ONTARIO, Canada–A credit union has become this country’s first financial institution to offer socially responsible guaranteed investment (SRI) certificates.
Mennonite Savings and Credit Union (MSCU) has developed a set of socially responsible lending criteria to incorporate into its agricultural and commercial lending practices.
The $950-million MSCU has 20,000 members.
“We are thrilled to be a leader in SRI,” said Brent Zorgdrager, chief executive of MSCU, in a statement. “Our commitment to our members is to continue to look for ways to offer values-based products that connect faith and values with finances, inspiring peaceful, just, and prosperous communities.”
Criteria for socially responsible guaranteed certificates include screening business borrowers for involvement in industries such as tobacco, alcohol and gambling, as well as negative impacts on the environment, human rights or communities.
Sustainalytics, which delivers environmental, social, governance and corporate governance ratings, has carried out a review of MSCU’s loan portfolio.
“MSCU’s socially responsible GICs address a growing demand among individual investors considering the environmental and social impacts of their investments,” said Sustainalytics’ chief executive, Michael Jantzi, in a statement. “MSCU has embedded socially responsible criteria into its lending processes in an innovative way.”
Figures from the Responsible Investment Association (RIA) showed that responsible investment accounts for more than 30% of Canadian assets under management.