Does responsible investing mean sacrificing optimal returns? Or are these concepts, in fact, vitally linked?
That question formed the basis of an RBC Dexia information session Thursday in Toronto, featuring a who’s who of responsible investing experts debating the implications of responsible investing on the Canadian investment landscape.
One topic that seemed to generate consensus among panelists was the need for greater disclosure by public companies about their activities around responsible investing. Without full disclosure, they suggested, investors are unable to make truly informed decisions about the companies they are investing in. For example, investors should be made aware of practices that could result in future costs or potential litigation risks.
The event was capped off by a panel discussion that dealt with issues associated with implementing environmental, social and governance considerations into portfolio construction, while still ensuring healthy returns.