Newsblog
December 19, 2024
CSSB standards a major step forward for sustainable finance
The highly anticipated release of new Canadian standards represents a major step forward for sustainable finance. Investors have been waiting for credible standards for clear, comparable reporting on climate-related risks and opportunities to guide investments. The CSSB’s announcement is a significant contribution to Canada’s developing sustainable finance framework.
December 17, 2024
Call for papers for the 2025 CSFN Conference: Deadline March 15
The CSFN Conference invites submissions of original research papers for presentation at the 2025 conference to be held June 5-6, 2025 at Schulich School of Business, York University in Toronto. The conference brings together academics and financial industry participants with a shared commitment to sustainable finance, offering a forum for exploring the latest research and educational innovations in the field.
December 17, 2024
Next steps for sustainable finance in 2025: Environment Journal
In a Q & A with ISF's Maya Saryyeva, Environment Journal covers the emerging trends and upcoming research that will drive sustainable finance in 2025, from getting nature on the balance sheet to dealing with political headwinds.
December 11, 2024
Are investors liking corporate Canada's ESG tweets?: White Paper
New research finds a mismatch between Canadian companies’ positive ESG messaging on social media, their actual environmental performance, and their cost of capital. The study is summarized in an ISF white paper by Dhruv Baswal and Sean Cleary, titled “Are investors liking corporate Canada’s ESG tweets?"
December 6, 2024
Canada urged to stand firm on sustainable finance: Energy Mix
Canada’s slow and winding path to adopting crucial sustainable finance rules must not be derailed by political instability in the European Union and the United States, ISF's Maya Saryyeva told The Energy Mix. As she points out, "the climate crisis isn’t going away,” and “the necessary elements to drive green investments remain a credible taxonomy and clear, comparable climate reporting requirements for business. Canada needs to move urgently in this direction.”
December 2, 2024
Delivering the future Canadians want: Saryyeva, Singh and Toye
Canada is brimming with the potential to meet the aspirations of its citizens. No matter their political affiliations, Canadians overwhelmingly desire a flourishing economy that generates skilled jobs, ensures secure retirements, provides affordable housing and fosters economic opportunities. They seek meaningful reconciliation with Indigenous Peoples, a commitment to preserving nature, and robust protection for their homes and businesses against increasingly severe natural disasters. And most are deeply concerned about the future of our planet.
November 21, 2024
Webinar Video: Climate science for business decision-making
This webinar, co-hosted by ISF and the CPA Centre for Corporate Reporting & Professionalism explored how research from the climate sciences, engineering and economics can be translated for financial decision makers grappling with the uncertainties of climate change. Tanya Fiedler Scientia Fellow the University of New South Wales, joined us in conversation with Meigan Terry, Senior Vice President and Chief Sustainability, Social Impact and Communications Officer, at Scotiabank.
November 14, 2024
New report: How Canadian firms are using voluntary carbon credits
Carbon offsets are a hot topic at the COP29 climate conference underway in Baku, Azerbaijan. The Voluntary Carbon Market has significant potential to spur further investments in climate solutions but has been hindered by concerns over low-quality credits, double counting, and overstated greenhouse gas emissions reductions. Canadians may be asking, who is buying carbon offsets? And why? And what kinds of projects are they supporting?
October 23, 2024
Webinar, Nov. 13: Climate science for business decision-making
This upcoming webinar, co-hosted by ISF and the CPA Centre for Corporate Reporting & Professionalism will explore how research from the climate sciences, engineering and economics can be translated for financial decision makers grappling with net zero planning and the uncertainties of climate change. Tanya Fiedler Scientia Fellow the University of New South Wales, joins us in conversation with Meigan Terry, Senior Vice President and Chief Sustainability, Social Impact and Communications Officer, at Scotiabank.
October 18, 2024
Event video: Capitalizing on Clarity: The Canadian taxonomy in action
Video is now available for the PRI In-Person side event, “Capitalizing on Clarity: The Canadian Taxonomy in Action," hosted by ISF and the Canada Climate Law Initiative. The long-awaited sustainable finance taxonomy in Canada will provide much-needed clarity for allocating climate capital that investors have been demanding. Our expert panel delved into recommendations for the practical implementation of the taxonomy in Canada, governance considerations, and lessons from the international community.
October 18, 2024
Event video: Taking TNFD to your Board of Directors
Video is now available for the PRI In-Person side event, “Taking TNFD to your Board of Directors," hosted by ISF, the Taskforce on Nature-related Financial Disclosures and CPA Canada. Customer expectations are shifting, investors are asking more questions and regulations and standards are moving forward. Our expert panel explored board directors' evolving responsibilities and the role of TNFD reporting in managing nature-related risks.
October 10, 2024
Federal announcement on green and transition investment guidelines a major step toward accelerating climate capital
The federal government has announced its plan to deliver a set of “made-in-Canada” guidelines for green and transition investments, or a “taxonomy”, which when completed is expected to drive significant amounts of Canadian and foreign capital to fighting climate change. It is encouraging that the government has largely followed the recommendations of the Sustainable Finance Action Council in building its taxonomy plan, according to ISF experts.
October 9, 2024
A clear and overdue path to accounting for natural assets in Canada: Corporate Knights Opinion
"Natural assets (such as rivers, wetlands and forests) are neither traded nor routinely valued, yet they provide critical services like helping manage worsening floods, droughts and heat waves, as well as storing carbon to slow climate change. These services are financially valuable," write Joanna Eyquem, Peter van Dijk and James K. Stewart in Corporate Knights. "For example, an Institute for Sustainable Finance report estimates that Canadian wetlands alone provide services worth approximately $225 billion annually, equivalent to around 8% of Canada’s gross domestic product."
October 8, 2024
Sustainable bond market boom on pause, finds ISF's 10-year review
The inaugural “Canadian sustainable bond market report” from the Institute for Sustainable Finance examines a decade of issuances of some of the most important instruments for financing positive environmental and social outcomes. Use of proceeds from Green, Social, Sustainability, and Sustainability-Linked bonds support everything from clean energy and green buildings, to women’s empowerment to Ukraine sovereignty.
October 4, 2024
Strengthening Sustainable Finance Pathways to Accelerate Canada’s Clean Economy Transition: Barb Zvan in TheFutureEconomy.ca
The goal sounds simple enough: achieve net-zero emissions by 2050 or earlier," writes ISF Advisory Board Member Barb Zvan. "Many countries across the globe, including Canada, have confirmed their commitment to get there. From that common ground, and based on an understanding of the risks of climate change and an assessment of what needs to be done to address them, a race is underway."
September 25, 2024
ISF congratulates the 2024-25 McCall MacBain CSFN Sustainable Finance Fellows
The Institute for Sustainable Finance (ISF) is proud to announce the recipients of two fellowships awarded to talented Master’s students at Canadian universities, to pursue research interests in sustainable finance. This year, fellowship funds will support work expected to make important advancements in how we understand corporate climate reporting and ESG scoring.
September 19, 2024
UN-PRI side event: Capitalizing on Clarity
The long-awaited sustainable finance taxonomy in Canada will serve as a guide for both “green” and “transition” investments, providing much-needed clarity for capital markets that investors have been demanding. Our expert panel includes some of the leading figures in taxonomy development in Canada and around the world. They will delve into practical implementation of the taxonomy in Canada, governance considerations, and lessons from the international community. This event is presented as a side event to the PRI In-Person 2024 conference in Toronto, Oct. 9.
September 19, 2024
UN-PRI side event: Taking TNFD to your Board of Directors
Nature is now considered a strategic risk management and governance issue for companies and financial institutions. How should boards and directors be responding to this quickly evolving landscape? And how can the Taskforce on Nature-related Financial Disclosures (TNFD) framework help directors more effectively manage nature-related risks and fulfil their evolving responsibilities? This live panel discussion is hosted as a side-event to the PRI In-Person 2024 conference in Toronto, Oct. 7.
August 30, 2024
Canada must align its corporate climate disclosures to global standards: Zvan and Stymiest in the Globe
Writing in The Globe and Mail, finance sector leaders Barbara Zvan and Barbara Stymiest issue a powerful message on the importance for Canada of aligning with global sustainability disclosure standards. They urge the Canadian Sustainability Standards Board to resist calls from companies and industry associations to weaken standards set by the International Sustainability Standards Board as it considers how to adopt them in Canada.
August 21, 2024
ISF's Saryyeva at the Responsible Investor Canada Conference
Join ISF's Maya Saryyeva at the Responsible Investor Canada Conference, Sept. 11 in Toronto, for an expert panel discussion titled Investing in Nature: Opportunities in Biodiversity. The panel will focus on the innovative financial instruments and models driving biodiversity conservation, and explore the challenges and opportunities for investors as they integrate biodiversity into their portfolios, along with the emerging trends in nature finance.
August 20, 2024
Sustainable Finance Forum registration is now open
Registration is now open! Don't miss Ottawa's premier event on sustainable finance. On Nov. 28-29, the Sustainable Finance Forum 2024 will bring together top industry leaders, policymakers, and innovators for two days of insightful discussions and networking. The Institute for Sustainable Finance is proud to be a Presenting Partner.
July 12, 2024
Unlocking the power of sustainable finance in the climate transition: Barbara Zvan for WFE
"The climate crisis requires an approach that allows for enhancing livelihoods while at the same time drawing down emissions to net zero. It’s a path that relies on the deployment of low-carbon solutions across industries and society to affect unprecedented systems change," writes ISF Advisory Board member Barbara Zvan for the World Federation of Exchanges.
June 26, 2024
ISF report: Canadian wetlands providing hundreds of billions in natural services
A new report by the Institute for Sustainable Finance estimates that wetlands in Canada provide natural services worth approximately $225-billion annually, an amount equivalent to around 10% of Canada’s GDP. Nature’s value to humans is immense. Our economy and even our existence depend on the health of the environment around us. However, Canada's vast natural wealth does not yet appear on any balance sheet. ISF's work seeks to further develop this promising field, enabling us to properly account for nature's value to the economy and create incentives for investing in its preservation.
June 20, 2024
Why nature matters to Canada’s GDP: Riordan and O'Brien in the Globe
In the Globe and Mail, ISF Director of Research Ryan Riordan and Dan O'Brien of PWC Canada argue that much of our economy depends on nature. However, natural services like flood and erosion prevention, carbon sequestration, crop pollination, novel medicines and products, recreation, water filtration, and more don’t yet appear on any balance sheet. We don’t fully appreciate our exposure to the risks of degraded natural assets and lost biodiversity or the opportunities to invest in preserving and restoring nature. This is to our detriment.
June 17, 2024
Webinar video replay: Completing Canada's sustainable finance infrastructure
The video replay is now available for Part 2 of ISF's "3Ds" Webinar Series. This session brought together leading experts to discuss the next steps to completing Canada's sustainable finance infrastructure, including the implementation of climate disclosure standards and regulations, and a credible green and transition taxonomy. Speakers shared their insights on what’s needed to propel Canada towards its climate goals, compete for foreign investment, and help decarbonize heavy emitting sectors of the economy.
June 12, 2024
New Research Report: Understanding Voluntary Carbon Markets, Part 1
The use of carbon offsets has been hotly debated. Trading offsets through Voluntary Carbon Markets (VCMs) has the potential to direct significant amounts of capital to climate solutions and help meet climate targets. However, many concerns remain about the quality and integrity of carbon offsets, and the lack of regulation and oversight of this burgeoning industry. To better inform this debate, a new study from ISF, CPA Canada and IFAC, provides a crucial resource for existing and potential market participants, to better understand the current state of VCMs and their future development.
June 10, 2024
Financial Sector Prioritization Survey
The Sustainable Finance Action Council (SFAC) recently conducted a survey in partnership with Smart Prosperity Institute to gather feedback from Canadian financial institutions on prioritizing sectors for green and transition investments. The survey emphasized the need for a Canadian-specific sustainable finance taxonomy to support investment decisions and drive the country’s net-zero transition.
June 10, 2024
One-stop shopping for government climate data on ISF's site
Timely data on climate change is a vital input for those tasked with making sustainable financial decisions. A significant amount of this data is produced and disseminated by federal, provincial, and territorial governments. Still, it has been challenging to access and use these databases since they are spread across several levels of government and numerous government departments. Now, most of these data sources are available in one place thanks to a collaboration between Environment and Climate Change Canada, Statistics Canada and the Sustainable Finance Action Council’s Data Technical Expert Group.
May 15, 2024
Webinar event, June 4: Completing Canada's sustainable finance infrastructure
A robust, modern sustainable finance framework is absolutely vital to attracting investment to Canada and meeting climate targets. Thanks to the work of the Sustainable Finance Action Council, the Canadian Sustainability Standards Board and other finance sector leaders, we can see the way forward. This webinar event brings together expert speakers at the forefront of these important discussions, to help establish the next steps for Canada to finally unlock its climate finance potential.
May 8, 2024
Video replay: TNFD Webinar Series, Part 2
The video replay is now available for the recent TNFD webinar hosted by ISF and CPA Canada, titled, “Identifying the ingredients for widespread adoption in Canada.” During the session we heard about the inspiration for early adopters of the Taskforce on Nature-related Financial Disclosures (TNFD), imperatives for the finance sector, potential challenges and roadblocks to adoption, how TNFD might interact with existing environmental reporting requirements, considerations for standards setters and regulators, the importance of incorporating Indigenous rights, and much more.
April 26, 2024
Nature degradation could cause a 12% loss to UK GDP: Green Finance Institute
"Damage to the natural environment is slowing the UK economy, and could lead to an estimated 12% reduction to GDP in the years ahead – larger than the hit to GDP from the global financial crisis or Covid-19," reports the Green Finance Institute, which uses at first-of-its-kind analysis that "quantifies the impact that nature degradation, both domestically and internationally, could have on the UK’s economy and financial sector."
April 22, 2024
Clean50 Open Letter supports urgent adoption of a sustainable finance taxonomy
ISF has joined members of Canada's Clean50 and other prominent business and environmental leaders, academics and others on an open letter urging immediate action by the federal government to implement a sustainable finance taxonomy. A credible taxonomy will provide clear guidelines about what is a truly sustainable investment, so we can have confidence we are allocating capital to real climate solutions.
April 22, 2024
Your Firm’s Most Undervalued Asset? Try Nature: Smith Business Insight
"It’s increasingly clear that a healthy economy hinges on a healthy living planet," writes Deborah Aarts for Smith Business Insight. She recently interviewed Ryan Riordan, Director of Research at the Institute for Sustainable Finance, for a Q and A article titled: "Your Firm’s Most Undervalued Asset? Try Nature". Dr. Riordan explains how we can all benefit from better appreciating the risk to the economy of damaging nature, and the opportunities to benefit from investing in nature-positive outcomes.
April 11, 2024
2024 CSFN Conference, May 9-10 in Montreal
The 5th Annual Canadian Sustainable Finance Network (CSFN) Conference brings together thought leaders and decision makers from academia and the finance industry to discuss the latest research and developments of best practices for sustainable finance in Canada and beyond. This year's conference is presented by the McGill University Desautels Faculty of Management.
April 9, 2024
Webinar April 25: Identifying the ingredients for widespread TNFD adoption in Canada
Interest has blossomed in biodiversity and nature-related disclosures, but many Canadian companies are only beginning to explore the possibilities. Our expert panel will get into the weeds and help identify a path to widespread adoption of Taskforce on Nature-related Financial Disclosures (TNFD) recommendations in Canada.
