Kitchener, Ont.-based Mennonite Savings and Credit Union (MSCU) on Thursday announced it is the first Canadian financial institution to show that all of its GICs qualify as socially responsible investments (SRI).

“Until now, the SRI approach to investing, which includes sustainable screens, has only been associated with mutual funds and market investments,” the MSCU announcement says.

MSCU turned to Amsterdam-based Sustainalytics, a global provider of environmental, social and governance (ESG) and corporate governance research and ratings, to help it develop a set of socially responsible lending criteria to incorporate into its agricultural and commercial lending practices.

These criteria include screening business borrowers for any involvement in industries such as alcohol, tobacco, and gambling and for any significant negative impacts on the environment, human rights, or communities.

Once the screens had been in place for six months, Sustainalytics carried out a review of MSCU’s loan portfolio to validate compliance with the socially responsible criteria.

“Because these loans are funded by members’ GIC deposits, the screens in place ensure the GICs are SRI compliant,” the MSCU announcement says.

“Investments in the MSCU SRI GICs provide our members with the confidence that their funds support loans which clearly align with a sustainable, responsible view of their communities and the world,” says Brent Zorgdrager, CEO of MSCU, in a statement.

According to the Responsible Investment Association (RIA), the RI market comprises more than 30% of Canadian assets under management. “Many financial institutions, including MSCU, have offered Responsible Investment options but MSCU is leading the way by integrating environmental and social factors into all of their GICs,” says Deb Abbey, RIA’s CEO.

MSCU is a financial co-operative providing banking services to over 20,000 members in southern Ontario. It has more than $950 million in assets under administration.

Eligible deposits in MSCU GICs are insured by the Deposit Insurance Corp. of Ontario up to a maximum of $100,000.