Is your portfolio a reflection of your values? More and more, Canadians are answering with a resounding "yes!"
Money.ca surveyed 501 investors to understand how ethical concerns and corporate responsibility are reshaping long-term investment strategies.
What are the biggest factors driving Canadians to divest from certain companies? And what causes are closest to their hearts? Explore the results and see how your investment priorities stack up against this rising tide of ethical investing.
Key takeaways
- 68% of investors aged 18–29 are willing to divest from socially irresponsible companies in favour of ethical stocks.
- Outside of performance, environmental impact (38.5%) and social equality (37.9%) are top concerns for Canadian investors.
- Nearly 6 in 10 Canadians are willing to accept lower returns for 1–2 years to support ethical practices.
- Two out of three women would “definitely” or “probably” divest from companies with poor social responsibility records.
Young investors show a strong willingness to divest from socially irresponsible companies
When asked about divesting from companies with poor social responsibility practices, a combined 68% of investors aged 18–29 indicated they would take action. Nearly one-third (30%) said they would "definitely" divest, while 38% reported they would "probably" do so.
Poor social responsibility practices include a lack of environmental sustainability initiatives, unethical labour practices, inadequate corporate social responsibility policies, violations of human rights and limited efforts toward diversity and inclusion.
These findings highlight the increasing importance of ethical investment among Gen Zers and Millennials, who are prioritizing socially responsible and sustainable options over traditional alternatives.
Climate action and social justice dominate ethical investment priorities
While financial performance remains a top concern (52%), social and ethics aren't far behind. When it comes to key issues for Canadian investors, environmental impact (38.5%) and social equality (37.9%) emerge as other leading concerns with corporate governance in fourth place (30%).
Their priorities highlight a growing sophistication in understanding environmental, social and governance (ESG) factors, with a preference for businesses that make tangible commitments to sustainability and social progress over those that merely meet basic compliance requirements.
58% of investors ready to take a pay cut for ethical returns
Canadians are increasingly prioritizing socially responsible investing. More than one-half of those surveyed are willing to accept lower returns on their investments for 1–2 years to support ethical investment funds and practices. Around one-quarter are willing to wait even longer — 3 to 5 years.
Investors aged 30–44 are leading the charge, with 53% willing to sacrifice short-term profits for 1–2 years to align their investments with their values.
This trend suggests a growing desire for long-term ethical investments that promote both financial and social good, potentially contributing to a more stable and responsible market.
67% of women investors prioritize social responsibility
Women are considerably more likely than men to divest from companies with poor social responsibility track records, particularly those demonstrating labor rights violations, environmental negligence or gender pay inequality.
Sixty-seven percent of female respondents indicated they would "definitely" or "probably" divest from such companies, preferring ethical stocks or actively seeking out ethical companies to invest in that show a commitment to social responsibility, compared to 63% of male respondents.
This difference in investment priorities likely stems from women being disproportionately impacted by social and environmental issues, such as climate change, making ethical considerations a key factor in their financial decisions.
According to the United Nations, an estimated 4 out of 5 people displaced by the impacts of climate change are women and girls, highlighting the heightened vulnerability they face in environmental crises.
In wealthier societies, women drive 70%–80% of consumer purchasing decisions, according to the UN, a trend that extends to their financial choices, with many prioritizing ethical and sustainable investments, as shown in the survey findings.
These factors explain why women increasingly align their financial decisions with the issues that most impact them and their communities.
Nearly 40% of consumers have boycotted a brand due to its social or political stance
A significant 39.5% of consumers report boycotting a brand due to its social or political stance. The 30–44 age group leads this behavior, with 35% of individuals in this group taking action, compared to other age brackets. Nearly two-thirds (68.69%) of people in this age group also report considering ethical factors, such as environmental sustainability, labor practices and diversity initiatives, in their investments.
This trend highlights a shift in consumer behavior. Individuals are increasingly using their purchasing power to support brands and investments that align with their values.
As ethical considerations continue shaping investment choices and everyday brand decisions, companies may need to reassess their public positions to maintain consumer loyalty.
Learn more about ethical investing with Money.ca
Understanding ethical investing trends offers valuable insights into aligning your financial choices with your values. By staying informed about socially responsible investment options, you can make decisions that reflect your commitment to a sustainable future.
Empower yourself with Money.ca — your go-to resource for learning more about ethical investing and making smarter financial choices.
Methodology
The survey was conducted by SurveyMonkey Audience for Money.ca. The survey was fielded between December 20, 2024, and December 21, 2024. The results are based on 501 completed surveys. In order to qualify, respondents were screened to be residents of Canada over 18 years of age and own a home. Data is unweighted, and the margin of error is approximately +/-5% for the overall sample with a 95% confidence level.
Tyler Wade has worked in personal finance for over 5 years writing for brands like Ratehub, Forbes, KOHO, and now Money.ca.
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