April 4, 2024
Frustrated with inaction, panel tasked with bolstering sustainable finance markets ends its work: Jeffrey Jones in the Globe
The Sustainable Finance Action Council laid out a clear roadmap for a green and transition taxonomy and pressed for mandatory climate-related disclosures during its mandate. However, as Jeffrey Jones writes in the Globe and Mail, "Ottawa has yet to implement these things, and panel members have publicly expressed frustration that the government has not provided them with the direction and funding necessary to take the next steps toward finalizing the taxonomy."
April 4, 2024
Stock markets signal a growing gap between Canadian and American clean tech firms: Koskinen et al. in the Conversation
"The valuations are significantly higher in the U.S.," than Canada for clean tech firms, write Yrjo Koskinen, J. Ari Pandes and Nga Nguyen in the Conversation. This suggests "the market sees better long-term prospects for the sector south of the border. Canadian clean tech firms could have problems scaling up and taking advantage of opportunities."
March 26, 2024
EU sustainability reporting requirements a wake up call for Canadian firms, policy makers: ISF Briefing Note
The impact of tough new standards for sustainability disclosures in Europe will reverberate across the Atlantic and be felt by Canadian firms with access to European Union (EU) capital markets, or significant operations in EU countries. ISF's latest Briefing Note takes a closer look at which Canadian companies and sectors of the economy are most impacted by the newly enforced Corporate Sustainability Reporting Directive (CSRD) and the accompanying European Sustainability Reporting Standards (ESRS) in the EU. The authors also draw implications for Canada’s sustainable finance policy design, specifically, Canada’s forthcoming green and transition finance taxonomy.
March 13, 2024
CSSB releases draft sustainability disclosure standards
Today, the Canadian Sustainability Standards Board (CSSB) released its proposed Canadian Sustainability Disclosure Standards (CSDS 1 and CSDS 2) for public feedback and encourages responses before June 10. The CSSB standards were developed to make “Canadian specific” modifications to International Sustainability Standards Board (ISSB) standards released last year, and are part of a global effort to harmonize corporate sustainability reporting and support disclosure regulations.
March 7, 2024
U.S. SEC approves rule requiring some companies to publicly report emissions and climate risks: Globe and Mail
"The U.S. Securities and Exchange Commission on Wednesday approved a rule that will require some public companies to report their greenhouse-gas emissions and climate risks, after last-minute revisions that weakened the rule in the face of strong pushback from companies," reports the Globe and Mail.
February 28, 2024
Canada’s securities regulators must finalize climate-disclosure rules without delay: Janis Sarra in The Globe
"Canada’s failure to act" on climate disclosure regulations "has left companies increasingly vulnerable to litigation risk as they try, on an ad hoc basis, to craft disclosure that meets regulatory and civil liability materiality standards," writes ISF Research Advisory Council Member Dr. Janis Sarra in The Globe and Mail.
February 15, 2024
Reaping the benefits of sustainable agriculture: New CSFN study and Ivey Academy podcast
Agriculture in Canada is closely linked to a natural environment that is under threat from unsustainable practices. Farmers are also facing both the harmful effects of climate change and demands to reduce their own greenhouse gas emissions. A systems-level change is required to support farmers in taking on these challenges and reaping the benefits of sustainable agriculture, according to a new study from the Ivey Centre for Building Sustainable Value, supported with a grant from ISF.
January 25, 2024
Webinar replay: How global trends are shaping sustainable finance in Canada
You can now catch the replay of ISF's impactful webinar from Jan. 15, “How global trends are shaping sustainable finance in Canada.” Gain insights from our panel of international experts who explored the latest developments in global taxonomies and climate disclosures, and how these affect Canadian firms. They also delved into Canada's unique opportunities for setting our own path towards financing net zero emissions.
January 19, 2024
Mandatory climate related disclosures and the future of SMEs: Maya Saryyeva
"As the world grapples with climate change, governments and regulatory bodies are increasingly recognizing the crucial role businesses play in addressing environmental challenges," writes ISF interim executive director Maya Saryyeva on Linkedin. "In response, many jurisdictions are implementing rules on climate-related mandatory disclosure seeking to promote transparency on anticipated climate-related risks over the short, medium and long term. These regulations are going to have significant impacts on small and medium enterprises (SMEs) around the world, particularly if they enact Scope 3 reporting requirement."
January 16, 2024
320 companies and financial institutions to start TNFD nature-related corporate reporting: TNFD release
"The Taskforce on Nature-related Financial Disclosures (TNFD) is delighted to announce that 320 organisations from over 46 countries have committed to start making nature-related disclosures based on the TNFD Recommendations published in September last year," said TNFD in a news release. "This first cohort of adopters of the TNFD Recommendations includes leading publicly listed companies across geographies and industry sectors representing US$4 trillion in market capitalisation ..."
January 16, 2024
Webinar Jan. 30: Regenerative Agriculture: The Role of Finance & the Value Chain
Join ISF and the Ivey Academy for this important webinar exploring the role that regenerative agriculture can play in the transition to a more sustainable food system, and how the food industry and the financial sector can help incentivise and scale the adoption of more sustainable practices by producers.
December 21, 2023
Webinar Jan. 15: How global trends are shaping sustainable finance in Canada
While business and finance await certainty on climate-related disclosure regulations and a sustainable finance taxonomy in Canada, the rest of the world is not slowing down. Our expert panel will cover the latest global sustainable finance developments and their potential impact on Canadian firms, and what Canadian regulators and standard setters can do to set Canada’s own course for the economic transition to net zero emissions.
December 21, 2023
Carbon pricing alone is not enough: Cleary and Willcott in The Conversation
"Carbon pricing policies have been a central part of the conversation about avoiding the worst effects of climate change," write Sean Cleary and Neal Willcott in The Conversation. "Carbon pricing is a market-based solution that incentivizes organizations and individuals to emit less greenhouse gases and invest in climate solutions. ... However, it’s vital to understand both the potential and limitations of these policies."
December 20, 2023
Key sustainable finance takeaways from a productive COP28
The recently concluded COP28 climate summit in Dubai generated plenty of sustainable finance developments to watch going forward. ISF’s Ryan Riordan and Yingzhi Tang cover the important announcements on the transition away from fossil fuels, carbon markets, nature finance and more.
December 18, 2023
Financed Emissions: Is That a Megatonne in Your Portfolio? Riordan and Martin in TheFutureEconomy.ca
Responding to growing public expectations for climate action and acknowledging the financial risks that climate change poses, a number of big banks and pension plans have begun the process of aligning their investment portfolios with Canada’s targets for net zero by 2050 or sooner. Being able to accurately track and report financed emissions will be critical to meeting these targets, write Ryan Riordan and Simon Martin in TheFutureEconomy.ca.
November 29, 2023
New collaborative research project: Understanding the Voluntary Carbon Markets
To better understand the carbon credit markets and the related issues and challenges, the Institute for Sustainable Finance (ISF) has partnered with CPA Canada and the International Federation of Accountants (IFAC) to initiate a new research project. The research will examine existing carbon markets to understand best practices and standards that will help foster trust, bolster transparency and strengthen accountability in the voluntary carbon market. Learn more with our recently published teaser, and stay tuned for more in-depth reports coming soon.
November 28, 2023
Webinar, Dec. 14. Climate Reporting: What your firm needs to know
In an era where climate change reshapes business dynamics, mastering climate risk management is crucial. Canadian companies are actively disclosing greenhouse gas (GHG) emissions and setting targets, but there's more to learn and achieve. In partnership with Smith Business Insight, the Institute for Sustainable Finance is hosting a 60-minute complimentary webinar with perspectives from standards setters, business, finance and academia. Date: Thursday, December 14, 2023. Time: 12:00 - 1:00 PM EST
November 22, 2023
Fall Economic Statement could create much-needed momentum for sustainable finance
The federal government’s Fall Economic Statement (FES) included some important commitments for advancing sustainable finance in Canada and catching up to global competitors. It signalled the government’s intent to work toward making climate-related financial disclosures mandatory for Canadian firms, and to fund the development of a green and transition taxonomy, or classification system, for investments in climate solutions. According to ISF’s experts, it will be vital to seize this momentum and execute on the details quickly and effectively to create certainty and clarity for Canadian markets.
November 20, 2023
TNFD Webinar Series, Part 1: Dec. 5, 9am EST
The release of the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD) in September was a major opportunity for firms to start to assess their impact on nature and reliance on natural assets, as many are already doing with climate. Join our expert panel, held on Dec. 5 during COP28, for an update on global discussions about nature reporting, an assessment of the state of biodiversity and the need to move forward urgently, and a closer look at the development of the TNFD recommendations and how they can work for your organization.
November 3, 2023
We need sustainable finance tools to invest in Canada’s success: Roger Beauchemin in Hill Times
The government-appointed Sustainable Finance Action Council has produced a 'roadmap' for a taxonomy that could unlock billions of dollars in climate investments. The next step is for the feds to support its development and implementation, writes Roger Beauchemin, President and CEO of Addenda Capital and ISF Advisory Board Member, in The Hill Times.
October 31, 2023
New report sheds light on Canadian firms’ use of voluntary carbon credits, implications for financial accounting
Carbon offsets are a hot topic at the COP29 climate conference underway in Baku, Azerbaijan. Negotiators are working to implement Article 6 of the Paris Agreement to create effective guidance for a market that has significant potential to spur investment in climate solutions but has been hindered by concerns over low-quality credits, double counting, and overstated greenhouse gas emissions reductions. Canadians may be asking, who is buying carbon offsets? And why? And what kinds of projects are they supporting? Find the answers with a new research report, titled “Global & Canadian Use of Voluntary Carbon Credits and the Related Financial Accounting and Disclosure Considerations.”
October 31, 2023
Global carbon price must rise fast, combine with other measures, to reach Paris Agreement targets: New ISF report
As the world grapples with the dramatic effects of record temperatures in recent months, carbon pricing policies such as carbon taxes dominate the conversation around climate action. A new report from the Institute for Sustainable Finance has found that while carbon pricing remains a key tool in the fight against climate change, its implementation globally to date has been far too low to make a significant impact. Limiting global warming to 1.5-2C remains possible, but carbon prices must rise dramatically and combine with other policy measures to avoid the catastrophic damage associated with higher temperature scenarios.
October 20, 2023
Canada playing catch-up again after EU vote to move ahead with sustainability reporting standards: ISF’s Riordan
In a vote this week, members of European Parliament reaffirmed their commitment to the European Sustainability Reporting Standards (ESRS), which means mandatory reporting for thousands of companies from January 2024 onwards. “Europe is leaving Canada in the rear-view mirror again on sustainable finance regulations,” said Ryan Riordan, Director of Research at the Institute for Sustainable Finance. “This highlights the importance for Canada to move forward quickly on its own regime. Canadian firms will be affected through their EU operations and EU firms operating in Canada will be affected, too.”
October 11, 2023
The role of fossil fuels in taxonomies: Canada Case Study by CBI
"While the debate over the future content of the Canadian Taxonomy continues in the press, the main stumbling block remains the inclusion of fossil fuels, particularly fossil gas where Canada is the world’s fifth-largest producer. The controversy centers on whether fossil gas should contribute to a decarbonization pathway as an interim or a transitional fuel, or be phased out completely," writes the Climate Bonds Initiative in releasing a new Canada Case Study. "This document provides guidance on how to structure the future taxonomy to make it consistent with global best practices, and define its principles and objectives."
October 4, 2023
If we want to compete, Canada needs a green and transition taxonomy ASAP: Smart Prosperity in Corporate Knights
"Canada faces an investment gap of approximately $115 billion a year to transition to a net-zero emissions economy by 2050, as outlined in the 2022 Federal Budget," write Anik Islam, Caelan Welch and Geoff McCarney in Corporate Knights. "Canada’s Sustainable Finance Action Council (SFAC) is trying to spur more private-sector investment to bridge this gap with a made-in-Canada approach to a green taxonomy, as outlined in SFAC’s recent Taxonomy Roadmap Report. But timeliness is essential."
October 3, 2023
Webinar: The Future of Agri-food, Canada’s Leadership Opportunity
Canada has an opportunity to shape a sustainable global agri-food industry that reduces GHG emissions, protects biodiversity and natural systems, and addresses poverty and food insecurity. ISF is proud to partner with The Ivey Academy and Ivey Centre for Building Sustainable Value on this series. Register now for the first webinar on Oct. 18 at noon EDT.
September 29, 2023
Buzzing bees join Wall Street’s bulls and bears: Reuters
"Wall Street, the bastion of bulls and bears, would seem to be embracing bees and biodiversity," writes Peyton Fleming for Reuters. "In an effort to stop mounting nature losses, the world’s largest companies and financial institutions have produced a global reporting framework to hold themselves and other companies to account for their damaging Impacts on biodiversity and other natural resources that underpin the global economy."
September 14, 2023
ISF, CPA Canada named Canadian co-convenors for the Task Force on Nature Related Financial Disclosures
Nature-related reporting by companies will be vital to meeting global biodiversity targets. In a major step forward, the Task Force on Nature Related Financial Disclosures (TNFD) will release its finalized recommendations on September 18, 2023. The Institute for Sustainable Finance (ISF) and Chartered Professional Accountants of Canada (CPA Canada) are proud to announce that they have been named co-convenors in Canada for the TNFD.
August 31, 2023
ISF congratulates recipients of the 2023-24 McCall MacBain Sustainable Finance Fellowship
The Institute for Sustainable Finance congratulates three talented members of the next generation of sustainable finance scholars who have been awarded the McCall MacBain Sustainable Finance Fellowship by the ISF for the coming academic year: Edbert Oey, Ziyuan Liu, and Michael Scott. The value of each award for M.Sc is $15,000. The fellowships are generously funded by the McCall MacBain Foundation.
August 31, 2023
ISF congratulates recipients of CSFN Research Grant and McCall MacBain CSFN Sustainable Finance Fellowships
The Institute for Sustainable Finance (ISF) is proud to announce the recipients of two fellowships awarded to talented Canadian Master’s students to pursue research interests in sustainable finance, and a grant that will support new research on the effects of capital providers’ exposure to stranded assets. “The great strength of the Canadian Sustainable Finance Network is to bring the right expertise to bear on the pressing sustainable finance issues of the day, and co-ordinate efforts for the best impact in advancing sustainable finance,” said ISF Director of Research, Dr. Ryan Riordan. “Congratulations to this year’s recipients of the research grant and fellowships and best of luck with this important work in the coming year.”
August 25, 2023
Biodiversity targets
On August 24 in Vancouver, Canada’s Environment and Climate Change Minister Steven Guilbeault and International Development Minister Ahmed Hussen, announced that Canada will contribute $200 million (CAD) to the Global Biodiversity Framework Fund which will support the objectives of the Kunming-Montreal Global Biodiversity Framework to protect vulnerable species and habitats. “The Kunming-Montreal agreement was a historic achievement and this funding is a serious commitment to begin the hard work of meeting these biodiversity targets,” said Ryan Riordan, Director of Research at the Institute for Sustainable Finance. “But there is also an instrumental role for the private sector here.”
August 25, 2023
New ISF Primer: Financed Emissions
Responding to growing public expectations for climate action and acknowledging the financial risks that climate change poses, a number of big banks and pension plans have begun the process of aligning their investment portfolios with Canada’s targets for net zero by 2050 or sooner. Being able to accurately track and report financed emissions will be the key to meeting these targets. What are financed emissions? Put simply, they are emissions funded by lending and investment activity.
