What is sustainable investing?

Sustainable investing, also known as responsible or ESG investing, is an approach to investing that incorporates environmental, social and governance (ESG) factors in the investment process.

Understanding ESG factors

ESG factors are important drivers of change in the world and often impact the environment in which companies operate, creating both risks and opportunities.

Environmental icon

Environmental

Environmental factors consider how a company performs as a steward of the natural environment.

Social icon

Social

Social factors consider how a company manages relationships with its employees, suppliers, customers, and the communities in which it operates.

Governance icon

Governance

Governance factors consider the quality and reasonableness of a company’s leadership, executive pay, audits and internal controls, and shareholder rights.

Sustainable investing is growing at a rapid rate in Canada.

Bar chart showing the rapid rate of growth of Sustainable investing in Canada

77 percent

1%

of Canadian investors are interested in sustainable investing.

82 percent

1%

of Canadian investors would like to dedicate a portion of their portfolio to sustainable investment.

77 percent

1%

of Canadian investors agree that companies with good ESG practices are better long-term investments.

Source: Responsible Investment Association.

The benefits of sustainable investing

Align investing with values

Align investing with values

Sustainable investment strategies allow investors to align their investment objectives with their values and beliefs, by generating returns while contributing to positive social and environmental outcomes.

Improve risk management

Improve risk management

Evaluating ESG issues provides a more holistic view of risks that companies face and can help reduce exposure to risks that may not be visible on a company’s financial statements.

Enhance long-term performance

Potential to enhance long-term performance

Integrating ESG issues can also help uncover opportunities that would be difficult to identify through traditional financial analysis alone and thus has the potential to enhance long-term returns.

Doing good can be good for your money.

Fidelity Sustainable World ETF and Mutual Fund is a global multi-factor equity strategy designed to provide strong risk-adjusted returns by investing in companies with favourable environmental, social and governance characteristics.

Looking for more ways to invest in positive change?

Learn more about Fidelity Women's Leadership Fund →

The Fidelity way

In an ever-changing and complex financial services world, we’re committed to developing quality products that provide long-term value.

Founded in 1946, Fidelity is one of the world’s largest providers of financial services. As a privately owned firm, we have been providing investment solutions and innovations to our clients in Canada for more than 30 years. We’re invested in proprietary research, bottom-up fundamental analysis, product innovation and our people. With investment professionals worldwide, Fidelity takes local market knowledge, identifies real opportunities and makes them available to you here at home.

Read a fund’s prospectus before investing. Mutual funds are not guaranteed; their values change frequently, and past performance may not be repeated. Investors will pay management fees and expenses, may pay commissions or trailing commissions and may experience a gain or loss.

Fidelity Sustainable World ETF and Mutual Fund use a quantitative model, which may not produce the intended results for a variety of reasons, including, but not limited to: errors or omissions in the data used by the model, the factors and/or assumptions used in the model, the weight placed on each factor and/or assumption in the model, changing sources of market return or market risk, market disruption, and technical issues in the design, development, implementation, and maintenance of the model.

Used with permission of The Responsible Investment Association, May 10, 2019.

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