The government-appointed Sustainable Finance Action Council submitted to Finance Canada this past fall a proposal for a green taxonomy – a framework for defining what is a sustainable investment in Canada. It has yet to be publicly released by Ottawa, but investors are likely wondering which companies stand to benefit. “Greener” companies, as defined by the taxonomy, should attract capital from institutional investors that have made net-zero and other sustainability-related commitments.
We will then look at the enterprise value to revenue ratio to see which of these companies’ green credentials are not yet priced in by the market, and thus could be attractive investments today.
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