Imperial targets ESG

Article Excerpt

IMPERIAL OIL LTD., $33.21, is a buy. The company (Toronto symbol IMO; Shares o/s: 711.7 million; Market cap: $24.9 billion; TSINetwork Rating: Average; Dividend yield: 3.0%; www.imperialoil.ca) is teaming up with four other oil sands operators in Alberta (Suncor, Cenovus, Canadian Natural Resources and MEG Energy) in an effort to cut their greenhouse gas emissions. The five firms will connect their oil sands facilities in the Fort McMurray and Cold Lake regions to a central carbon sequestration hub. They will also jointly develop other emission-reducing technologies. Initiatives like this should increase Imperial’s appeal with institutional investors, who are increasingly targeting firms with high environmental, social, and governance (ESG) scores. Imperial Oil is a buy. buy. …