"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.
MONTREAL, Dec. 8, 2023
/CNW/ - National Bank of Canada
has released its Family Advantage Winter 2023-2024 report that
helps to better understand the distinctive characteristics of
family-owned companies through an analysis of 43 Canadian
corporations under family or founder control. The report
demonstrates the continued superior long-term performance of
publicly traded Canadian family businesses.
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, Nancy C. Southern (ATCO Ltd. And Canadian
Utilities Limited), Lino A.
Saputo (Saputo Inc.) and Olivier Desmarais (Power Sustainable)
highlight, in their own words, the challenges and opportunities
that lie ahead on the road to net-zero carbon emissions. The
publication also includes the perspectives of Dominic Barton (Chair of Rio Tinto and
Global Managing Partner of McKinsey & Company from 2009 to
2018) and the Honourable Steven
Guilbeault (Minister of Environment and Climate Change
of Canada).
Highlights:
- 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 to June 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 of Canada'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.
Quotes:
- 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 of Canada's family-held flagship companies,
including Nancy C. Southern,
Lino A. Saputo and Olivier Desmarais who were interviewed for this
report, are clearly motivated to be part of the solution for
Canada'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 the ATCO 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."
About The Family Advantage
Winter 2023-2024 Report
The Family Advantage Winter 2023-2024 follows The Family
Advantage Spring 2022 report. It presents 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 relative to the S&P/TSX Composite Index,
Canada's key stock market index.
The Family Index includes 43 companies in different sectors across
the country and is based on the application of objective
quantitative criteria to an index universe provided by S&P Dow
Jones Indices, the Index Calculator.
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.
Vincent Joli-Coeur and
Philippe Lefebvre Duquette from
National Bank of Canada alongside
academic contributor Dr. Karl Moore
of McGill University and Oxford University are the co-authors and
coordinators of this report.
About National Bank of
Canada
With $424 billion in assets as at October 31,
2023, National Bank of Canada, together with its subsidiaries, forms
one of Canada's leading integrated
financial groups. The Bank has approximately
30,000 employees in knowledge-intensive positions and has been
recognized numerous times as a top employer and for its commitment
to diversity. Its securities are listed on the Toronto Stock
Exchange (TSX: NA). Follow the Bank's activities at nbc.ca or via
social media.
SOURCE National Bank of Canada