Best ESG stocks of 2021 that Canadians should explore

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 Best ESG stocks of 2021 that Canadians should explore
Image source: © 2021 Kalkine Media


  • In light of the ill effects of climate change, the corporate sector is also trying to tackle the environmental challenges.
  • A Canadian asset management company mentioned here last month on November 18 released its climate commitments to transform its operation carbon neutral by carbon offset and decarbonization.
  • A fashion company listed below purchases renewable energy credits (RECs) for every unit of electricity purchased for its office, stores and distribution centres.

Climate change has become a serious concern that needs to be addressed quickly. While governments worldwide are outlining plans to reduce carbon emissions and transform into carbon-neutral economies, businesses are also looking into ways to help and not actively destroy the environment.

With this in mind, many top players in the corporate sector have been implementing various Environmental, Social And Governance (ESG) standards.

With growing climate awareness, such companies are likely to grab consumer attention and see a spike in demand in the future. So, let us have a quick look at some of the top Canadian ESG stocks.

1.    IGM Financial Corp (TSX: IGM)

IGM Financial Corp, on November 18, released its climate commitments to go carbon neutral by carbon offset and decarbonization.

The Winnipeg, Manitoba-based asset manager has joined hands with the Partnership for Carbon Accounting Financials to calculate and reveal the greenhouse gas (GHG) emission attached with its loans and investments. 

In 2020, the company minimized its carbon emission to 932 tonnes from 2,330 tonnes in 2013.

In Q3 FY2021, the financial service provider recorded net earnings of C$ 270.8 million, noting a year-over-year (YoY) rise of 42 per cent. It is expected to pay a quarterly dividend of C$ 0.563 apiece on January 31, 2022.

IGM stock grew by nearly 35 per cent this year. It closed at C$ 46.57 apiece on Friday, December 10.

Also read: Top 3 Canadian metaverse stocks of 2021 

2.    Aritzia Inc (TSX: ATZ)

Aritzia Inc claims to be is engaged in carbon-neutral operations, including renewable electricity and carbon offsets.

The fashion retailer purchases renewable energy credits (RECs) for every unit of electricity purchased for its office, stores and distribution centres. These RECs contributed to infrastructure and technology used in renewable energy generation.

The Vancouver, British Columbia-based company, posted net revenue of C$ 350.1 million in the second quarter of fiscal 2021, reflecting YoY growth of 74.9 per cent.

The fashion stock zoomed by over 108 per cent in the past year. It closed at C$ 51.30 on December 10, up by almost one per cent.

Aritzia Inc (TSX:ATZ)’s stock performance

 Image source: © 2021 Kalkine Media

3.    CCL Industries Inc (TSX: CCL)

CCL Industries recently joined the New Plastics Global Commitment, which is focused on the use and reuse of plastic.

The company is also known to implement waste reduction strategies and limit industrial waste in its operations, and use its research and development resources annually to produce sustainable and circular products.

The Toronto, Ontario-based packaging solution provider posted sales of 1.48 billion in Q3 FY2021, noting a YoY increase of 8.4 per cent. The company is expected to deliver a quarterly dividend of C$ 0.207 apiece on December 29.

CCL.B stock swelled by roughly 11 per cent this year. It closed at C$ 63.9 apiece on December 10.

Also read: What are the most actively traded Canadian stocks in 2021?

Bottom line

Companies working towards environment-friendly solutions are not only likely to draw the attention of investors who are passionate about such initiatives, but also of those who are looking to invest in growing sectors. This is because with the rise of climate change awareness, the demand of clean tech and power is likely to go big in the future.


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