August 11, 2023
Australian sustainable finance taxonomy gets underway: ESG Clarity
"The Australian Sustainable Finance Institute (ASFI) has started the development phase of the Australian sustainable finance taxonomy with the appointment of the Taxonomy Technical Expert Group (TTEG)," reports ESG clarity. "The TTEG is made up of 25 senior leaders, endorsed by the Australian Council of Financial Regulators’ Climate Working Group."
August 10, 2023
ESG 101 by TMX: Sustainable Finance Taxonomy Use Cases
"Access to transition capital is key for many of our listed companies as Canada looks to decarbonize and meet net zero commitments," says a new post on the TMX's ESG 101 page. "... Issuers who seek transition funding need to understand the evaluation and definitions FIs use to make capital allocation decisions. The below summary, provided by the Institute for Sustainable Finance on behalf of SFAC, illustrates various use cases for the taxonomy."
August 3, 2023
New ISF Primer: Transition Finance
In a world racing to net-zero, high-emitting and/or hard-to-abate sectors are at an inflection point. On the one hand, they represent a significant proportion of total GHG emissions, and therefore, are critical for Canada to achieve the “net-zero emissions by 2050” commitment. For example, heavy industry alone accounted for 11% (77 Mt CO2 eq) of Canada’s total GHG emissions in 2021, ranking fourth among all sectors. On the other hand, these carbon-intensive sectors (while playing a crucial role in economic stability and job creation) are struggling to access affordable financing in support of their decarbonization progress due to the fear of stranded asset risks.
August 1, 2023
For the good of the planet, and their business, Canadian firms need to rise to the climate-reporting challenge: Riordan and Martin in Hill Times
"With this summer’s smoky skies, deadly floods and record-shattering heat waves dominating the headlines, public concern for action on climate change is rising with the thermometer," write Ryan Riordan and Simon Martin in the Hill Times. "One vital but likely underappreciated step toward cutting Canada’s greenhouse gas emissions is going be ensuring that the corporations responsible for those emissions are accurately disclosing them. From there, credible net zero plans and profitable investments in climate solutions can follow."
July 21, 2023
Meet the woman leading Canada’s sustainable finance reform: Corporate Knights
"Sometimes, we end up exactly where we are supposed to be," writes Naomi Buck in Corporate Knights Magazine. "Such was the case for Kathy Bardswick, a titan in Canadian insurance who is now spearheading sustainable finance reform in Canada. As Bardswick was finishing up her MBA at McMaster University in the late 1970s, her mother – unbeknownst to her – applied for a job on her daughter’s behalf. It was an underwriting position with The Co-operators Group insurance company, based in Sault Ste. Marie, and not at all what Bardswick had in mind for a career launch. Bardswick took the position and soon realized this was not just a job but a calling."
July 17, 2023
Canada needs a road map to root out greenwashing for financial products: Janis Sarra in National Observer
"The news these days is replete with messages that Canada requires more than $100 billion investment annually to successfully transition our economy to achieve net-zero greenhouse gas (GHG) emissions," writes Janis Sarra of the Canada Climate Law Initiative in National Observer. "The numbers seem daunting but are not really when one thinks of the balance sheets of Canada's largest financial institutions. What is at stake in deploying this capital is fundamental ─ our very existence."
July 17, 2023
Ryan Riordan at the Globe and Mail's Road To Net Zero Conference
What are the financial implications for Canadian businesses that are not tackling climate goals? Investors and lenders are losing their appetite for high-emitting firms that could be regulated away or lack a business model in 10 years, said Ryan Riordan, Director of Research at the Institute for Sustainable Finance, in his remarks at the recent Globe and Mail Road To Net Zero conference. Dr. Riordan presented the findings of ISF's recent study of Corporate Canada's greenhouse gas emissions disclosures and climate targets.
June 27, 2023
Consistent climate reporting and net-zero planning coming for Corporate Canada, but not here yet: ISF report
The disclosure and verification of Greenhouse Gas (GHG) emissions data is a central element of efforts to address climate change in the corporate sector. Canada’s largest public firms are increasingly reporting on their greenhouse gas emissions, and more and more are setting targets to reduce emissions, finds a new report from the Institute for Sustainable Finance (ISF). However, there is a good deal of room to improve, particularly in the area of verifying emissions, setting more ambitious targets with detailed plans and timelines to meet them, and linking sustainability goals to executive compensation.
June 26, 2023
Key takeaways from newly released ISSB disclosure standards
Today the International Sustainability Standards Board (ISSB) released its highly-anticipated corporate disclosure standards which will help shape the future of sustainable finance globally. Next, the Canadian Sustainability Standards Board (CSSB) will review and adapt the standards for the Canadian context and for future adoption by regulators. ISF has drawn some key takeaways for the S2 Climate-related Disclosures.
June 23, 2023
Canada’s green taxonomy playbook stuck in limbo, industry group says: Globe and Mail
"Canada is at risk of losing out in the race to attract tens of billions of dollars for retooling its economy to meet climate targets as a new green investing guidebook remains stuck in limbo in Ottawa, the head of the industry group charged with developing it says," reports the Globe and Mail. "The federal government has said it wants Canada to be a force in global climate finance and two years ago appointed an industry panel to develop a taxonomy spelling out which investments can be certified as green and which ones fit into a transition category. That group, the Sustainable Finance Action Council, completed the first phase of the document last fall, but Ottawa has yet to formalize it, preventing the next stage to start. This has led to frustration within the council and in the country’s finance sector."
June 13, 2023
Video: What in the World is a Sustainable Finance Taxonomy?
Credible guidelines for categorizing sustainable finance investments, called taxonomies, are essential for unlocking billions in private capital to fight climate change. In Part 1 of our recent Taxonomy Roadmap Webinar Series, we hosted some of the world’s leading experts in sustainable finance to examine current global trends, best-practices and lessons learned, and discuss the importance for Canada of establishing a world-leading green and transition taxonomy, suited to the Canadian economic reality.
June 13, 2023
Video: Demystifying Canada's Taxonomy Roadmap Report
The recent release of the Taxonomy Roadmap Report by the Sustainable Finance Action Council has generated a great discussion about how best to guide investments in Canadian climate solutions. In Part 2 of our Taxonomy Roadmap Webinar Series, our panel of experts, including architects of the Roadmap Report, discussed the importance of defining green and transition categories for sustainable investing, and looked at the next steps for establishing a robust taxonomy for Canada.
June 6, 2023
ISF Primer Series: Scope 1, 2 and 3 GHG Emissions
Regulations and investor expectations will soon require more and more companies to report on their Greenhouse Gas emissions, which can be very complicated. It's important to understand the three broad categories of emissions, Scope 1, 2 and 3, the relevant subcategories, and how best to report on each. ISF's latest primer article by ISF Director of Research Ryan Riordan and Senior Research Associate Simon Martin explains the basics.
May 23, 2023
Global warming set to break key 1.5C limit for first time: BBC
"Researchers say there's now a 66% chance we will pass the 1.5C global warming threshold between now and 2027. The chances are rising due to emissions from human activities and a likely El Niño weather pattern later this year," reports the BBC. "If the world passes the limit, scientists stress the breach, while worrying, will likely be temporary."
May 5, 2023
May 31: Taxonomy Roadmap Webinar Series, Part 2
The recent release of the Taxonomy Roadmap Report by the Sustainable Finance Action Council has generated a great discussion about how best to guide investments in Canadian climate solutions. Join us on May 31 as the Institute for Sustainable Finance hosts Part 2 of our Taxonomy Roadmap Webinar Series. In this session, our panel of experts, including architects of the Roadmap Report, will discuss the importance of defining green and transition categories for sustainable investing, and look at the next steps for establishing a robust taxonomy for Canada.
April 12, 2023
Canadian Sustainability Standards Board names chair, directors: Globe and Mail
"A new organization that will oversee adoption of global corporate sustainability standards in Canada has named the former head of the country’s accounting body as its first chairman, a key step in the move to formalize disclosure of environmental, social and governance metrics," reports Jeff Jones in the Globe and Mail. "Charles-Antoine St-Jean, who was interim president of CPA Canada for nearly two years until March, will chair the Canadian Sustainability Standards Board, a group formed to co-ordinate with the International Sustainability Standards Board."
April 6, 2023
April 26: Taxonomy Roadmap Webinar Series, Part 1
Credible guidelines for categorizing sustainable finance investments, called taxonomies, are essential for unlocking billions in private capital to fight climate change. Join us on April 26 at 3pm EDT for Part 1 of our Taxonomy Roadmap Webinar Series. The ISF will be hosting some of the world’s leading experts in sustainable finance to examine current global trends and best-practices, and discuss the importance for Canada of establishing a world-leading green and transition taxonomy suited to the Canadian economic reality.
March 30, 2023
LinkedIn Live, April 5 - ESG: Business strategy or political football?
Investments that prioritize environmental, social and governance factors have soared in popularity over the years. However, recent events such as scrutiny of ESG funds in Europe and elsewhere, and debates over anti-ESG legislation in the U.S., have raised questions about the value of ESG investing. Join us April 5th at 12:00pm EST on LinkedIn Live, as ISF’s Ryan Riordan sits down with Yrjo Koskinen, BMO Professor of Sustainable and Transition Finance at the Haskayne School of Business, to provide some needed clarity about the role of ESG as a business strategy and financial product, and explore how financial institutions and regulators can ensure investor confidence in ESG investing in the future.
March 28, 2023
NOTE DE SYNTHÈSE: Financement de l’adaptation et de la résilience aux changements climatiques
Les coûts des phénomènes météorologiques liés au climat, tels que les feux et les inondations, augmentent au Canada et dans le monde entier. Cependant, alors que le financement de l’atténuation du changement climatique (réduction des émissions de gaz à effet de serre) a été une priorité au Canada, l’adaptation (aider les communautés à résister aux événements qui se produisent déjà) est moins développée. Alors que les avantages économiques sont énormes en termes de coûts et de dommages évités, le retour sur les investissements du secteur privé dans les infrastructures d’adaptation et de résilience n’est pas évident. La note d’information de l’IFD rédigée, désormais disponible en français, clarifie ce défi, aide à définir le problème de l’adaptation et de la résilience, et propose des étapes pour faciliter et mettre en œuvre des solutions potentielles.
March 27, 2023
Adopting global best practices in taxonomy design
The recent Taxonomy Roadmap Report released by the Sustainable Finance Action Council introduces a framework for developing a green and transition taxonomy to unlock billions in climate investments in Canada. Any future Canadian transition taxonomy should incorporate emerging best practices in both taxonomy design and approaches to defining transition concepts, according to a 2022 report commissioned by CSA Group and authored by the Climate Bonds Initiative (CBI). The report, which outlines findings from a comparative review of existing taxonomies, highlights the importance of establishing a credible transition definition to support Canada’s low-carbon transition, and finds that a Canadian transition taxonomy, if developed, would help to inform further work to develop transition-oriented approaches around the world.
March 16, 2023
ISF Primer Series: Natural Assets
Increasingly business and finance will need to consider the value of biodiversity, and the natural assets we all depend on to survive and prosper. In the ISF's latest Primer article, Ryan Riordan, Yingzhi Sarah Tang and William Hamilton write that "the private sector plays an instrumental role in achieving the ambitious targets and timelines of the Kunming-Montreal Framework, through aligning its capital flows with nature-positive outcomes."
March 9, 2023
Strict new climate risk guidelines for banks, insurers “huge” for financial markets: ISF’s Riordan
“It’s important that both physical and transition risks are covered,” by newly announced OSFI guidelines for climate risk reporting by Canada’s biggest banks and insurers, says Ryan Riordan, Research Director at the Institute for Sustainable Finance. And crucially, “disclosure must be relevant, specific, comprehensive, clear, verifiable, consistent and understandable information,” says Riordan. “This is huge. Firms have to makes sure that what they report is correct. They must develop a reporting methodology that will remain consistent over time. This is great for the financial markets because the information will be good enough to make long term investing and lending decisions. It also allows for a meaningful comparison over time and across similar firms.”
March 8, 2023
OSFI lays out climate risk rules for Canada's big banks and insurers: Financial Post
"Canada’s large banks and insurance companies will have to run stress tests and disclose key aspects of their plans to manage climate change risk by the end of next year, according to guidance issued Tuesday by the Office of the Superintendent of Financial Institutions," reports the Financial Post. "Following a months-long consultation, OSFI laid out a framework for financial institutions to manage and disclose the physical risks posed by climate change as well as the risks to their business lines from a transition to lower-carbon economies."
March 3, 2023
New, proposed investment guidelines critical for Canada’s competitiveness, achieving climate targets, experts say
Today, the Sustainable Finance Action Council (SFAC) released its Taxonomy Roadmap Report featuring a made-in-Canada framework to establish standardized and science-based definitions of climate-compatible investments. Backed by the 25 largest financial institutions in the country, which participated in the process as members of the Taxonomy Technical Expert Group (TTEG), the Canadian Green and Transition Financial Taxonomy Framework laid out in the Roadmap Report is key to aligning capital flows with Canada’s climate targets and economic opportunities.
March 3, 2023
Le nouveau cadre pour une taxonomie des investissements climatiques du Canada, un vecteur de compétitivité essentiel à l’atteinte des cibles selon les experts
Le Conseil d’action en matière de finance durable (CAFD) publie aujourd’hui son rapport sur la feuille de route de la taxonomie, qui présente un cadre entièrement canadien pour établir des définitions scientifiques normalisées des investissements respectueux du climat. Appuyé par les 25 plus grandes institutions financières du pays, qui ont d’ailleurs participé au processus à titre de membres du groupe d’experts techniques sur la question, le cadre pour une taxonomie canadienne des investissements verts et de transition présenté dans le rapport sur la feuille de route est essentiel pour arrimer les flux de capitaux aux cibles environnementales et aux possibilités économiques du pays.
March 2, 2023
Canada’s taxonomy for green investment standards walks the line well: Leech and Arnold in the Globe
"A newly announced climate investment taxonomy – a system that will create standardized labels for different types of investment – will soon be released," write Jonathan Arnold and Jim Leech in the Globe and Mail. "Developed and supported by Canada’s 25 largest financial institutions through the federal Sustainable Finance Action Council, it is a major step toward shoring up Canada’s competitiveness."
March 1, 2023
The architects of Canada’s ‘green taxonomy’ rule book say it will unlock billions in new cleantech investments: Globe and Mail
"A new Canadian rule book setting out what can qualify as green investments should go a long way to removing uncertainty in the market and help fill what the authors say is a $115-billion-per-year shortfall in spending needed for the country to meet its goal of net zero emissions by 2050," reports the Globe and Mail. "The first edition of a much-anticipated green taxonomy, written by a panel of financial-industry experts under Ottawa’s direction, is expected to be released soon. As The Globe and Mail reported in December, the “Taxonomy Roadmap Report” recommends two categories of investments: green, for those that are known to have the least environmental impact, and transitional, for those designed to advance the shift to low-carbon energy from fossil fuels."
