The Canadian government announced new climate-related disclosure requirements for large companies and a third-party developed sustainable investment taxonomy that will facilitate financing and investments needed to achieve net zero 2050 and 1.5C temperature rise goals.
The government said the taxonomy could include existing natural gas for its potential to displace more polluting fuels internationally but doesn’t expect that new natural gas production would qualify.
Speaking at the same Toronto Principles for Responsible Investment conference as Chrystia Freeland, Mark Carney "also emphasized the importance of going beyond emissions disclosure to also mandate that companies say how they plan to reach net zero" and that “governments should act now by adopting consistent and comparable taxonomies, and mandating transition plans for large companies.”
My take it that the government is signaling what it expects of certain businesses and that sustainability reporting (note that they no longer use the term "ESG") is not going away any time soon.
I discourage people from waiting for a change in government in hopes that the requirements will be removed. I believe they will become ingrained in business practices, and companies must be aware and prepared.
If you aren't sure how to begin, reach out to Deidra Garyk at dgaryk@equipoisability.com.
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