Socially Responsible Investing
Invest your excess cash that complies with individual investment policies and aligns with your values.
What is Socially Responsible Investing?
Socially responsible investing (SRI) is also known as sustainable, impactful, ethical, or “green” investing. This global movement dates back to the 1960s, when investors sought to address social inequality. In the late 1990s, the focus expanded to incorporate environmental sustainability and address the threat of global climate change. Today, the term encapsulates any investment that advances socially responsible initiatives, and a growing number of corporations and public entities are incorporating the idea into their investment strategy.
Responsible investing is becoming a high priority for institutional investors across Canada. Prior to investing in a specific socially responsible investment product, an investor needs to determine their:
Goals and values that they aim to accomplish;
Investment horizon and liquidity needs;
Permitted or eligible investments under an Investment Policy Statement (IPS).
IMPACT GICs
We are excited to partner with financial institutions across Canada to offer IMPACT GICs, exclusive to the Cash Management Group at Canaccord Genuity. Many municipalities and institutional investors have adopted the UN’s Sustainable Development Goals (SDGs) as guidelines for their sustainability objectives. As such, we built a product enabling these institutions to align their values with the SDGs.
Why IMPACT GICs?
IMPACT GICs go through both negative and positive screening:
Negative Screens
The first and most common approach to socially responsible investing is divestment from industries and entities that create negative consequences for the world around them. This is called “negative screen”, and is a commitment to prevent an investor’s capital being used in activities the investor objects to. For example, Canadian investors concerned about climate change should review any pooled funds or managed products they own, as these may include fossil fuel producers, transporters, and distributors. IMPACT GICs are subject to 10 negative screening categories under which no lending activity will occur.
Positive Screens
The second approach is the “positive screen”, a commitment to invest in activities that further the broader social goals of the investor. For investors with a broad focus, the UN published 17 Sustainable Development Goals which it considers critical to the creation of a better, more just world. These goals form the basis of the IMPACT GICs program and all lending under the program will align with at least one of the Sustainable Development Goals
Our GIC Investor’s Guide
We created this guide to help you make more informed investment decisions. With this guide, we hope you will be able to more meaningfully evaluate the risks and benefits associated with the investment options available to you.
The Cash Management Group is a proud to be a supporting member of the Responsible Investment Association (RIA) since 2015.
The RIA is Canada’s membership association for Responsible Investment. As a member, we believe that the integration of environmental, social and governance (ESG) factors into the selection of management of investments can provide superior risk adjusted returns and positive societal impact.
The Responsible Investment Association’s purpose is to:
Support the responsible investment activities of its members.
Promote the integration of ESG factors into investment analysis and decision-making processes.
Promote the practice of responsible investing in Canada.
