If Canada moves forward with mandatory corporate climate disclosures, what will it mean for smaller issuers? Do we run the risk of becoming more or less competitive? Will we be seen as too strict compared to other jurisdictions? Or will we actually be keeping pace?
Canada has made significant progress on its sustainable finance policy framework. However, a key piece has been long delayed: regulation requiring large public firms to report on climate-related risks and opportunities.
SHARE and the Institute for Sustainable Finance have collaborated to dispel the myths dominating rhetoric around disclosures and establish the countering facts to reassure and inform securities regulators, policy makers, investors and issuers alike.
While we wait for a disclosures decision from the Canadian Securities Administrators (CSA) and provincial ministries of finance, many jurisdictions are pressing ahead with disclosure regulations aligned with the leading international standards. This leaves Canada out of step and falling behind in the race for global climate capital at a time when political leaders are seeking new trading partners and foreign investment.
Sustainability disclosures have been well-supported by investors. However, some stakeholders have raised concerns around capacity and competitiveness at a time when U.S. federal securities regulators have cut regulations. Clarity on the costs, benefits and impact on capital markets is required before we can all move forward. We hope this document helps continue this important and timely discussion.
