Your quick guide to responsible investment
What is responsible investment?
Responsible Investment is an investing approach that takes into consideration Environmental, Social and Governance (ESG) factors, as well as the long-term financial health of the market. It has two goals: maximizing positive impact and financial growth.
More and more investors are choosing this approach, because they believe (as we do) that true long-term sustainable growth is created by a well-governed network where environmental, social and economic systems work together as one.
7 / 10
Canadian investors say they’re interested in responsible investing
50.6%
of all professionally-managed assets in Canada are now in responsible investments
$2.13 trillion
in Responsible Investment assets are now under management in Canada
What is ESG
Environmental
How does a company help protect our environment?
This includes:
- Sustainability practices
- Waste and pollution levels
- Greenhouse gas emissions
Social
How does a company treat its people and community?
This includes:
- Working conditions
- Recruitment inclusion & diversity
- Impact on local communities
Governance
How does a company govern itself sustainably?
This includes:
- Executive & employee compensation
- Management structure & diversity
- Tax strategy
Why ESG risks matter to Central 1 & our clients?
Corporate Issuers
Companies that incorporate ESG factors are shown to have lower cost of capital, deliver higher shareholder value and less market risk.
Investors
A growing number of investors are using ESG factors in their investment decisions and they expect more transparency from companies about their practices, including how they reduce ESG risks.
Credit Unions
Social attitudes are evolving. Credit union members are paying increasing attention to environmental and social issues, and they want their financial institution to show that they care too.