TSX Clean Technology Index Stocks Investor Interest
“[The index] came after two to three solid years of performance and interest in growth in clean technology practice,” says Chadda. “Last year our companies raised close to $2 billion in capital. Those 127 companies between the two exchanges raised a record for the clean technology practice.”
The TSX and TSVX enjoyed a record year in 2009 when global markets proved extremely volatile. Over $19 billion in total market capitalization is represented in the S&P/TSX Clean Technology Index with ISE Limited the latest to join the party.
“We had a $100 million geothermal IPO last year called Magma at a time when there were storm clouds all around the market,” says Chadda. “We had a $180 million geothermal deal last year in Ram Power.”
As if all that was not enough, roughly six to eight companies with market capital ranging from $50 to $500 million eye a coveted TSX symbol. The opening bell has only begun to ring for the Canadian Clean Technology sector, though.
Chadda and colleagues just embarked upon a tour throughout the US at the end of June, which began in New York and concludes with the California Financing Series.
Chadda, Global Senior Manager of Business Development, Clean Technologies, Robert Peterman and team appeared at the TMX-sponsored Clean Technology & Sustainable Infrastructure Investor Day, hosted by New York Society of Security Analysts (NYSSA) at the end of June.
Chadda and Peterman were accompanied by CEOs of the leading clean tech companies currently listed with the TMX Group, including Magma Iceland Corp.CEO Asgeir Margeirsson, Plutonic Power Corp. CEO Donald McInnes, Algonquin Power & Utilities Corp. CEO Ian Robertson, Azure Dynamics Corp. CEO Scott Harrison, Electrovaya Inc. CFO Paul L. Hart and ISE Limited CEO Richard Sander.
Chadda, Peterman and the CEOs highlighted Canada’s renewable power and transportation infrastructure and green tech investment best practices and opportunities.
“There were two panels: one a transportation panel, which ISE Limited was a part of, and the other was a renewable power generation panel,” says Peterman.
The public relations campaign will conclude with stops in San Francisco, Los Angeles and San Diego with strategic introductory meetings between select clean tech companies and TMX representatives in September.
By then, the new S&P/TSX Clean Technology Index will have six months worth of data and possibly an accompanying exchange-traded fund (ETF) to further support Chadda and Peterman’s assertions.
S&P/TSX Clean Technology Index
Instituted at the end of March, the S&P/TSX Clean Technology Index lists 21 companies who have been clean tech verified by Jantzi-Sustainalytics, the research agency tapped to develop and maintain the Clean Technology Classification System.
“The index is a benchmark,” says Chadda. “That’s going to measure the market and put a target on the sector. The market itself will answer the questions, not us.”
Over $1.5 billion in equity capital was raised in 2009. The top-ten clean technology companies enjoyed a 341 per cent one-year average market capital growth with investors enjoying an average return on investment of 236 per cent in 2009.
The need for the S&P/TSX Clean Technology Index to monitor the rising stars of Canada’s public markets becomes abundantly obvious when analysing the exploding numbers.
“The idea behind the launch of the index was a couple of things,” says Alka Banerjee, vice president of S&P Indices. “Clean tech is the hottest sector in the world, especially in Canada and North America. It is attracting over 25 per cent of all venture capital funds, which is huge.”
Rising stars can be found on the junior TSXV such as BioExx Specialty Proteins Ltd. The Toronto company focuses on oil and high-value protein extraction from oilseeds for the global food market. BioExx experienced a 678 per cent market capital growth, and investors saw a 412 per cent ROI.
In ROI, Wavefront Technology Solutions Inc.’s investors saw the greatest gains at 463 per cent. The Edmonton company specializes in designing leading-edge solutions for oil well stimulation and environmental groundwater remediation. Wavefront finished with 554 per cent market capital growth for fiscal year 2009.
“Canada is home to quite a few of these companies. More clean tech companies call Canada home than any other exchange. It made sense to have an index highlighting these companies. The demand for it is absolutely there,” says Banerjee.
Furthermore, the Canadian financial system ranked as the soundest for the second consecutive year by the World Economic Forum.
“There’s a certain sweet spot where the Canadian model makes sense,” says Chadda. “We have a slightly more effective regulatory model for public companies at that mid-range, up to the half a billion market cap.”
