"Canadian Family Business Leaders Shaping the Green Economy: The Road to Net-Zero"
The performance of publicly traded Canadian family-controlled companies continues to exceed that of widely held companies; family business insights on the transition to a green economy.
This year, the publication features the perspectives of three family business leaders of prominent Canadian companies shaping the green economy. Stewards of multi-generational family business ownership and guided by a long-term vision,
- The report highlights the updated performance of the NBC Canadian Family Index, calculated by
S&P Dow Jones Indices , which tracks and measures the performance of Canadian companies controlled by families and founders versus the S&P/TSX Composite Index, the leading Canadian stock market index. - From
June 2005 toJune 2023 , the NBC Canadian Family Index has registered a cumulative return of 324% compared to 242% for the S&P/TSX Composite Index (or 8.3% compared to 7.0% in annualized terms) on a total return basis. - NBC Canadian Family Index members represent nearly
$700 billion in market capitalization and employ over 1 million people. Family-controlled corporations are a cornerstone ofCanada's economy. - Family-controlled firms think about strategy over generations and have an intrinsic ability to focus on long-term challenges such as tackling climate change and finding innovative solutions to reduce greenhouse gas emissions while delivering sustained returns for their stakeholders.
- Vincent Joli-Coeur, Vice-Chairman, Financial Markets at
National Bank of Canada : "One great challenge lies ahead: to deliver more long-term value with a smaller carbon footprint. Being controlled by a family makes a firm uniquely capable of adopting a long-term focus. The road to a decarbonized world will require massive investment as well as that all-important long view. Many leaders ofCanada's family-held flagship companies, includingNancy C. Southern ,Lino A. Saputo andOlivier Desmarais who were interviewed for this report, are clearly motivated to be part of the solution forCanada's move to net-zero." - Dr. Karl Moore Ph.D., Associate Professor, Desautels Faculty of Management,
McGill University and Associate Fellow,Green Templeton College ,Oxford University : "Environment is on the minds of the CEOs of virtually all firms. My sense is that family companies, with their hardwired long-term view passed on from one generation to the next, will be critical players for business to make a big contribution." - Nancy C. Southern, Chair and Chief Executive Officer, ATCO LTD. and
Canadian Utilities Limited : "The energy transition represents one of our greatest opportunities — but also presents some significant challenges. As theATCO Group builds momentum on the path to net zero, we are resolutely focused on ensuring energy remains safe, reliable and affordable. Maintaining this delicate balance is crucial in creating truly sustainable prosperity for the customers we are privileged to serve." Lino A. Saputo , Chair of the Board, President and Chief Executive Officer,Saputo Inc. : "When I think about ESG, I don't think just about the Environmental aspect. The Social and Governance dimensions are also very important and go back to the very founding of Saputo. Because our family name is attached to our business' reputation, it's even a greater motivator to do good."- Olivier Desmarais, Chairman and Chief Executive Officer, Power Sustainable: "If something is inevitable like climate change, steer into it. That is what my grandfathers Desmarais and Chrétien always did. Families are in the game for the long term. Therefore, we're able to go through economic cycles and adapt our business accordingly and we get to build solid foundation blocks to execute on our strategic vision."
Dominic Barton , Chair of Rio Tinto and Global Managing Partner of McKinsey & Company from 2009 to 2018: "Climate change and the necessary energy transition to ensure we are net-zero by 2050 will lead to the single largest re-allocation of capital in human history. Businesses with a long-term mindset and perspective will be the most successful as they take into account shareholder returns and stakeholder returns. Shareholder and stakeholder returns go together and reinforce each other over the long term."
The Family Advantage Winter 2023-2024 follows The Family Advantage Spring 2022 report. It presents the NBC Canadian Family Index calculated by
In the NBC Canadian Family Index, a company is considered to be family-controlled if the founding family or founder(s) directly or indirectly hold at least 10% of the company's voting rights or, alternatively, if individual(s) and/or related entities (not founders) hold at least 33.3% of the company's voting rights. For more information on the series of Family Advantage reports or the NBC Canadian Family Index, please consult our website.
With $424 billion in assets as at
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