2024 Canadian RI Trends Report
The market share of responsible investment (RI) assets under management (AUM) in Canada has grown significantly, according to the latest findings from the 2024 Canadian Responsible Investment Trends Report. Released by the Responsible Investment Association (RIA), the report tracks the national trends and outlook for RI, which refers to investments that incorporate environmental, social and governance (ESG) factors into the selection and management process.
The 2024 Report reveals a pivotal milestone for the industry, with RI now accounting for 71% of total AUM. This growth is accompanied by a marked rise in investor confidence, driven by clearer definitions of RI strategies and improved ESG reporting practices. The Report also identifies key challenges that continue to hinder RI’s full potential, including greenwashing, regulatory uncertainty and performance concerns. Read the report.
Key findings from the 2024 Report:
- Nearly 60% of respondents report increased confidence in the quality of ESG reporting, driven by clearer RI strategy definitions. However, demand for standardized reporting practices remains strong
- Climate change concerns, investor demand for ESG/impact investments and regulatory guidance/requirements remain the primary drivers of RI growth.
- Risk mitigation remains the primary reason organizations consider ESG factors, followed by enhancing long-term returns and fulfilling fiduciary duties.
- Greenwashing and lack of standardization remain top obstacles, while concerns related to perceived performance of RI are more pronounced.