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Canadian Investor survey – Insights into what investors want from disclosure
This study – the first of its kind in Canada – asked Canadian institutional investors whether they incorporate environmental, social and governance (ESG) issues into their investment decision-making – and if they do, how they do it, where they get their information and how useful it is.
What we learned is that investors DO consider ESG issues when making investment decisions, but they’re NOT getting the information they need from the company’s securities filings or from their CSR reports.
There’s a gap between the ESG information companies are providing, and what Canadian investors want to know.
Key highlights
- 65% of investors often or always consider environmental and social issues, and 95% consider governance issues for all investments
- Investors want to see a clear link between ESG issues and corporate strategy, risk management and operational context
- 75% said they prefer to get ESG information from third parties, but that they’re not getting what they need to understand materiality
- Only 30% of investors find the ESG information companies provide good enough to help them assess materiality to the company’s business
- 85% agree or strongly agree that the quality of ESG disclosure has an impact on their perception of management and/or the board
Who we talked to
We surveyed a group of 24 institutional investors representing over $1.7 trillion in assets under management, including some of Canada’s largest pension funds, mutual and pooled funds and other investment managers. The survey was completed mainly by members of the investment team (40%), senior management (30%), members of the governance team (20%), and one board director.
Working group
The working group included people from SimpleLogic, RR Donnelley, the Canadian Coalition for Good Governance, the Clarkson Centre for Business Ethics and Board Effectiveness at the Rotman School of Management and CPA Canada.
