In the institutional market, growth has also progressed enormously on the RI front, spurred by significant regulatory developments. Numerous environmental, social and governance (ESG) integration policies have been legislated globally, including the 2015 Pension Benefits regulations in Ontario. And further top-down intervention can be expected, especially as regulators and central banks take heed of the potential financial implications of climate change, and encourage greater transparency from investors on how these are being managed..
Case in point: the Federal Government created the Expert Panel on Sustainable Finance to investigate ways the financial sector can help encourage and direct capital flows to support low-carbon Canadian initiatives, which included formal recommendations to promote sustainable investment as “business as usual” within the asset management community, and to provide investors with the opportunity and incentive to connect their savings to climate objectives.
Simply put, sooner rather than later, there will no longer be a choice as to whether we should be responsible investors – or Advisors. It’s a reality we ALL need to embrace within the investment management industry.