Survey shows rising interest in sustainable investing in Canada, despite transparency and performance challenges
According to Mackenzie Investments' latest Earth Day Study, Canadian interest in sustainable investments is increasing.
The study, carried out in partnership with Pollara Strategic Insights, reveals that 23 percent of Canadians currently invest sustainably, a rise from 20 percent in 2023.
Additionally, 45 percent of Canadians are considering adding sustainable investments to their portfolios within the next two years.
Despite the growing interest, concerns persist. 61 percent of Canadians express apprehensions about greenwashing and a lack of transparency in corporate governance within the sustainable investment (SI) space.
Another 43 percent are skeptical about the absence of clear guidelines or standards in SI, and they believe sustainable investments yield lower returns compared to traditional investments.
Moreover, only 33 percent of Canadians who work with financial advisors have discussed sustainable investments with them.
Fate Saghir, SVP of Sustainability at Mackenzie Investments, noted the positive trend towards sustainable investing but acknowledged the challenges that remain.
“It's encouraging to see growing interest in and adoption of sustainable investing, reflecting a shift towards aligning financial goals with environmental and social considerations,” said Saghir.
“However, our industry still has work to do to address concerns and misconceptions around greenwashing, transparency, and performance.”
The study also explores Canadian perspectives on the energy transition, which involves moving from traditional energy sources to low-carbon and renewable options to combat global warming and biodiversity loss.
Nearly half (48 percent) of Canadians are likely to invest in companies that focus on energy transition in the next two years, and 77 percent of those already holding sustainable investments plan to increase their stakes in such opportunities.
Canadians are optimistic about the benefits of investing in the energy transition, with 69 percent believing it will create a better world for future generations and positively impact the environment (67 percent) and health (65 percent).
However, only 38 percent feel they have a good grasp of the magnitude and scope of the ongoing energy transition and the investment opportunities it presents.
Saghir emphasized the role of the financial industry in educating investors. “Opportunities within the energy transition will continue to grow as the world shifts toward a low-carbon future,” she said.
“The financial industry, including investment managers and advisors, have an important role in making knowledge and education accessible. We need to get to a place where Canadians can be confident that their investment dollars will provide both returns, and a real, positive impact on our local and global world.”
