What is Responsible Investing?

Advisor giving advice

Nowadays, it is important to many people that the companies they are investing in provide sustainable, long-term returns through ESG practices. ESG is the term that has emerged globally to describe the Environmental, Social and corporate Governance factors that concern investors and other stakeholders.  Investors have this option available to them in the form of Responsible Investment funds, allowing them to invest in companies that are aligned with their personal values.

When constructing a portfolio with Responsible Investing consideration, portfolio managers will examine a company to ensure they have policies and practices in place related to the Environmental, Social and Governance factors relevant to their industry. “From an investor perspective, Responsible Investing gives peace of mind that there’s another layer of due diligence in the screening process by looking beneath the hood of just the company’s financial statements,” says David MacRae, Mutual Funds Investment Specialist at Credential Asset Management Inc. and Investment Services Manager at Cambrian Credit Union.

Responsible Investing seeks to better manage risk (including value-destroying reputational risks stemming from issues such as climate change, pollution, working conditions, employee diversity, and corruption) and generate sustainable, long term returns.  When investors are focused on an investment that matches their personal values, they are more inclined to ride out market volatility, meaning responsible investments are less likely to experience the levels of turnover seen in more traditional mutual funds.

You can make a difference

When you invest into NEI Select or NEI Private Portfolio, you have the power to make positive changes.  As a shareholder (owner) NEI has proposed solutions to help companies change for the better. Companies such as Black Diamond, Boyd Group, Dollarama, Lumenpulse, Mitel, Mullen Group, Parkland and Winpak have committed to using their voting power for diversity, and NEI has focused for over 15 years to advance gender diversity on corporate boards in Canada.

NEI has also worked to improve employee safety. They engaged with CN Rail to link CEO pay to a safety metric, which has resulted in a safety performance improvement of 31% in Canada and 26% in the US since 2007.

You can learn more about how NEI has been helping companies change for the better by clicking here.

How to get Started in Responsible Investing?

NEI is a member-owned solution so when you invest with NEI you are investing in a solution that you own. NEI has a 30-year track record of responsible investing and is a leader in the Canadian marketplace.

All Credential Asset Management advisors at Cambrian Credit Union are completing their Responsible Investment Specialization Designation in 2019, allowing them to guide you as you build your responsible investing portfolio.

To speak with a Credential Asset Management advisor at Cambrian Credit Union, contact your local branch.


This article is provided as a general source of information and should not be considered personal financial or investment advice or solicitation. The information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete.

NEI Investments is a registered trademark of Northwest & Ethical Investments L.P. Northwest & Ethical Investments Inc., and Credential Asset Management Inc. are wholly-owned subsidiaries of Aviso Wealth Inc. ("Aviso").

Mutual funds are offered through Credential Asset Management Inc.  Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments.  Please read the prospectus before investing.  Unless otherwise stated, mutual fund securities and cash balances are not insured or guaranteed and are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions.  Their values change frequently and past performance may not be repeated.