Investors’ outlook also reflects the need for sophistication and continued vigilance, with respondents citing mistrust or concerns about greenwashing, a lack of standardized ESG disclosure frameworks/standards, and a lack of trustworthy data as the top three potential barriers to RI growth.
Aside from ESG integration, the research revealed that all other RI techniques, such as corporate involvement, positive and negative screening, and thematic and impact investing, were becoming more common. This finding further indicates the rising RI understanding of Canadian investors.
When asked why they take ESG considerations into account, survey participants cited reducing risk over time as their top reason, followed by enhancing returns over time, and upholding their fiduciary obligation.
The top three RI strategies, according to AUM, were ESG Integration, corporate engagement & shareholder action, and negative/exclusionary screening.
Responsible investors in the survey were also overwhelmingly concerned about climate change, identifying it as the biggest growth driver for RI over the next two years.
