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CONFERENCE OVERVIEW

Responsible Investing in CanadaBy Cary KrosinskyAdjunct and Coordinator, Columbia University

Just back from what was an excellent, buzzing responsible investing conference in Toronto, Ontario in Canada. Called the RIA, what was until last year was known as the SIO, hosts an annual gathering of financial professionals interested in or already working with applying environmental and social considerations to investment.  Around 350 professionals gathered to hear a variety of topics discussed, all of which are gaining in relevance.

First off on Monday was a panel on the issue of economic inequality, featuring excellent speakers including Bob Walker and Michelle de Cordova of NEI Investments, Kevin Ranney

of Sustainalytics and Adam Kanzer of Domini.  Of particular interest was the recent effort to pass a shareholder resolution on Google paying a more fair share of corporate tax.  Recent articles go into the details on this such as this recent piece in the Guardian.

Next was myself, along with Dermot Foley of Vancity and IA Clarington, on Carbon Constraints and Investment Strategy.  As per my recent About.com piece on The Problems with the Divestment Campaign, I argued at length for those pitching for a divestment campaign instead consider how to influence investment strategy, so that capital can enable the necessary energy transition.  Dermot eloquently stated the case for the strategies his firm deploys, and as he stated earlier this year for Corporate Knights: "It’s part of our overall strategy of encouraging all participants in the market to wake up to the possibility of very real carbon constraints.”

“The annual responsible investing conferences in Canada are always excellent, as was the equivalent event in Montreal two years prior.”

The following plenary went into detail on Impact Investing in Canada, one more case of the need for capital not yet met by adequate projects on the ground, as well as additional creativity within the sphere of allowable investment infrastructure.  An impact investing fair followed, along with the first opportunity for

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detailed networking, as conference attendees considered all they were hearing and learning.  

For myself, the following morning provided the opportunity to sit on one more panel on climate change and investment strategy, in which we went into more depth on this subject, including hearing from a representative of 350.org.

“ESG really needs to be integrated by all mainstream investors, or certainly many more assets than currently is the case...” 

Prior to this, Mariam Dao Gabala, West African Regional Representative forOikocredit gave an eloquent and touching overview of impact investing in practice in Africa, where a project to build a market for uneducated women to sell their produce was a rousing success, leading to further related education and health facilities on the ground.  Scaling such smaller ideas into capital which can be deployed to a larger extent is clearly the next hurdle, but providing case studies of success is as always a necessary first step.

Other concurrent panels on the Tuesday morning included talks on RI Basics and Anti-Corruption, and were followed by a panel on the performance myth, how extractive companies can try to be sustainable, and more on human rights and digital technology.

The conference wrapped up on the Wednesday with an in-depth discussion on the Future of Responsible Investment.  As I wrote earlier today in a blog for LinkedIn, while SRI is starting to make serious inroads, ESG really needs to be integrated by all mainstream investors, or certainly many more assets than currently is the case, so that meaningful environmental and social progress can be made and realized.

The annual responsible investing conferences in Canada are always excellent, as was the equivalent event in Montreal two years prior.  This was the first iteration of RI Week in Canada, including other side events hosted by PRI and others.

In late September in Montreal, there is another week of events, in this case the Global PRI events, both the PRI In Person and Academic Network events, as are being co-hosted by the excellent folks at Concordia University.  Not to be missed.

Canada is right in the middle of all that is happening in many ways - a resource rich country that is also keenly socially aware and focused, and environmentally concerned.  Keep a keen eye on Canada as a country willing to dive in and tackle the world's toughest problems. ▉This article was originally published at About.com here.

Cary Krosinsky teaches and advises on Sustainable Investing/Finance curriculum at Columbia University's Earth Institute since 2009, now in partnership with the RFK Center for Human Rights & Justice, as well as MBA classes at Bard College & the Univ. of Maryland. Senior Associate for CPSL at the University of Cambridge.

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Asset owners25%

Investment managers34%

Nonprofits6%

Media6%Other

8%

Service providers21%

(e.g. corporations, government, other)

(e.g. pension funds, endowments, foundations)

(and suppliers of investment management services)

(e.g. research firms, consultancies)

The 2014 RIA Conference attracted 325 delegates representing 179 organizations across Canada.