February 22, 2023
New global climate accounting standards take aim at greenwashing: Globe and Mail
"New global accounting rules for measuring and reporting climate-related impact, due to go into force early next year, will give investors the tools to make better decisions and make it tougher for companies to exaggerate environmental righteousness, the head of the body in charge of developing them said," reports Jeff Jones in the Globe and Mail. "The International Sustainability Standards Board (ISSB) is close to finalizing what it calls a global baseline of reporting practices, in response to widespread complaints that a hodgepodge of disclosure methods make comparing and analyzing corporate progress on such issues a confusing slog. The rules are set to be completed by midyear and will start being used in January, 2024."
February 13, 2023
La série Primer: Marchés du carbone
« Rien n’est plus efficace dans les marchés capitalistes qu’un incitatif financier pour accomplir quelque chose. » Sara Alvarado, Directrice exécutive, Institut de la finance durable, et Dominique Barker, Directrice générale et responsable, services consultatifs en développement durable, Marchés des capitaux CIBC, discutent le fonctionnement des marchés du carbone, les types de marchés et de crédits carbone, comment contribuent-ils à réduire les émissions de gaz à effet de serre, et l’opportunité importante pour une industrie de gestion du carbone au Canada. Découvrez l’entretien complète et l’article d’introduction.
February 1, 2023
The Oil & Gas Sector: Key Challenges Facing Canada and Potential Solutions, Part 3
The ISF invites you to join us on February 7 at 11AM EST, for Part 3 of our free webinar series, "The Oil & Gas Sector: Key challenges facing Canada and potential solutions", moderated by Peter Tertzakian. Peter’s guest panelists will be Rhona DelFrari of Cenovus Energy, and Jonathan Arnold of the Canadian Climate Institute, who bring a wealth of expertise on energy economics and sustainability to the table. Register now for this informative and engaging session, titled “Potential Solution to Reinvestment”.
February 1, 2023
New ISF grant to fund research into financing sustainable agriculture
Thanks to the generosity of the McCall MacBain Foundation, the Institute for Sustainable Finance (ISF) has been able to offer additional funding for a research project by members of the Canadian Sustainable Finance Network (CSFN). The McCall MacBain 2022 CSFN Grant has been awarded to the team led by Dr. Phoebe Stephens of Dalhousie University and Dr. Sean Geobey at the University of Waterloo for their research into how best to invest in reducing the negative environmental and social impacts associated with agriculture in Canada, including high levels of GHG emissions.
December 21, 2022
What is the GHG Protocol and how should it be used to measure emissions?: Primer and Video
How corporate greenhouse gas emissions data is collected and reported is often little understood. The ISF's latest primer article, by ISF Research Director Ryan Riordan and Senior Research Associate Simon Martin, sheds light on the most commonly referenced source of emissions reporting guidance and standards, the GHG Protocol. And our video interview with Rosemary McGuire of Chartered Professional Accountants of Canada (CPA Canada) delves into the development of the GHG Protocol, what reporting companies need to know about its standards, and how to ensure it meets the needs of regulators in the future. Check out the primer article and full-length video interview:
December 9, 2022
How transition bonds can help decarbonize the Canadian economy: Primer and video
“We really need to be part of the solution and part of that is encouraging these companies with investment dollars.” For the ISF's Video Primer Series, Research Director Ryan Riordan interviews John Uhren, Head, Sustainable Finance, Products and Strategy, at BMO, about how Transition Bonds differ from Green Bonds, and how they can fund projects that reduce emissions in hard-to-abate sectors in the Canadian economy. Check out the full-length video and ISF Transition Bonds Primer article.
December 6, 2022
COP15: Five Things to Watch at the Biggest Biodiversity Summit: Bloomberg
Significant financial “capacity building” will be needed to meet global biodiversity targets, says ISF Research Director Ryan Riordan in a setup for the COP15 UN Biodiversity Conference in Bloomberg News. “We need to develop the tools, and the methods, and the technology to value this stuff better,” he says. “It’s really easy for us to take a look at balance sheets and income statements of firms. How do we do that for habitats, or salt marshes, or peat bogs or coral reefs?" Ryan’s research team has embarked on a Nature Data project, one of ISF’s key strategic projects for this coming year.
December 6, 2022
Real estate investors push for improved ESG measures in commercial property: The Globe
There's growing interest in commercial property ESG says ISF Research Director Ryan Riordan in a story by David Israelson in The Globe and Mail, but while “we’re making strides on the construction side of ESG ... it takes a lot of time to retrofit and replace buildings with ones of higher standards."
November 24, 2022
2022 Canadian RI Trends Report: Responsible Investment Association
"The 2022 Canadian Responsible Investment Trends Report confirms that RI’s recent momentum is giving way to demand for sophistication and more vigilant reporting, signaling a maturing industry," the Responsible Investment Association has announced. "With its updated methodology, the report affirms that RI is entrenched in Canada, with reported assets under management at $3 trillion, and 94% of respondents using ESG integration as an RI strategy. This marks the emergence of a reliable baseline for RI market share and demonstrates that ESG Integration is a fundamental tool in Canadian investors’ decision-making."
November 17, 2022
Most Canadian companies are ignoring true costs of doing business: Cleary and Steer in Corporate Knights
"To make progress on climate finance in Canada, we need to do a much better job of assessing and disclosing the risks Canadian companies face due to climate change – both the costly devastation brought on by climate-related events, such as floods and fires, and the economic challenges of transitioning to a net-zero world," write ISF Chair Sean Cleary and CPA Canada President and CEO Pamela Steer in Corporate Knights.
November 15, 2022
Webinar Series: The Oil & Gas Sector: Key Challenges Facing Canada & Potential Solutions
The ISF is hosting a free, three-part webinar series moderated by energy expert and ISF Advisory Board member Peter Tertzakian. Each session will feature a guest presenter (to be announced soon) who will discuss issues relating to Canada’s oil and gas sector, sustainability and a changing world: Dec. 6, 11 am: Follow the Money: Understanding Capital Flows in Canada’s O&G Sector; Jan. 10, 11 am: Deeper Dive into Royalties, Taxes and the Government Take; Feb. 7, 11am: Potential Solutions to Reinvestment.
November 11, 2022
ISSB makes key announcements towards the implementation of climate-related disclosure standards in 2023: ISSB at COP27
On Nov. 8 the International Sustainability Standards Board announced further steps "in its delivery of the architecture needed for a global baseline, as well as partnerships agreed at Sharm El-Sheikh’s COP27, that will help jurisdictions prepare for its implementation."
November 7, 2022
All the GHGs we cannot see: Sean Cleary for Clean50
Writing for Clean50, ISF Chair Sean Cleary, a 2023 Clean50 Honouree, explains how improving the way Canadian corporations report climate-related material data is an important step in reaching 2050 Net Zero targets.
November 3, 2022
ISF Briefing Note: Financing Climate Change Adaptation and Resilience
The costs of climate-related weather events such as fires and floods are growing in Canada and around the world. And climate-change adaptation and resilience will be high on the agenda at the COP27 global climate summit next week. There remain many challenges to unlocking private-sector financing for the adaptation and resilience infrastructure initiatives that will protect Canadian communities in the future. To shed light on this issue, a new Institute for Sustainable Finance Briefing Note clearly defines the problem and makes recommendations for the public and private sectors and academia to work toward the solutions.
November 1, 2022
Accountants are the key to accountable ESG investing: Pamela Steer in the Globe
Writing in the Globe and Mail, Pamela Steer, president and CEO of Chartered Professional Accountants of Canada, highlights the key role of accountants in ensuring quality ESG reporting and, as she says: "A first and vitally important step is setting universally accepted sustainability-reporting standards."
October 31, 2022
Insurance industry recommends climate risk score for houses: Canadian Press
"The Insurance Bureau of Canada is calling for the creation of a climate risk score that would indicate a property’s susceptibility to damages caused by natural disasters," reports Canadian Press. "The IBC says disclosure of natural hazard and climate risk is needed because of the increasing frequency and severity of extreme weather events, such as hurricane Fiona."
October 27, 2022
Regulations mandating climate-risk disclosures are required to improve reporting: ISF report
A new study by the Institute for Sustainable Finance (ISF) demonstrates that the current state of climate-related risk disclosures by Canadian companies is inadequate, which impedes the ability of financial institutions to properly price the opportunities and risks associated with climate change. This presents significant consequences for Canadian competitiveness, the functioning of Canadian markets, and the fight against climate change.
October 19, 2022
Advice for investors waiting on stricter industry standards for ESG reporting: Globe and Mail
Investors need to educate themselves on developing standards for ESG reporting, says the ISF’s Sara Alvarado in The Globe and Mail: “Most serious companies are reporting their financials, but also many are producing sustainability reports separately, and some have sustainability risks and opportunities in their annual reports. So I would say if [investors] are looking at analyzing a particular company that would be the first stop, looking at those reports,” she said.
October 11, 2022
Demand for advisor education on ESG jumps as client interest grows: Globe Investor
Growing interest in ESG investing among clients is driving demand for ESG training among financial advisors, says ISF Chair Dr. Sean Cleary in a report by Globe Investor. “It seems to be becoming table stakes that you have some understanding of [ESG] if you’re in the financial services industry because your clients are driving this demand,” he said.
October 6, 2022
ISF Chair Sean Cleary honoured as a member of Canada’s Clean50 for 2023
The Institute for Sustainable Finance is very proud to announce that ISF Chair Dr. Sean Cleary has been awarded the prestigious honour of being named a member of Canada’s Clean50 for 2023 (clean50.com). Dr. Cleary will be amongst approximately 120 past and incoming Clean50 Honourees meeting on Thursday October 6th at the “Clean50 Summit 12.0” in Toronto, to spend a day amongst peers and colleagues, tackling critical sustainability challenges facing Canada.
September 15, 2022
Leading GHG reporting standard needs work to support pending disclosure requirements: ISF and CPA Canada report
Clearer direction is required for greenhouse gas (GHG) emissions measurement and disclosure, according to a report by the Institute for Sustainable Finance (ISF) and Chartered Professional Accountants of Canada (CPA Canada). The Greenhouse Gas Protocol (GHG Protocol) was launched in 1998 and supplies the most commonly used standards for companies to measure and report their GHG emissions. Although the development of the GHG Protocol has been important and helpful, the joint ISF-CPA Canada report finds that more work is required at a global level to ensure that evolving stakeholder needs and expectations are addressed.
September 14, 2022
ISF 2021-22 Progress and Impact Report
The Institute for Sustainable Finance 2021-22 Progress and Impact Report is now out! Check out all of the activities and accomplishments during a great year for the ISF, across our four key pillars of Research, Education, Collaboration and Outreach.
September 14, 2022
Sustainability in Canada: Evolving Risks and Opportunities: Edward Olson
"Expectations around sustainability and ESG are evolving quickly. Organizations that aren’t taking steps to measure, disclose, and reduce their emissions footprint risk quickly falling behind" writes Edward Olson, Partner, National Leader, ESG, at MNP, in his summary of a recent panel hosted by The Institute of Internal Auditors (IIA) Canada. The panel also included Sara Alvarado, Executive Director at the Institute for Sustainable Finance. Topics covered a wide range of sustainability risks and opportunities facing Canadian businesses. These include Bill C-12, which formalizes Canada’s commitment to net-zero by 2050 — as well as the evolution of mandatory climate disclosures in Canada and abroad, as well as steps organizations must take to achieve compliance.
August 29, 2022
In an era of high interest rates and ESG, companies turn to a new form of sustainable debt: National Post
ISF Research Director Ryan Riordan comments on the growth of sustainability-linked bonds and loans in a story by the Logic/Postmedia: According to Dr. Riordan, these products signal to markets that companies are thinking about their long-term survival. "It reduces risk," he said. "A financial institution that is lending money to an organization that’s looking at their long-term impact on the environment is going to be less risky than one that doesn’t."
August 22, 2022
How Impact Investing stands apart from ESG. Primer and video interview with Basma Majerbi
“The tools are there, it will just take a little more education.” ISF Executive Director Sara Alvarado interviews Basma Majerbi, Associate Professor of Finance at the Gustavson School of Business, about defining impact investing, how it can achieve results to improve society, and how impact investing can be made mainstream. To learn more about Impact Investing, check out ISF's primer article and the video interview.
August 18, 2022
Understanding Carbon Markets primer and video interview with Dominique Barker
“If we can put a price on carbon, we can do a lot of special things.” ISF Research Director Ryan Riordan interviews Dominique Barker, Managing Director and Head, Sustainability Advisory, at CIBC Capital Markets, about how carbon markets function, the different kinds of markets and carbon credits, how to ensure they are reducing greenhouse gas emissions, and a “massive opportunity for Canada” for a carbon management industry. To learn more about carbon markets, check out ISF's primer article and the video interview.
July 29, 2022
What is Sustainable Finance? Primer and video interview with Susan Thompson and Samantha McDonald
ESG integration is “table stakes for investors.” ISF Research Director Ryan Riordan recently spoke with Susan Thompson, Director, Sustainable Finance & Corporate Transitions at TD Securities, and Samantha McDonald, Vice President, ESG Research and Engagement at TD Asset Management, about how investors can drive sustainable business practices, important developments in sustainable finance in Canada, and what the future looks like for ESG investing. To learn more about Sustainable Finance read the primer article and check out the interview video.
July 26, 2022
When it comes to Canadian pensions, there’s a new climate leader in town: National Observer
"A pension fund for four Ontario universities is promising to reach net-zero emissions across its portfolio by 2040, catapulting it into a position of climate leadership," reports the National Observer. "University Pension Plan Ontario (UPP) is an $11.8-billion fund for more than 37,000 members working at the University of Toronto, University of Guelph, Trent University and Queen’s University. Its net-zero target places it 10 years ahead of peers like the Ontario Teachers’ Pension Plan and Caisse de dépôt et placement du Québec. To help guide emission reductions, the pension fund is also setting interim 2025 and 2030 targets, representing a 16.5 per cent and 60 per cent cut to emissions from a 2021 baseline."
July 22, 2022
ISSB holds inaugural meetings: IFRS Foundation
"The inaugural International Sustainability Standards Board meeting took place this week in Frankfurt, at which the ISSB discussed the first two proposed sustainability disclosure standards as well as its agenda priorities," states the International Financial Reporting Standards Foundation. Recordings of the meetings are available on the IFRS Foundation website.
July 21, 2022
BMO agrees to buy Canadian sustainability-advisory firm radicle: Bloomberg
"Bank of Montreal agreed to buy Radicle Group Inc., a sustainability-advisory and emissions-measurement firm, to help clients that are working to reduce their environmental impacts," Bloomberg reports. "Calgary-based Radicle, which has 130 employees and more than 4,000 clients, will become part of BMO Capital Markets’ global markets group, the bank said Wednesday. Financial terms of the acquisition, expected to close this year, weren’t disclosed. BMO Capital Markets has put an increased emphasis on helping its clients shrink their environmental footprints as part of a plan to reduce the emissions from its lending portfolio to net zero by 2050."
July 20, 2022
Sustainable Investing primer and video interview with Patricia Fletcher
“It’s lovely to see” sustainability reporting “coming online and becoming more and more of a norm.” ISF Chair Sean Cleary interviews Patricia Fletcher, CEO of RIA Canada, about defining sustainable investing, how the practice is developing and becoming more mainstream in Canada and globally, and the most notable strategies for investing responsibly. To learn more about Sustainable Investing read the primer article and check out the interview video.
