The demand for responsible investment (RI) continues to grow. As of June 30, 2022, RI represents approximately 31.5 billion in assets under management in Canada.1 This demand is being driven in part by millennials, many of whom are interested in incorporating responsible investment into their portfolios.2
Shaping the future of responsible investment
According to a recent study by RBC Wealth Management,5 millennials seek a more sustainable type of capitalism and gravitate toward environmental, social, governance (ESG) and impact investing. They want to know that their money is being invested in companies that consider not just shareholders, but all stakeholders.
For some, it’s a focus on human rights and social justice that drives their investment strategy. For others it may be the diversity of a company’s board of directors or a company’s commitment to sustainability.
Many millennials will soon have more capital to pursue their interest in RI. Over the next two decades, they are poised to inherit trillions of dollars of wealth from their parents, the Baby Boomers. Half of millennials surveyed by RBC Wealth Management expect to receive an inheritance. Another 30% expect to have some sort of sudden wealth event -- for example, from a business sale, an IPO or equity compensation at work.5
These trends suggest a bright future for RI – and will continue to drive innovation across the industry.
Learn more about how RBC GAM puts ESG into practice, or talk to your financial advisor.