Today the federal government announced the formation of the Sustainable Finance Action Council, fulfilling one of the recommendations of the Expert Panel on Sustainable Finance. Following the announcement, Don Forgeron, President and CEO, Insurance Bureau of Canada (IBC), issued the following statement:
"Insurance Bureau of Canada is pleased to see the formation of the Sustainable Finance Action Council. We anticipate the Council will articulate a long-term policy framework and road map for low emissions and climate-resilient growth, and develop a capital plan to meet these goals. We will be watching its progress with enthusiasm, as the Council will focus on issues of importance to our industry and to all Canadians. Insurers continue to stress the need to coordinate physical and transition risk data through a Canadian Centre for Climate Information and Analytics. Consistent disclosure of climate-related financial risk is essential to incentivize the investment needed to transition Canada to a net-zero, resilient economy by 2050.
Mobilizing private sector capital is critical to financing the transition to a low-carbon economy. Around the world, institutions and investors are increasingly factoring environmental, social and governance considerations into their business and investment decisions, and evaluating the climate change risks and climate action opportunities of their assets and portfolios. Developing sustainable finance in Canada will promote the long term growth and stability of our financial system in the face of climate change. Sustainable finance will also create new opportunities for Canadian businesses and investors. The creation of the Council is a win for Canada and will benefit Canadians in the near and long term."
Additional information on the Sustainable Finance Action Council:
The goal of this Council will be to make recommendations on critical market infrastructure needed to attract and scale sustainable finance in Canada in order to enhance climate disclosures and ensure access to sustainability data and climate risks. As well, the Action Council will develop standards for investments to be identified as sustainable.
Canada's Minister of Environment and Climate Change and Minister of Finance jointly appointed the Expert Panel on Sustainable Finance in April 2018 to explore this field and to make recommendations to scale and align sustainable finance in Canada. In 2019, the Panel made a series of recommendations, one of which was to launch a Sustainable Finance Action Council. In its 2020 fall economic statement, the Canadian government allocated $7.3 million dollars over the next three years to fund this Sustainable Finance Action Council.
