You’re right when you say a lot of “ethical” funds aren’t very ethical, they just drop out tobacco and armaments, or they maybe have a least worst by industry sector approach, but they’ll charge you higher management fees anyway.
You’re clearly taking the environment ethical angle, and by industry, but how companies treat their workforce or manage their own environmental impact are also ethical issues.
Some ethical funds also take an advocacy approach – they’ll invest in imperfect companies with the hope of changing them for the better.
If you’re going to get too pedantic about ethical considerations, you’ll never invest your money at all. You just need to be happy that the bundle of companies you’re investing in is better than the alternative bundle. There is no need to sacrifice returns, but you do need a managed fund, of course, no index investing available here.
I have no idea what is available in Canada, but I’m more than happy with my Australian Ethical managed funds. They apply both a positive and negative screen to companies. They’ve got a list here
https://www.australianethical.com.au/companies-we-invest-in/ I make market level returns, and no-one gets screwed.
Canada’s got a bigger population than Australia, so surely you have options.
Basically you end up investing in a lot of renewable energy, energy efficiency, recycling operations, public transport, second tier banks, medical technologies, IT services.
I also have money not invested ethically (but not actually un-ethically!), because that’s in my superannuation fund, and I’m tied to a provider who only offers the B grade “ethical” options I mentioned above, which just didn’t seem worth it.