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There’s a “stubbornly high” service gap between what Canadian investors want and what advisors are offering when it comes to responsible investing (RI), according to a new report released Thursday from the Responsible Investment Association (RIA).

The 2025 RIA Investor Opinion Survey, conducted by Ipsos in late January and early February, shows 76 per cent of participants want their financial advisor to be required to ask them specific questions about RI. Yet, only 28 per cent of participants reported their advisor bringing it up.

The gap highlights “a significant untapped opportunity” for advisors, the RIA report states.

The survey, which included 1,001 Canadian retail investors, also shows that 67 per cent of participants are interested in RI, up from 65 per cent when the RIA last surveyed investors in late November, 2023. Yet, RI asset ownership dropped to 28 per cent from 33 per cent over the same period.

Top RI deterrents cited in the latest survey include greenwashing (despite updated guidance on disclosures from Canadian regulators) and lack of knowledge and clarity around RI investment funds.

The performance of sustainability investments, a common complaint among some investors, is another deterrent cited in the survey, which was conducted before the broad global market meltdown related to tariffs.

The survey was released amid slowing momentum for RI, which includes environmental, social and governance (ESG) factors, coinciding with the re-election of U.S. President Donald Trump.

Since taking office in January, the Trump administration pulled the U.S. out of the Paris Agreement, called for more fossil-fuel production and lashed out at diversity, equity and inclusion policies. The Securities and Exchange Commission has said it would stop defending a disclosure rule requiring transparency around climate risks and greenhouse gas emissions from certain U.S. public companies.

The European Union also recently delayed the implementation of key sustainability reporting and due diligence regulations to reduce regulatory burdens on companies.

Despite the recent ESG “reset,” Glen Pichanick, the RIA’s head of advocacy and industry insights, says he believes RI is still moving ahead, “just maybe at a different pace.” He says many companies remain committed to sustainability but are less public about it in the current environment.

Mr. Pichanick says the latest survey results show investors remain interested in RI, particularly younger generations, although older Canadians are increasingly curious.

Among survey participants aged 18 to 34, 77 per cent were interested in RI compared with 80 per cent in 2023. More than two-thirds (68 per cent) of those aged 35 to 54 were interested, which was the same number in 2023. Interest among those 55 or older increased to 58 per cent from 49 per cent in 2023.

The service gap between advisors and investors widened compared to the RIA’s last investor survey in 2023. Back then, 67 per cent of participants said they wanted advisors to tell them about RI options, but only 32 per cent said they had the conversation. (The question in 2025 was slightly different, asking investors specifically if they believe advisors should be required to ask about RI. In 2023, the question was only whether advisors had raised the topic of RI.)

Advisors are encouraged to ask ESG questions as part of the Canadian Investment Regulatory Organization’s know-your-client guidance, which was updated in 2021, Mr. Pichanick says.

The survey also shows 44 per cent of investors who initiated RI conversations had meaningful discussions with advisors who, in turn, suggested various products.

“It suggests advisors are ready to discuss RI but are waiting for clients to engage on the topic, while clients are waiting to be engaged by their advisor. If they’re both waiting for each other to bring it up, maybe some opportunities are being missed,” Mr. Pichanick says.

When participants were asked to rank the reasons for the importance of including RI in their portfolios, 92 per cent cited investment opportunities, 89 per cent said risk reduction, 79 per cent said personal values and 70 per cent said positive societal impact, the survey shows.