Canadian investors launch initiative to support corporate climate plans
Announcement comes as Norwegian shipping exec urges EU to retain transition-plan requirements in CS3D and CSRD
Canadian investors have launched a project to help companies develop credible climate transition plans.
‘Business Future Pathways’, announced on Tuesday, promises “tailored guidance” that will help “forge even stronger connections with investors and markets in the EU, UK, and across the globe”.
“When it comes to proving climate readiness, Canadian companies are on their heels while global competitors charge ahead,” the initiative states on its new website.
“Between Canada’s emissions-intensive economy, an alphabet soup of evolving standards, and increased policy and market uncertainty, most Canadian companies are struggling with where to start.
“Without more clarity, they risk ceding capital and market access to their competitors.”
The initiative is chaired by Barbara Zvan, the CEO of the University Pension Plan Ontario and a member of the Canadian government’s Sustainable Finance Action Council.
It promises to deliver “practical, investor-endorsed, and internationally-aligned guidance” to firms, but doesn’t provide any further details.
Last month, Canadian regulators announced they would suspend efforts to roll-out climate disclosure requirements in line with the International Sustainability Standards Board, blaming the US Government’s current crackdown on companies that pursue decarbonisation.
The body for Canadian securities administrators said at the time that it made the decision to ensure national firms remained competitive.
But Business Future Pathways’ website says: “While our neighbours to the south pull back on climate readiness, Canadian companies can move ahead. Doing so will forge even stronger connections with investors and markets in the EU, UK, and across the globe – opening doors for investment.
Debate continues in Europe
Elsewhere, the head of sustainability at Norwegian shipping firm MPC Container Ships has urged EU lawmakers not to axe transition plan requirements as part of its current simplification agenda.
There are ongoing discussions in European Parliament and Council about whether, as part of the ‘omnibus’ package, to remove existing obligations for large companies to publish and implement such plans.
Speaking during a webinar hosted by consultancy Position Green on Tuesday, Sebastian Ebbing said “it wouldn’t be a good idea to strip down any requirements on transition plans”.
He welcomed moves to pare down sustainability reporting requirements, but said transition plans were not “simply a reporting burden”.
“Contrary to reporting obligations, the transition plan is where you put down your strategy, your risk management and… how you plan to finance your transition.”