Delegates by organization type

1832 Asset ManagementA.R.C. FinancialAberdeen Asset ManagementAchieve FinancialAddenda Capital Inc.AGF InvestmentsAIESECAlan Willis & AssociatesAlberta Investment Management Corp. (AIMCo)Algonquin College

Alterna Savings & Alterna BankAlterna Savings & Credit UnionAltisHRAssante Capital ManagementAvalon Rare MetalsBalsillie School of Int’l AffairsBanff CentreBank of MontrealBâtirenteBenefits and Pensions MonitorBennett March

BloombergBullion Management GroupCaisse solidaire DesjardinsCanada Pension Plan Investment Board (CPPIB)Canadian Coalition for Good Governance (CCGG)Canadian Environmental Grantmakers' Network (CEGN)Canadian Institute of Financial Planners

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Organizations at the RIA Conference

Carleton Centre for Community InnovationCatherine Donnelly FoundationCBSRCCV Insurance & Financial ServicesCenovus EnergyCentre for Israel and Jewish AffairsCentury 21Certika Investments Ltd.CIBC Wood GundyCIGIClearBridge InvestmentsColumbia UniversityComart FoundationCommunity Forward FundConcordia UniversityCorktown Seed Co.Corporate KnightsCredit Union Central of CanadaCSRWireDelphi GroupDeloitte LLPDesjardinsDesjardins & AssociatesDesjardins GroupDi-Vert-Sifier Québec IncDolan Wealth Management, Raymond James LtdDomini Social InvestmentsDuca Financial ServicesEIRISEllioEncana CorporartionEnvision FinancialESDCFirst Affiliated Family Office Group Inc.First Calgary Financial Investment ServicesFreelanceFundata CanadaGENSHARE LTDGenus Capital ManagementGlobal Compact Network CanadaGlobe and MailGMI RatingsGreen Home MagazineGroupe Investissement Responsable IncHollisWealthHouse & Home Media

HRCarbonIA Clarington InvestmentsIndependent Planning GroupInsurance & Investment JournalInvestment ExecutiveInvestment Executive TC MediaInvestors Group Financial Services Inc.IPCIRonsideIRISSInter-Varsity Christian Fellowship of CanadaJacob Securities Inc.Johnny Fansher FinancialKPMGLakehead University GraduateLighthouse Money Management Inc.Loblaw Companies Ltd.Loop InitiativesLoyalTeam Inc.Manulife SecuritiesMariner Investment GroupMaRS Centre for Impact InvestingMaverick PRMeadowbankMennonite Savings and Credit Union (MSCU)MercerMercer InvestmentsMichigan State UniversityMicroVestMillani PerspectivesMoney ConceptsMorningstarMSCIMSCI ESG ResearchMunk School of Global AffairsNEI InvestmentsNew Market FundsNow MagazineOceanRock Investments Inc.Oikocredit CanadaOikocredit Canada CentralOikocredit InternationalOntario Teachers' Pension PlanOpen Spaces LearningOPSEU Pension TrustPembina InstitutePhillips, Hager & NorthPSACPurpose Capital

Qtrade AdvisorQtrade Financial GroupQuinn & Partners Inc.Raymond James Ltd.RBC Global Asset ManagementRBC PH&N Investment Counsel Inc.RBC Royal BankRenewal FundsResponsible Investment AssociationRogersRotman School of ManagementSarah ThomsonSchulich School of BusinessScotiaMcLeodSEED SustainableServus Credit UnionShareholder Association for Research and EducationSHSC Financial Inc.Siskinds LLPSisters of St. JosephSocialFinance.caState StreetStephen Whipp FinancialSun Life FinancialSustainable EconomistSustainable TrentSustainalyticsTD Bank GroupTD Canada TrustTD Wealth ManagementTides CanadaToronto Atmospheric FundToronto Sustainability Speaker Series (TSSS)Trent UniversityUniversity of Toronto Asset Management CorporationUniversity of VictoriaValley FirstVancityVancity Community FoundationVancity Investment ManagementWalmart CanadaWalter and Duncan Gordon FoundationWaterloo Lutheran SeminaryWolverton Securities LtdWorld Animal ProtectionWWF-CanadaZooShare Biogas Co-operative

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Executives27%

Advisors17%

Directors15%

Managers15%Analysts

9%

Other12%

Junior staff5%

(e.g. consultants, associates, academics)

(incl. researchers)

(incl. investment advisors, planners, sales)

(incl. students, assistants)

(e.g. C-level, Presidents, VPs)

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Delegates by job title

From left to right: Rose Cammareri, AGF Executive Vice-President, Gary Hawton, OceanRock President, John Montalbano, RBC GAM CEO, John Kearns, NEI CEO.

