Canadian Environment Week: BMO Offers Tips on Sustainable Investing
TORONTO, ONTARIO--(Marketwire - June 3, 2012) - As Canadian Environment Week begins, BMO Financial Group reminds Canadian investors that their personal investing choices can reflect their commitment to environmentalism.
Sustainable investing is a strategy that allows investors to seek out companies that have sustainable business models which benefit the environment, contribute to social good and speak to strong corporate governance while also providing solid financial results.
"Canadians continue to grow increasingly aware of environmental issues and many are placing an emphasis on environmental considerations when investing," said Serge Pépin, Vice President, Investment Strategy, BMO Global Asset Management. "It's important, however, to do your research and to consult with a financial professional before investing in unfamiliar territory."
Interested in sustainable investing? BMO's Serge Pépin offers guidance on how to get started:
Do your research: Sustainable investing may mean many different things to different people. Knowing what differentiates 'ethical', sustainable' and 'socially responsible' investing is an important step for any investor. Before investing, think about what sort of companies or funds interest you and look into their performance history. Once you decide on the specific investments, make sure you read the fine print and fully understand how fees are structured.
Re-examine your existing portfolio: If you are active in certain environmental or social causes it is worth examining your existing investments to ensure they align with your beliefs.
Think micro: There are several ways to invest sustainably, including investing in the community. Initiatives like micro-financing allow you to invest directly in a small business locally or abroad while providing much-needed assistance.
Share your voice: If you are a shareholder, remember that you have a say in the company in which you are investing. By participating in annual meetings and proxy votes, you have the power to effect change.
Speak with an expert: Ensure you speak with a financial professional who can advise you on sustainable investment options while ensuring they fit in with your investment portfolio and financial plan.
Rachael McKay, Toronto
Ronald Monet, Montreal
Laurie Grant, Vancouver