Despite ongoing polarization and scrutiny around sustainable finance, a new report from the Responsible Investment Association (RIA) shows that many Canadian institutional asset managers and investors are embracing responsible investing (RI).
Published Tuesday, the 2025 Canadian Responsible Investment Trends Report is based on responses gathered from a survey of Canadian institutional asset managers and investors, which was conducted between May 7 and July 9. A total of 83 respondents completed the survey, including 51 asset managers, 30 investors and two organizations that self-identified as an asset manager and investor.
Notably, the poll found that ESG integration was used by 96% of respondents across 87% of assets under management (AUM). That’s compared to 94% who used ESG integration across 91% of AUM last year.
Also, 75% said RI remained a priority within their portfolio management processes, up from 67% who expressed that sentiment in 2024.
“The global conversation around sustainable finance may be shifting, but our data shows that Canadian investors remain firmly committed to responsible investment,” said Patricia Fletcher, CEO of the RIA, in a release.
“Investors are no longer asking whether sustainability belongs in financial analysis. The focus is now on how RI is implemented with integrity and impact.”
Another key finding of this year’s report was that two-thirds of institutional asset managers and investors surveyed expect RI to continue growing. Meanwhile, 31% expected RI levels to remain stable and 3% said they expected a decline.
By comparison, in 2024, 83% of respondents expected RI to grow, 15% expected it to remain flat and 2% expected it to shrink.
The risk associated with climate change was identified as the top driver of RI growth (cited by 48% of respondents) in this year’s survey, while negative media coverage from other jurisdictions was considered the main deterrent to this growth (cited by 46%).
The report also analyzed confidence in the overall quality of ESG reporting. More than two-thirds of respondents (69%) expressed confidence in the quality of this reporting. This number was even higher (91%) when respondents were asked about confidence in their own organization’s quality of ESG reporting.
Moreover, the report highlighted that 76% of respondents said they were committed to collaborative RI engagements and initiatives in Canadian markets, “despite recent legal challenges in other countries which have caused some to retreat.” That’s compared to 51% who said they were committed to this kind of collaboration in U.S. markets and 62% in international markets.