July 19, 2022
La réconciliation économique des peuples autochtones
Qu'est-ce que la réconciliation économique ? Comment s’applique-t-elle aux communautés autochtones et à l’ensemble de la population canadienne? Et surtout, quel rôle pouvons-nous jouer à ce chapitre ? Pour en savoir davantage, consultez le guide des notions fondamentales de l'Institut de la finance durable rédigé par Clint Davis, chef de la direction de Nunasi Corporation, et Sara Alvarado, directrice exécutive de l'Institut de la finance durable.
July 5, 2022
Charting Canada’s Sustainable Future at Queen's University
Amazing to see ISF’s work on “Charting Canada’s sustainable Future” listed as one of 12 key accomplishments of the 2021-22 year for Smith School of Business at Queen’s University. Congratulations to Dean Wanda Costen and everyone at Smith for all of these achievements. It’s an impressive list.
June 29, 2022
IFRS Foundation launches Montreal ISSB centre supported by key actions: IFRS release
"The IFRS Foundation today announced a package of key actions, including a new Memorandum of Understanding (MoU) with Montréal International to obtain the financial support of the Government of Canada and the Government of Quebec," the IFRS stated in a news release. "This support will help the IFRS Foundation to fully establish its International Sustainability Standards Board (ISSB) within the Canadian sustainability ecosystem. The actions follow the announcement at the November 2021 COP26 climate conference that the ISSB would establish a Montreal centre as part of a multilocation approach. This latest announcement builds on the April 2022 signing of an MoU with a coalition of private-sector stakeholders, organised by Chartered Professional Accountants of Canada (CPA Canada)."
June 16, 2022
Climate-related disclosures primer and video interview with Nadeem Velani
“Measuring and reporting data ultimately is a way to hold companies accountable.” For the latest in ISF's Video Primer Series, ISF Chair Dr. Sean Cleary interviews Nadeem Velani, Executive Vice President and Chief Financial Officer, Canadian Pacific Railway, on why it’s important for corporations to disclose greenhouse gas emissions, the various standards for disclosures and challenges with reporting, and the benefits in terms of access to capital, talent retention, and capacity to plan for net zero. To learn more about Climate-Related Financial Disclosures, read the article and check out the interview video.
June 15, 2022
Accounting, audit and assurance standards oversight councils announce Canadian Sustainability Standards Board: FRAS Canada
"As the pace of progress in sustainability disclosures continues to accelerate, this week the Accounting Standards Oversight Council (AcSOC) and Auditing and Assurance Standards Oversight Council (AASOC) mutually approved the formation of the Canadian Sustainability Standards Board (CSSB)." FRAS Canada stated in a press release.
June 10, 2022
A Comparative Analysis of U.S. (SEC) and Canadian (CSA) Climate Disclosure Proposals: ESG Global Investors
"Since the Canadian and U.S. markets are so interconnected, with TMX, NYSE, and Nasdaq hosting more than 200 cross-listed companies, a key question arises: How do the Canadian and American proposals stack up when compared side by side, and what are the implications for market participants?" write Sarah Keyes and Dustyn Lanz for ESG Global Advisors.
June 8, 2022
Big industry can lower carbon pricing costs as feds launch first offset credit market: CBC
"Canada's first federal carbon offset market kicked off Wednesday as the final piece of the puzzle in the carbon price for big industry takes shape," reports the CBC. "But the arrival of the new offset system was greeted without applause by climate activists who say it simply makes it cheaper for big industries to keep polluting. Carbon offset markets allow governments, companies and other organizations that emit greenhouse gases to pay for those emissions through the purchase of credits created when emissions are cut somewhere else."
June 2, 2022
Investors, finance experts crave better sustainability data: ISF survey results
The ISF surveyed contacts in finance, academia, NGOs and the public sector to better understand the amount and quality of sustainability data that’s out there. The survey makes clear that the data is not currently meeting the demands of the market, with significant implications for investment decisions and holding firms accountable for greenhouse gas emission reductions.
May 26, 2022
Progress made on corporate GHG targets and disclosures, but Canada still must ‘up its game’: New ISF report
A new report by the Institute for Sustainable Finance updates the findings of its popular 2021 review of TSX Index firms’ GHG emissions disclosures, targets and plans.
May 18, 2022
Canada faces huge physical costs from climate change, making net zero a great investment
There has been a lot of discussion in Canada lately about the financial costs of achieving the country’s climate targets. And rightly so. The situation is urgent and we need to act now. However, we in the finance business like to look at both sides of the ledger. And when one considers the damage to the Canadian economy we can expect from fires, floods, melting ice caps and loss of biodiversity due to climate change, the investment in greenhouse gas reductions starts to look very worthwhile indeed. Climate change impacts economic prosperity.
May 12, 2022
ISF announces winners of CSFN Research Grant/McCall MacBain CSFN Sustainable Finance Fellowships
The team at the Institute for Sustainable Finance (ISF) is delighted to announce today the results of two initiatives that will greatly enhance the growing body of scholarship on sustainable finance issues: the winner of our inaugural CSFN Research Grant, Diane-Laure Arjaliès, and two recipients of the ISF’s McCall MacBain CSFN Sustainable Finance Fellowship, Melanie Issett and Tanusri Sarker.
April 20, 2022
Climate change damage could cost Canada up to $5.5-trillion by the end of the century: New ISF report
The Institute for Sustainable Finance’s latest study examines how much capital output Canada will lose due to physical damages under different warming scenarios by the end of the century.
April 6, 2022
IFRS Foundation takes next steps to establish ISSB presence in Montreal
"The IFRS Foundation and Chartered Professional Accountants of Canada (CPA Canada) today announced an agreement to establish the Montreal centre of the International Sustainability Standards Board (ISSB). The Montreal centre will host key functions on behalf of the ISSB, including the coordination of activity across the Americas."
April 5, 2022
5 takeaways from the latest IPCC report
Bronson Griscom writes in the WEF blog on the latest IPCC report, with “five takeaways … about the critical role nature plays in stabilizing the climate.”
April 1, 2022
U.S. SEC’s tough new climate disclosure rules put pressure on Canada to follow suit
Eugene Ellmen reports in Corporate Knights on what tighter U.S. Securities and Exchange Commission rules for climate disclosures may mean for Canada. He quotes ISF Executive Director Sara Alvarado, who notes that having two different sets of rules may create a situation where non U.S. “large CO2 emitters could continue business as usual in Canada or even set up shop here to avoid investor scrutiny, creating a 'sort of reporting arbitrage.'”
April 1, 2022
Carbon Tracker reports on the progress of Climate Action 100+ companies toward Paris targets
While 69% of "focus companies" have committed to Net Zero by 2050, a 17% increase over last year, the assessment finds that "it is alarming that the vast majority of companies have not set medium-term emissions reduction targets aligned with 1.5°C or fully aligned their future capital expenditures with the goals of the Paris Agreement, despite the increase in net zero commitments."
March 31, 2022
ISSB delivers proposals that create comprehensive global baseline of sustainability disclosures
"The International Sustainability Standards Board (ISSB), established at COP26 to develop a comprehensive global baseline of sustainability disclosures for the capital markets, today launched a consultation on its first two proposed standards. One sets out general sustainability-related disclosure requirements and the other specifies climate-related disclosure requirements."
March 31, 2022
2030 Emissions Reduction Plan – Canada’s Next Steps for Clean Air and a Strong Economy
The federal government has released its highly-anticipated Emissions Reduction Plan (ERP), the first of its kind in Canada. The plan represents a roadmap to guide emissions reduction efforts across sectors in Canada. The brief Backgrounder link below (10 min read) provides high level information on some of the key points included in the Plan.
March 25, 2022
Summary of Submissions to Canadian Securities Administrators on Climate-Related Disclosures
This week the Canada Climate Law Initiative released its report summarizing 131 submissions made to the Canadian Securities Administrators (CSA) and led by Dr. Janis Sarra, on the important topic of climate-related disclosures. The report concludes that the submissions “have overwhelmingly called for mandatory disclosure of Scope 1 and 2 GHG emissions, embedding that disclosure in financial reporting so that investors have confidence in the accuracy and comparability of the information, and requiring issuers to disclose their plans to transition to net-zero emissions." This is in line with ISF’s own response to the CSA’s proposed disclosure regulations.
March 23, 2022
Canada Issues Inaugural $5 Billion Green Bond
“Canada’s green bonds are a major step in our plan to grow the sustainable finance market in Canada. Green bonds allow investors to take advantage of the many emerging green market opportunities by adding climate-friendly products to their portfolios. Expanding private sector investments through a sustainable finance market in Canada is key to achieving a cleaner, net-zero economy.”
March 22, 2022
Canada to issue first green bonds this week
ISF Executive Director Sara Alvarado is quoted in the Globe and Mail today, discussing the importance of federal green bonds as a benchmark, and as a part of Canada’s soon to be released Emissions Reduction Plan. Additionally, according to Alvarado, the proceeds of green bonds will be important for funding projects that address climate change “adaptation” and help protect Canadians from the effects of climate-related disasters. It is often difficult to attract funding for such projects, but they are urgently needed.
March 21, 2022
Net-Zero Advisory Body provides advice for Canada’s 2030 Emissions Reduction Plan
The Net-Zero Advisory Body has released its submission to the Government of Canada, to inform Canada’s 2030 Emissions Reduction Plan. NZAB’s advice focuses on specific improvements and new measures that the Government of Canada should consider to help achieve its 2030 target of a 40-45% reduction in GHG emissions below 2005 levels. This advice comes in anticipation of GoC’s Emissions Reduction Plan expected to be published by the end of March 2022, the first time Canada has undertaken such reporting pursuant to the Net-Zero Accountability Act.
March 15, 2022
TNFD Releases First Beta Version of Nature-related Risk Management Framework for Market Consultation
"The Taskforce on Nature-related Financial Disclosures (TNFD) has released the first beta version of its nature-related risk-management and disclosure framework, marking an important step by the market to tackle the risk of nature-loss to the global economy and reduce the impact on nature."
March 9, 2022
Queen’s commits to reduce carbon footprint of university’s investment portfolios by 2030
"In line with Queen’s commitment to make a real and lasting impact in the fight against climate change, Queen’s Board of Trustees has endorsed its Investment Committee’s Final Report on Climate Change Action Task Force (CCATF) Recommendations, which includes a commitment to lower the carbon footprint across the university’s investment portfolios."
March 8, 2022
Spotlight on International Women's Day 2022
"This International Women’s Day, Smith Business Insight is showcasing women's achievements by featuring some of the most impactful ideas and articles by female faculty, staff, alumni and students from the past year. These thought leaders uncover useful insights for business across a diverse range of fields—from marketing and finance to leadership and social impact. "
March 2, 2022
Carbon Liquidity
"Allocating more capital to firms that can reduce emissions will help to achieve our GHG reduction goals more quickly. A paper by ISF’s Ryan Riordan and Martin Nerlinger of the University of St. Gallen demonstrates that firms that disclose their emissions are rewarded with more trading and greater liquidity, making it easier to attract and retain investors. According to the authors, these results should encourage greater disclosure by firms and embolden regulators to proceed with implementing TCFD or SASB standards for disclosures."
February 28, 2022
Indigenous Economic Reconciliation
"What is Economic Reconciliation? How does it apply to Indigenous communities and all Canadians across our land? And importantly, what can we do about it?" ISF are delighted to present an important new addition to our series of sustainable finance primer articles: "Indigenous Economic Reconciliation", by Clint Davis and Sara Alvarado.
February 11, 2022
Training Future Leaders to Thrive
According to Dean Wanda Costen at Smith School of Business at Queen’s University, "Preserving the planet is the issue of our times, and it cannot be solved without corporate innovation.” ISF has a vital role to play in meeting the exploding demand for ESG skills, and research on sustainable finance.
February 10, 2022
CPPInvestments: Investing in the path to net zero
CPPInvestments announced its today announced its commitment to achieving carbon neutrality by 2050. "As the world moves toward net zero, we aim to manage the investment risks and invest to capture and support value-creating opportunities that will arise as society works to remove greenhouse gas (GHG) emissions from the whole economy."
February 10, 2022
Salesforce Ties Executive Pay to ESG Performance
"CRM solutions provider Salesforce announced that it will begin including ESG goals in its executive compensation programs." Aligning incentives with sustainability goals helps accelerate the process of moving from strategy to execution. More frequently companies are moving in this direction, which is encouraging.
January 23, 2022
What is a climate stress test? A sustainable finance expert explains
"A stress test is a “what if” exercise, where we contemplate scenarios that would pose the most harm to our financial systems and well-being in order to determine how we can best manage through them. They’re now being increasingly applied to future climate change and the financial risks that come with it."
January 18, 2022
When it comes to ESG issues, Canada’s financial industry needs a skills upgrade
"Canada faces an ESG talent gap. There’s no shortage of discussion about the nuts and bolts of environmental, social and governance issues. Governments, regulators and investors are demanding more disclosure, more analysis and more management of business risks related to sustainability."
January 14, 2022
Bank of Canada/OSFI pilot helps Canadian financial sector assess climate change risks
"The Bank of Canada and Office of the Superintendent of Financial Institutions (OSFI) today released the results of a pilot project on climate scenario analysis. This pilot was an important step in helping Canada’s financial sector improve its ability to analyze economic and financial risks affecting financial institutions that could arise from climate change."
January 14, 2022
Bank of Canada/OSFI pilot helps Canadian financial sector assess climate change risks
"The Bank of Canada and Office of the Superintendent of Financial Institutions (OSFI) today released the results of a pilot project on climate scenario analysis. This pilot was an important step in helping Canada’s financial sector improve its ability to analyze economic and financial risks affecting financial institutions that could arise from climate change."
January 13, 2022
IEA tells Ottawa that provinces key to reducing energy sector’s emissions
"Current federal government policies set the stage for Canada to meet its ambitious climate goals, but Ottawa must consult with provinces and industry to form a concrete plan to lower the energy sector’s emissions to net zero, according to a new analysis."
January 13, 2022
Investors will pay the price if the holes in climate-disclosure regulations aren’t tightened
"Canadian public companies have to get used to the idea of reporting their climate-related risks. The question is how stringent the rules will be."
January 12, 2022
Corporate Greenhouse Gas Numbers Don’t Always Add Up
“As companies rush to set climate goals, some aren’t even getting the basics quite right when it comes to accounting for greenhouse-gas emissions.”
January 12, 2022
Two Canadian banks join with U.S. banks on managing climate change risks
"Two major Canadian banks are part of a new consortium of large financial institutions aiming to create common standards for managing risks from climate change, in tandem with the U.S.-based Risk Management Association."
January 5, 2022
Bank Fees for Green Debt Surpass Fossil-Fuel Financing
"It’s official. For the first time since the unveiling of the Paris climate agreement in 2015, banks earned more fees arranging green-related bond sales and loans than they did helping fossil-fuel companies raise money in the debt markets."
January 5, 2022
New ESG obligations loom large for Canadian finance
"It was a year of talk in sustainable finance in 2021. Now comes the action. From corporate net-zero emissions promises to regulatory changes that will make climate-related disclosure practices mandatory for companies, the stage is set for some key environmental, social and governance milestones"
January 5, 2022
Opinion: New ESG obligations loom large for Canadian finance
"From corporate net-zero emissions promises to regulatory changes that will make climate-related disclosure practices mandatory for companies, the stage is set for some key environmental, social and governance milestones."
