Two-thirds of impact investments in Canada’s burgeoning marketplace for impact investments are notching returns at- or above-market rates.
That’s according to the “Canadian Impact Investing Market Performance Report,” an SVX survey and analysis of 264 debt and equity instruments with more than C$15 billion (US$11 billion) in assets. The SVX Impact Index is a national database of investment offerings available to Canadian investors.
The market benchmarking “provides proof that impact investing is a viable strategy for investors,” said SVX’s Adam Spence. “During a period of volatility, we believe more investors will be seeking a balanced investment strategy generating positive local and global impact and solid financial returns.”
Among the newest offerings on the index are Renewal Funds‘ Renewal5 venture fund targeting positive environmental impact, Migr8 Capital’s Fund 1 for growth startups led by immigrants, and Harvest Impact’s Community Lending Fund for companies in the circular economy.
Impact tailwinds
Canadian impact investing should find additional tailwinds after the rapid ascent of Mark Carney, the former chief of the Bank of England and chair of Brookfield Asset Management, who earlier this week won a full term as Canada’s prime minister (see, “Canada puts a green banker in charge of its response to Trump”).
As head of the Financial Stability Board, Carney spearheaded the Task Force on Climate-Related Financial Disclosure, or TCFD, and led efforts by central banks to identify climate-related risks. At Brookfield, Carney led the firm’s energy transition investments, helping to raise $15 billion for the firm’s first Global Transition Fund.
In one of his first moves as prime minister, Carney scrapped an unpopular carbon tax on consumers. Among his climate plans for Canada are carbon pricing for polluting industries and subsidies for electric vehicles and home upgrades.
Prosperity pathways
Investments that deliver strong returns, alongside social and environmental impact, could also get a boost as Canadians search for pathways to shared prosperity and national sovereignty amid attacks from US President Donald Trump.
Canadian leaders are touting employee ownership as one such strategy (see Matthew Mendelsohn’s guest post, “Hands Off: Investing in employee ownership can ensure Canadian businesses stay Canadian”). Canada passed legislation last year to expand the use of employee ownership trusts; the 2030 goal is that 10% of all Canadian businesses transition to employee ownership.
The government’s C$755 million Social Finance Fund, launched in 2023, makes repayable investment capital available to non-profits, social enterprises, co-operatives and other social purpose organizations.
