SRI is about using investments to build a more economically, socially, and environmentally sustainable world. Meet with a member of our Wealth and Investment Team for investing advice with values at the core.
We want to help you connect your values with your finances. One way we do that is by offering socially responsible mutual funds. Socially responsible investments (SRI) use wealth to build a more economically, socially, and environmentally sustainable world. SRI is known by many names such as green, ethical, or responsible investing, it engages with environmental, social, and governance (ESG) analysis, and can include impact investing.
More Canadian investors are choosing SRI for their portfolios, and it’s one of the fastest growing segments in the financial services industry.
In 2016, Kindred became the first financial institution in Canada to have all our GICs validated as SRI.
An investment can be considered socially responsible based on the nature of the business the company conducts. Screening is a filtering process based on social and environmental criteria that are used to identify if an investment can be deemed socially responsible.
Negative screens strive to limit investing in companies that engage in practices such as gambling, military weapons, nuclear power, and pornography. Positive screens evaluate companies based on the good they do and strive to include those that engage in practices that support, for example, animal welfare, human rights, and the environment. Shareholder advocacy is another aspect of SRI, which allows investors to have a say in the companies they invest in.
Our Wealth and Investment Team partners with Aviso to offer socially responsible mutual funds from NEI Investments and IA Clarington Investments, both of which apply screening processes to their SRI offerings. We also offer SRI mutual funds with an ESG focus from leading companies including CI Investments, AGF, Franklin Templeton, Mackenzie, and Fidelity Investments.
Also referred to as Green, Ethical, Sustainable or just Responsible investing, SRI 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 that your money is invested in companies that fit your values, a rigorous review process takes place. All Kindred GICs are validated as socially responsible, a first in Canada!
Our approach to lending allows us to ask values-based questions in a structured way. The inclusion of lending screens enables us to balance funding loans with GIC deposits from members in a way that encourages our members to live out their values in practical, faithful ways. It’s designed to foster the financial health of our members and our credit union from both a risk and responsibility perspective.
At Kindred, we incorporate a set of socially responsible lending criteria into our agricultural and commercial lending practices. These criteria include screening business borrowers for any involvement in industries such as alcohol, tobacco, and gambling and for any significant negative impacts on the environment, human rights, or communities. Because our loans are funded by members’ GIC deposits, the screens in place ensure the GICs are SRI compliant.
Screens help all parties identify a range of activities that member businesses seeking a loan might be involved in. This information helps identify mostly non-financial risks to their business and to Kindred’s loan portfolio. In turn, this information provides a watch process to assist members in building businesses that are more socially responsible.
On the member deposit side, these screens allow Kindred to offer GICs that are validated as ‘SRI’ – a unique offering in the marketplace!
Kindred has the following screens and tolerance levels in two categories:
Why do we tolerate any revenue from these products and services?
Kindred is following best practices in the broader SRI industry and applies these in a consistent manner within our process. In practice, having tolerance levels, rather than absolute prohibitions, allows us to engage with members and influence their business practices in positive ways. Some small business owners might be obligated by the nature of their business to carry some of these products (e.g. a convenience store). We want to be able to serve their needs and identify ways they can be more socially responsible.
New members applying for credit that is not compliant with Kindred’s screening criteria will have, in most cases, their credit application declined. For existing loans coming up for renewal, Kindred has incorporated SRI non-compliance into our current procedures. Kindred has established an internal limit for SRI non-compliant accounts to comprise no more than 2.5% of the credit portfolio.
To learn more about this approach, please call or visit your local branch and speak with your Branch Manager, Account Manager, or a member of our Wealth and Investment team. We would appreciate hearing what you think about this approach as we continue to build a credit union that inspires peaceful, just, and prosperous communities.
Meet with a member of our Wealth and Investment Team for investing advice with values at the core. We can tell you more about socially responsible investing with Kindred and help with your financial plan today.
