Not all clients want responsible investments, but asking can be a way to deepen relationships

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At a time when advisors are feeling pressure from artificial intelligence and do-it-yourself investment platforms, many are missing an easy opportunity to deepen relationships with clients.

For the 10th time, the Responsible Investment Association (RIA) asked Canadian investors for their opinions about responsible investing (RI). Once again, the 2026 RIA Investor Opinion Survey found a significant “service gap” between clients who say they want their advisors to ask about RI and those who are actually asked about it.

“[T]he service gap we’ve been talking about remains the same year after year, and that means that [the] untapped market remains the same year after year,” said Deborah Debas, senior responsible investment specialist at Desjardins, speaking at an online RIA event on Tuesday about the survey findings.

In the 2026 survey, 28 per cent of investors said their advisor or institution had asked them about RI. Meanwhile, 73 per cent said advisors should be required to ask about RI during the know-your-client process.

Ipsos conducted the survey in February with a sample of 1,001 Canadian investors.

The panellists at the RIA’s online event pitched RI as a straightforward way to build trust, learn about clients’ values and goals, and gain referrals.

“There are a lot of do-it-yourself clients, and this is really a distinction that you can have compared with a client who can select a fund by themselves,” said Solene Hanquier, senior director and head of RI at National Bank Investments.

The survey found 94 per cent of investors who own RI assets plan to maintain or increase their allocations, potentially making it easier for advisors to retain these clients.

“If you’re an advisor and you’re concerned about growing your practice, you have a cohort of investors telling you, in no uncertain terms, that they’re prepared to invest and keep investing if you can respond to their interests, help them understand how they can invest in alignment with those interests and recommend solutions that speak to those needs,” said David Rutherford, associate vice-president, sustainability research, at Mackenzie Investments.

“That’s what advisors do every day. There’s nothing different about this, so just because it’s about responsible investing, you shouldn’t change that process.”

But the survey wasn’t all positive news for RI. Awareness of RI declined, with 71 per cent of investors saying they had either never heard of it or knew little or nothing about it. Furthermore, survey participants still demonstrated confusion about what RI means and what funds do.

Ownership of RI remained stable, at 28 per cent of survey participants, but almost one in four said they weren’t sure if they held RI investments. Roughly two-thirds cited greenwashing and lack of clarity about fund labels and objectives as deterrents to investing in RI funds.

John McHughan, vice-president of sustainable investment at TD Asset Management Inc., said many investors have a preconceived idea about sustainable investing – namely, impact funds focused on companies building hospitals or providing renewable energy.

“But the reality is most sustainability funds look a lot different than what investors’ preconceived definitions are,” he said on the RIA panel.

It’s up to asset managers and advisors to explain a fund’s sustainability characteristics and why specific companies are in the portfolio, he said.

Mr. Rutherford also spoke about the know-your-product challenge for advisors in a bloated and complex product environment.

Fund companies struggle to produce products that “investors consistently want,” he said, and sometimes rely on releasing new products because they tend to sell.

“But those products are becoming increasingly sophisticated. I have a lot of sympathy for advisors trying to understand the complexity of the product universe today,” he said.

“Not all of those innovative approaches have stuck, but one has, and that’s responsible investing. It kind of stands as the poster child for a winning product strategy.”

The complexity may be one reason advisors are shying away from asking clients about RI, leading to that service gap.

Ms. Debas acknowledged advisors may not be comfortable talking about the environment, social issues or governance, but it’s okay not to have all the answers.

“I understand it might be an uncomfortable position to be in as an advisor,” she said, but listening to a client’s perspective will deepen the relationship.

“You pick up on conversation items that really help you understand who your client is as a person,” she added.

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