Growing Interest in Sustainable Investing Among Canadian Investors: Study Findings and Concerns

Canadian investors are increasingly turning their attention towards sustainable investing (SI), according to a new study released by Mackenzie Investments. The fifth annual Earth Day Study revealed that interest in SI is on the rise, with 23 per cent of respondents currently engaged in sustainable investments, up from 20 per cent in the previous year.

Despite the growing interest in SI, the study found that a majority of Canadians still have concerns about greenwashing and transparency in the sector. Sixty-one per cent of respondents expressed worries about these issues, with 43 per cent believing that SI lacks clear guidelines or standards, and an equal number feeling that sustainable investments may deliver lower returns than traditional ones.

However, the study also highlighted a positive trend, with 45 per cent of those not currently engaged in SI stating that they are likely to add sustainable investments to their portfolio in the next two years. This indicates a potential shift towards aligning financial goals with environmental and social considerations.

Fate Saghir, Mackenzie’s SVP of sustainability, acknowledged the progress in sustainable investing but emphasized the need to address concerns and misconceptions surrounding greenwashing, transparency, and performance in the industry.

In addition to SI, the study also explored Canadians’ interest in the energy transition. Nearly half of respondents expressed a likelihood of considering investments in companies focused on the clean energy transition in the next two years. Furthermore, 77 per cent of current SI investors plan to increase their exposure to the sector.

While there is enthusiasm for investing in the energy transition, the study revealed that less than 40 per cent of respondents feel they adequately understand the size and scope of the transition and the available investment options. Saghir highlighted the importance of the financial industry in providing accessible knowledge and education on opportunities within the energy transition.

The study was conducted with an online sample of 1,500 adult Canadians and is considered accurate to within ±2.5 per cent, 19 times out of 20. Results were weighted by gender, age, and region to be representative of the Canadian population and compared to similar studies conducted in 2023.