Sector Profiles: Three Sustainability Themes
1. Energy
Our definition of energy includes natural resources as well as alternative and renewable sources of energy. The scrutiny we place upon traditional sources of energy, associated with environmental impacts, is to consider the increased efficiency a given extraction or processing technology or company may offer. We will not rid the world of oil, gas or coal, nor would we want to. Our aim is to work with Exploration, Production and Service firms who can extract and process resources most efficiently with the least environmental damage.
Alternative and renewable energy investment opportunities are in high demand with many Government programs spurring increased capacity. Our focus is not exclusive to the energy producers. In fact we are more focused on the producers of the technologies used in the production and transmission of alternative power.
2. Food
Food and Agribusiness is facing the challenges of globalization, consumer demand for healthier food and products derived from sustainable practices. Ellesmere believes that Canadian agribusiness, food and related companies are well positioned to meet the challenges facing the industry. Building on the experience of our principals in the food sector, we have chosen Food as one of our sustainability themes.
Currently our Capital market survey indicates interest in small and medium-sized enterprises with a sustainable competitive advantage in food production and related businesses. Desirable businesses typically have enterprise values greater than $20 million, high-quality value-added products, favorable growth prospects and proven, motivated management teams with significant equity ownership positions in their businesses.
3. Technology
As natural resources become increasingly scarce and productivity reaches the limits of existing infrastructures, technological innovation is the only way to ensure progress. Under the general theme of technology, we seek to be active in both traditional High Tech and Clean Tech Sectors. While Clean Tech is timelier of the two, it’s important to understand the High Tech subsectors, such as materials and software, which facilitate the competitive and sustainable business models of Clean Tech companies. Furthermore, High Tech sub sectors such as Cloud Computing, Corporate Social Networking and Services as a Service (SaaS) are facilitating growth in commerce on an unprecedented level and the market is primed for new entrants and capital injections. This is just one example of the many areas we are interested in.