Assessing the Climate Action Investment Practices of Canadian Community Foundations

The report finds that while Canadian community foundations (CCFs) have grown their endowments to nearly CAD 7 billion as of 2020, they have largely failed to use these assets to combat climate change. Most CCFs rely on vague 'ESG integration' for risk mitigation rather than pursuing climate-positive investments. The analysis reveals significant capacity gaps and a lack of diversity on investment committees, which often act as barriers to strategic change. The report recommends moving toward positive screening, increasing transparency of holdings, and joining the Canadian Philanthropy Commitment on Climate Change to align financial assets with community climate goals.

• Canadian community foundations (CCFs) hold significant financial assets, with an estimated endowment size of almost CAD 7 billion in 2020, up from CAD 3.75 billion in 2013.
• Endowment wealth is highly concentrated, with the five largest foundations holding approximately 66% of the total capital and the 15 largest CCFs holding over 85%.
• CCFs have generally lacked ambition in using their endowments to address climate change, often treating ESG considerations as a tool for risk mitigation rather than a means to drive climate-positive financing.
• Investment Policy Statements (IPSs) for the 15 largest CCFs are mostly silent on climate change, with most mentioning only general 'ESG integration' or 'consideration' without detailed implementation or reporting.
• The Foundation of Greater Montréal is identified as a leader, having committed to a climate transition plan to achieve net-zero carbon emissions by 2050 and a 45% reduction in portfolio carbon emissions by 2030.
• Investment committees in CCFs often lack diversity in age, gender, race, and Indigenous representation, which may constrain the consideration of new investment options and undermine long-term returns.
• There is a significant disparity in internal capacity among CCFs; some foundations with endowments exceeding CAD 50 million lack full-time specialized staff and rely heavily on volunteer investment committees.
• Impact investments are often viewed as a separate asset class from traditional investments, and while they offer local benefits, their allocation in CCF portfolios typically remains under 10%.
• CCFs face a 'local resonance' challenge where climate change is perceived as less urgent than immediate community needs like affordable housing, health, and education.

APA

Gouett, M. (2022). Assessing the Climate Action Investment Practices of Canadian Community Foundations. International Institute for Sustainable Development. https://www.iisd.org/system/files/2022-04/climate-action-investment-canadian-community-foundations.pdf

Chicago

Gouett, Matt. Assessing the Climate Action Investment Practices of Canadian Community Foundations. International Institute for Sustainable Development, 2022. https://www.iisd.org/system/files/2022-04/climate-action-investment-canadian-community-foundations.pdf.

Wikipedia

{{cite report |last1=Gouett |first1=Matt |title=Assessing the Climate Action Investment Practices of Canadian Community Foundations |publisher=International Institute for Sustainable Development |date=April 2022 |url=https://www.iisd.org/system/files/2022-04/climate-action-investment-canadian-community-foundations.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{gouett2022assessing, author = {Gouett, Matt}, title = {{Assessing the Climate Action Investment Practices of Canadian Community Foundations}}, institution = {International Institute for Sustainable Development}, year = {2022}, month = apr, url = {https://www.iisd.org/system/files/2022-04/climate-action-investment-canadian-community-foundations.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }