Despite world events, retail investors in Canada remain keenly interested in responsible investments; though greenwashing remains a deterrent

Majority of investors surveyed cite advisors and financial institutions as most valued sources of information when it comes to making investment decisions related to responsible investments.

TORONTO, April 10, 2025 /CNW/ - Most Canadian retail investors want to discuss responsible investment (RI) with their financial advisor, yet fewer are being asked about it, according to a new survey from the Responsible Investment Association (RIA).

The 2025 RIA Investor Opinion Survey, based on an Ipsos poll of 1,001 individual investors in Canada, shows that 76% of respondents want their financial advisor or institution to be required to ask them specific questions about responsible investment (RI) considerations that align with their personal values as part of the Know Your Client process. Only 28%, however, said their financial services provider had ever posed such questions, demonstrating a persistent "RI service gap."

Despite a decline in the prior survey, 2025 saw a slight uptick in greenwashing concerns with over half of respondents (54%) acknowledging that it deters them from RI compared to the previously reported 46%. Other key deterrents include lack of knowledge about RI funds, lack of clarity around fund labels and strategies, and performance concerns. This may be the cause of a slight decrease in ownership of RI year over year.

While younger respondents continue to exhibit much higher ownership than their older counterparts, there is growing interest among those 55 and over.

"The demand is there," says Patricia Fletcher, CEO of the RIA. "However, the persistence of greenwashing as a deterrent signals that despite recent progress, continued efforts on multiple fronts are required to address these concerns. Advisors are uniquely positioned to engage with clients to address both their values and concerns, and provide education."

This report is the the first one published as part of the newly launched Responsible Investment Research Initiative, a program of the RIA that delivers objective, data-driven insights spanning the full spectrum of responsible investment in Canada through three comprehensive reports.

Additional Highlights:

• Two thirds of respondents (67%) are interested in RI, with younger respondents generally expressing greater interest than older respondents, and female respondents more interested than their male counterparts. There was also a noted increased interest among those 55 and older.
• Consistent with the last survey, 66% of respondents know little or nothing about RI, including 19% that have never heard of it.
• Considering the impact of world events, 35% of respondents say they are more likely to choose RI than one year ago, while 49% say they are neither more nor less likely. RI ownership decreased slightly from late-2023.
• 76% of respondents say they would like their financial advisor or institution to be required to ask them specific questions about RI considerations that align with their personal values. However, only 28% said their financial services provider had ever posed such questions. Of those approached, only 35% had meaningful discussions on RI.
• Greenwashing is more of a concern than in late-2023, with over half of respondents (54%) acknowledging this concern as a deterrent of RI compared to the previously reported 46%.
• 64% of respondents are either not very familiar or not familiar at all with the applications of artificial intelligence (AI) in the investment decision-making process. 68% say it is important for companies in their investment portfolio to adopt responsible AI frameworks and principles, and 71% say it important for their financial advisor or financial institution to adopt responsible AI frameworks and principles.
• 92% say it is important to consider investment opportunities in the incorporation of RI in portfolios, along with risk reduction (89%). 88% say that financial advisors are important sources of information for making investment decisions related to RI.

View the full report here.

*For messages from Responsible Investment Research Initiative partners, view page 4 of the report.

About the RIA Investor Opinion Survey

The Responsible Investment Association publishes the RIA Investor Opinion Survey annually to track individual investors' perspectives on responsible investment and various environmental, social and governance (ESG) issues. The 2025 Survey is based on data collected by Ipsos from 1,001 Canadian individual investors between January 27th and February 3rd, 2025. Investors are defined as individuals who currently own investments such as mutual funds, exchange-traded funds, stocks, bonds or other securities. The poll has a Bayesian credibility interval of ±3.5%.

About the Responsible Investment Research Initiative

The Responsible Investment Research Initiative, a program of the Responsible Investment Association (RIA), delivers objective, data-driven insights spanning the full spectrum of responsible investment in Canada through three comprehensive research reports: 1) the Investor Opinion Survey, 2) the Advisor RI Insights Study, and 3) the Canadian Responsible Investment Trends Report.

The Initiative and production of the reports are generously supported by partners Addenda Capital, Desjardins, Mackenzie Investments, National Bank Investments, RBC Global Asset Management and TD Asset Management. Learn more at www.ri-research-initiative.ca.

About the Responsible Investment Association (RIA)

The RIA is Canada's investment industry association with a purpose of entrenching responsible investment (RI) in Canada's financial ecosystem. The RIA's membership includes asset managers, asset owners, advisors and service providers. Institutional members collectively manage over $45 trillion in assets globally. Learn more at www.riacanada.ca.

SOURCE Responsible Investment Association

Media Contact: Ady Jonsohn, Vice President, Content Development and Delivery, Responsible Investment Association (RIA), [email protected]