December 30, 2021
Sustainable Finance, Let’s Get Disclosure Right by Jim Leech and Sean Cleary
"Right now, experts are weighing in on a decision that will affect not only Canada’s regulatory landscape but the future of the country’s competitiveness. That includes the ability of our businesses to attract global capital and to manage the risks and seize the opportunities of the transition to a net-zero world. That decision is if and how we mandate the disclosure of climate-related material data."
December 8, 2021
Changes coming to Canada's financial reporting and assurance standards
"Today the Independent Review Committee on Standard Setting in Canada released its Consultation Paper. The paper outlines key matters the committee suggests should be considered to keep Canada's financial reporting and assurance standards independent and internationally recognized. They invite feedback on how best to do so – both for financial and sustainability standard setting."
November 26, 2021
Canada worst on climate of G-7 nations: commissioner
'Canada has failed in its efforts to cut greenhouse gas emissions linked to global warning, the environment commissioner said on Thursday, ranking it as the "worst performer" among Group of Seven industrialised nations.'
November 16, 2021
Net-zero pledges, improved metrics to put pressure on coal power, say investors
" Ambitions to wind down the world's coal use are likely to be accelerated by corporate net-zero pledges and better ways of measuring where factories in the global supply chain get their power, investors said."
November 16, 2021
Key takeaways from COP26
"Sustainable finance expert Ryan Riordan (Smith School of Business) was a delegate at the UN Climate Change Conference last week. He shares his thoughts on the promises made during this crucial international gathering."
November 6, 2021
Switching gears: EVs important tool in tackling climate crisis – but is it feasible?
"The switch to electric vehicles (EVs) is among the tools at the disposal of policymakers as countries grapple with ways to tackle the global climate crisis at the ongoing COP26 summit in Glasgow. There is growing consensus among industry and climate experts that EVs can play a vital role in helping countries, like Canada, meet their net-zero emission targets, but it will be a long ride with roadblocks ahead."
October 25, 2021
Canadian Investors Representing $5.5 Trillion Send an Unprecedented Call for Increased Climate Accountability in the Corporate Sector
"Citing their fiduciary responsibility, 36 institutional investors managing $5.5 trillion in assets have signed a new Canadian Investor Statement on Climate Change. The Statement, signed by asset management divisions of five of Canada’s largest banks along with major institutional investors such as the Ontario Pension Board, calls on companies to act on material climate risks including through their industry association and lobbying activities."
October 25, 2021
‘Sustainable finance’ is a great buzzy phrase, but what does it actually mean?
"No matter your business or industry, “sustainable finance” is suddenly on everyone’s radar. It sounds responsible and important, for sure, but for those confused by the buzzy phrase—no judgment here—we asked leaders in the burgeoning field to explain."
October 21, 2021
Canada can and must do better on sustainable finance
"Two years ago, the Expert Panel on Sustainable Finance released a report focused on the need to align our financial systems with viable plans for timely emission reduction and climate adaptation in order to achieve our environmental imperatives while simultaneously bolstering our long-term global competitiveness."
October 18, 2021
Canadian securities regulators seek comment on climate-related disclosure requirements
"Calgary and Toronto – The Canadian Securities Administrators (CSA) today published for comment proposed climate-related disclosure requirements. The proposed requirements address the need for more consistent and comparable information to help inform investment decisions. They also demonstrate the CSA’s commitment in favour of the growing international movement toward mandatory climate-related disclosure standards."
October 15, 2021
Six of Canada's Largest Banks Join United-Nations-convened Net-Zero Banking Alliance
"TORONTO, Oct. 15, 2021 /CNW/ - Today, ahead of the United Nations Climate Change Conference (COP26) in Glasgow, six of Canada's largest banks – BMO, CIBC, National Bank of Canada, RBC, Scotiabank, and TD – together announced their pledge to join the Net-Zero Banking Alliance (NZBA) as part of a global, industry-led initiative to accelerate and support efforts to address climate change."
October 9, 2021
Two years on, Canada has adopted few recommendations from sustainable-finance panel: Report
The report published by Queen’s University’s Institute for Sustainable Finance (ISF) identified “moderate” progress on six recommendations, “marginal” progress on five and “minimal” progress on three items. Just one recommendation—to create the Canadian Sustainable Finance Action Council—gleaned “significant” progress status.
October 8, 2021
Government regulators too slow to implement climate finance rules, forcing Canada to play catch up, report says
"Canada must speed up efforts to improve disclosure of greenhouse-gas emissions to stay competitive, and many business leaders have called for standardized reporting, said the report by the Institute for Sustainable Finance (ISF) at Queen’s University’s Smith School of Business. But, so far, the government has held off mandating the use of a globally accepted program for measuring and assessing climate-related risks."
October 7, 2021
Le Canada doit passer à la vitesse supérieure et agir plus rapidement en matière de finance durable, conclut un rapport d'experts
L'Institut de la finance durable lance aujourd'hui un nouveau rapport évaluant les progrès du Canada en matière de finance durable et soutenant la compétitivité du pays. Le rapport, intitulé « Changer de vitesse : Progrès de la finance durable au Canada », prend comme point de départ les recommandations de 2019 du Groupe d'experts sur la finance durable et révèle que, bien que des progrès aient été réalisés par rapport aux recommandations, le Canada doit aller plus vite pour aligner les systèmes financiers sur une transition mondiale à faible émission de carbone.
October 7, 2021
Canada must change gears, move faster on sustainable finance, concludes expert report
The Institute of Sustainable Finance launches a new report today assessing Canada’s progress to scale sustainable finance and bolster Canadian competitiveness. The report, “Changing Gears: Sustainable Finance Progress in Canada”, uses the Expert Panel on Sustainable Finance’s 2019 recommendations as its starting point, and reveals that while progress has been made against the recommendations, Canada needs to move faster in aligning financial systems with a global low-carbon transition.
October 5, 2021
The Climate and Your Investments: How They Connect
"A Pembina Institute study published in March 2021 revealed that Canadians want to align their investments with climate goals, and a full 79 per cent want society to respond to climate change with the same urgency as COVID-19. Similarly, in December 2020, U.S. investment manager BlackRock shared results of a survey on sustainable investing. Among the findings: “investors representing US$25 trillion in assets plan to double ESG assets in five years" and “climate-related risks are the top sustainability portfolio concern for 88 per cent of respondents." "
October 1, 2021
ISF announces a vacancy for a position of Associate Director of Communications
The Institute for Sustainable Finance (ISF) is pleased to announce the opportunity to join our team as the first Associate Director of Communications. This is a unique and exciting opportunity to play a key role in the advancement of the Institute for Sustainable Finance (ISF) and be engaged in one of the most transformative issues of our day. As the inaugural Associate Director, Communications you will build on momentum generated by ISF since its launch in 2019 and establish the strategies and processes to sustain and enhance its effective communications going forward.
September 23, 2021
Institute for Sustainable Finance Welcomes New Research Advisory Council as Part of Ongoing Growth and Industry Collaboration
Today the Institute for Sustainable Finance announces its inaugural Research Advisory Council (RAC). The RAC will provide valuable input to ensure ISF’s research priorities represent the most critical sustainable finance issues affecting Canadian and global business, government and civil society.
September 21, 2021
Canadian ETFs: Latest launches include new ESG, bitcoin and inflation-protected bond funds
Accelerate Financial Technologies Inc. introduced the World’s first carbon-negative bitcoin ETF. Big Carbon footprints (substantial amount of electricity used in mining bitcoin) has been a big concern for investors. The ETF gives exposure to bitcoin while reducing its carbon footprint. Accelerate works with a leading third-party to execute a global tree-planting campaign to sequester carbon emissions and help fight climate change.
September 20, 2021
Sustainable investment funds release more data, details as investors seek transparency
"There’s no one way to define sustainable investing, but more fund providers in the space are beginning to provide hard numbers to back up their claims. The trend toward increased disclosure comes as sustainable investing sees both rapid growth and increased scrutiny by regulators and investors amid concerns the environmental credentials of funds are being overstated."
September 16, 2021
Ontario Teachers’ Pension Plan ramping up green investments in net-zero push
Ontario Teachers’ Pension Plan aims to vastly increase clean-energy investments and push companies in its $228-billion portfolio to set paths to net-zero carbon emissions, as one of Canada’s largest institutional investors shifts its strategy to deal with climate risks.
August 10, 2021
ESG Investors Question Their Own Methods After Grim Climate Report
"The damning United Nations report on global warming delivered a reality check for the investors betting that markets can limit the damage."
August 5, 2021
BMO Announces $12 Billion Financing Commitment towards Affordable Housing in Canada
BMO today announced a $12 billion commitment to finance affordable housing over a ten-year period in support of the Canada Mortgage and Housing Corporation's (CMHC) aspiration that all Canadians have a home that they can afford and that meets their needs by 2030.
August 3, 2021
Scotiabank Issues USD 1 Billion Sustainability Bond
"Scotiabank has announced the closing of its inaugural USD 1 billion 3-year Sustainability Bond offering, in support of the Bank's commitment to making a positive impact and creating better communities for every future. Net proceeds from the Sustainability Bond offering will be used to fund the financing or refinancing, in whole or in part, eligible green and/or social assets, which refer to new or existing assets, businesses or projects that meet the Scotiabank Sustainability Bond Framework Eligibility Criteria. "
July 27, 2021
New Climate Action Pathway for Finance Sets out Roadmap for Markets & Real Economy
"The UN Climate Change Secretariat has published a climate action pathway for finance which sets out a roadmap for financial markets and the real economy to align with a sustainable and resilient net-zero emissions future. Collectively, the 8 pathways provide a blueprint to coordinate climate ambition among cities, regions, businesses and investors in the run up to the crucial UN Climate Change Conference COP26 in November in Glasgow. "
June 29, 2021
Green building efforts reach new heights through advocacy, leadership and stakeholder engagement
"Increased attention on climate action is advancing the building sector’s intent and commitment to reduce carbon emissions from Canada’s buildings. Thomas Mueller, president and CEO of the Canada Green Building Council (CaGBC), believes this is the turnaround decade when Canada must accelerate carbon reductions in the built environment through purposeful action."
June 22, 2021
Corporate Canada must practise sustainable finance
"The pandemic has heightened awareness of the fact that the continuing crises of climate change, inequality, and lack of social cohesion are interconnected and must be addressed collectively. Economic thinkers from Mariana Mazzucato to Mark Carney agree that capitalism can no longer leave its damage for government and philanthropy to repair."
June 15, 2021
Millani's TCFD Disclosure Study: A Canadian Perspective
"In May 2021, Millani evaluated the quantity and the quality of current TCFD disclosure by issuers listed on the S&P/TSX Composite Index. Millani found that 23% of listed issuers are currently aligning to TCFD recommendations. The results demonstrate a current gap in climate reporting for Canadian issuers amidst increasing regulatory pressures and investor demand for climate-related disclosures. Further findings of the analysis are presented in this report."
June 7, 2021
G7 backs making climate risk disclosure mandatory
"Group of Seven (G7) rich countries backed moves to force banks and companies to disclose their exposure to climate-related risks on Saturday, a measure seen as vital to efforts to safeguard the financial system from climate change shocks."
June 6, 2021
Sustainability-linked loans a new frontier for responsible mining
"In late March, Newmont Corp. converted its existing credit facility to link it to the company’s sustainability performance, making it part of what experts say is a growing trend in sustainable finance."
June 3, 2021
Climate Change: Legal Implications for Canadian Pension Plan Fiduciaries and Policy-Makers
"According to a new legal opinion by Randy Bauslaugh, pension funds have a duty to understand and manage the financial risks and opportunities that climate change poses to funds and beneficiaries. Mr. Bauslaugh identifies the legal obligations of pension fiduciaries to consider and manage climate risks, as with any foreseeable financial risk, and discusses the practical approaches they might consider to meet their legal obligations and improve effective fund management of these risks."
June 2, 2021
Opinion: Canada’s pathway to a net zero world includes carbon capture, foreign investment and new financing mechanisms
"The International Energy Agency’s Net Zero by 2050 report is a landmark document showing a detailed pathway, complete with tangible milestones, to meet emissions targets by 2050. It calls for an overhaul of how the world is powered. If nothing else, the report clearly shows how difficult the path forward will be if we want to achieve net zero."
May 26, 2021
What is in your ESG fund? In Canada, there are no clear definitions for sustainable investments
"Canadians who want their retirement savings to reflect their progressive values are charging headlong into environmental, social and governance funds, and setting records in the process. But those who invest in ESG funds should know that the big stock holdings in many of those portfolios are the same as those at the top of the country’s main stock index – that is, big banks and big tech."
May 26, 2021
ESG-Linked Loans Grow in Canada as Regulator Takes on Climate
Canadian lenders and borrowers are increasingly turning to sustainable-linked loans ahead of potential regulations from the banking supervisor to deal with climate change.
May 21, 2021
Bank of Canada warns carbon-intense assets are mispriced
"Underestimating climate risk “is a very legitimate concern regarding asset prices, and one that we frequently hear expressed by financial institutions in our conversations with them,” said Sean Cleary, executive director of the Institute for Sustainable Finance at Queen’s University’s Smith School of Business. Prof. Cleary pointed to the bank’s assertion that a big problem facing investors is a “data gap” in climate-related information that can only be fixed with standardized disclosure systems adopted on a global scale."
May 20, 2021
CFA Institute Publishes Exposure Draft of ESG Disclosure Standards for Investment Products
"CFA Institute, the global association of investment professionals, announces today the publication of the Exposure Draft of its forthcoming voluntary, global Environmental, Social and Governance (ESG) Disclosure Standards for Investment Products (“the Standards”). The draft is an initial version of the Standards and seeks to elicit feedback on the Standards’ proposed principles, requirements, and recommendations."
May 12, 2021
Canada launches Sustainable Finance Action Council
"Around the world, investors and governments recognize that key to a sustainable economic future are sustainable financial investments. Sustainable finance is about incorporating environmental, social and governance factors into investment decisions and is a fast-growing market that is gaining speed as more and more businesses address climate change and transition to a low-carbon economy and seize the economic opportunities it presents."
May 6, 2021
Canadian pension officials hailed as climate champions
"Two Canadian pension fund officials were hailed Tuesday by the British High Commission and the Canada Climate Law Initiative as Canadian climate champions for their efforts to move Canada to net-zero emissions. The list of 26 champions includes Barbara Zvan, the inaugural president and CEO of the University Pension Plan, Ontario, and Kim Thomassin, executive vice president and head of investments in Quebec and stewardship investing for the Caisse de Depot et de Placement du Quebec."
May 5, 2021
Money lessons for 11 year olds created by 11 year olds
Fantastic discussion with Bruce Sellery, CEO, Credit Canada Debt Solutions and Sean Cleary, Chair of the Institute for Sustainable Finance (ISF). At segment 45:08 they discuss the work of the ISF, and the progress taking place in Canada in the realm of sustainable finance.
April 28, 2021
Institute for Sustainable Finance Welcomes New Advisory Board Members
The Institute for Sustainable Finance (ISF) welcomes ten new members to its advisory board. ISF’s mandate is to advance Canada’s sustainable finance capacity by fostering strong research, education and knowledge sharing, and collaboration among academia, business and government.
April 23, 2021
To meet climate targets, an ill-equipped private sector must do the heavy lifting
Prime Minister Justin Trudeau went into this week’s global climate summit armed with ambitious new emission reduction targets. Corporate Canada will have to shoulder much of load, and as things stand, the private sector is not ready.
