What is Socially Responsible Investing (SRI)?

4 minute read

Over the past few years, there has been a significant increase in demand for Socially Responsible Investing (SRI).

So what is Socially Responsible Investing (SRI)?

Also referred to as Green, Ethical, Sustainable or just Responsible investing, it involves the integration of environmental, social and governance (ESG) factors into the selection and management of investments. The objective is to do good things with your money, and to use wealth to build a more economically, socially, and environmentally sustainable world.

To ensure your money is invested in companies that fit your values, a rigorous review process takes place.

Mutual Fund* investors consider how a company performs as a steward of our earth, how it manages relationships with employees, suppliers, customers, and the communities where it operates, as well as how the business operates in relation to its leadership and shareholder rights. Shareholder advocacy is another aspect of SRI, which allows investors to have a voice in the companies they invest in.

Alternately, some investment companies use a ‘screening’ approach. Screening is a filtering process based on social and environmental criteria that are used to identify if an investment can be deemed socially responsible. Positive screening might include companies that engage in practices that support human rights and the environment, for example. Or negative screens may be applied to limit investing in companies that support gambling or the production of military weapons or tobacco.

Why would you want to choose SRI?

Let’s address a big SRI myth – that you have to give up financial return to achieve SRI in your portfolio. The truth is, SRI performs just as well and often better than traditional investing. And, more and more studies show that investing responsibly actually reduces investing risk!

More Canadian investors are choosing SRI for their portfolios and it’s one of the fastest growing segments in the financial services industry. In fact, Kindred has been a leader in SRI for more than 20 years!

If you’ve been considering SRI, there’s no reason to delay. We can help you find socially responsible investments that allow you to connect your values and faith with your finances. Speak with a member of Kindred’s Wealth and Investment Team today. You can ask us anything!

All Kindred GICs are validated as socially responsible, a first in Canada!

*Mutual funds are offered through Qtrade Asset Management (a tradename of Credential Asset Management Inc). Mutual funds, other securities and securities related financial planning services are offered through Qtrade Advisor, a division of Credential Qtrade Securities Inc.

Qtrade Asset Management, Qtrade Advisor and Northwest & Ethical Investments L.P. are all wholly owned subsidiaries of Aviso Wealth Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, cash balances, mutual funds and other securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. Mutual funds and other securities are not guaranteed, their values change frequently and past performance may not be repeated.

Paul Arsenault

Paul Aresenault, CFP®, PFP®, RIS, CKA® is Director, Wealth and Investments
Branch Compliance Manager, Qtrade Asset Management Inc.

Paul has a wealth of experience helping members achieve their goals as a CERTIFIED FINANCIAL PLANNER® professional. He coaches Kindred’s Financial Planning Team and acts as our compliance manager for Qtrade Asset Management Inc. In addition, Paul is passionate about sharing his knowledge around RDSPs with members and organizations.

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