Eco-investing, or sustainable investing, allows Canadians to grow their wealth while supporting environmental and ethical goals. As climate awareness and ESG standards rise, more investors are looking to align values with financial returns.
What Is Eco-Investing?
It focuses on companies or funds that prioritise clean energy, carbon reduction, ethical governance, and social responsibility. This often involves avoiding fossil fuels, weapons, or polluting industries.
Popular Investment Options in Canada:
- ESG ETFs: Options like BMO’s ESG ETFs or iShares’ XESG track responsible companies across global markets.
- Green Bonds: Issued by governments and corporations to fund environmental projects.
- Sustainable Mutual Funds: Offered by Desjardins, NEI, and RBC Vision, these funds actively select ESG-compliant investments.
Benefits:
- Potential for strong long-term returns.
- Alignment with personal values.
- Lower regulatory and reputational risks in the long run.
How to Get Started:
- Filter investment products by ESG or sustainability rating on your platform.
- Research the fund’s screening methodology.
- Include ESG investments in your TFSA or RRSP for tax-efficient impact.
Eco-investing is more than a trend—it reflects a broader shift in how Canadians think about finance, ethics, and the future.