Mennonite Weekly Review

WINNIPEG, Man. — As the world’s economy quakes, sustainability, value and transparency are key issues in the demand for restructuring the global financial system. These may be qualities that open the door to wider recognition of socially responsible investing, or SRI.

Mennonite organizations, including Mennonite Church Canada, have long been supporters of such investing, where investments are screened according to environment, social and governance, or ESG, parameters.

Such altruistic notions may be appreciated by some but brushed aside by others during times of economic crisis.

But times are changing.

Michael Jantzi, the founder and president of Jantzi Research, an independent Canadian investment research firm that evaluates and monitors the ESG performance of global securities, pointed out that probably for the first time ever, issues of the environment are not fading into the background as the world struggles with economic volatility.

“It’s unusual,” he said. “There is no question that we’re seeing people reflect their values in different ways.”

For Patricia Lovett-Reid, senior vice president with TD Waterhouse Canada Inc. and the host of cable TV’s Business News Network’s program Moneytalk, SRI is taking on new importance because it has shifted from an ethical focus to one of sustainability.

The self-professed “investor on the street” said ethical investments tend to focus on negative screens — or what not to invest in — such as “sin” stocks for companies involved with alcohol, tobacco, gambling or sex.

“But with sustainability investing, the focus shifts to more positive qualities, the integration of economic, environment, [and] social governance standards that build communities and people,” she said. She defines this as a holistic view of investing. “That is good for business.”

Lovett-Reid said she does a lot of public speaking for TD Waterhouse and has noticed that sustainable investing is a growing concern. If she does not bring up the topic, someone in the audience will.