April 22, 2021
Canada's Trudeau pledges new emissions reduction target of 40-45%
"Prime Minister Justin Trudeau told the global climate summit Thursday that Canada will make deeper cuts in greenhouse gas emissions by 2030. The new target is to cut those emissions by 40-45 percent below 2005 levels, Trudeau said, upping the previous goal of 30 percent under the Paris climate accord."
April 20, 2021
Canada sets new 2030 carbon reduction target, to issue first green bond
OTTAWA (Reuters) -Canada said on Monday it plans to cut carbon emissions more aggressively and issue its first green bonds, part of a global push for more action on climate change.
April 16, 2021
Canadian investors trail global peers on sustainability stewardship, according to data from UN affiliate
“Canada needs to push for more decarbonization at a firm level and an investor level. We’re wrestling with a transition to a green economy more [than some peers] because so much of our economy is tied up in extraction,” Ryan Riordan, director of research at the Institute for Sustainable Finance tells the Financial Post. “Investors need to decide what they want and what’s doable and coordinate to get it done,” Ryan notes of the effectiveness of shareholder activism in the transition to a green economy."
April 12, 2021
Canada-listed companies trail Europe in emissions disclosures
"Canada’s publicly-traded companies are running behind European and U.K. peers when it comes to disclosing their greenhouse gas emissions, according to a study from the Institute for Sustainable Finance. Around two-thirds of the S&P/TSX Composite Index disclose greenhouse gas discharges, according to the report written by Sean Cleary and Andrew Hakes. While that’s broadly in line with percentages seen the U.S., it falls below 79 per cent for European and 99 per cent for U.K. listed firms."
April 10, 2021
What does ‘net zero emissions’ even mean for Canadian business? Without set standards, it’s hard to tell
"Canada’s record leaves much room for improvement. A new study by the Institute for Sustainable Finance at Queen’s University’s Smith School of Business (which has funding from the Big Five banks) found that of the 222 companies on the S&P/TSX Composite Index, just 60, or 27 per cent, have published absolute emissions targets. That lags both the United States and the United Kingdom."
April 8, 2021
With increased global demands for climate data, new research shows Corporate Canada must step up its game
Today, the Institute for Sustainable Finance released the first-ever assessment of TSX companies’ climate target and disclosure performance. The key finding: Corporate Canada falls below several of its global competitors.
April 6, 2021
Institute for Sustainable Finance Appoints New Executive Director
The Institute for Sustainable Finance has announced the appointment of a new executive director. Sara M. Alvarado, a veteran investment professional with a focus on climate change and sustainability, will help the leadership team drive forward ISF’s mandate to build Canadian sustainable finance capacity.
April 2, 2021
Climate Action 100+ Issues its First-Ever Net Zero Company Benchmark of The World’s Largest Corporate Emitters
"Climate Action 100+, the world’s largest investor engagement initiative on climate change, has released its first-ever benchmark evaluating the corporate ambition and action of the world’s largest greenhouse gas emitters and other companies with significant opportunity to drive the net zero transition. The Climate Action 100+ Net-Zero Company Benchmark offers the first detailed, comparative assessments of individual focus company performance against the initiative’s three high-level commitment goals: reducing greenhouse gas emissions, improving governance, and strengthening climate-related financial disclosures."
April 2, 2021
Scotiabank releases its 2020 Environment, Social and Governance (ESG) Report highlighting progress in Diversity and Inclusion, Climate and Sustainable Finance
TORONTO, April 1, 2021 /CNW/ - Scotiabank today released its 2020 Environment, Social and Governance Report, a comprehensive review of the Bank's progress in delivering for every future. The report outlines Scotiabank's ongoing commitment to building a more resilient, inclusive and sustainable world by advancing the issues that matter most to customers, shareholders, employees, and communities.
April 1, 2021
14 people are mapping Canada's path to net-zero emissions — can they do it?
"It's a tall order, to say the least: take 14 people and ask them to figure out how Canada can meet its net-zero emissions targets by 2050. That's the job of the new Net-Zero Advisory Body, which was established as part of Bill C-12, the Canadian Net-Zero Emissions Accountability Act. It includes leaders from environmental organizations, the Assembly of First Nations, cleantech, finance, climate science, industry, labour and more."
March 27, 2021
He took over as the new leader of Quebec’s pension fund. Then the COVID-19 pandemic hit. A year later, he’s found a lot to be proud of
"In a move that shows particular commitment, notes Scan Cleary, executive director of the Institute for Sustainable Finance, CDPQ tied a portion of their employees' variable compensation to their success in meeting climate goals. By doing that, Sabia's administration created a direct financial incentive to weigh climate outcomes just like any other part of their long-term returns."
March 25, 2021
The Supreme Court rules Canada’s carbon price is constitutional. It’s a big win for Justin Trudeau’s climate plan
"OTTAWA—The Supreme Court of Canada ruled Thursday that the federal government has the power to impose a minimum carbon price across the country in the name of reducing greenhouse gas emissions “as a matter of national concern.”
March 21, 2021
Global warming could cut over 60 countries' credit ratings by 2030, study warns
"LONDON (Reuters) - A new algorithm-based study by a group of UK universities has predicted that 63 countries – roughly half the number rated by the likes of S&P Global, Moody’s and Fitch - could see their credit ratings cut because of climate change by 2030."
March 18, 2021
CEO Pay Tied to ESG Sets Canadian Banks Apart From the Crowd
Canada’s six largest banks have added ESG components to their chief executive officers’ compensation frameworks, putting them in a small minority of companies that tie executive pay to such measures. The moves, disclosed in the banks’ proxy circulars earlier this month, put them at the front of a push by activists and investors to establish incentives for actions like reducing emissions and diversifying workforces. In the Bloomberg article, Harlan Zimmerman, senior partner of activist investor Cevian Capital AB, stated linking progress on ESG to pay can prompt firms to make substantive changes rather than just image-polishing moves.
March 17, 2021
Canada, Germany sign green energy deal in bid to power fledgling hydrogen sector
"Canada and Germany have signed an agreement to team up on green energy innovation and trade — with an eye to hydrogen as the market for the low-carbon fuel heats up. Signed today by the two countries' energy ministers, the memorandum of understanding outlines a plan to co-operate on energy policy and research as both countries strive to reach the goal of net-zero emissions by 2050."
March 16, 2021
COVID-19 pandemic adds urgency to fight against climate change: Mark Carney
"Former Bank of Canada governor Mark Carney says the world's response to the COVID-19 pandemic could build momentum for a collaborative approach to the other great global crisis: climate change."
March 12, 2021
Institutional investors demand action from banks in fight against climate change
"The role of the banks in the fight against climate change is looming ever larger as investors and the public demand action. Increasingly, demands are getting results around the world. The latest example was this week, when HSBC, Europe’s biggest bank, managed to head off a May showdown with 15 major institutional investors by agreeing to a compromise over demands to strengthen its climate policies."
March 10, 2021
Financing the climate gap
"The Institute of Sustainable Finance (ISF) at Queen’s University estimates that Canada needs an annual investment of at least $12.8 billion over the next 10 years to meet our commitment to reducing carbon emissions under the Paris Agreement on climate change. While that may sound like a lot, it represents only 0.6% of Canada’s GDP in 2018 and less than 10% of annual capital expenditures of firms listed on the Toronto Stock Exchange.In other words, the ISF believes the task is doable – but not by government alone. With the right conditions in place, it predicts that pools of private savings and capital could be mobilized to finance up to 50% of the climate gap while improving prosperity in the process. But what should those conditions look like? And how will Canadian investors – whether large institutional asset managers like pension funds or individual Canadians saving for retirement – react to them?"
March 10, 2021
Bank of Montreal commits $300-billion to net-zero goal, sets up climate institute
"Bank of Montreal BMO plans to deploy $300-billion over the next four years to achieve net-zero carbon emissions, making it the latest of Canada’s big banks to pump major capital into reducing climate-related risks. As part of a new action plan, BMO is setting up a climate institute that will serve as a clearing house for science, analytics and technical expertise for risk management and adaptation as the economy moves to a lower-carbon future, the bank said Wednesday."
March 9, 2021
Partnership for a Net Zero World
"As BMO Financial Group announced its ambition to achieve net zero financed emissions in its lending by 2050, the bank hosted a virtual event [featuring ISF's Executive Director, Sean Cleary]... to discuss how the transition will be a driving force behind BMO’s purpose going forward, and to explain why clients are critically central to that."
March 1, 2021
Globe Climate: Changemakers said something needs to be done. They’re doing it.
"Ryan Riordan, an associate professor of finance at Smith School of Business at Queen’s University. "It could be easy being green, but how much will it cost? Riordan—a lifelong environmentalist at heart —is quite literally crunching the numbers in his industry-leading research, despite initial skepticism from the business community about its usefulness. That is, until the publication of his widely referenced recent report, “Capital Mobilization Plan for a Canadian Low-Carbon Economy,” which is the first to tally the costs of meeting Canada’s commitment to reducing greenhouse gas emissions by 30% by 2030."
February 25, 2021
RBC targets net-zero emissions by 2050, commits C$500 bln to sustainable financing
Feb 25 (Reuters) - Royal Bank of Canada (RBC) aims to achieve net-zero emissions across its lending operations by 2050 and has committed C$500 billion ($400.64 billion) toward its sustainable finance target, Canada’s top lender said on Thursday. The move comes at a time when investors have stepped up pressure on major banks and insurers to drop financing and insurance for fossil fuel companies.
February 24, 2021
CIBC joins Partnership for Carbon Accounting Financials
"CIBC (TSX: CM) (NYSE: CM) today announced it has joined the Partnership for Carbon Accounting Financials (PCAF), an initiative led by the financial industry to develop a harmonized global standard to measure and disclose the greenhouse gas emissions (GHG) of loans and investments. Using jointly developed GHG accounting methodologies will help enable CIBC to align its targets with the Paris Climate Agreement."
February 24, 2021
TD Bank Group Joins RMI as a Strategic Partner of the Center for Climate-Aligned Finance
"TD Bank Group announced... that it is entering into a strategic partnership with RMI's Center for Climate-Aligned Finance (the Center) to support the development of practical and scalable solutions that can help accelerate the transition to a more sustainable energy platform and economy. TD's support of RMI, a nonprofit clean energy organization dedicated to developing market-based solutions for a sustainable low-carbon future, is an important step under the Bank's Climate Action Plan. "
February 23, 2021
Socially responsible policies are good for corporate image, but are they a benefit to shareholders as well?
When BlackRock chair and CEO Larry Fink sent his annual letter to CEOs and clients in January, he used the opportunity to effectively put the entire investing universe on notice. He said the giant asset management firm, with US$9-trillion invested mainly in index funds, would be getting very serious about climate change. The issue would be “a defining feature” in companies’ long-term prospects, as Fink put it. “I believe we are on the edge of a fundamental reshaping of finance.”
February 18, 2021
Canada to launch national version of CA100+ to steward country’s big emitters
Ceres, the Responsible Investment Association of Canada (RIA) and investor association SHARE are among those spearheading the initiative, currently known as Climate Engagement Canada. It will mirror the well-known global engagement network Climate Action 100+, which coordinates hundreds of investors to undertake collaborative engagement with 167 of the world’s most polluting companies, in a bid to steer them towards Net Zero.
February 18, 2021
ESG Funds Need to Shrink Their Carbon Footprint Faster
"Recent analysis by Jordan Waldrep, chief investment officer of TrueMark Investment (US-based firm) revealed that the most popular ESG ETFs hold shares of companies with a carbon footprint that’s not much lower than companies that make up the S&P 500. Of the S&P 500 companies, 310 have published emissions data for at least the past four years. In his evaluation system, companies that have provided fewer years of information are penalized."
February 16, 2021
The rise of ESG investing has caught even top investors by surprise
"Dollar figures have become astronomical, with the world’s major financial players amassing capital specifically to invest in green energy, emissions reduction and other sustainable technologies. Each week, a parade of companies from all industries announces targets for net-zero carbon emissions in the coming decades."
February 10, 2021
Success of climate-disclosure software earns investor backing for Toronto’s Manifest Climate
"Sean Cleary, executive director at the Institute for Sustainable Finance at Queen’s University, said while interest in climate-risk disclosure has taken off in recent years, many firms still struggle to fully align with standards programs like the TCFD. There are multiple standards to choose from, making it challenging to decide which to follow, said Cleary. “This is also a new thing, so companies can’t rely on past experience to guide them,” he said. “With respect to TCFD, in particular, companies seem to not be providing sufficient information, particularly around scenario analysis.”
February 10, 2021
Brookfield Pursues $7.5 Billion Fund Devoted to ‘Net-Zero’ Shift
Brookfield Asset Management Inc. plans to raise at least $7.5 billion for a new climate-focused fund, as the Canadian investment firm builds out an ESG business led by former Bank of England Governor Mark Carney."
February 2, 2021
Role of Indigenous in environmental, social, governance reporting
"...Australia has been setting the stage for creating co-ordinated opportunities with many stakeholders including Indigenous nations with their Australian Sustainable Finance Initiative. A similar initiative ought to be adopted here in Canada to avoid the piecemeal approach to ESG considerations and Indigenous concerns."
January 25, 2021
Larry Fink's 2021 letter to CEOs
"As more and more investors choose to tilt their investments towards sustainability-focused companies, the tectonic shift we are seeing will accelerate further. And because this will have such a dramatic impact on how capital is allocated, every management team and board will need to consider how this will impact their company’s stock.”
January 21, 2021
Insurers see hefty payout from severe weather in 2020
Canada’s insurance industry paid out $2.4-billion because of severe weather events last year, dominated by a flood and a hailstorm in Alberta, continuing a trend of mounting losses amid a warming climate.
January 21, 2021
Biden plans to fight climate change in a way no US president has before
Joe Biden is preparing to deal with climate change in a way no U.S. president has done before – by mobilizing his entire administration to take on the challenge from every angle in a strategic, integrated way.
January 21, 2021
Ontario Teachers’ Pension Plan aims to get net-zero by 2050
TORONTO, ON – Building on over a decade of climate change efforts, Ontario Teachers’ Pension Plan Board (Ontario Teachers’) today announced its commitment to achieve net-zero greenhouse gas emissions by 2050. This is a meaningful decision that advances Ontario Teachers’ mission to deliver retirement security for its members, while creating a positive impact for its partners and the communities where it operates.
December 22, 2020
Canadian companies poor climate risk disclosure threatens to drive investors away
"Canadian investors want consistent and comparable company reporting of climate related risks and opportunities to inform their allocation of investment capital. Yet disclosure continues to be uneven across the country, creating the risk of capital moving to other jurisdictions with more transparent reporting."
December 20, 2020
Strengthened Climate Plan: For a Healthy Environment and a Healthy Economy
Justin Trudeau and Jonathan Wilkinson have announced our Liberal government’s new Strengthened Climate Plan for a Healthy Environment and Healthy Economy, including 64 new measures and supported by an initial $15 billion in investments to help build a better future.
December 10, 2020
Canada’s New Green Bond Will Help Mainstream Sustainable Finance
The federal government is taking an important step toward mainstreaming sustainable practices in Canadian financial markets with the decision to issue its first-ever green bond in 2021-22. The brief announcement, as part of Finance Minister Chrystia Freeland’s Fall Economic Statement (FES) on November 30, demonstrates meaningful progress in sustainable finance.
