Socially Responsible Investing

How does Socially Responsible Investing work?

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.

Our Wealth and Investment Team partners with QAM and QA 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.

What makes an investment socially responsible? 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.