- As the focus on the environment’s wellbeing increases, ethical investing is becoming a mainstream practice among investors.
- Many investors are actively seeking to support companies that follow ethical principles and reflect environment consciousness in their operations.
- Canadian equity markets offer an assortment of ethical stocks.
As people become more conscious about climate change and the environment, ethical investing has become a prominent topic of discussion in the investment world.
Many investors are actively seeking to support companies that follow ethical principles and reflect environment consciousness in their operations.
In case you are looking to explore this area of investment, let us first understand the concept ethical investing.
What is ethical investing?
Ethical investing refers to the diversification of an investment portfolio in compliance with your personal or the company's ethical principles that make a positive impact on the society.
When an investor indulges in ethical investing, the individual is ideally looking to support companies that are trying to bring a positive change and build a sustainable future.
This development has brought in an increased focus on companies’ environmental, social, and corporate governance (ESG) principals.
Canada’s equity markets offer an assortment of options for ethical investing. Let us look at the penny stocks of three such firms that aim to bring a positive impact.
1. Spark Power Group Inc. (TSX:SPG)
The Oakville-based company provides sustainable solutions to industrials, utility and renewable asset markets. Spark Power claims that its sustainable solutions are equipped to keep industrial operations running while keeping their environmental impact in focus.
The company reportedly serves 6,500 customers across North America. It aims to lower carbon emissions, provide energy efficiency services, and minimize costs.
According to the data from Refinitiv, Spark Power holds a market cap of C$ 116.6 million. Its stock catapulted by 61 per cent in the past year and expanded by 42 per cent year-to-date (YTD).
At market close, SPG share was priced at C$ 2.06 apiece on Tuesday, July 20.
In Q1 2021, Spark Power recorded revenues of C$ 56 million, which was an increase of four per cent year-over-year (YoY).
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- Eguana Technologies Inc. (TSXV:EGT)
Eguana develops commercial energy storage systems. It believes that distributed energy storage will play an important role in the transition to renewable energy.
The company owns manufacturing facilities in Australia, Europe and North America.
Earlier this month, on July 6, the Calgary-based company received an order of US$ 3.6 million for the Hawaii Virtual Power Plant Program.
In the Q2 FY21, which ended on March 31, 2021, Eguana Technologies presented an improved balance sheet with a positive working capital of C$ 12.1 million. This was a significant increase as compared to a working capital deficit of C$ 5.2 million for the 2020-year end.
During Tuesday’s trading session, EGT stock climbed by 4.6 per cent to close at C$ 0.34 per share. The stock has soared by 160 per cent in the last twelve months.
3. American Manganese Inc. (TSXV:AMY)
The critical metals and innovative technology company is involved in recycling lithium-ion batteries through a patented process called 'RecycLiCo'.
American Manganese claims that it can recover up to 100 per cent of battery metals for reuse in new batteries.
As the electric vehicles industry is expected to boom in future, American Manganese could emerge as a leading recycling company and expand its business operations.
AMY shares returned about 517 per cent in the past year and catapulted by 136 per cent in the last six months. The scrips closed at C$ 1.11 apiece on Tuesday.