Most Canadian retail investors remain interested in sustainable investing, though many would like to learn more and worry about deceptive marketing, according to a survey by the Toronto-based Responsible Investment Association.

The online survey of 1,001 investors conducted in January and February found two-thirds (67 per cent) expressed interest in responsible investing. Responsible investing refers to investing that considers environmental, social and governance (ESG) factors.

It is a slight increase from previous surveys conducted in 2023 (65 per cent) and 2022 (64 per cent), but a decrease from 2021 (73 per cent).

Three-fourths of respondents prefer their financial services provider be required to ask questions about responsible investments to gauge their interest in responsible investments that are aligned with their values.

Interest remains steady despite the politicization of ESG investing and targeting by the U.S. government, which led to billions of dollars in fund outflows, hindering the energy transition, companies tweaking their vocabularies, and avoiding talk on environmental stewardship and diversity.

However, ownership in responsible investments dipped from 33 per cent in 2023 to 28 per cent in 2025. Over half of respondents are worried that companies are misleadingly offering their services as environmentally friendly, known as greenwashing, and this is making them more reluctant to invest.

"The demand is there. However, the persistence of greenwashing as a deterrent signals that despite recent progress, continued efforts on multiple fronts are required to address these concerns,” Patricia Fletcher, CEO of the association, said in a release.

Where interest in responsible investing comes from

Younger Canadians expressed the most demand for responsible investing, with 77 per cent of respondents aged 18 to 34 saying they were very or somewhat interested.

The interest decreased among older survey participants. Sixty-eight per cent of respondents aged 35 to 54 said they were interested. Those aged 55 and older showed the least interest at 58 per cent, but the Responsible Investment Association noted it increased from 49 per cent from 2023.

That interest correlated with action. Of respondents aged 18 to 34, 44 per cent said they own a responsible investment, compared to 26 per cent of those aged 35 to 54 and 17 per cent of people 55 and older.

Women showed more interest than men: over seven in 10 women expressed interest, compared to 64 per cent of men.

Advisors expected to lead conversations

Despite the broad interest, 47 per cent in the survey said they know little to nothing about the offerings and 19 per cent have never heard about it. Only five per cent are confident they “know a lot” and 28 per cent “know a fair bit”. 

The combination of interest with lack of knowledge may explain why 76 per cent of respondents want their financial advisor or financial institution to “be required to ask me specific questions about responsible investment considerations that align with my personal values.”

Younger respondents showed the most desire to be asked; 85 per cent of those aged 18 to 34 expressed this view, compared to 75 per cent of those aged 35 to 54 and 68 per cent of those aged 55 or older.

In a sign that retail investors may want their advisors or institutions to initiate the conversation, 77 per cent of respondents said they have not broached the topic.

The Responsible Investment Association urges advisors to learn more about responsible investing and be proactive with their clients about the offerings.

“Educating investors about (responsible investing), as well as allowing them to express their values in their investment objectives, should result in better adoption,” the report says.

Greenwashing at the core of reluctance

In a difficult time for sustainable investing amid an environment of economic volatility and political hostility, 35 per cent said such factors have made them more likely to choose responsible investing than they were a year ago, with 49 per cent saying there was no difference, and six per cent being less likely.

Greenwashing weighed heavily on the minds of investors. Over half (54 per cent) in 2025 said they strongly or somewhat agreed concerns about greenwashing are deterring them from investing in responsible funds. The figure increased from 46 per cent in 2023.

A 2024 study by the Ontario Securities Commission suggested retail investors were vulnerable to greenwashing as they paid more attention to “fairly arbitrary” ESG ratings rather than sustainability outcomes.

Other barriers to responsible investing include lack of knowledge (55 per cent), lack of clarity regarding labels and strategies (38 per cent) and the performance of the funds (36 per cent).

Advisors, regarded as “uniquely positioned” to be a source of information about responsible investing, were called upon again by the association to alleviate concerns about greenwashing.