JOSEPH BAMBARA, MBA, FCSI, CIM 
SENIOR PORTFOLIO MANAGER & INVESTMENT ADVISOR

HOW DOES TODAY'S INVESTOR COMPARE TO PAST

GENERATIONS OF INVESTORS?

Clients, especially millennials, are demanding more from their investments. They want to make money, but they also want to make a difference. It’s about getting the right combination of solutions for problems such as environmental degradation, and investments that can have a material impact on these problems.

Two reasons. People are smarter and there is a lot more information available for anyone who cares to look for it. The internet connecting people from every corner of the world has led to a greater awareness of the waste and narrow focus inherent in many business models, even if we weren’t exposed to them here in Canada. The sense out there is many companies have passed the tipping point by squeezing out financial gain at the expense of longer term, sustainable prosperity.

IS THIS REALLY POSSIBLE TO BE SUCCESSFUL INVESTING THIS WAY?

Yes, and it’s worth doing - not only for the greater good but also because sustainability is one of the most pertinent themes facing investors today. Investors on the stock market, as shareholders, are the real owners of a company and have the right, and I would even say obligation, to determine its strategic direction. The stakes are high, because corporations who put short-term profits above of all other considerations are really putting your company in danger of financial loss.

WHAT TYPES OF COMPANIES ARE INVESTORS

RUNNING AWAY FROM?

It's less about abandoning all companies that currently exist and more about investing alongside what they see as real social and environmental issues. Climate change, water scarcity, waste management, food security, health & wellness, improving lives and shifting demographics are themes that have a lot of mindshare and where we focus much of our attention. For example, in terms of climate change we are looking at companies that bring innovation which align with the Paris Accord commitments. In terms of food security it might be companies helping to decrease waste in the ‘farm to table’ supply chain, or sustainably increase crop yields. 

SO SUSTAINABILITY THEMES CONNECT THE DOTS

BETWEEN TRENDS AND OPPORTUNITIES?

Yes, it’s very important to identify the significant and real upside opportunities that these trends can present. Especially as many of them are interrelated and have a very clear economic impact. We spend a lot of time looking at projections by economists and scientists. We try to identify the trends driving demographics and the challenges and opportunities that we see in these projections. Interestingly many themes overlap. Just look at resource scarcity and human wellness issues, and see how easily they connect to healthcare and education. As we look at these trends, it’s a logical next step to carefully evaluate their implications. We then have a clearer long-term picture of the landscape - for companies and investors - be it consumer trends, supply trends or business issues.

WHAT I'M HEARING IS SMART BUSINESS CAN BE AT THE HEART OF

THE SOLUTION?

Yes, business has the wealth and brainpower to push a smart agenda for more sustainable and socially responsible strategies, which in turn guarantees a future for their shareholders. This fact alone should focus investors quite clearly on the fact that great companies spend a lot of energy thinking about these macro trends and are directing their business strategies to meet these challenges. Why? Because taking the leadership role makes these corporate visionaries well positioned to reap the benefits over the longer term. Drawing attention to sustainability issues, factoring in long-term value creation and risk avoidance, is a key part of what we believe constitutes astute, well-informed investing.