Study finds rising adoption, persistent confusion as investors seek clearer guidance on opportunities
Canadian investors are steadily increasing their exposure to sustainable investments, but many remain uncertain about how to navigate one of the sector’s biggest themes: the global energy transition.
New findings from Mackenzie Investments show that 37% of Canadians now hold investments with a defined sustainable mandate, up from 33% a year earlier and nearly double the level recorded in 2023.
The firm’s seventh annual Earth Day study suggests that while sustainable investing is becoming more widely adopted, investor understanding has not kept pace.
“Sustainable investing is now a familiar part of the investment landscape for many Canadians,” said Fate Saghir, SVP, Sustainability at Mackenzie Investments. “The next phase is helping investors better understand how these strategies support long-term financial outcomes.”
Interest in sustainability is being fueled in part by evolving climate research, with nearly one-third of respondents saying new scientific developments increase their likelihood of considering such investments. At the same time, portfolio intentions are shifting, with a growing share of investors aiming to allocate a significant majority of their holdings to sustainable strategies.
But skepticism remains with more than four in 10 respondents believing that sustainable investments could deliver weaker returns, underscoring lingering concerns about performance.
The disconnect is even more pronounced when it comes to the energy transition. While 61% of Canadians believe investing in the shift toward lower-carbon energy will benefit future generations, only a small fraction report understanding the specifics of how to invest in it.
Roughly two-thirds recognize that the transition presents investment opportunities, and 63% view it as a significant long-term theme. Yet 45% say they lack sufficient knowledge about its scope or how to access those opportunities through their portfolios.
At the same time, most respondents support a balanced approach that incorporates both renewable and traditional energy sources as part of the transition, reflecting a pragmatic outlook on Canada’s evolving energy mix.
“The energy transition is widely recognized as a long-term investment opportunity, but many Canadians are still unsure how to translate that into portfolio decisions,” Saghir said. “Bridging that gap will be critical to enabling more informed participation, with advisors playing a key role in helping investors translate opportunity into portfolio decisions.”
The findings point to a growing role for financial advisors as investors seek clearer direction on integrating sustainability into their portfolios—particularly in complex areas like energy transition investing, where awareness is high but actionable knowledge remains limited.
