Invest to Drive Change
Sustainable, Responsible and Impact Investing
- Mackenzie Global Sustainability and Impact Balanced Fund
- Mackenzie Global Leadership Impact Fund
- Mackenzie Global Leadership Impact ETF
- Mackenzie Global Environmental Equity Fund
Canadians started investing in socially responsible mutual funds in 1986,1 to align their investing with their personal values. Some investors also wanted to manage risk and try to influence issues or behaviours, either at specific companies or in society at large. Today, Canadians have invested billions of dollars in sustainable funds, with Assets under Management in socially responsible investing mandates growing to $9.7B at April 2018.2 Initially, SRI stood for Socially Responsible Investing and primarily involved excluding companies that did not meet specific criteria. Investors used “negative screening” to avoid companies with operations, practices or assets that did not align with their social objectives. However, as the popularity of SRI investing increased, the term broadened to encompass more strategies.
SRI = Sustainable, Responsible and Impact Investing
Today, Mackenzie Investments identifies SRI as “Sustainable, Responsible and Impact Investing”. In general, sustainable responsible and impact investing includes considering environmental, social and governance (ESG) factors when making investment decisions. So when portfolio managers analyze a company’s financials to find value, they also examine the company’s environmental record, socially-responsible practices and corporate governance. For example, is the company trying to reduce its carbon footprint? Does its supply chain create products with integrity? Does the company promote gender and ethnic diversity in its executive leadership? The analysis can also focus on specified themes – such as clean energy – and then the investment approach may select companies accordingly, such as based on the quality of their clean energy policies.