Large investors willing to engage with our disinvestment to achieve ESG goals

Respondents acknowledged Canadian securities administrators’ plans to mandate certain public climate-change disclosures, but many felt that it resulted only in minimum global standards, rather than positioning Canada as a leader in this regard. It is possible.

Divorce or Engagement?

The report shows that institutional investors, instead of relying on disinvestment, increased their involvement with issuers in 2021.

Eight out of ten respondents said they accepted the holistic nature of markets and that firms would need transition financing to achieve net zero targets. This means that disinvestment can be counter-productive.

However, he acknowledged that education is important, and that clients would need a rationale for engagement, rather than an explanation of disinvestment.

Greenwashing remains a concern and respondents said they expect more scrutiny of investment products to meet ESG demands.