18 Cleanest Canadian Companies

These Canadian companies are leading the way to a clean energy future – while four companies were excluded from the list.

Ruth Saldanha 2 March, 2022 | 4:38AM
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Mountains in Canada

Last week, As You Sow and Corporate Knights released the Carbon Clean 200, a global list of 200 publicly traded companies that are leading the way to a clean energy future. 18 Canadian companies made the list.

According to the report, $10,000 invested in the Clean200 on July 1, 2016, would have grown to $20,709 by Jan. 31, 2022, versus $20,315 for the MSCI ACWI broad market benchmark and $13,167 for the MSCI ACWI/Energy benchmark for fossil fuel companies.

The top 10 companies on the list by revenue include Apple (AAPL), which offers sustainably-certified phones and laptops; Alphabet (GOOG), whose operations are 100% powered by renewable energy; Intel Corp.; Taiwan’s TSMC (TSMC) for low-energy microchip solutions; and Iberdrola SA (IBDRY) for clean power generation. Companies that contributed the most to the Clean200’s outperformance over the past year were primarily from China, the U.S., South Korea, and Canada and include electric vehicles, environmental protection, energy conservation solutions, and green energy themes.

Here are the Canadian Companies that made the list:

Name

Ticker

Industry

Morningstar Star Rating

Economic Moat

Ballard Power Systems

BLDP

Specialty Industrial Machinery

   

Boralex Inc Class A

BLX

Utilities - Renewable

   

Canadian National Railway Co

CNR

Railroads

2

Wide

Canadian Pacific Railway

CP

Railroads

2

Wide

Cascades

CAS

Paper & Paper Products

   

Celestica Inc

CLS

Electronic Components

 

 

Cogeco

CGO

Telecom Services

 

 

GFL Environmental

GFL

Waste Management

   

Gildan Activewear

GIL

Apparel Manufacturing

1

None

Innergex Renewable Energy

INE

Utilities - Renewable

   

KP Tissue

KPT

Household & Personal Products

   

Northland Power

NPI

Utilities - Renewable

   

Stantec

STN

Engineering & Construction

   

TELUS

T

Telecom Services

3

Narrow

TransAlta Renewables

RNW

Utilities - Renewable

   

Transcontinental

TCL.B

Specialty Business Services

   

WSP Global

WSP

Engineering & Construction

   

Canadian Solar

CSIQ

Specialty Industrial Machinery

   

Source: Morningstar Direct

 

Our analysts only cover four of the companies on the list: CN Rail, CP Rail, Gildan Activewear, and Telus. And none are currently cheap. Both railways earn ‘Wide’ economic moats, meaning they can withstand competition for years to come. Telus has a narrow economic moat, while Gildan has no economic moat.

What’s Out

The list also excludes companies that are flagged on As You Sow’s Invest Your Values suite of mutual fund transparency tools that identify companies involved in fossil fuels, deforestation, weapons, gender inequality, tobacco, and the prison industrial complex.

Four Canadian companies were excluded:

Name

Ticker

Industry

Morningstar Star Rating

Economic Moat

Bank of Montreal

BMO

Banking

3

Narrow

Teck Resources

TECK.B

Mining

3

None

Resolute Forest Products

RFP

Forestry

 

 

Enbridge

ENB

Energy

3

Narrow

Of these, Morningstar analysts cover Bank of Montreal and Enridge, both fairly valued, and both investor darlings.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Canadian National Railway Co144.79 CAD-0.28Rating
Canadian Pacific Railway Ltd71.50 USD2.38Rating
Gildan Activewear Inc28.89 USD0.38Rating
TELUS Corp28.67 CAD-0.55Rating

About Author

Ruth Saldanha

Ruth Saldanha  is Editorial Manager at Morningstar.ca. Follow her on Twitter @KarishmaRuth.

 
 
 

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