. A growing chorus of voices has made that clear. Take the rare joint call for better disclosures by Canada’s eight largest pension funds, collectively responsible for more than $1.6-trillion in assets. This past summer, the country’s 10 largest pension funds issued a similar joint statement in response to the U.S. Securities and Exchange Commission’s request for input.
First, the decision to exclude climate scenario analysis is a significant missed opportunity. Scenario analysis is a fundamental component of identifying a company’s exposure to climate risk. The process is consistent with TCFD requirements, which are rapidly becoming the global standards. Excluding this requirement limits the ability of capital providers to comprehensively analyze the impact of climate change, disadvantaging Canadian companies on the global scene.
Second, we strongly disagree with providing issuers the option to not disclose their greenhouse gas emissions as long as they can provide an explanation for doing so. Many firms currently disclose their emissions in Canada. In other jurisdictions, such as the EU and Britain, a much higher percentage of firms do so. Such information is essential for capital allocators, regulators and the companies themselves as we transition to a net-zero economy by 2050.
Third, while TCFD reporting requirements are comprehensive with respect to climate-related matters, reporting in alignment with the Sustainability Accounting Standards Board framework is very complementary, as it provides more in-depth information on other critically important ESG issues. The strong demand for both TCFD and SASB reporting is evident in the joint statements by Canada’s largest pensions, which called for disclosures aligned with both frameworks.
Raise interest rates
Sustainable finance is kind of a boogy word if you think about it. I mean, it's something that's meant to sound kind of positive, but it's not really a word that has anything to do with finance at all. So the problem with it is the only companies that use the word 'sustainable'