- 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 /CNW/ - 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."
About Mackenzie
Investments
Mackenzie Investments is a leading investment management firm
with $203.7 billion in assets under
management as of March 31,
2024. Mackenzie provides investment solutions and related
services to more than one million retail and institutional clients
through multiple distribution channels. Founded in 1967, Mackenzie
is a global asset manager with offices across Canada as well as in Boston, Dublin, London, Hong
Kong and Beijing. Mackenzie
is a member of IGM Financial Inc. (TSX: IGM), one of Canada's premier financial services companies
with approximately $252.2 billion in
total assets under management and advisement as of March 31, 2024. For more information,
visit mackenzieinvestments.com.
About the Pollara Study
This study was conducted with an online sample of 1500 adult
Canadians between 19 and 25 March 2024. Results from a random
sample of this size can be considered accurate to within ±2.5 per
cent, 19 times out of 20. Results have been weighted by gender,
age, and region, using the latest census data, to be representative
of the Canadian population. Results have been compared to
similar studies conducted in 2023, where applicable.
SOURCE Mackenzie Investments