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- One-quarter of investors currently hold sustainable investments, while half plan to invest in them in the next two years.
- However, 61% continue to have concerns about trust and transparency.
- Two-thirds believe that investing in the energy transition will have a positive impact on the world.
TORONTO, April 18, 2024 – According to Mackenzie Investments’ fifth annual Earth Day Study, Canadians’ interest in sustainable investments, defined as those that seek to generate both financial returns and a positive impact on one or more environmental, social or governance factors, is on the rise. However, a significant number of investors still harbour concerns about this category of investments.
The study, conducted in partnership with Pollara Strategic Insights, found:
- Almost one-quarter (23 per cent) of Canadians currently engage in sustainable investing (SI), up from 20 per cent in 2023.
- Close to half (45 per cent) report they are likely to add sustainable investments to their portfolios in the next two years.
- However, six-in-ten Canadians (61 per cent, unchanged since 2023) continue to have concerns about greenwashing and transparency in corporate governance within the SI space, four-in-ten (43 per cent) believe that SI lacks clear guidelines or standards and an equal number feel that sustainable investments tend to deliver lower returns than traditional ones.
- Only one-third (33 per cent) of those who work with an advisor have had a discussion with them about SI.
"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 Fate Saghir, SVP, Sustainability, Mackenzie Investments. “However, what’s also clear is that our industry still has work to do to address concerns and misconceptions around greenwashing, transparency and performance. Further, given the growing popularity of sustainable investments, there’s a significant opportunity for advisors to strengthen and expand relationships with clients by helping educate them on the role sustainable investments can play in portfolio construction.”
Canadians see benefits and opportunities in the energy transition
The study also found that Canadian investors are generally familiar with the concept of energy transition, which focuses on shifting from traditional to low-carbon and renewable energy sources, as a way to address global warming and related nature or biodiversity loss:
- Almost half (48 per cent) are likely to consider investing in companies focused on energy transition to address global warming in the next two years, while over three quarters (77 per cent) who already hold sustainable investments report they will increase investment in energy transition opportunities.
- Two-thirds (69 per cent) believe that investing in the energy transition will create a better world for future generations and have a long-term positive impact on the environment (67 percent) and on our health (65 per cent).
- However, only one-third (38 per cent) feel they adequately understand the size and scope of the energy transition currently taking place and the resulting investment opportunities.
“Opportunities within the energy transition will continue to grow as the world shifts toward a low-carbon future,” added Ms. Saghir. “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.”