This review concludes that a strong disclosure regime such as that identified by the TCFD under its recommendations would assist materially in ensuring climate risk mitigation in Canada.
It would facilitate better investment decisions and assist with the maintenance of financial stability, as Canada and its global trading partners seek to transition to a lower carbon economy.
Practical actions for better climate disclosure in Canada
- The Government of Canada, and federal and provincial regulators (including the Canadian Securities Administrators) should endorse the TCFD’s final recommendations.
- The Toronto Stock Exchange and TSX Venture Exchange should consider referencing the TCFD’s recommendations in reporting guidance and in addition, consider joining the Sustainable Stock Exchanges Initiative.
- Canadian companies should adopt the TCFD’s recommendations as a useful voluntary framework for consistent climate-related disclosures to investors. Sharing of good practice will assist in overcoming implementation hurdles, with convergence in reporting frameworks needed in the longer term.
- Investors should engage with companies to adopt the TCFD’s recommendations. Investors should also evolve their disclosure to beneficiaries and clients, informed by the TCFD’s guidance for asset owners and managers.
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TCFD Recommendations: Country reviews - Canada
Produced in collaboration with Baker McKenzie