Mennonite Savings and Credit Union has become the first Canadian financial institution to make sure all its GICs qualify as socially responsible investments (SRI). The SRI investment approach has typically been associated with mutual funds and market investments.
Sustainalytics helped MSCU develop socially responsible lending criteria, which include the screening of business borrowers to determine whether they’re involved with industries tied to alcohol and tobacco, for example, and whether the activities of such borrowers have any negative impacts on the environment and human rights. After six months, Sustainalytics reviewed MSCU’s loan portfolio to validate its compliance with socially responsible criteria.
Responsible investing is becoming more prevalent in Canada, says the Responsible Investment Association. It finds the RI market includes more than 30% of Canadian assets under management.