Are you among those interested in fighting climate change, but running out of ideas on how to get involved? You recycle, compost, even practise a zero-waste lifestyle (now THAT takes a lot of willpower, hats off!). You even took part in large environmental marches, but you still want to do more? Responsible investment is a way for you to be an agent of change for sustainable development in your own way—and what’s more, do it in the comfort of your own home!
Consumers are increasingly aware of the impact that each decision can have on the environment. As a community, we have concerns: What actions can truly make a difference on the planet’s long-term health? Where do you start in order to make a difference? What if you became an investor who cared about the environment and society in general? No need to wear a suit and tie to invest!
Responsible investment (RI) is gaining popularity as a lever for change for those wanting to be part of the solution. Whether you’re a seasoned investor or just starting out, if you want to invest your money responsibly, here are some tips and advice to guide you!
What’s responsible investment all about?
First, what does “responsible” mean? Essentially, it’s a form of financial investment that incorporates the assessment of environmental, social and corporate governance practices (or ESG for those in the know) of companies into its analysis. By choosing this type of investment, you can participate in the growth of companies that are working to find solutions to challenges—while having a positive impact on the environment and the well-being of communities. It’s called killing 2 birds with 1 stone! Ha!
Can you save while investing responsibly?
Yes, it’s possible to invest and support companies that share your priorities. Saving for your future and your goals sounds temping, doesn’t it?
“Environmental and social issues represent risks (or opportunities) that can influence the economic and financial outlook of companies. By identifying risks and improving their ESG practices, they are equipping themselves to face the challenges of a changing economy” .
Like you, they want to be accountable for their actions! Here are some examples of criteria - External link. This link will open in a new window. on which companies are assessed:
Environmental missions
- Limiting their impacts on climate change
- Protecting natural environments (like Canada’s boreal forest)
- Promoting water management
Social missions
- Human rights
- Workers’ rights
Governance-related missions
- Board of directors’ diversity
- Executive compensation
More specifically, what’s in it for me?
One of the key benefits of responsible investment is that it enables you to grow your money without compromising your priorities. It’s also easily accessible. Deborah Debas explains that:
“Responsible investment enables investors to make a difference and take an active role in a movement that is both local and international.”
Put even more simply, you can promote sustainable development while taking into account your financial needs. It’s a win-win situation!
Where do I start?
If responsible investment sounds like a wise decision for your principles and portfolio, it’ll also be a great topic of conversation at the next family dinner! So, don’t hesitate to make an appointment with a Desjardins advisor.