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Global supply disruptions from the war involving Iran have spiked crude and LNG prices, generating tens of billions in extra revenue for oil producers in Canada. However, ‘Canadian’ oil producers are largely owned by foreign companies so much of this war-related windfall leaves the country. And the short-term geopolitical price spikes do not justify capital-intensive fossil fuel infrastructure. Markets are expected to re-balance, and global transitions to renewable energy will structurally erode long-term export demand.

Research also indicates that there is either an economic benefit, or at least no adverse impact from divesting of fossil fuels in your portfolio.

Ownership of Canada's largest oil sands companies is highly concentrated and over 70% of the major shareholders are foreign entities. Foreign (mostly U.S. and China) and concentrated ownership has grown substantially over the last decade.

Temporary war-time profits aside, keeping Canadian regional economies tied to oil and gas puts risk not only on oil and gas investors, but also on communities. Surging oil prices reveal inherent risks in a non-renewable, oil-dependent system.

Countries in Asia, Africa, and elsewhere are speeding up the shift from fossil fuels to clean electricity showing clean energy investments on the rise and fossil fuel financing stagnating.

Years of performance data now shows that sustainable strategies often perform in line with — or in some cases, outperform — a traditional benchmark.

Why? Extensive data, corporate disclosure, and regulatory reports give investors new insights into how well companies are managing environmental, social and governance (ESG) risks and opportunities.

Despite market volatility, sustainable investment fund totals have remained stable.

The growth is expected to continue due to shifting investor preferences, growth in corporate net zero pledges, policy and regulatory changes, and macro tailwinds such as the clean energy transition and sustainable technology.