In my June 21, 2021 blog, "A Climate-Friendly Approach to Investing," I suggested that individual investors can make a difference in reducing the effects of climate change by choosing investments that support good corporate behavior. Through investment solutions that focus on businesses that reduce carbon emissions and mitigate rising temperatures, investors can make a positive difference to our planet’s climate. Their investments can encourage innovation in the area of carbon emission reduction and progress towards Paris Agreement targets. And, by investing with an eye towards alleviating climate change, investors can share in the potential growth of companies that are planning for tomorrow today and enhance their potential long-term investment returns.

Skilled investment managers can reward companies that are working to reduce their carbon emissions in line with the targets in the Paris Agreement and align with progressive companies that display an active commitment to strong environmental policies, potentially reducing investment risk and enhancing returns.  

Manulife Investment Management recently introduced an investment fund  called the Manulife Climate Action Fund.  They believe that quality companies making a demonstrated commitment to the environment will outperform and represent less risk for investors. They are recognized in the industry for Environmental, Social and Governance (ESG) investing and within this fund they are integrating climate considerations into its stock selection process.

When you invest in a socially responsible fund, you do not have to sacrifice performance for ethical or environmental principles.  The Manulife Climate Action Fund team seeks to provide long-term capital growth by investing primarily in a diversified portfolio of global equity securities of issuers who are also leaders in making positive contributions to mitigating climate change.  There are two teams that run the Manulife Climate Action Fund:

• the Manulife Fundamental Equity Team that does fundamental analysis, valuation, portfolio management, and research 
• the Manulife ESG team who does ESG analysis & research, governance & oversight, integration & policy implementation

Together the two teams work together to determine a portfolio composition that not only considers the goal of benchmark outperformance but also the impact of climate-related risk factors.

72% of Canadian investors surveyed in the 2020 RIA Investor Opinion Survey https://www.riacanada.ca/research/2020-ria-investor-opinion-survey/ are interested in sustainable investing.  If you are one of those 72% perhaps you wish to review this fund or other similar socially responsible investment funds to see if you wish to incorporate them into your investment portfolio.  While I believe that sustainable investing will lead to better long-term investment outcomes, there is no guarantee that sustainable investment will ensure better returns in the longer term, therefore, any investment decision needs to be made keeping your investment goals and investment risk tolerance in mind.