New survey from Co-operators finds that Canadians
want to act sustainably but are concerned about the price of going
"green"
TORONTO, Nov. 7, 2023
/CNW/ - The perceived cost of going "green" has many Canadians
wondering if they can afford to invest sustainably, despite their
interest in doing so. A new survey from Co-operators reveals
three-quarters (73%) of Canadians believe that products and
services from sustainable companies cost more, and over half of
survey respondents (53%) say they were interested in supporting
sustainable companies before rising inflation, living costs and
interest rates "made things too expensive." Younger Canadians
appear most offput, as the latter figure rises to 62% among those
aged 18 to 24.
The findings perpetuate a misconception that sustainable
investing – also called ethical or socially responsible investing –
equates to financial concessions. According to the survey, despite
widespread agreement on the importance of sustainability (73%) and
the importance of supporting sustainable companies (62%), less than
a quarter of Canadians (23%) say they are willing to pay a premium
for sustainable investment products.
"The survey results are enlightening," says Rob Wesseling, President and CEO of
Co-operators. "While Canadians clearly understand the need to
support sustainable initiatives, misleading information about the
costs could be holding some investors back. It's critical that
Canadians are educated about the availability of investment
products and solutions that enable them to make a substantive
social difference, alongside compelling financial returns. At its
core, sustainable investing ensures that financial security and
societal betterment go hand in hand."
"As an investor, it's important that you're empowered with the
information you need to align your investment strategy with your
values", says Jessica Baker,
Co-operators EVP of Retail Wealth. And access to the right
information is even more crucial. "The idea that investors have to
sacrifice performance or pay more to go 'green' with their
investment portfolios simply isn't true," Baker adds. "How much or
how little investors pay in fees or generate in returns, depends on
their risk appetite and investment strategy."
Some funds with ESG or sustainability mandates perform as well
or better than those without the sustainable label and the costs
associated with sustainable investing – like any other type of
investment strategy – vary based on the fund company, portfolio,
asset class and management structure.
"I encourage you, no matter where you are on your financial
path, to take advantage of tools and resources to discover how you
can realize your financial goals with an approach that doesn't come
at the expense of future generations."
This Financial Literacy Month, Co-operators is highlighting the
importance of savings and investing education through a
sustainability lens. Baker offers the following tips for Canadians
who want to invest using a sustainable investment strategy, but
aren't sure where to start:
- Review ESG and sustainability reports: Many companies
publish stand-alone sustainability reports and disclose ESG
information within their corporate filings, which you can find on
their websites. Review these documents for companies you want to
invest in (or are invested in) to ensure you support those that
share your values.
- Seek out sustainability-focused funds: Choose investment
products that give you access to pre-vetted companies with strong
sustainability track records. This is a simpler approach if you
don't have time to review corporate filings. However, it's still a
good idea to look at a prospective fund's portfolio holdings,
performance history and management expense ratio – the amount an
investment manager takes from your returns – to ensure it aligns
with both your values and financial goals.
- Consult a financial professional: A trusted financial
professional can help you achieve the best balance between
supporting companies that share your sustainable views while also
achieving your long-term financial goals. If you're looking for an
experienced financial representative, visit cooperators.ca to find
one in your community.
As a financial services co-operative committed to creating
financial security for Canadians and their communities,
Co-operators believes that sustainable investing is a pathway to
long-term financial growth for their client's portfolios and their
corporate holdings. By the end of 2022, nearly 24% ($2.69 billion) of Co-operators total portfolio
was in impact investments – an institutional investment strategy
that aims to create both compelling financial returns and positive
social and/or environmental impact.
Additional survey findings – Canadians' attitudes
toward sustainable investing
About the survey
The national online survey of 1,500
adult residents of Canada was
conducted between July 19 and 24,
2023. The sample was randomly drawn from a panel of
potential survey respondents (Leger Opinion). Post-stratification
weights were applied to the sample based on 2021 census population
parameters to ensure representation by province, age and gender. An
associated margin of error for a probability-based sample of this
size would be ± 3%, 19 times out of 20.
About Co-operators
Co-operators is a leading Canadian
financial services co-operative, offering multi-line insurance and
investment products, services, and personalized advice to help
Canadians build their financial strength and security. The company
has more than $59 billion in assets
under administration. Co-operators has been providing trusted
guidance to Canadians for the past 78 years. The organization is
well known for its community involvement and its commitment to
sustainability. Achieving carbon neutral equivalency in 2020, the
organization is committed to net-zero emissions in its operations
and investments by 2040 and 2050, respectively.
Co-operators is also ranked as a Corporate Knights' Best
50 Corporate Citizen in Canada.
For more information, visit cooperators.ca.
Media Contact:
media@cooperators.ca
Mutual funds are offered through Co-operators Financial
Investment Services Inc. to Canadian residents except those in
Québec and the territories. Segregated funds and annuities are
administered by Co-operators Life Insurance Company. Terms and
conditions apply. Please refer to
cooperators.ca/mutualfunddisclosure for details.
Co-operators Financial Investment Services Inc. is committed to
protecting the privacy, confidentiality, accuracy and security of
the personal information that we collect, use, retain and disclose
in the course of conducting our business. Please refer to our
privacy policy for more information.
The information contained in this report was obtained from
sources believed to be reliable; however, we cannot guarantee that
it is accurate or complete. This report is provided as a general
source of information and should not be considered personal
investment advice or solicitation to buy or sell any mutual funds.
The views expressed are those of the author and not necessarily
those of Co-operators Financial Investment Services Inc.
Co-operators® is a registered trademark of The
Co-operators Group Limited. © 2023 Co-operators Financial
Investment Services Inc. © 2023 Co-operators Life Insurance
Company.
SOURCE The Co-operators Group Limited
