At Finandicap, we believe that responsible investments and long-term returns should not be opposed because they go hand in hand. We aim for investments that support environmental, social and governance (ESG) mandates. Because many investors these days want a portfolio that is not only diversified, but that will also have an impact on society, whether it is putting their money in companies that make positive change or to avoid those they perceive as harmful.
Climate change poses the greatest risk to the global economy, according to the Global Fund (IMF).
Ensuring a gradual transition to a low-carbon economy is essential if a catastrophic financial shock is to be avoided, especially for Canadian investors whose benchmark stock index, the TSX compound, is made up of 25% energy companies. This transition is also an opportunity for investors.
Research shows that companies with diverse boards and employees are more likely to perform well in terms of financial performance.
We therefore believe that diversity should be imposed on all boards of directors, if only out of duty to their shareholders. In addition, a correlation has been established between board diversity and sustainability performance – an important aspect for companies in the consumer and resource sectors where environmental or social error can have devastating effects on the value and stability of the share.