The Corporate Knights’ annual responsible investing guide provides informed suggestions for responsible investing and conscientious choices for the financial market. The latest guide was produced following a tough year during which investors weathered the financial storm that impacted stocks, bonds, real estate, tech stocks and cryptocurrencies, as Russia’s war on the Ukraine only pushed natural gas and oil prices higher.

“Financial performance dragged as the market sagged, and we faced attacks from critics on all sides of the political spectrum. And yet despite these challenges, we continue to see strong developments as the responsible investing ecosystem matures,” writes Tim Nash, founder of Good Investing.

While sustainably minded investors were satisfied with above-average returns in 2020 and 2021, this wasn’t necessarily the case in 2022.

Environmental, social and governance (ESG) investment strategies continues to have its critics, and some U.S. states have gone so far as to adopt laws to prohibit responsible investment strategies such as divestment from energy and weapons. But for its part, the Canadian Securities Administration is bringing forth guidance on the issue, with the goal to help standardize the language used and ensure that investment funds aren’t greenwashing.

Note: The funds listed here are not recommendations and should be viewed as a high benchmark and a starting point for your own research. Only equity funds are listed, so the CK report recommends that they should be combined in a diversified portfolio with fixed income or bond funds. The global equity ones are more focused on green companies but tend to be less diversified and more volatile. Investors should consider the risks and carefully decide how much to invest in each category. Speaking to an expert before investing is always a good idea.

The 2023 Responsible Funds Table

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Canadian stocks listed include the following: Desjardins SocieTerra Canadian Equity Income Fd I; Invesco S&P/TSX 60 ESG Tilt Index ETF (IXTE); iShares Jantzi Social Index ETF (XEN); CIBC Sustainable Canadian Equity Fund Series A; Desjardins SocieTerra Canadian Equity Fund A; TD Morningstar ESG Canada Equity Index ETF (TMEC); Invesco S&P/TSX Composite ESG Index ETF (ESGC); Invesco S&P/TSX Composite ESG Tilt Idx ETF (ICTE); Desjardins RI Canada – Low CO2 Index ETF (DRMC); and iShares ESG Advanced MSCI Canada Index ETF (XCSR).

To read the complete report and rankings, click here.


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