How to match investments with your ethical values

ESG ratings are available for funds, stocks, and even for advisors.

Gail Bebee 11 June, 2018 | 5:00PM
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What investments can you buy that do not conflict with your personal ethics? How can you invest in a way that positively affects climate change, gun control, gender equality or other environmental and social issues you support? Are such investments higher risk? Do they yield lower returns compared to traditional investing?

If you are looking for answers to these questions, you are not alone. A 2017 survey by the Responsible Investment Association (RIA) found that 77% of respondents were interested in responsible investing, which is defined as the integration of environmental, social and governance factors (ESG) into the selection and management of investments. Coupled with this interest is a rapid increase in the responsible investments available to Canadians. At the end of 2015, the amount of assets in Canada managed according to responsible-investing principles, as per the RIA, stood at $1.5 trillion and had increased 49% over the 2013 total

"You can invest to create a positive societal impact, and receive a decent financial return," says Ron Robins, founder of investingforthesoul.com. "Numerous studies have demonstrated that companies with better ESG performance deliver superior risk-adjusted returns."

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About Author

Gail Bebee

Gail Bebee  Gail Bebee is an independent personal finance speaker, teacher and the author of No Hype--The Straight Goods on Investing Your Money. She can be reached at gbebee@gailbebee.com; her website is www.gailbebee.com.

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