Investors Can Seek Green Opportunities
Paralleling the decisions on calibrating their exposure to fossil fuels, investors can seek out opportunities in areas related to green growth and broader sustainability topics, says a FTSE Russell sustainable investment paper. It says Canada’s net-zero transition presents opportunities in green economy investment and Canada’s green revenue-weighted investable market cap of listed companies already ranks seventh globally. As well, the fast-growing green bond market presents opportunities for investors to deploy the freed-up capital following the fossil fuel exclusion decisions and to support Canada’s transition to net zero. The cornerstone of a green bond is the dedicated use of proceeds for eligible green projects and issuers are required by various international or regional market guidelines to disclose clear climate and/or environmental benefits of these projects. This provides additional transparency for investors to identify and assess green bonds that could help them achieve impacts in certain areas.