RI Momentum Gives Way To Demand For Sophistication

The responsible investment industry is in the midst of a remarkable evolution, says the Responsible Investment Association’s (RIA) ‘2022 Canadian Responsible Investment (RI) Trends Report.’ This year’s report confirms that RI’s recent momentum is giving way to demand for sophistication and more vigilant reporting, signaling a maturing industry. Over the past two years, the rush into RI claims has been met by forces both external and internal to the financial industry, including the reputational and legal risks associated with greenwashing and lack of clarity around ESG (environmental, social, and governance) industry terminology and disclosure requirements. The report affirms that RI is entrenched in Canada, with reported assets under management at $3 trillion and 94 per cent of respondents using ESG integration as an RI strategy. This marks the emergence of a reliable baseline for RI market share and demonstrates that ESG integration is a fundamental tool in Canadian investors’ decision-making. Growth expectations overall remain strong with 90 per cent of respondents anticipating moderate to high levels of growth over the next two years.