Despite the increasing popularity of sustainable investing, most Canadians say they lack knowledge, a study from Schroders says.
The “Schroders Global Investor Study 2018” surveyed more than 22,000 investors from 30 countries. More than half of Canadians (58%) surveyed said sustainable investing has become more important to them over the past five years, and 46% said they had increased their sustainable investments over that period.
However, 53% said they haven’t made sustainable investments because of a lack of information, advice or understanding.
Canadians who are investing sustainably have allocated an average of 39% of their portfolio to these investments.
The survey also found Canadians with more investment knowledge have a higher proportion of their portfolio in sustainable investments. Of those surveyed with an expert or advanced knowledge, 80% have invested sustainably compared with 63% of those with an intermediate knowledge and 43% of those with a beginner/rudimentary knowledge.
Read the study here.
Toronto could be sustainable finance leader
Toronto has the potential to become a leader in sustainable finance and take a leading role in a global transition to a low-carbon economy, a study from Toronto Finance International, Ernst & Young LLP and Corporate Knights says.
Right now, Toronto is in “the middle of the pack” when it comes to being a sustainable financial centre, the study says. But the city has the potential to develop expertise in sustainable finance and take advantage of the economic opportunity.
The global responsible investment market is almost US$23 trillion. Canada’s responsible investment assets under management grew at an estimated 22% (an increase of US$357 billion) from 2014 to 2016, the study says.
The report includes steps Toronto’s financial community should take to build on its momentum. Those steps include:
- establishing a sustainable finance classification system
- building a national “pipeline” of sustainable infrastructure projects
- developing policies at financial institutions to encourage innovation
- working with the public sector to develop new financing methods
- creating a joint forum with the fintech industry on sustainable finance.
Read the study here.