Canadian investors are increasingly aligning their money with their values through ESG investing—a strategy that considers Environmental, Social, and Governance factors in portfolio decisions.
What Is ESG Investing?
ESG funds exclude companies that don’t meet ethical criteria (e.g. fossil fuels, weapons) and favour those that demonstrate strong environmental stewardship, social responsibility, and good governance practices.
Why It’s Growing in Canada:
- Awareness of climate change and Indigenous rights.
- Regulatory developments requiring ESG disclosures.
- Investor demand for values-driven financial growth.
Popular ESG Options for Canadians:
- iShares ESG Aware ETFs (e.g. XESG) – Diversified, low-cost ETFs screened for ESG factors.
- NEI and AGF Ethical Funds – Actively managed with a focus on sustainability.
- Desjardins SocieTerra Funds – Canadian funds with strong environmental mandates.
How to Get Started:
- Check if your TFSA or RRSP provider offers ESG-labelled products.
- Review ESG scores and fund fact sheets.
- Ensure your chosen fund aligns with both your ethics and your long-term financial goals.
ESG investing in Canada isn’t just a trend—it’s a growing movement that lets investors seek returns while supporting sustainable change.
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