The triple bottom line of business – People, Profit, Planet – isn’t a new concept. Most companies have incorporated social responsibility into their offerings and core business principles, showing a commitment to efforts like improving communities, supporting ethical labour practices, or taking action against climate change.
Now, ‘Planet’, and sustainability in particular, is taking on a new meaning – it’s becoming a key component of investment portfolios. Today, more than ever before, Canadians can choose from vast investment options in the ESG (environmental, social, and governance) space that they can feel proud of, delivering some good alongside cash in their pocket.
According to Bloomberg, over 80 per cent of Canadian investors are looking to have responsible investing options within their portfolio, and as many as 75 per cent want advisors to discuss sustainable investments with them. However, this isn’t driven only by a moral desire to heal the planet: 77 per cent of those investors believe that companies with good environmental, social, and governance (ESG) practices make for better long-term investments.
The head of the world’s largest asset management company, Larry Fink of BlackRock, believes: “It is not a social or ideological agenda. It is not ‘woke.’ It is capitalism, driven by mutually beneficial relationships between you and the employees, customers, suppliers, and communities your company relies on to prosper.”
Fink stressed that BlackRock’s strategy to engage with companies on the carbon transition is an effective business model, focusing on sustainability not because of ideological inclinations, “but because we are capitalists and fiduciaries to our clients.”
Economically, evidence is stacking up to show the financial benefits to companies that consistently deliver on their principles while working with communities to build relationships, solve problems and tackle global challenges.
The definition of sustainable business built for longevity goes beyond profitability, growth rate, and brand recognition. In the current climate, customers, staff, and investors judge a company by how its activity impacts policy, community, environment, and society. Indeed, the old notion of profit as the only bottom line is dying because the pursuit of profit alone is not enough. In other words, corporate social responsibility practices are a way to express an organization’s stance on today’s most pressing issues. Taking it a step further, financial institutions and technology companies, such as Mogo, are helping Canadians access the tools needed for financial success while giving back.
Through its product portfolio, Mogo provides Canadians with tangible and easy ways to take control of their future – both environmentally and financially. Canadians can even tap into self-driving money, making it easier than ever before to automate their finances.
We recognize the tectonic shifts in the economy and consumer behaviours and celebrate them. This is why Mogo emphasizes building products that allow Canadians to both gain better control over their finances and have a positive impact on the environment through products like their SRI investment options or the spending card that enables a user to be climate-positive. Many Canadians experience analysis paralysis, not knowing where to start. The key is to take the first step, form good habits, and the returns will come.
ESG standards are only beginning to change the way we invest. With the latest tech innovations (crypto, web3, and beyond), ever-evolving consumer behaviours, and the growing options to create real environmental change, the future of personal finance is looking bright.