand increases, so does the incentive for companies to improve their social, environmental, and governance practices. The result is more businesses committed to a sustainable future. That doesn’t sound like a fad to us.
Our partnership with NEI Investments
We provide access to RI portfolios through our partnership with NEI Investments. This gives our Members access to Canada's leading provider of Responsible Investment solutions.
NEI has been a leader in responsible investing for 30 years. Their goal is to make a positive difference on all levels - for their investors, their partners, and all of society. NEI is committed to helping Canadians make investments aligned with their personal values, and they've proven that it’s possible to help change the world and also get a return on your investment. Their combination of strong financial performance and rigorous practices have great potential to outperform “traditional” options over the long-term.