As a step towards implementing Fiduciary duty in the 21st century’s recommendations, the Canada roadmap sets out recommendations in four categories: regulatory action, stewardship, corporate reporting and investor education.

Regulatory action

  • Canadian pensions regulators should require pension plans to disclose ESG integration practices.
  • Canadian securities regulators should introduce mandatory “say on pay” votes.

Stewardship

  • Asset owners should advance trends and best practice in shareholder engagement.

Corporate reporting

  • The Canadian Securities Administrators (CSA) should conduct a comprehensive review of the reporting of material ESG factors, following which it should expand its reporting framework and guidance.
  • The Toronto Stock Exchange (TSX) should expand its corporate reporting guidance and ultimately its listing requirements regarding ESG factors, and become a signatory to the Sustainable Stock Exchanges initiative (SSE).

Investor education

  • Trustee boards should ensure capacity and competence on ESG issues. This should be industry-led.

This work also sets the Canadian capital market in a broader international context, as regulators and investors respond to a rapidly-changing investing environment. Following assessment of seven further markets (Australia, Brazil, Germany, Japan, South Africa, UK and US), the PRI, UNEP FI and The Generation Foundation will prioritise the areas to which we will contribute.

Produced in collaboration with UNEP FI and Generation Foundation

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