November 25, 2020
In unprecedented move, Canadian pension funds unite to call for greater ESG standards
"In an unprecedented move, some of Canada’s largest institutional investors have banded together to ask companies for more rigorous disclosures of environmental, social and governance factors, an effort they say is meant to promote more sustainable and inclusive economic growth."
November 19, 2020
Canada’s Leading Financial Institutions Commit $5 Million to Institute for Sustainable Finance
The Institute for Sustainable Finance (ISF) today announced that Canada’s big five banks, TD Bank Group, Scotiabank, CIBC, BMO and RBC, have committed $5 million to support ISF’s mission of aligning mainstream financial markets with Canada’s transition to a lower carbon economy.
November 16, 2020
Bank of Canada and OSFI launch pilot project on climate risk scenarios
"The Bank of Canada and the Office of the Superintendent of Financial Institutions (OSFI) today announced plans for a pilot project to use climate-change scenarios to better understand the risks to the financial system related to a transition to a low-carbon economy. A small group of institutions from the banking and insurance sectors will participate voluntarily in the project."
September 29, 2020
Critical capital blueprint
Today, the Institute for Sustainable Finance launches landmark research to provide a concrete, data-driven capital blueprint for Canada’s low carbon transition. The report – Capital Mobilization Plan for a Canadian Low Carbon Economy – highlights that cooperation between the public sector, private sector, and financial system is critical to securing investments needed to meet Canada’s 2030 climate targets.
August 1, 2020
Sustainalytics provides public access to ESG ratings
Amsterdam-based Sustainalytics has made its environmental, social, and governance (ESG) risk ratings on more than 4,000 public companies available on its website, the firm said in a release on Thursday. By making the ESG risk ratings accessible, “all financial market stakeholders can have visibility into the material ESG risks within companies,” the research firm said.
July 29, 2020
Institute for Sustainable Finance awarded major McConnell Foundation grant
The Institute for Sustainable Finance (ISF) today announced additional funding from Canada’s McConnell Foundation in support of its mandate to implement sustainable finance approaches that will enable the country to thrive through a low-carbon transition.
July 12, 2020
GRI and SASB announce collaboration
Amid rising global demand for clarity in the sustainability reporting ecosystem, the Sustainability Accounting Standards Board (SASB) and the Global Reporting Initiative (GRI) are pleased to announce a collaborative workplan to help the consumers of sustainability data understand the similarities and differences in the information created from these standards.
June 29, 2020
Canadian boards legally obliged to address climate risk, new study reveals
"Corporate directors have a legal obligation to address the risks and opportunities that climate change poses to the companies on whose board they serve, a corporate governance expert says in a new study."
June 18, 2020
Queen’s signs climate charter
Queen's has become a founding signatory on a charter that commits Canadian universities to responsible investing for the environment. Institute for Sustainable Finance is supporting Queen's University in this initiative.
June 1, 2020
Green income trusts could accelerate Canada’s energy transition
"Canada has a great opportunity to accelerate its energy transition and create a thriving low-carbon economy. How? By creating green income trusts with the same federal tax benefits that prevailed in the early 2000s, therefore giving private investors incentives to massively scale up investments in new low-carbon energy technologies. These could range from hydrogen, geothermal, wind and solar to carbon capture and storage."
June 1, 2020
Climate requirements in federal relief package could signal future policy priorities
Sean Cleary, Executive Director of the Institute for Sustainable Finance says it's a positive sign that the Canadian government's #COVID19 Large Employer Emergency Financing Facility (LEEFF) funding stipulates that companies who receive the money must publish annual climate-related financial disclosure reports.
May 21, 2020
SEC Urged by Advisory Panel to Tackle ESG Disclosures
The SEC’s Investor Advisory Committee says the “time has come” for the agency to consider requirements for certain environmental, social, and governance factors in public company disclosures. The panel on May 10 approved a 10-page recommendation for the agency to consider whether ESG matters should be folded into the existing disclosure regime for public companies.
May 12, 2020
Ottawa’s aid package a climate-change signal to big corporations
"Many big Canadian companies, notably those involved in resource extraction, will have to adopt much more detailed disclosure of climate risks to their businesses if they intend to take advantage of Ottawa’s newest package of emergency credit support."
May 7, 2020
CCA Appoints Expert Panel on the Circular Economy in Canada
Tima Bansal, a member of the Canadian Sustainable Finance Network (CSFN), has been appointed by the Council of Canadian Academies (CCA) to Chair the Expert Panel on the Circular Economy in Canada. The multidisciplinary panel will aim to examine the potential economic, environmental, and social impacts of advancing a circular economy across the country.
April 21, 2020
S&P Dow Jones Indices launches climate change index range
S&P Dow Jones Indices (SPDJI) has launched two indices with climate and sustainability-based objectives as part of a Paris-aligned and climate transition index range.
April 16, 2020
How responsible investors should respond to the COVID-19 coronavirus crisis
Responses to the COVID-19 crisis must be predicated on the basis of systemic integrity and long-term universal returns being more important than relative company performance. “PRI signatories should be supporting sustainable companies through this crisis – in the interests of public health and long-term economic performance – even if that limits short-term returns” states UNPRI.
April 10, 2020
The rise of sustainable finance
This article examines what sustainable finance is, what it does and why it’s important. It enlisted some experts: Smith professors Sean Cleary and Ryan Riordan. They’re key figures in the new Institute for Sustainable Finance, a national organization set up last fall, housed right here at Smith School of Business. Cleary, BMO Professor of Finance, is the institute’s executive director; Riordan, Distinguished Professor of Finance, is its director of research. So, let’s get started with the obvious question.
April 9, 2020
ESG Managers Say Pandemic Is a Stress Test That Proves Their Point
"Fund managers that were touting the benefits of ESG investing before the coronavirus outbreak say the pandemic has only strengthened their convictions and the performance of sustainable portfolios should vindicate their strategy."
March 13, 2020
The Risk of Letting Big Finance Write Its Own Climate Rules
"The six biggest Wall Street banks have now promised to get to net-zero emissions, after Citigroup Inc., Goldman Sachs Group Inc. and Wells Fargo & Co joined the club this month. But what does “net-zero” actually mean? For the planet, it’s the point at which the levels of greenhouse gases in the atmosphere stabilize, ending the sharp increase in heat-trapping emissions since the industrial revolution that have brought us to dangerous levels of global warming."
March 3, 2020
ISF Welcomes Federal Finance Committee’s Call to Action on Sustainable Finance
The Institute for Sustainable Finance (ISF) welcomes the pre-budget report of the Standing Committee on Finance, which calls on the federal government to adopt the recommendations of the Expert Panel on Sustainable Finance.
March 2, 2020
Canada’s move to a low-carbon economy will be ‘a big adjustment for many industries,’ Trudeau tells mining conference
Prime Minister Trudeau delivered a speech urging climate action at the mining conference in Toronto, three days after the House of Commons Finance Committee called for action on sustainable finance as a key pre-budget recommendation.
February 26, 2020
CPA Canada aligns with global accounting bodies to address climate change
TORONTO, Feb. 26, 2020 – The Canadian accounting profession, represented by the Chartered Professional Accountants of Canada (CPA Canada), has joined other 13 major accounting bodies in signing a call to action in response to climate change. Leaders of the accounting profession were united in their call for accountants around the world to “play their part” in addressing climate change that is “consistent with net zero emissions and climate change adaptation goals.”
February 21, 2020
Canadian investment markets turning green: Sustainable finance and green lending
Global recognition of the importance of environmental, social and governance (ESG) considerations among investors and firms has prompted an emerging trend of “sustainable” or “green finance” in lending and investment activities. Broadly, “sustainable finance” is a term that involves financial products which facilitate the financing of green, sustainable projects and sustainable businesses. These financial products generally reward borrowers for achieving predetermined sustainability performance goals which, in turn, impact the interest rate payable over the duration of the credit facilities.
February 12, 2020
Canada's Ontario province prices C$500 mln green bond - finance ministry
"TORONTO — Ontario, one of the world’s largest sub-sovereign debtors, priced on Wednesday a C$500 million ($377 million) 7-year green bond, the finance ministry said, with strong demand helping the province to borrow at a better rate than for its regular bonds."
February 12, 2020
BlackRock Drives ESG With New ETFs and Draws a $600 Million Investment
BlackRock announced the investment of $600 million by Ilmarinen, Finland’s largest pension insurance company, into a new ESG fund and the expansion of its iShares ESG lineup. The two announcements indicate the increased popularity of ESG, or environmental, social and governance, investing.
February 12, 2020
Feds under growing pressure to act on climate finance in next budget
Finance Minister Bill Morneau has said little publicly about sustainable finance over the past seven months since a federally appointed panel argued that climate-related issues must become mainstream considerations in Canada’s financial sector. But with the Liberals preparing for their first minority-government budget, Morneau is under growing pressure to act on the panel’s call for better data and clearer rules on climate-related finance and other incentives to drive capital into emerging low-carbon technologies. The government remains committed to acting on sustainable finance and will “consider the [panel’s] recommendations very closely,” Morneau’s spokesperson, Pierre-Olivier Herbert, said in an interview. He would not comment on what measures are being considered for the budget.
February 6, 2020
Mark Little, Eric Martel and Dave McKay: Canada can be the sustainable energy power of the world
"Even with all of the developments in renewables — and their decreasing costs, and increasing use — 80 per cent of the world’s energy still comes from fossil fuels, a level unchanged since 1990. The world needs more energy every day. At the same, global GHG emissions need to go down — fast. Solving this dilemma is the major challenge of our time."
January 28, 2020
Your Company’s Next Leader on Climate Is…the CFO
"If your chief financial officer is the last person you would think of to take charge on climate change, think again. Today, smart organizations are shifting their sustainability responsibilities toward the finance function. There are several reasons for this change. First is the basic math, which falls largely within a CFO’s purview. Mitigating and adapting to climate change will require close to $1 trillion in investments per year through 2030 for the economy as a whole, and is also expected to put at risk between $4.2 trillion and $43 trillion of tradable stock exchange assets by the end of the century, depending on the level of planetary warming. (The latter number is for a world that has warmed by 6 degrees Celsius.)
December 1, 2019
Mark Carney to lead UN effort to get finance industry to deal with risks of climate change
Mark Carney, a Canadian who headed the Bank of Canada from 2008-2013 and is currently the Governor of Bank of England "will lead a push by the United Nations to make the financial sector take full account of the risks posed by climate change, UN Secretary-General Antonio Guterres said on Sunday."
November 19, 2019
Opinion: Climate Proofing Canada's Economy
"Canada cannot wait to establish the expertise required to navigate successfully to a low-carbon economy. If we delay, others will shape Canada’s economic future for us." The Globe and Mail published an opinion piece by Jim Leech, Chancellor of Queen’s University, former President and CEO of the Ontario Teachers' Pension Plan, and a member of the advisory board for the Institute for Sustainable Finance, and Sean Cleary, BMO Professor of Finance at Smith School of Business and the executive director of the Institute of Sustainable Finance.
November 6, 2019
CPPIB increased its renewable-energy investments a hundredfold since 2016: Report
The Canada Pension Plan Investment Board’s (CPPIB) renewable-energy holdings topped $3 billion in June, more than doubling the assets it held in the sector a year earlier and up from $30 million in 2016. Along with its more than hundredfold increase in renewable-energy investment in just three years, CPPIB has started screening all new investments in its $400.6-billion portfolio for risks and opportunities linked to climate change, according to the pension fund’s latest report on sustainable investing.
October 24, 2019
What if Financial Markets Just Can’t Cope with Climate Uncertainty?
Report on Business Magazine’s Big Idea series featured research by ISF Director of Research Ryan Riordan, which looked at how climate events, such as Hurricane Sandy, affect behavior on trading floors.
September 30, 2019
The world needs a new, sustainable financial system to stop runaway climate change
"A new, sustainable financial system is under construction. It is funding the initiatives and innovations of the private sector and amplifying the effectiveness of governments’ climate policies—it could even accelerate the transition to a low-carbon economy. Unfortunately, like virtually everything about the response to climate change, this new sustainable financial system is not developing fast enough for the world to reach net zero."
September 25, 2019
Choices made now are critical for the future of our ocean and cryosphere
The Intergovernmental Panel on Climate Change (IPCC) launched a special report highlighting the urgency of prioritizing timely, ambitious and coordinated action to address unprecedented and enduring changes in the ocean and cryosphere.
September 23, 2019
33 banks commit to immediate action towards aligning with global climate goals
To coincide with the UN Secretary-General’s Climate Action Summit, one day after the launch of the UN Principles for Responsible Banking , 33 of their signatories with over $13 trillion in assets announced a collective commitment to climate action. With this groundbreaking pledge, founding signatories of the Principles are taking tangible steps towards putting their commitment to align their business with international climate goals into practice.
September 23, 2019
Investors make unprecedented commitment to net zero emissions
In one of the boldest actions yet by the world’s largest investors to decarbonize the global economy, an alliance of the world’s largest pension funds and insurers – responsible for directing more than US$ 2.4 trillion in investments – committed to carbon-neutral investment portfolios by 2050. This commitment by the newly launched, United Nations-convened Net-Zero Asset Owner Alliance was announced at the UN Secretary-General’s Climate Action Summit, which brought together governments, companies and civil society to strengthen commitments and accelerate the implementation of the Paris Agreement on Climate Change.
September 9, 2019
The Global Research Alliance for Sustainable Finance
The Global Research Alliance for Sustainable Finance (GRAFSI), a consortium of global research universities with expertise in the emerging field of sustainable finance, has confirmed Queen’s University as a member. The ISF is housed at Smith School of Business at Queen’s University in Canada. GRAFSI was founded in 2017 to support high-quality, multi-disciplinary academic research and collaboration to inform much-needed developments in the theory and practice of sustainable finance and investment with an aim to aligning the financial system with global environmental sustainability.
June 16, 2019
Sustainable finance: Canada risks being left behind in low-carbon economy
Earlier this spring, the most in-depth analysis to date on Canada’s changing climate provided clear evidence that Canada is warming twice as fast as the global average. As we increasingly experience the physical impacts (flooding, extreme weather, forest fires), we will experience the financial impacts as well in the form of both increasing market risks and unprecedented investment opportunities.
June 14, 2019
Expert panel on sustainable finance
The Canadian Expert Panel on Sustainable Finance, convened by the Minister of Environment and Climate Change Canada (ECCC) and the Minister of Finance, launched its final report. One of the panel’s main messages is calling on governments, regulators, and businesses to “consider these recommendations in charting Canada’s course toward a sustainable, prosperous, and resilient future.”
January 14, 2019
BlackRock shakes up business to focus on sustainable investing
BlackRock has unveiled sweeping changes in an effort to position itself as a leader in sustainable investing after criticism that the company has failed to use its clout to combat climate change. The world’s largest fund manager, with $7tn in assets, will double the number of sustainability-focused exchange traded funds it offers to 150. It will also cut companies that derive a quarter or more of their revenues from thermal coal from its actively managed portfolios, as it aims to increase its sustainable assets 10-fold from $90bn today to $1tn within a decade. The changes were announced in a letter sent to clients on Tuesday and released concurrently with chief executive Larry Fink’s annual letter to chief executives, in which he warned climate change represented a risk to markets unlike any previous crisis.