Sustainable Development Technology Canada opened the TSX in mid June to celebrate the launch of the 2010 SDTC Cleantech Growth and Go-to-Market Report, which provides key benchmarks and insights into the emerging clean tech sector of the Canadian economy. The day after, Ram Power held the honors.
The closing bell is a long way off.
Marketing matters: from IBM to Kyndryl
Prior to joining Kyndryl as Chief Marketing Officer, Maria had a 25-year career at IBM, most recently as the tech giant’s CMO where she oversaw all marketing professionals and activities across North America, Canada and Latin America. She has held senior global marketing positions in a variety of disciplines and business units across IBM, most notably strategic initiatives in Smarter Cities and Watson Customer Engagement, as well as leading teams in services, business analytics, and mobile and industry solutions. She is known for her work with teams to leverage data, analytics and cloud technologies to build deeper engagements with customers and partners.
With a passion for marketing, business and people, and a recognized expert in data-driven marketing and brand engagement, Maria talks to Business Chief about her new role, her leadership style and what success means to her.
You've recently moved from IBM to Kyndryl, joining as CMO. Tell us about this exciting new role?
I’m Chief Marketing Officer for Kyndryl, the independent company that will be created following the separation from IBM of its Managed Infrastructure Services business, expected to occur by the end of 2021. My role is to plan, develop, and execute Kyndryl's marketing and advertising initiatives. This includes building a company culture and brand identity on which we base our marketing and advertising strategy.
We have an amazing opportunity ahead at Kyndryl to create a company brand that will stand apart in the market by leading with our people first. Once we are an independent company, each Kyndryl employee will advance the vital systems that power human progress. Our people are devoted, restless, empathetic, and anticipatory – key qualities needed as we build on existing customer relationships and cultivate new ones. Our people are at the heart of this business and I am deeply hopeful and excited for our future.
What experiences have helped prepare you for this new opportunity?
I’ve had a very rich and diverse career history at IBM that has lasted 25+ years. I started out in sales but landed explored opportunities at IBM in different roles, business units, geographies, and functions. Marketing and business are my passions and I landed on Marketing because it allowed me to utilize both my left and right brain, bringing together art and science. In college, I was no tonly a business major, but an art major. I love marketing because I can leverage my extensive knowledge of business, while also being able to think openly and creatively.
The opportunities I was given during my time at IBM and my natural curiosity have led me to the path I’m on now and there’s no better next career step than a once-in-a-lifetime-opportunity to help launch a company. The core of my role at Kyndryl is to create a culture centered on our people and growing up in my career at IBM has allowed me to see first-hand how to prioritize people and ensure they are at the heart of progress in everything Kyndryl will do.
How would you describe your leadership style?
I believe that people aren't your greatest assets, they are your only assets. My platform and background for leadership has always been grounded in authenticity to who I am and centered on diversity and inclusion. I immigrated to the US from Chile when I was 10 years old and so I know the power and beauty that comes from leaning into what makes you different from other people, and that's what I want every person in my marketing organization to feel – the value in bringing their most authentic self to work every day. The way our employees feel when they show up for themselves authentically is how they will also show up for our customers, and strong relationships drive growth.
I think this is especially true in light of a world forever changed by the pandemic. Living through such an unprecedented time has reinforced that we are all humans. We can't lead or care for one another without empathy and I think leaders everywhere have been reminded of this.
What’s the best leadership advice you’ve received?
When I was growing up as an immigrant in North Carolina, I often wanted to be just like everyone else. But my mother always told me: Be unique, be memorable – you have an authentic view and experience of the world that no one else will ever have, so don't try to be anyone else but you.
What does success look like to you?
I think the concept of success is multi-faceted. From a career perspective, being in a job where you're respected and appreciated, and where you can see how your contributions are providing value by motivating your teams to be better – that's success! From a personal perspective, there is no greater accomplishment than investing in the next generation. I love mentoring younger professionals – they are the future. I want my legacy as a leader to include providing value in work culture, but also in leaving a personal impact on the lives of professionals who will carry the workforce forward. Finding a position in life with a job and company that offers me a chance at all of that is what success looks like to me.
What advice would you give to your younger self just starting out in the industry?
I've always been a naturally curious person and it's easy for me to over-commit to projects that pique my interest. I've learned over years of practice how to manage that, so to my younger self I’d say… prioritize the things that are most important, and then become amazing at those things.