More investors embrace ESG-focused funds as sustainability becomes mainstream choice
Desjardins Funds is seeing continued growth in responsible investing, with a rising share of investors allocating capital to sustainable products.
According to its latest Annual Report on Responsible Investment 44% of Desjardins Funds investors were invested in Desjardins Sustainable Funds in 2023, up from 42% the year before and well above the 24% recorded in 2019. The steady increase highlights a longer-term shift in client preferences rather than a short-term response to market conditions.
The firm frames the trend as validation of its long-standing approach to ESG integration which has seen responsible investment principles embedded into the firm’s portfolio management processes for decades, with ESG considerations incorporated alongside traditional financial analysis.
The annual disclosure outlines how extra-financial factors are used throughout the investment lifecycle, from initial security selection to ongoing monitoring. These considerations are positioned as tools for identifying long-term risks and opportunities that may not be captured by conventional financial metrics alone.
The report also highlights how investor engagement and stewardship activities form a key part of the firm’s responsible investing framework. Through dialogue with issuers and proxy voting, the firm aims to influence corporate behaviour on issues such as governance practices, environmental risks and social impacts.
This approach reflects a broader evolution in the Canadian investment landscape, where ESG considerations are increasingly viewed as integral to prudent portfolio construction rather than optional overlays. Report data suggests retail investors are following that shift, with sustainable funds moving closer to the core of household investment allocations.
Beyond portfolio management, the report points to education and transparency as critical components of responsible investing. Desjardins continues to invest in advisor training and detailed reporting to help clients better understand how ESG principles are applied and how those strategies align with their financial goals.
The findings come at a time when the responsible investing sector faces heightened scrutiny over definitions, measurement and real-world impact. Against that backdrop, Desjardins positions consistent disclosure and long-term integration as central to maintaining investor trust.
"This report shows how we're striving to use responsible investment to drive sustainable change," said Sébastien Vallée, EVP, Wealth Management, Desjardins Group. "We believe transparency and discipline are the key to building trust and supporting our members and clients as we transition to a more sustainable economy."
