HOW WE CREATE A SUSTAINABLE FUTURE TODAY

Together, Canadians have the power to make a difference and protect our tomorrow, by investing in our future today.

The societal challenges we face are significant. From climate change and housing affordability to accessible healthcare and food security, the increasingly urgent call for answers begs the question: how can we make a difference on so many critical issues? The response is to develop solutions that take us towards a more sustainable, resilient future.

Don’t get lost in the complexities, you have the power to make a difference and it starts with being purposeful in how you invest.

“How money is invested matters – whether at an institutional or individual level – it can signal to participants in the financial market, the importance of social and environmental performance,” says Monika Freyman, vice president of Sustainable Investing at Addenda Capital, asset manager and subsidiary of Co-operators Group Limited. “Through our Impact Fixed Income approach, for example, we help clients direct their capital toward positive financial, environmental, and social outcomes.”

Today there are a growing number of companies and investors that take environmental, social, and governance (ESG) factors into account. But there are ways we can move beyond just consideration of ESG issues, to more impactfully leverage the power of investments to support a better, more resilient, and sustainable society.

Addenda Capital aims to achieve this through its Impact Fixed Income investment strategy, a portfolio of funds that invest in areas like renewable energy, clean transportation, affordable housing, healthcare, education, sustainable infrastructure and more, while providing market-rate financial returns at the same time.

Co-operators has become a global leader in impact investment, with over 21 per cent of its investment portfolio now supporting positive social and environmental change. Compelled by its co-operative values and its mission to act towards positive change, the organization also enables investors to take an active role in supporting environmental and social issues through exposure to investments that align with their values and risk-tolerance. Co-operators sustainable investment portfolios provide Canadians with the ability to contribute to meaningful change for future generations.

Co-operators investment strategy isn’t just driven by doing the right thing, it’s based on the principle that environmental, social, and financial value are inherently connected and interdependent.

For Chad Park, vice president of Sustainability & Citizenship at Co-operators, it is critically important that we do not sacrifice one for the other.

“Impact investing is good business and fundamental to our ability to fulfill our purpose as a co-operative,” says Park. “We exist to provide financial security to our clients over the long-term. Challenges like climate change are direct threats to that financial security, and so we are driven to invest in meaningful, long-term solutions.”

Co-operators directs over 75 per cent of their $2.6 billion in impact investments, toward funding climate solutions. With market-rate returns in these investments, and a desire to build resilient, sustainable Canadian communities, the company recently set a target to invest 60 per cent of its assets into either impact, climate transition, or resilience investments that help communities adapt to climate change, by 2030. Thankfully, investors and companies alike are considering how they can use their money to realize positive financial and non-financial results.

There is no shortage of capital to fund solutions to some of our greatest challenges. Around the world, organizations and individual investors have recognized the significance of the financial opportunity that exists in prioritizing environmental sustainability and long-term resiliency. Through the 2021 UNled Glasgow Financial Alliance for Net Zero, for example, over $130 trillion USD in capital has been committed to becoming net-zero.

For Park, Co-operators impact investment strategy has become a powerful and active reflection of their long-term vision to catalyze a more resilient, sustainable society.

“At the end of the day, we want our investments to build a society where our clients and communities can thrive today, without sacrificing the prosperity of future generations.”

Learn more about how you can invest in a sustainable future at www.cooperators.ca