All but 2% of Canadian issuers are already factoring sustainability into their activities, according to a new survey conducted by HSBC among issuers and investors. But while they can find common ground on investment opportunities in infrastructure investment, such as energy-efficient buildings, sustainable public transport, and renewable energy sources, the two groups grow apart in clean power technology.
Sustainable Finance gaining steam among issuers and investors, but mismatch in investment opportunities
The HSBC Sustainable Financing and Investing Survey – which polled 182 Canadian companies from a variety of industries and sizes in September 2020 – revealed that:
- While issuers and investors are particularly concerned by pollution, the transition to lower emissions is still at quite an early stage: only 14% of issuers say they have a plan to reach full sustainability.
- Over 80% of Canadian issuers report no obstacles to investing in the country’s green and sustainable economy.
- Investors are more cautious: around half (48%) report obstacles like lengthy funding commitments and a third do not factor sustainability into their decision-making. However, nearly 60% of those investors intend to start doing so.
- Issuers; however, are more confident: 59% say investing in Canada’s green and sustainable economy is relevant to them, and they will be able to put money to work in these opportunities now or in the future.
“Sustainability is increasingly reflected in Canada’s capital markets, with environmental questions in particular now a core element in their thinking about financing and investing. Most interesting, however, is the difference in challenges faced by issuers and investors. A lack of consistent regulatory environment, inconsistent disclosures and insufficient communications about investment opportunities are most often-cited as barriers for investors in sustainability initiatives,” said Dan Leslie, Senior Vice President & Deputy Head of Commercial Banking for HSBC Bank Canada.
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