Fifty-four per cent of Canadians who have discussed socially responsible investments (SRIs) with their advisor raised the topic themselves, according to a new Ipsos Reid survey conducted for Standard Life.

The study, which examined attitudes about socially responsible investing, found that Canadians are open to SRIs provided their investment returns are similar to other investment choices. However, the research also shows that awareness of SRIs is low and that investor education is required if the category is to reach its true potential.

Only 15% of those surveyed indicated that they knew a lot or a fair bit about socially responsible investments, while 42% reported they had never heard of SRI.

Of those surveyed, 32% said they are “very” or “somewhat” interested in SRIs. A solid 55% indicated that they would consider SRI if the return was “as good or better” than other investments. Interest in SRI spikes to 91% when a guarantee of some capital protection is offered.

The survey found that 10% of Canadian investors have made a socially responsible investment, and that number increases to 13% among higher net worth Canadians who have investments of $200,000 or more.

The study clearly indicates that investors who have already purchased SRIs are satisfied with their returns. Ninety-two per cent report being satisfied with the performance of these investments.

“This research is saying that Canadians will and have carefully considered socially responsible investments provided the returns are there,” says Anna del Balso, associate VP, research and intelligence of Standard Life.

“SRIs can become a much more important part of investing for both investors and advisors alike, but first investors must have more information and better accessibility to this type of investment. Advisors who take the time to understand their clients’ environmental and social values and provide investment opportunities that align with those beliefs may achieve sales and reputational gains.”

SRIs are defined as investments in companies or funds that meet certain environmental, social and governance standards. According to the Social Investment Organization, a Canadian trade association for socially responsible investing, SRI mutual funds total $25.3 billion and represent around four per cent of Canada’s retail mutual fund market.

For the Socially Responsible Investing survey, Ipsos Reid interviewed a national sample of 1,029 investors from Ipsos’ online I-Say panel and 537 advisors from Rogers’ panel between August 19 and September 9. A survey with a random probability sample of this size and a 100% response rate would be considered accurate to within ± 3.1 percentage points, 19 times out of 20.