Saturna Sustainable Funds Sustainability and Stewardship Report 2025
With 36 years of experience, Saturna has navigated volatility and weathered economic cycles, all while delivering clients exceptional values-based investment options. This year marks the 10th anniversary for the Sustainable Bond and Sustainable Equity funds. We are proud to continue offering conservative, ethical investments that preserve capital with a sustainable alignment.
Incorporating a sustainable lens is becoming more imperative, as a wider data set is increasingly needed to make informed investment decisions. Climate risk is not a specter in the future — it is material today and expected to increase going forward. Research has found that the world is already committed to an income reduction of 19% in the next 26 years, independent of future emission choices. Further evidence shows possible investor losses from global warming could be underestimated by 70%.
Investors have an important role to play with the forthcoming challenges. It’s essential that portfolios are constructed with the future in mind, by managers maintaining flexibility of thought through the unprecedented changes happening on our planet. Risks must be accounted for through a climate, social and resource-use evaluation to best serve those who invest in Saturna’s funds. But asset managers can also build hope through investment in resilience. Public markets remain an invaluable, and scalable, tool to build essential infrastructure and fund the transition away from fossil fuels.
Key Takeaways
- Climate risk is immediate and material. There are global expectations of significant income reductions and underestimated investment losses due to climate change. Addressing climate risk is an urgent component of investment strategy, not just a future concern.
- There is widespread concern about “greenwashing” and “SDG washing,” a practice where companies make sustainability claims without supporting data. It’s important to prioritize investments in companies with credible, data-backed sustainability targets and robust reporting frameworks.
- Empowering women and closing gender gaps in employment and pay could lead to substantial economic growth. The Sustainable Funds excel in board gender diversity compared to benchmarks, but true gender parity is still decades away at the current pace.
- There is a $2.7 trillion annual global climate funding gap, with significant shortfall in both emissions reduction and adaptation investments. Public markets, especially those for green and sustainability bonds, are critical in financing essential infrastructure, adaptation, and resilience projects.