How does sustainability affect raising capital? How do investment banks see sustainability when analyzing opportunities? What’s the point of view from venture capital firms? How does sustainability affect a business’ credit rating? This article looks at the current views from Standard & Poor’s, Toronto-Dominion Bank, MissionPoint Capital and others on this matter. We also look at what a business can do to attract capital.
At the summit in Toronto that drew senior executives from Canada and around the world, one common thread emerged: Capital favours sustainable businesses. Deutsche Bank have more confidence investing in companies that disclose their greenhouse gas emissions. Investors see climate change issues as material to their investment decisions. Accountants see environmental information as an integral part of a company’s full performance picture.
Would a BP style disaster happen to a company you invest in? That’s a question increasingly asked by Canadian investors. A range of proposals and resolutions has been filed in the past two years by shareholders to management of Canadian companies in various industries. What do shareholders want? How does management respond? What are the trends? Let’s take a look.