Testimonials

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“The 2014 Canadian Responsible Investment Conference marked our most successful conference to date in terms of content based on formal and anecdotal feedback from attendees. With key areas of thematic focus ranging from fossil fuels and stranded carbon assets to income inequality and supply chain management, the conference featured leading emerging trends appealing to both seasoned attendees and newcomers.”

Heather LangCanadian Director of Institutional

Relations, Sustainalytics

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Key quotes

“Requiring immediate returns on investment in African economies is not realistic... It is important to develop novel methods to create impact in these economies. Traditional investment criteria have less salience in Africa.”

Mariam Dao GabalaWest Africa Representative, Oikocredit

“What is equitable compensation? When does senior executive pay become too much? Linking pay to indicators of long-term value and performance is a way to curb excessive executive compensation practices.”

Michelle de CordovaDirector, Corporate Engagement & Public Policy, ESG Services & NEI

Ethical Funds

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“Corporate social responsibility serves as the moral compass for Loblaws. CSR is not just lip service; we take this very seriously. We call our CSR Report� The Way we Do Business”.

Bob ChantSenior VP, Corporate Affairs and

Communication, Loblaw

“People have to be informed and educated about SRI so that it can be made credible. This involves working with media to make SRI more interesting.”

Martin GrosskopfDirector, Sustainability Research and Portfolio Manager, AGF Investments

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“The advisors are the bridge to SRI. They are a critical piece to get the message along. But for them to do their job and to buy in, we as manufacturers need to do a better job to put them in a position to communicate and relate to their clients�”

John MontalbanoCEO, RBC Global Asset Management

“90% of investors have barely heard about SRI, but 50% to 70% of investors are likely to invest once it is explained to them... People get excited when you discuss SRI much more than they do when you discuss traditional investment.”

Rosalie VendetteSenior Socially Responsible Investment

Advisor, Desjardins Group

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Impact investing is about intentionality– it’s about the investor’s intention to drive social or environmental change. It’s also about measurement– a measurement of what kind of social or environmental impact that investment is going to make.

Sandra OdendahlDirector, Corporate Sustainability and

Head, RBC Social Finance Initiative

“We need to somehow get the advisors, who are the intermediaries who advise the vast majority of assets that are invested in Canada, to at least pose the SRI question.”

Gary HawtonPresident, OceanRock Investments

“It is difficult to understand the finances of companies that rely on tax avoidance practices. Further, understanding that company’s actual value can be difficult. “

Adam KanzerManaging Director and General

Counsel, Domini Social Investments

100% of delegates surveyed rated the overall quality of the conference as either excellent or good. Zero said it was fair or poor.Question: How would you rate the overall quality of the conference? Excellent, good, fair, or poor?

Delegates unanimously agreed or strongly agreed that the RIA Conference provided great networking opportunities. Question: To what exten[ do you agree with this statement?: The conference provided great networking opportunities. Strongly agree, agree, disagree, strongly disagree?

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RIA Conference Feedback

Excellent58%

Good 42%

Agree74%

Strongly agree26%

Delegates also agreed that the RIA Conference was a valuable learning experience. Zero disagreed.Question: To what exten[ do you agree with the statement? The conference provided a valuable learning experience. Strongly agree, agree, disagree, strongly disagree?

A majority of Non-RIA Members at the conference said the conference made them more likely to join the RIA.Question: If you are not a member of the RIA, did the conference make you more likely to join?

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Agree59%

Strongly agree41%

Yes59%

No41%

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Barbara PlantESG Product Manager, Bloomberg

Dermot FoleyManager ESG Analysis, Vancity

Helle Bank JørgensenHead, Global Compact Network Canada

Patti DolanAdvisor, Dolan Wealth Management of Raymond James Ltd.

Adam SpenceFounder of the SVX and Associate Director, MaRS

Bob Walker VP of ESG Services, NEI Investments

Fred PintoCEO, OceanRock Investments

The 2015 RIA Conference will take place from May 31st to June 2nd at the Banff Centre. Join us for what will surely be another productive, successful conference.

Visit www.riacanada.ca for more information. Follow us on Twitter @RIACanada

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