VANCOUVER, BC, March 15, 2024 /CNW/ - In a paradigm-shifting development, Canadian institutional investors are taking the lead in advancing impact investing within public markets, surpassing mere ESG integration to a focus on achieving tangible, positive impact outcomes. This marks a significant departure from conventional investment practices, with institutions now prioritizing not just Environmental, Social, and Governance (ESG) checkboxes but real-world, measurable impact.
Increasingly, Canadian institutional investors are actively seeking investments that demonstrate measurable, positive impact rather than trying to avoid "bad actors" through traditional ESG screening.
The institutions leading this charge at Genus are strategically incorporating bonds and public equity investments into their portfolios to achieve their impact and financial goals. By leveraging these financial instruments, they aim to not only generate financial returns but also catalyze positive social and environmental outcomes. This move is reflective of a significant shift toward impact investing in both debt and equity markets.
"From our own experience at Genus, impact investing for institutions and foundations has been one of the fastest-growing areas in recent years. In the past year, institutional impact investment AUM has grown by 16%. More clients are eager to step into and learn about impact investing, many have also instituted a formalized framework for their adoption of impact investing, to increase transparency and accountability." - Stephanie Tsui, Head of Foundations & Non-Profits at Genus Capital Management.
Genus enables their institutional and foundation clients to go beyond traditional financial metrics, prioritizing impact by integrating positive, measurable impact outcomes into their investment strategies. With a commitment to aligning financial goals with positive societal and environmental impact, Genus exemplifies the ethos driving the shift towards impactful investing in public markets.
"We believe that impact investing is not just "a nice to have" nor a privilege but a responsibility. We are dedicated to achieving meaningful impact, beyond just meeting ESG criteria. By incorporating ESG criteria and impact considerations into institutional investment portfolios with bonds and equities, we strive to set a new standard for the industry, proving that financial success and positive impact can go hand in hand."- Stephanie Tsui, Head of Foundations & Non-Profits at Genus Capital Management.
This evolution in institutional investment practices sets the stage for a broader transformation within the financial industry. Investors across the spectrum increasingly recognize the imperative of moving beyond ESG compliance to actively seek investments that contribute to a sustainable and equitable future.
The commitment of leading institutions and the proactive approach of firms like Genus Capital Management indicate a profound shift towards aligning financial goals with impactful outcomes. This movement not only sets new industry benchmarks but also heralds a future where responsible investing becomes the norm.
About Genus: Genus Capital Management is an investment counseling firm managing pension funds, endowments, trusts, foundations, and individuals from across Canada. Genus is a Certified B Corp asset manager that has been at the forefront of sustainable investing for over 30 years. Impact and sustainable investing have grown to become the core of Genus' offerings after decades of evolution designed to meet the needs of investors who are passionate about climate action.
Genus has encouraged Canadian investors that even in a resource-heavy economy, it is possible to build a financial legacy that does not contribute to climate change. Our investment capabilities encompass an extensive range of global equity, fixed income, specialty mandates and Fossil Fuel Free investments.
SOURCE Genus Capital Management Inc.
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