The inconvenient truth about responsible investing: An FP investigation

For investors hoping to see their ethical beliefs — especially when it comes to the environment and climate change — reflected in their portfolios, the contents of a responsible investing fund can come as a shock. The rise of responsible investing has been one of the biggest trends to emerge in the financial world over the past half decade, with hundreds of funds now bearing the ESG imprint, signalling that they incorporate environmental, social and governance principles into their investing processes. According to the Responsible Investment Association, a Canadian industry-funded organization that champions the cause, responsible investing has swept up more than $2.13 trillion in AUM in Canada alone and now covers more than fifty per cent of the total assets that are professionally managed here. But for investors hoping to see their ethical beliefs — especially when it comes to the environment and climate change — reflected in their portfolios, the contents of a responsible investing fund can come as a shock. A Financial Post analysis of the 122 active responsible investing funds listed on the RIA’s website found that 45 per cent still had exposure to at least one stock that is primarily engaged in the production, […]

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