Responsible Investment - Your Money, Your Choice
Investment is a significant part of sustainable finance. Responsible investment refers to making sustainable finance choices in your investments, and the incorporation of ESG (environmental, social, and corporate governance) into your decisions. There are many ways to do this, such as opting to put your savings or RRSP into funds that match your values - there are lots of options out there. Which is most appropriate for you will depend on you and your goals. Need help? We’ve put together an overview of established approaches and strategies below, plus a list of questions you can ask your bank, so you know where your money is really going.
A common misconception is that profit and sustainability cannot work together. However, as ESG funds become more mainstream, many now show similar performance to comparable funds, or even outperform the market. ESG funds are sometimes considered to be lower risk too, with many analysts arguing that traditional funds are failing to adequately account for climate risk in their disclosure to investors. As with anything, it's important to ask a LOT of questions and make sure you're comfortable that your decisions meet your individual needs.
Become an Employee Advocate
You don't have to have a bunch of stocks or millions sitting in your RRSP (if only!) to make a difference, though. In fact, if you work for a company that provides employee pension schemes or has its own investments (hint: most mid-sized companies and larger), then simply by using your voice, you could help to trigger a significant change. How? Chances are, the funds managed by your business invest in things that don't really align with what your business stands for. That could be fossil fuels, arms, tobacco - it depends on the fund and the company. By talking to the people at work who make these decisions, and building a coalition of like minded colleagues who want to see change, you can help your business to invest in things that make the world a better place. Find out more about how to become an employee advocate with our one-page guide below.