Growing institutional interest in socially responsible investment has propelled SRI assets in Canada to more than $500 billion, according to a study released today by the Social Investment Organization.

The study estimates total SRI assets in Canada in 2006 at $503.6 billion. This is an increase from $65.5 billion in 2004.

The study is based on a survey of SRI assets conducted every two years. It was sponsored by Acuity Funds Ltd., Alterna Savings, Desjardins Trust, Meritas Mutual Funds and The Ethical Funds Company.

The findings include $57.4 billion in assets invested according to Core SRI Strategies, which incorporate values-based decisions about investment selection and management with risk and return considerations.

It also includes $446.2 billion in assets invested according to Broad SRI strategies, which are primarily based on a fiduciary analysis of the risk and return characteristics of environmental, social and governance issues. This is a relatively new approach in SRI.

The dramatic increase in SRI assets is largely the result of the recent adoption of SRI policies and practices by several large public pension funds.

“Issues such as climate change, human rights and international development are generating enormous public and financial industry concern,” says Eugene Ellmen, executive director of the Social Investment Organization (SIO), which published the study. “Investment managers are now recognizing this, and adopting socially responsible investment policies and strategies as a result.”

Established in 1989, the SIO is the national trade association for the socially responsible investment industry. Its members include financial institutions, fund companies, asset management firms, investment consultants, financial advisors and investors. Its members serve more than half a million investors and depositors in Canada.