Responsible Investing
Investing With a Purpose
It’s possible to have an investment portfolio designed to achieve your financial goals, while also matching your personal values. Responsible investment funds employ various strategies to contribute positively to important environmental, social and governance (ESG) issues present in society today, with a focus on long-term sustainable returns.
Examples of ESG Issues
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Climate change
Resource depletion
Pollution
Deforestation
Renewable energy
Water management
Recycling processes
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Human rights
Working conditions
Diversity & inclusion
Modern slavery
Child labour
Impact on local communities
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Executive pay
Board diversity & structure
Ethical standards
Bribery & corruption
Shareholder rights
Stakeholder engagement
How does it work?
Responsible investment funds will typically use one or more of the following strategies…
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When assessing a company's value, the portfolio manager uses ESG (environmental, social, and governance) data alongside traditional financial metrics.
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Investments made with the goal of generating positive social and environmental impact alongside a goal of strong investment performance by considering a company's impact on the environment and society during a financial evaluation.
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The use of shareholder power to directly influence corporate behaviour. This includes filing shareholder proposals, proxy voting, and shareholder dialogue with companies.
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Involves the exclusion of certain industries or companies from a portfolio based on some ethical or moral criteria. This could include companies that do business in sectors harmful to society or the environment, or companies that score poorly on ESG (environmental, social, and governance) factors relative to their peers.
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Involves the inclusion of certain companies in a portfolio based on positive performance in ESG (environmental, social, and governance) factors compared to industry peers. This approach focuses on investing in corporate sustainability leaders in targeted industries.
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A future-focused approach to investing that targets investment in companies involved in specific ideas and trends. Investment in themes such as clean technology, alternative energy, and cybersecurity are a few examples of this.
Want to learn more about how your investments can make a positive impact on society and the environment?
Mackenzie and Jeff are both RIA Certified as Responsible Investment Specialists.
Important information about mutual funds is found in the Fund Facts document. Please read this carefully before investing. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Unit values and investment returns will fluctuate.