How socially responsible investing can make the world a better place

This story was originally titled "Put Your Money Where Your Heart Is" in the November 2007 issue. Subscribe to Canadian Living today and never miss an issue!

We're increasingly aware that our consumer dollars express our values: buying locally to cut down on greenhouse gas emissions; choosing fair trade to ensure a better deal for the producer in a developing country; or not using products manufactured in countries with poor human rights records. You know how powerful your money is, but have you considered how your investment dollars can make a statement about your values?

Investing with a conscience
Lisa Ashcroft, a single mom in Whistler, B.C., thought about it for the first time when she made the leap to socially responsible investing (SRI) seven years ago, and half of her investment portfolio is now SRI. "Every little bit helps," says Lisa, 42. "Ethical investing is a way for people to express their values and how they want to change the world through their money," says Elaine McHarg, chief marketing officer at The Ethical Funds Company, the largest Canadian retail investment firm in the growing SRI market.

Lisa's values include sustaining the environment, and she has always done her part by donating to charities and taking out the recycling. "If I'm going to be making money from my investments, it's nice to feel good about it," says Lisa, a presentation manager for Club Intrawest. Her financial adviser suggested she consider SRI, which means Lisa will profit from her investments while ensuring they are put to positive social purposes. She thought, That's right up my alley, and became one of the approximately 400,000 ethical investors in Canada. Turns out Lisa made a lucky turn when she chose her adviser.

Raising awareness
A survey presented to the Canadian Social Investment Conference in 2005 by GlobeScan Inc., a public opinion firm, revealed that just eight per cent of advisers in Canada bring up the option of SRI with their clients. In the vast majority of cases, SRI never enters into the discussion of how or where we'll invest our money, even though ethical funds have been available to Canadians for more than 20 years. Eugene Ellmen, executive director of the Social Investment Organization (SIO), says there has been a recent explosion in SRI. The Canadian Socially Responsible Investment Review 2006, published by SIO, reports assets invested according to socially responsible guidelines have increased from $65.46 billion in 2004 to $503.61 billion as of June 2006. But it's been a long haul.

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