Investors spent $3.17 billion on investments that took into account environmental, social and corporate governance (ESG) factors in 2019, a 48 per cent increase over 2017 levels, according to a report from the Responsible Investment Association (RIA). By those figures, ESG investing represents 61.8 per cent of Canada’s total investment activity. (The Logic)

Talking point: The report considered seven different factors in its calculation, including ESG integration and shareholder engagement. It captures a two-year period in which many high-profile firms have made public statements about the importance of environmental and social considerations in their portfolios. Last year, the Canada Pension Plan Investment Board began screening all new investments for risks and opportunities related to climate change, and in 2017 it launched a proxy voting system meant to improve gender diversity on the boards of its portfolio firms. RIA’s report used surveys from 104 investors and reviewed publicly available documents like annual reports. But a challenge in measuring ESG investing and its impact is the variation in how companies and investors track and report relevant factors. In recent months, there’s been a push to standardize the process. This week, Canada’s eight largest pension funds signed an open letter calling on companies and investors to stick with two globally recognized standards for their ESG reporting.